Most employers will say that the most important thing for their employees is the salary. After all, that’s practically the main reason why people go out to work every day, right? While that’s true, focusing on material benefits alone won’t help your employees go the extra mile. And when they don’t exert any effort to go the extra mile, you can’t expect your company to perform at its best either.
That’s where employee recognition programs come in. Here are three reasons why they’re important:
- Gives employees positive feedback for a job well done
It’s very hard to tell anybody to aim high without setting any goals. After all, when you haven’t defined what that person should aim for, that person may not exert enough effort to hit targets. This is especially true in the workplace—where ideally, employees need to know all their KPIs.
That’s where employee recognition programs come in. A well-designed program has clearly defined goals that your workers can aim for. Of course, the recognition and rewards they’ll get once they’ve reached those goals will reinforce the kind of behavior and performance that you want them to demonstrate.
- Helps increase employee engagement
As stated above, while most people work for the money, that’s not the only factor that matters for employees, especially highly skilled ones. That’s because even if you offer a hefty paycheck, if your employees don’t feel appreciated or they aren’t passionate about their jobs, they will eventually start to become disengaged. And when they’re disengaged, they’ll do worse at their tasks.
After all, employee engagement is crucial for any company that wants to succeed. Studies have shown that organizations with high levels of employee engagement score around 38% higher on customer satisfaction surveys than those with disengaged employees. These high scores also reflect on other metrics. For instance, organizations with high employee engagement are also 22% more profitable and 21% more productive than their competition. With employee recognition programs playing a huge role in employee engagement, it makes sense to invest in one.
- Helps stem attrition rate
Of course, if your employees are more engaged, there’s less of a reason for them to leave. Around 64% of employees leave their current work because they feel unappreciated; that’s a huge number of workers that your company cannot afford to lose. And since employee recognition programs address that vital need, it’s important to have one in your organization.
On top of that, investing in an employee recognition program can be cheaper than being consistently on the hunt for a replacement. Other than the time and effort spent on the search, there’s also the additional cost of onboarding a new hire, plus a bit of downtime during the transition period. As that saying goes, time is gold—and that’s a lot of gold that you’d rather spend keeping your employees in your company.
As you can see, these three reasons just give a general overview of what a well-designed employee recognition program can do for your company. So start making plans to implement that kind of program in your office today.Your employees will thank you for it.