Employee recognition is the act of letting your employees know that their hard work is valued and recognised, this can be achieved by rewarding employees in a variety of different ways. A reward can come in all shapes and sizes, from something as small as a day off on your birthday, or something as extravagant as an unforgettable incentive trip.
There are many benefits that can be achieved through employee reward and recognition, a couple of examples are:
Engaged employees - An engaged employee has an emotional commitment or alignment to the values, goals and aims of the company they work for reward and recognition is one of the 9 key factors of achieving engaged employees.
Increased productivity - A recent study by Globoforce found that 78 percent of employees would work harder if they were better recognised by their employers. Employees are more likely to be happier and more engaged if they are being equally rewarded and recognised for their hard work over the year. This then results in a higher productivity level.
Employee retention - Qualtrics have found that employees whose managers consistently acknowledge them for good work are 5x more likely to stay at the company as they feel more appreciated. If organisations implement a culture of recognition, they are more likely to retain staff and have a strong and happy team.
Increased revenue - This comes from all of the above points together when executed effectively. Increased productivity, employee retention, and employee engagement all work to create operational efficiencies within organisations. 56 percent of managers consider reward and recognition programmes as an investment rather than an expense.