To succeed in today’s ultra-competitive business environment, a company needs skilled and competent workers. While skills and competence are critical in a workforce, how well a company motivates its workforce also influences productivity and efficiency within the firm. Employee recognition is one tool that successful companies use to motivate their workforce. Read on to discover more about employee recognition and how it improves staff productivity.
What is employee recognition?
Employees contribute immensely to the success of the company. Without them, most of the day-to-day operations would grind to a halt. Wise business owners know the importance of appreciating their workforce. Praise from co-workers and supervisors can be a powerful motivation tool for any employee.
Employee recognition refers to acknowledging a staff member for their exemplary input in achieving an organization’s goals. Employee recognition also encourages practices and behaviors that lead to positive results and improved performance.
Does staff recognition improve productivity?
A lack of recognition ranks as one of the top reasons employees leave an organization. This lack of appreciation can make employees feel undervalued and not useful to the organization. Regular employee appreciation can do wonders for your organization. Here’s how employee recognition boosts productivity.
Appreciation by peers and supervisors can be pretty uplifting for an employee. Staff members are unlikely to forget appreciation from the CEO and directors. When high-ranking leaders spare their time to recognize an employee’s effort, they leave a lasting positive impression on the individual.
When a company’s staff is motivated, they tend to put more effort at work leading to high productivity levels. Frequent recognition is a proven morale booster and should be incorporated into every organization’s culture.
Better staff retention
A high staff turnover can affect an organization’s productivity levels. While poor pay and unconducive working environments contribute are the high ranking reasons for staff turnover, lack of recognition can also unsettle your employees. A company that consistently loses its best employees will eventually suffer from a drop in labor quality. Losing key staff members due to poor or lack of recognition can also affect existing client relationships.
Employees who feel valued stay longer in the organization. During this time, they can pass on their skills to recruits and junior employees. This collaboration ultimately benefits the company through better staff retention, improved performance, and high productivity.
Improving productivity through employee engagement
Recognition is one cost-effective method that employers can use to boost employee engagement within the organization. Gallup defines employee engagement as the active involvement of employees in decision-making and day-to-day management of an organization’s affairs. Gallup also notes that companies with high levels of staff engagement tend to be more profitable and perform better than their competitors.
Employees become more psychologically invested in an organization when they feel appreciated for their efforts. Companies that promote employee engagement will benefit from having fewer negative outcomes. Employee engagement leads to fewer cases of absenteeism, indiscipline, and fraud from employees.
Top ways to recognize employees
Today, many companies recognize employees’ years of service with service awards.
Career celebrations are significant for employees who are close to retirement. The company can also award symbolic gifts to employees for every 5 or 10 years they work at the organization.
Exemplary performance awards
Companies should reward hardworking employees who go above and beyond to meet organizational goals. Such rewards shall come in the form of gifts from supervisors and colleagues. Bonuses are another way to recognize and reward hard work among employees.
Ongoing effort recognition
These may take the form of informal appreciation, such as a thank you note from top management. An email or face-to-face commendation from bosses are other excellent ways to appreciate your staff. Birthdays, work anniversaries, and welcoming a new family member are other noteworthy events that companies can use to appreciate their employees.
Staff recognition programs should be transparent and all-inclusive. All employees should be eligible for recognition because excluding individuals or groups can negatively affect employee perception of the company. The timing of the recognition also matters. Companies should not wait too long to reward their workforce. Companies should recognize employees as soon as they show exemplary performance at the workplace to boost business productivity and employee retention.