27 May, 2022
Employee Recognition: Importance and Key Benefits
Reminisce about the last time you worked exceptionally hard and put ample effort into acing a presentation or closing a deal. That feeling of accomplishment is unmatched as it gives you unrequited confidence and uplifts your self-esteem, but this sentiment crosses its’ bounds when your peers, managers, or colleagues acknowledge and notice it. Thus, the act of simply appreciating good work can go a long way in elevating one’s morale.
This is exactly why employee rewards and recognition are rudimentary to the corporate world. Recognizing employees’ contributions is in fact, a cornerstone of effective people management and enriched business performance. But today, as the war for talent escalates amid the Great Resignation and other professional crises, the strategies used to appreciate and value the people in an organization have become more important than ever.
Why is Employee Recognition Important?
Organizations with formal recognition programs have 31% less voluntary turnover than their counterparts, and are also 12 times more likely to have strong business outcomes. This spike can be attributed to the core ideals in behavioral psychology, such as the innate desire to go the extra mile when one feels values, heard, and cared for. Key aspects ranging from performance and goal achievement to development and future excellence are all inextricably linked to rewards and recognition.
Apart from these obvious advantages, the importance of adequate recognition is also portrayed in self-introspection and individualistic motivation. According to Gallup, lack of recognition is the top reason why employees quit their jobs. Appreciation is a fundamental human need that reflects in the employee sentiment. When your people are acknowledged and noticed for their good work, they automatically feel more connected to their job, their team, and the organization as a whole. Thus, employee recognition can work as a unique differentiator in your employee value proposition, both extrinsically and intrinsically.
Key Benefits of Employee Recognition
One of the most significant benefits of recognition is employee engagement. Research has found that when employees believe they will be recognized, they are 2.7 times more likely to be highly engaged. Being a key aspect of employee experience, engagement directly correlates with job satisfaction as well as the intent to stay.
Employees who feel appreciated are more likely to stick with an organization, through thick and thin. Recognition is one of the most impactful non-financial factors that influences employee retention and thus, should be leveraged appropriately to grow as a business.
The salient connection between being recognized and being productive cannot be discussed enough. The deep-seated human craving to be appreciated is well-grounded in every employee, that ultimately leads to enhanced productivity if credit is given where it’s due. Read more about how productivity can be elevated with rewards and recognition here.
4. Organizational Culture
Examples of businesses across the globe show that practicing recognition is a surefire way to develop the culture you want to see at your organization. However, figuring out how to operationalize your core values and embed them into your organizational DNA is a major problem faced by firms nowadays. How do you put actionable steps behind the values you share so widely? Recognition can be one of the tranquil solutions for building an ideal, people-centric organizational culture. Value-driven behaviors can be encouraged via offering ample recognition for the same.
Leverage a Digital R&R Platform Today!
A study on the importance of recognition found that today’s most progressive organizations use their recognition programs to consistently reinforce key behaviors and outcomes necessary to drive business success. It’s time for your organization to join the revolution too!
Digital R&R platforms are a must if you aspire to foster a culture of recognition at your organization. Firms that deploy a digital platform are 72% more likely to rate their culture of recognition highly and 23% more likely to rate their employer brand highly, studies reveal. Moreover, the key benefits mentioned above can be leveraged with ease by using digital R&R tools.
Connect with us today to book a demo of our novel R&R platform, Gratifi!