When growing a business, it is easy to get caught up in the many tasks and challenges at hand, and forget to recognize the amazing work the people around you are doing. However, this is one of the most important things you can do to keep your people happy and your business thriving. We’ve outlined a few reasons why you shouldn’t underestimate the power of employee recognition, as well as how to get better at regularly doing it.
Recognition Directly Affects Engagement
In today’s world of work, employers are constantly trying to keep people engaged and invested in the company. The most important part of any CEO, manager, or HR professional role is knowing how to retain top performers. It turns out that one of the most impactful ways of retaining and keeping employees engaged is to show them appreciation.
Bersin by Deloitte found that in organizations where recognition occurs, employee engagement, productivity and customer service are about 14 percent better than in those where recognition does not occur. Additionally, Bersin found that companies with recognition programs highly effective at improving employee engagement have 31 percent lower voluntary turnover than their peers with ineffective recognition programs.
Recognition Stimulates Greater Trust
Trust is key to creating an attractive and productive workplace. One of the best ways for managers to build trust amongst their employees is to show that they care about their accomplishments. According to a survey from Globoforce, 86 percent of employees who were recognized in the past month said they trusted their boss. This diminished by almost half when employees had never been recognized, as only 48 percent said they trusted their boss. That is a pretty strong correlation!
Recognition Drastically Improves Job Satisfaction
HBR outlines a 2015 study that suggests a striking connection between recognition and job satisfaction; seven out of 10 employees who report they’ve received some form of appreciation from their supervisors say they’re happy with their jobs. The HBR article also talks about the importance of frequency; among employees who were called out for great work in the past month, 80% feel fulfilled at work. That number declines sharply with time: 75% satisfied (recognized in the past 1-2 months); 71% (past 3-5 months); 69% (past 6-12 months); 51% (past 1-2 years); 42% (more than 2 years ago).
When looking into why employees choose to leave their jobs, it was found that 45.24% of people quit because of lack of recognition.
Getting Employee Recognition Right
We now know how important employee recognition is given the vast amount of research done on it. Google’s Project Oxygen believes the most important aspect of being an exceptional manager relies on their ability to be a good coach and to show employees they genuinely care. By making sure you are giving recognition in an authentic, descriptive, and timely manner, you can improve job satisfaction, increase trust, and keep your employees engaged. Luckily, today there are more tools available that can help you gain a better understanding of how your people feel, as well as tools that help you recognize your employees’ successes.