What is employee recognition?
Employee recognition refers to the act of acknowledging and rewarding an individual or a team. It recognizes achievements, performance, contributions, effort, and behavior, primarily when their actions reflect the company’s values, mission, or goals. Recognition can take many forms. There are different awards and trophies available at societyawards.com. A holistic approach that requires companies to show appreciation across three core levels is ideal. These levels are formal, informal, and day-to-day recognition.
What is the importance of employee recognition?
Employee recognition is critical to the success of any business. Most employees value praise over monetary gifts. Employees who feel appreciated perform better than those taken for granted or ignored.
Improves retention and lowers turnover rates
Most companies struggle with record-high turnover rates. Employees who do not feel appreciated tend to walk away from their employers. More than seventy-five percent of millennials are happy to leave a company that does not value them.
Affects employee engagement efforts
Recognition plays a critical role in employee engagement. It improves the company’s bottom line. Employees who do not feel valued often end up with poor performance. Their disengagement can spread to their co-employees and throughout the entire company.
Employee recognition boosts engagement levels and results in significant benefits for the company.
- Reduced absenteeism. Chronic absenteeism can cripple any business. Employee recognition motivates employees and results in a reduction of absenteeism rates.
- Less shrinkage. An employee who knows the company values and appreciates them has more tendency to protect the company and its interests. He or she is less likely to steal from the company. He or she will also work hard to prevent others from cheating. A company with high levels of engagement experience less shrinkage.
- Fewer safety incidents. An increase in recognition leads to a significant decline in safety incidents. Valued employees not only want to protect themselves but their co-workers, too. That is why highly-engaged companies experience fewer safety incidents.
- Better performance and fewer flaws. Recognized and engaged employees produce products and services of a higher quality than those who are not.
- Higher sales. Customers and clients take notice when a company gives proper recognition to its employees. Sales increase because of this.
What are the three levels of recognition?
A successful recognition program needs to have a holistic strategy. It consists of three levels that have equal importance.
This recognition can take many forms. It refers to any structured program with a defined set of criteria and processes. It rewards employees for achieving important goals and occurs as an annual or semi-annual event.
It may not be as glamorous as a formal recognition, but it has the same effectivity in motivating the team. Informal recognition acknowledges progress towards specific goals or behavior changes.
It is the final and most crucial level of recognition. It serves as the foundation of your total recognition strategy. It is a frequent and ongoing event that reinforces the values of your company.