When it comes to improving your workplace culture, sometimes there’s no need to reinvent the wheel. All you need to do is put that wheel to work for you, particularly when it comes to employee recognition.
We all know Google is a great company to work for, but it didn’t happen by accident. They analyzed what employees wanted, and then they rolled out a plan to make it happen. They confirmed what so much research has proven: Employee engagement links directly your company culture, which links directly to your bottom line.
5 Fabulous Facts About Employee Recognition
The simple act of recognizing your team members for their efforts can have a big pay-off in terms of your company’s success.
Research proves that showing appreciation to your employees results in: higher profitability, higher productivity, lower absenteeism, lower turn-over, fewer safety incidents, fewer quality incidents and higher customer metrics.
2. Organizations with highly engaged employees achieve twice the annual net income of organizations whose employees lag behind on engagement.
Look, this isn’t rocket science. It’s actually leadership 101: Treat your employees well and they’ll return the favor, by being productive and positive team members who want to come to work and who will stay with your company.
3. Companies with engaged employees also generate 2.5 times more revenue vs. competitors with low engagement levels.
Gallup research has consistently confirmed the connection between employee engagement and performance outcomes, even in a tough economy.
“Companies constantly evolve, and they need new ideas all the time. Engaged employees are a lot closer to the best ideas,” says Jim Harter, Ph.D., Gallup’s chief scientist of employee engagement and well-being. “They’re thinking about the whole company and how they fit into it, and their ideas lead to better decisions.”
4. Companies with recognition programs that are effective at improving employee engagement have 31% lower voluntary turnover.
This is where the goals of HR professionals can merge with the needs of employees. Studies show that employee retention tops the list of challenges faced by HR departments. And the vast majority of recruiters say that acquiring talent is the No. 1 priority at their company.
At the same time, employees say the culture of their workplace is just as important – and sometimes more important – than the size of their paycheck.
5. Only 14% of organizations provide managers with the necessary tools for employee recognition and rewards.
This is a two-fold situation. First, you need executive buy-in for a meaningful employee rewards and recognition program. That means understanding the direct link between that program and your company’s bottom line.
Then, when you’re ready to roll out an employee recognition program, you need the support and participation of front-line managers who play a key role in any recognition program. No matter how your program is structured, your managers need to be empowered to make it work well.
One More Stupendous Statistic to Ponder
Ultimately, offering an employee recognition and rewards program can help you create a cycle of success for your business — the ultimate ROI. Companies with a highly engaged workforce outperform their peers by 147% in earnings per share. Rewarding your workers creates a positive company culture of engaged employees, which is the key to business success and profitability.
That’s why it’s essential to select a rewards program that resonates with your employees. When you find the right platform to appreciate your employees in ways that matter to them, you’ll reap a continuous return on your investment.