A staggering 42% of employees say that receiving greater recognition for their work would make them happier in 2021.
Companies that can create a culture of recognition can therefore improve employee wellbeing and engagement, creating more productive and profitable workplaces.
In this article, we’ll be answering the pressing question of why is employee recognition important and looking at how you can create a culture of recognition in your workplace.
Why Is Employee Recognition Important?
Employee recognition increases employee engagement.
It’s better to have an engaged workforce, but most businesses don’t realize how vital it is to the success of their business.
Employee engagement is a driving force of businesses. High engagement increases business performance, productivity, and profitability. Without it, companies will struggle to grow long-term.
Whereas, recognizing and rewarding employees for their contributions can motivate and inspire them. This means they’ll be more productive while they’re at work and work harder for your business.
These aren’t the only benefits either.
Benefits of Employee Recognition
A strong company culture of recognition can both attract and retain the best talent. Employees who feel recognized in their workplace are less likely to leave the company.
The financial implications of this cannot be understated. The costs of recruitment are steep. It’s estimated it costs as much as 33% of an employee’s annual salary to replace them.
At the same time, a robust employee recognition program can attract the best talent. For younger generations, in particular, alignment with company culture is becoming increasingly important. A strong culture of recognition can help attract new talent for your business by being a great place to work.
The importance of employee recognition during Covid cannot be understated. It is more important than ever to recognize employees. Studies show 40% of employees are considering leaving their employer by the end of the year.
This means the risks of weak company culture are higher than ever. Businesses need to do their best to retain and attract their employees should they want to succeed.
How to Create a Culture of Recognition
Many businesses have the view that employee reward and recognition programs are a costly endeavor. While monetary recognition is important, social recognition is also vital in increasing employee engagement.
A robust employee recognition program practices both. Employees are incentivized through a points-based system to allow them to redeem the monetary rewards they desire. At the same time, social recognition like awards and more is a regular fixture.
This combined approach allows for a culture of recognition that improves employee engagement.
More Business Advice
Now you know the answer to “why is employee recognition important?”
Employee recognition helps increase employee engagement. It also helps improve employee retention and recruitment. In the Covid-era, this is more important for businesses than ever before.
If you’d like more insightful business articles, we have plenty of them on our blog, so make sure to check them out.
