The power of employee recognition is something that most HR professionals and company directors have come to appreciate over recent years as the importance of human capital became increasingly apparent around the globe.
Suffice it to say, talent makes the world go round and if you want your team to be engaged enough to weather storms like mergers, economic upheavals and unprecedented situations like the COVID-19 lockdown, it’s time to get serious about the way employees feel in the work environment.
Not quite sold on the power of employee recognition just yet?
Check out these compelling findings that have surfaced from trusted sources recently:
Employers who invest in recognition have better retention rates
The last thing you need when your business is trying to adapt to a new way of working is losing some of your star players along the way.
At times like these, team cohesion is of vital importance and recruiting new candidates can be even more difficult and costly than it would be under normal circumstances.
As such, employee retention should be front and centre on the HR agenda.
When business and employment-oriented online service LinkedIn surveyed 32 million employee profiles in 2019 to gather data on retention, they found that there was a direct link between promotion (one of the most common ways in which top performers are recognised) and a more lengthy duration of service.
On the flipside…
When employees’ roles remained static for three years or more, the likelihood of retention dropped to a mere 45%!
The key takeaway?
When you take the time to recognise and reward the ongoing efforts of your team, particularly at a time of great upheaval, you instill a purpose in your workforce that vastly reduces the likelihood of employee churn in the long run.
Read more: 8 Companies that have great employee appreciation initiatives
Top talent flock towards businesses that focus on employee experience
On the other hand, if you were in the market to attract some new talent to your business at this time, regular employee recognition would help you to do so.
In 2019, 88% of employees working at the Best Places to Work in Africa believed that their organisations were offering exciting career prospects, providing best-in-class learning and development programmes and tools, as well as attractive employee conditions.
Last year, a Glassdoor survey on mission and culture found that over 77% of respondents consider a company’s culture before applying for a job, with 5000+ stating that culture is more important than remuneration when it comes down to job satisfaction. Employee recognition and appreciation ranked among the factors included in these job seekers’ pre-application culture checks.
If you’re looking for ways to appreciate your employees, we wrote a blog that suggests 32 creative ways to do just that. You can read it here.
Productivity increases in line with employee engagement
When times are uncertain, you need your team to be at the top of their game.
This holds true in any situation that deviates from the norm, and has gained particular relevance while the world at large adapts to the trading restrictions brought about by the effects of the global COVID-19 pandemic.
With many workforces now scattered as they shelter in place at home, productivity levels may have taken a dip as employees adapt to their new (often makeshift) working environments and deal with the added pressures of homeschooling their children, taking care of elderly relatives, etc.
While there are many employers out there may revert to using the stick rather than the carrot to motivate their teams at times like these, it most definitely will not yield the desired results.
Statistics show us that teams with low engagement scores also suffer from 18% less productivity, and the Workplace Research Foundation reported that highly engaged employees were much more likely to have above-average productivity, to the tune of 38%. That means that highly engaged employees are almost twice as likely to have above-average productivity.
Tailored rewards yield the best results
“Human resource managers and line managers should note that reward elements should be chosen and offered as total reward packages in such a way as to best be able to attract, engage and retain talented employees.” This is according to the findings of a study of demographic preferences that was published in the SA Journal of Human Resource Management in 2017.
Authors Monica Pregnolato (School of Management Studies, Organisational Psychology, University of Cape Town), Mark H.R. Bussin (Department of Industrial Psychology and People Management, University of Johannesburg), and Anton F. Schlechter (School of Management Studies, Organisational Psychology, University of Cape Town) set out to determine the reward preferences and ideal combination of total reward elements that retain employees from various demographic groups, including employees of different race, gender and age groups.
Their findings suggested that although financial rewards in the form of benefits and increased remuneration ranked most highly among most demographic groups, it was not the only effective means of recognition by far. Respondents also valued career advancement, learning opportunities and work-life balance.
In short – check in with your team to see which rewards they value most, and make a point of offering them a choice in the matter.
Are you looking for a way to effectively recognise and engage with your workforce? Give bountiXP a go. The first 14 days are on us.
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