Employees are arguably the most important component of a successful business. Employees put a human face on the product, build relationships with customers, and define the work culture that feeds business performance – yet 32% of companies struggle to retain top talent. What defines an effective retention strategy varies from business to business, but there is one common element that has been found to work across most business types and sectors: employee recognition. In fact, a recent Achievers’ study found that employees have a deep desire for recognition, with 93% hoping to be recognized at least once a quarter. In addition, 75% of employees who received at least monthly recognition (even if informal) reported being satisfied with their jobs. And finally, in a recent Harvard Business Review study, 72% of respondents ranked recognition given for high performers as having a significant impact on employee engagement. With these kinds of numbers, it is clear that both employees and employers stand to benefit from a well-executed employee recognition program.
As we approach the end of 2016, this is the perfect opportunity to define the tone for the New Year and reflect on the importance of employee recognition for businesses. To help set the groundwork for a successful 2017, we present to you five revealing HR stats that prove the value of employee recognition.
1. Employees are loyal to careers, not jobs
Workplace loyalty is not derived from a job; it is nurtured through a fulfilling career. 78% of employees would stay with their current employer if they knew they had a career path instead of just a job. With employee recognition, you can motivate and identify core competencies to help develop career paths for employees in a positive and organic way.
2. Understanding progress matters
Goals can be daunting: understanding the progress made towards attaining them makes them seem more manageable, and 32% of employees agree. Employee recognition isn’t just for the big wins; it’s an excellent way to support progress and provide encouragement by giving employees feedback every time they move one step closer to completing their goals.
3. Respect knowledge and experience
People work hard to cultivate their skills, and 53% of employees say respect for their knowledge and experience is their top expectation of leadership. An employee recognition platform allows both leaders and peers to publicly praise employees for their expertise, providing the employee with further motivation to develop it further.
4. Recognized employees are happy employees
Employee recognition doesn’t require a huge commitment. In a recent survey of 1,000 U.S.-based, full-time employees 75% of employees who were recognized by their manager once a month – which is a good cadence to check in on progress to long-term goals – reported being satisfied with their job. While 85% of those that were recognized weekly reported being satisfied. The more satisfied your employee is, the more engaged they will be, and the more likely they will stay with your company for the long-term while producing stronger results.
5. A mission statement is meant to guide employees
Unnervingly, nearly two-thirds (61%) of employees don’t know what their company mission statement is. An employee recognition program, clearly linked to a company’s mission and values, is a great way to align employees around those values. By praising and reinforcing behaviors and outcomes that line up with and support the company’s mission and values, employees are inspired to live and breathe those values every day. This in turn helps to build a unified corporate culture and makes clear to individuals how their work helps the company to achieve its goals.
Retaining employees is about establishing reciprocal loyalty, making their jobs feel meaningful, and supporting and encouraging their professional development – one of the best ways to do all of these things is through employee recognition. When a company demonstrates its commitment to supporting and recognizing its employees, they will be rewarded with engaged employees who are dedicated to contributing to the company’s mission and bottom-line.
To discover more eye-opening HR stats and learn more about the correlation between recognition and retention, check out our white paper: The Greatness Gap: The State of Employee Disengagement.
Also, don't forget to check out our cool infographic highlighting these 5 eye-opening HR stats.
Hi Sarah! My name is Tiffany. I am in Customer Service with Sutherland. I like the writing that you put out for this company. It is very nicely written. I also feel like the content is relevant. I would like to do stuff like this one day. Keep up the good work.
Hi Tiffany – nice to (cyber) meet you! I appreciate your kind words and want to encourage your own writing ambitions. I got my first blog published on our blog by reaching out to the marketing team with the idea + first draft. Good things come from taking initiative 🙂
Hi Sarah, I loved this blog – it resonated with me and ties in beautifully with our business which specialises in leather corporate gifts. In 2017 we shall be offering subscription plans for companies to recognise & reward employees with beautiful, handcrafted leather gifts. I have just shared your blog on my Linkedin account. Feel free to give our website a mention if you like what we do.
Kind regards,
Trudy
Hi Trudy! Thank you for reaching out, it’s great to hear that this blog is creating value for our readers. I love your company concept, the idea is very unique and the pieces look beautifully crafter – I will definitely keep it in mind for future posts. Best of luck in your 2017 expansion!
I cannot agree more on the gaps in HR and why it is so shocking and not visible to top management and CEOs who go by Theory and not the realities of business and life. Their eyes are deceiving them grossly. They have eyes but no clear vision of the future…
Great share! Thanks for sharing your comments Koshy. These HR stats are definitely eye-opening and every business should be aware of them when thinking about how to best approach new strategies. Thanks again for reading and sharing. 🙂
If harsh fluorescent lights cannot be avoided, one can consider keeping at least a few low watt bulbs that are not as harsh on the eye. In addition, positioning employees close to windows where they can get some natural light and fresh air will make them feel less suffocated.
Thanks for sharing Richard. We completely agree that the right type of environment is very important for employees. Thanks again for reading and sharing your thoughts. Cheers! 🙂
Every growing organization needs ideal software that could decrease the manual efforts of the employees. HR software is one of the best solution.
Thanks for sharing! We completely agree that HR software is a great solution to help HR initiatives.
An HR software is basically a system which automates all the process associated with the workforce of a company. Features of basic HR software India are recruitment, storing & accessing employee information, attendance & employee tracking, performance evaluation, employee self-service and benefits administration.
Great post! This blog contain useful information,I really found useful.These information is really very important for the HRs.
Thanks for the comment! 🙂 Stay updated on all the latest articles from The Engage Blog by subscribing at the top right hand of this page: https://www.achievers.com/blog
Thanks for sharing such an informative article. To manage employees every organisation requires a systematic HR software. HRMS empower employees to take control of personal information and handle day-to-day operations by automating tasks to save time and effort.
Thank you Shivani for reading and sharing your comment! 🙂 Check out more articles by the author here: https://www.achievers.com/blog/author/sarah-clayton/
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