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Dr. Donald Clifton’s book How Full Is Your Bucket revealed the number one reason people leave their jobs is because they don’t feel appreciated. But there’s a proven way to address this problem: focus on employee engagement. According to a Harvard Business Review study, 71% of respondents rank employee engagement as very important to achieving overall organizational success and recognition happens to be the #1 driver of employee engagement.
It’s clear businesses need to focus more on employee engagement and recognition strategies. Not only does engaging and recognizing employees make them feel valued, but they are more productive in return. By focusing on employee engagement and happiness, your bottom line results will improve as a result. In fact, the Harvard Business Review recently shared that developing employees’ strengths can increase sales up to 19% and profits up to 29%. And if you’re still skeptical, just listen to our customers. Taken together, it’s pretty clear that both employees and employers stand to benefit when they have the right rewards and recognition programs in place
If this is the case, why do some businesses find it hard to get a successful rewards and recognition program off the ground? It’s not due to a lack of desire from employees, or support from their managers. According to our latest infographic on the state of employee disengagement, 93% of employees hope to be recognized at least quarterly, while WorldatWork reported that 46% of senior managers view recognition programs as an investment rather than an expense. So where is the roadblock? Oftentimes, we’ve found, it comes down to a lack of executive buy-in and support. Gaining executive buy-in is one of the most critical factors for initiating and maintaining a successful employee rewards and recognition program; it is also one of the toughest hurdles for HR to overcome.
With this in mind, we’ve compiled some tips and strategies to help HR professionals get executives on board with employee rewards and recognition programs.
Get their attention with numbers
Numbers don’t lie, so why not show your executives some numbers that’ll be sure to grab their attention. According to the Korn Ferry, a global consulting firm, “Our research into employee engagement has shown that companies with the most engaged employees report revenue growth at a rate 2.5X greater than their competitors with the lowest level of engagement.” Still not convinced? How about some powerful numbers provided by best-selling author and leading authority on employee recognition, Dr. Bob Nelson. Nelson shares that organizations which have a ‘culture of recognition’ have employees that are:
- 5X times more likely to feel valued
- 7X more likely to stay with their company
- 6X more likely to invest in their company
- 11X more likely to feel completely committed to their jobs
And if you’re targeting the C-suite, make sure to share this little tidbit: The financial return of Fortune’s Best Places to Work has been shown to be 233% higher over a 6-year period as compared with overall market returns and companies with higher employee satisfaction scores have been shown to have a 700% higher shareholder return.
Win them over with the right program
But getting executive buy-in for your rewards and recognition program isn’t just about convincing them of the potential ROI or how it will lead to bottom line growth. At it’s core, it should be about taking care of your most valuable asset — your employees. With that in mind, you also need to sell them on your vision of an employee rewards and recognition program that reflects your company’s culture and values and keeps employees needs at the forefront. What makes it unique? Why will your employees love it? How is this particular program the perfect fit for your business?
To help guide your pitch, start with the following key points:
Reinforces core values
Inc. recently shared why defining company values is important, stating, “Promoting your values throughout your organization can help your employees focus on their goals.” With the right employee rewards and recognition program you can easily tie in your company values with every recognition, reinforcing core values across the organization daily. With such strong reinforcement your employees can better focus on goals and, in turn, be more productive.
Recognitions can be tied to specific business objectives, such as rewarding employees for hitting a certain sales target, as well as to broader objectives like a focus on customer satisfaction. Employee recognition is particularly powerful because it can infuse each and every action and interaction in your company with inspiration. Points-based employee recognition underscores the value employees are creating when they contribute to success and do the right things.
Data and analytics
Key metrics can be accessed for real-time analytics and reporting. A good recognition and rewards program can give you the ability to track every recognition and reward given or received, allowing you to identify top performers and empowering managers to take action accordingly.
It’s a no-brainer — online, social recognition solutions require less time, effort and cost when compared to trying to create a do-it-yourself solution or continuing to invest in outdated years of service programs.
A critical factor for any business and executive is to draw in and keep top talent. The best way to do so is by focusing on employee engagement and how to make employees happy through the right rewards and recognition program. Remember, companies with the most engaged employees report revenue growth at a rate 2.5X greater than their competitors with the lowest level of engagement. Employee engagement can quickly become top of mind for any executive once they understand how much it directly impacts business revenue.
To learn more, download the Obtaining Executive Buy-In for Employee Rewards and Recognition Programs White Paper.