A recent study revealed that 87 percent of employers surveyed rank improving retention as a key priority for their business. If you work in management or human resource, this statistic should come as no surprise. Low unemployment rates, the transformation to a candidate-driven job market and the fierce competition to attract top talent has helped employers realize the full value in their current workforce.
The Link Between Engagement and Retention
The question facing employers today is not whether they need to improve retention rates, but how to improve these rates on a long-term basis. Several studies have found a direct link between enhanced employee engagement and improved retention rates. This makes sense - the more engaged the employee is with the company, the less likely they are to seek job opportunities outside of the company.
In an effort to boost engagement, companies all too often invest in a one-time engagement strategy, such as a company retreat or team building exercises. While these tactics do offer some benefits, these strategies alone will never be enough to reap the reward of improved retention. Rather than one-time strategies, your company needs to invest in a culture of engagement. This can lead to sustainable engagement that really drives long-term results.
The Key to Sustainable Engagement
According to a recent Gallup poll, two-thirds of the employees surveyed stated that they did not receive any recognition for their work over the last seven days. Is it just coincidence that just over two-thirds of the workforce also claim to feel disengaged in the workplace? Not likely.
The truth is that it's impossible to build a culture of engagement if you are not in constant engagement with your staff. Employee recognition and employee feedback offer a fun, effective, and non-threatening way to boost engagement while improving employee morale, job satisfaction, productivity and retention at the same time.
Why Real-Time Recognition and Feedback Is a Must
Not that long ago, employers could get away with semi-annual or even annual employee performance reviews. This is no longer the case. Employees are demanding more from their employers.
They don't want to wait until the end of the year to find out how their employer views their job performance. Instead, they want real-time recognition and feedback. They want to know that their work is valued and that they are making a positive impact on the company. Today's employees even accept negative feedback, as long as it's designed to boost performance.
The reality is that if employers fail to provide real-time recognition on a regular basis, employees can start to doubt their purpose and their value to the company. Once the employee's perception of their value in the workplace is damaged, you are at a higher risk of losing them.
Tips for Creating a Culture of Recognition and Feedback
In theory, this sounds great but putting it into action is another thing altogether. There are some steps you can take today to build a strong employee recognition and feedback program that can help build a sustainable culture of engagement.
It's crucial for your company to understand the full benefits of sustained engagement. Not only can enhanced engagement boost retention rates, but it also can improve overall productivity, increase workplace morale, and improve job satisfaction among the employees. Understanding these benefits will entice your company to make a solid commitment to invest in the resources necessary to build a strong, long-term employee recognition and feedback program.
An employee recognition and feedback program will only work if everyone from top management down to the entry-level workers are all onboard. It is important to employ the support of company executives, managers and supervisors if you truly want to create a culture of recognition and feedback. Make sure that everyone understands the core mission and goals of the program.
Create a Structured Program
Employee recognition and feedback will not just happen overnight. It takes time to build a culture that can sustain engagement. Your best chance at success is to develop a structured program that is customized to meet your company's specific needs. Use a behavior-driven platform that has the power to reach every employee, every day, everywhere.
Transparency is a must. If there is even a hint that your employee recognition and feedback program is not equitable, it could do more damage than good. Think about it, if your program tends to recognize the same people every time, while ostracizing others this can cause resentment, not just with the workers feeling ostracized, but throughout the company. Be sure to regularly request feedback from your employees in reference to your employee recognition and feedback program and make adjustments or clarifications if necessary.
If you are looking for a meaningful way to improve retention, boost productivity and drive results you must focus not just on employee engagement, but on sustainable engagement. The key to this high level of sustainable engagement is real-time recognition and feedback.
Learn more about the link between employee recognition and engagement and find ways to develop a real-time employee recognition and feedback program in your company by viewing our Achievers and HR Zone webinar recording.
Do you want to engage your employees? Start with social recognition. Access Achievers’ report “Building a Business Case for Social Recognition” to get started.
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