How do you handle rewards and recognition within your workforce? Has your company kept pace with current trends in HR and the widely recognized need for a rewards and recognition program? Most importantly, are you aware that 51% of employees are not happy at work and that, according to Gallup, fully 87% of employees worldwide are not engaged? It has been proven that engagement is crucial for business growth. Business2Community recently reported that organizations with highly engaged employees outperform those with low employee engagement by 202%. And the Harvard Business Review reported that recognition for high performers was the top driver of employee engagement. With all that in mind, we humbly present the top 5 reasons your business needs a recognition and reward program.
1. Recognition is the top driver of engagement
Harvard Business Review reports that “the most impactful driver of employee engagement is recognition.” In today's world, recognizing employees is very different from the recognitions of the old days; no longer are we restricted to giving out watches, pins and coffee mugs on yearly work anniversaries. While these types of gifts are still in the picture, today’s workforce is better engaged in the moment than in the future.
2. Employee recognition is meaningful from peers
As workplaces flatten and allow for lateral partnerships, the opportunity for peers to nominate others for awards or give recognitions directly has increased. HR Today notes that 42% of companies have peer recognitions in place, the third most common award. Peer recognition can especially boost engagement in companies with a remote workforce.
3. Recognitions can reward effort, not just success
Leigh Buchanan, writer for Inc.com, shares the funny story about how SurePayroll offers a periodic award for “Best New Mistake.” Seem odd? It's actually a way to reward innovative thinking, even if the result was less than desirable. Can you think outside of the box and offer less-than-traditional awards and recognitions? It might just give your business the edge it needs to improve company culture and employee engagement.
4. A rewards and recognition program can engage employees outside the workplace
Employee engagement efforts shouldn’t end when employees walk out the door. Go beyond the standard annual rewards program and start recognizing employees for wellness achievements, such as losing weight, stopping smoking, lowering cholesterol, and more. By having a rewards and recognition program in place, you're providing a space to show constant support and encouragement for positive behaviors. By recognizing employees for personal development and wellness, you not only support your employees' improved lifestyle but also help to create a workplace that is healthier overall.
5. Happy employees = happy customers
Forbes shared, "Creating a happier work environment starts with a company that is willing to listen to what employees want and value." We couldn't agree more. Success starts with your employees, and the positivity ripples to your customers. Forbes also shared that most publicly traded companies named as 'Best Companies to Work For' saw their stocks significantly uptake in performance. It's a win-win. Focus on employee happiness - the happier the employee, the more motivation they will have to put forth their best effort and make your customers happy.
Curious as to what the state of employee disengagement looks like? Check out our The Complacency Effect Report and see. The report analyzes the gap between how often awards are actually given versus how often employees would like to be recognized. In particular, the gap between actual and preferred widens at the monthly, weekly and daily level. Think frequent recognitions seem unsustainable? Take a look at how some of the most innovative and successful companies in the world, such as Ericsson, are using rewards and recognition to successfully engage their workplace and you'll feel even more motivated to kick off impactful a rewards and recognition program of your own.
To learn more about how to build a rewards and recognition program, view our webinar recording, "7 Ways Rewards and Recognition Connect Engagement and Business Goals."
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