5 Losses that hurt when you don’t have rewards & recognition culture
“People work for money but go the extra mile for recognition, praise and rewards.”
–Dale Carnegie, Leadership Training Guru
Everyone is committed to their work and will be working wholeheartedly. But going that extra mile gives the advantage of innovation and exceptional growth for an organization. Only a matured rewards and recognition program can deliver the ‘extra mile’ advantage by motivating and engaging your employees and inspiring them to deliver high-performance.
Take a look at what you might lose if you do not have the right rewards & recognition program in your organization.
Loss 1: Higher employee turnover – A Gallup study indicates that Millennial turnover costs the U.S. economy $30.5 billion annually
The global workforce is getting younger rapidly and millennials comprise a major part of this workforce. The famous American journalist Joel Stein in his cover article in Time Magazine described millennials as the generation that wants constant approval. He also remarked how DreamWorks was able to achieve a 96% retention rate by catering to their expectations.
According to experts lack of recognition is the number one reason for employees to leave their jobs. If you do not have well-designed rewards and recognition culture in your organization then, they do not stick around. You might lose them faster than you hire and train them.Lack of recognition is the number one reason for employees to leave their jobs. Click To Tweet
Recognizing employees’ achievement could be the most inexpensive method to retain them. In fact, Josh Bersin’s new recognition research states that the employee turnover rate is lowered by 31% if the organization has a recognition-rich culture.
Loss 2: Negative Employee Experience – 75.4 million millennials give priority to employee experience
Recognition is an intangible, immersive experience. Recognition need not always be followed by a reward. Recognition costs next to nothing but the gains are rewarding (the pun is intendedJ). Simply thanking your employees and praising their extraordinary efforts can be considered recognition in its most fundamental form. Recognition is the most human way to cultivate long-term relationships and create a positive employee experience.
Millennials require immediate recognition for their accomplishments. Companies cannot afford to ignore the priority of the majority workforce. Improving employee experience through recognition programs is therefore critical for companies operating in a highly competitive global economy. Studies have proven that employees are 7 times more likely to stay if the organization has a good recognition and rewards program.
Loss 3: Productivity –69% employees’ will work better if they are recognized
If managers do not get recognized for their contribution from the top management, they, in turn, do not recognize entry-level employees and peers. If the recognition culture flows in the company’s DNA then, it will trickle down to every level.
Recognition, continuous feedback and career development are crucial in creating better employee engagement. Employees who feel cherished, listened to, and nurtured become highly productive.
When the right employees are recognized, for the right deeds in the right way, they feel motivated to work hard. They enjoy their work and deliver greater results. A survey by SocialCast revealed that 69% of employees feel they will work harder if their efforts are appreciated and recognized.
Loss 4: Employee Collaboration – 50% of employees felt that appreciation from managers improved collaboration
Appreciation and recognition is a feel-good experience that makes the workplace happy and cheerful. It helps employees to maintain a healthy working relationship with their manager and team members and collaborate better. Organizations rely on teamwork and collaboration to get the job done. Rewards & Recognition program is effective at increasing, better work relationships and stronger collaboration.
A global research conducted by Cicero group showed that 50% of employees who feel appreciated, have better relationships with their manager and their teammates. Now, this is an opportunity that you do not want to lose. A simple appreciate your teammates ‘performance to strengthen workplace relationships and collaboration.
Loss 5: Employee Engagement – 2/3rd of employees feel disengaged when not appreciated
The biggest cause of human effort failure can be attributed to disengagement. Employees may have the right skills, they may work hard and maybe the right people for the job, but the real magic that amplifies the result manifold is –Employee Engagement. The simplest and cost-effective cure for employee disengagement is recognizing their genuine efforts and appreciating them openly.
A Gallup survey concluded that 50.8% of employees are not engaged and an additional 17.2% are actively disengaged in their current jobs and less likely to be productive. If you do not create an employee recognition program to improve engagement levels you are likely to lose approximately 70% of your employees’ productivity.
Recognition -A simple gesture to unlock great potential
Workplace recognition is such a simple and genuine gesture which everyone craves. The simple recognition such as an appreciation and a pat on the back gives them a sense of fulfillment and inspires them and others. These seemingly simple gestures go a long way toward cementing a friendly relationship with your colleagues and highlighting you as a prospective leader. Companies who create a culture of recognition see measurable results from improved bottom-line to happier employees.
Harvard Business Review states that on an average, an effective recognition strategy makes employees 30% more productive. There is no excuse for not practicing the simple and cost-effective recognition and rewards culture.
A leading hospitality group introduced unique rewards & recognition program as part of their talent management process through Synergita. They reported a measurable increase in productivity, customer service and employee engagement.
Worldwide several organizations use Synergita to manage employee performance and to create continuous feedback culture. Define SMART Goals for your employees, track their progress, exchange feedback continuously and conduct annual, quarterly or monthly performance appraisals efficiently using Synergita.
Take our Test Drive and see how easy it is to use and manage your employee performance.