Why is Employee Recognition Important?
Employee recognition is crucial for organizations that value employee engagement and retention. A company’s recognition program can either lock people in or push them out the door.
Showing appreciation for employees can drastically improve financial returns, create better employee productivity, customer service, and product development are just some of the outcomes of employees feeling valued.
By now, it’s a well-known fact that employees aren’t feeling valued at work. And honestly, there really is no such thing as “too much recognition.” If you really want to keep your employees, motivate them through recognition. That simple validation has the power to drive productivity through the roof.
Did you Know?
- 69% of employees would work harder if they felt their efforts were better appreciated
- 50% of employees believe being thanked by managers not only improved their relationship but also built trust with their higher-ups
- 78% said being recognized motivates them in their job.
- When managers recognize their employees’ performance, they increase employee engagement by nearly 60%.
- Praise and commendation from managers was rated the top motivator for performance, beating out other non-cash and financial incentives, by a majority of workers (67%).
- 39% of employees feel under-appreciated at work, with 69% reporting that they would work harder if they felt better recognized.
- 89% of employers assume that their employees leave for more money elsewhere, but only 12% of employees earn more from their next company.
- 41% of customers are loyal to a brand or company because they consistently notice a positive employee attitude, while 68% of customers defect from a brand or company because of negative employee attitude.
- According to U.S. Department of Labor statistics, individuals that voluntarily leave work cite lack of appreciation as one of the major reasons for leaving.
- Companies that scored in the top 20% for building a “recognition-rich culture” had 31% lower voluntary turnover rates!
- Only 14% of organizations provide managers with the necessary tools for rewards and recognition.
- Praise and commendation from managers was rated the top motivator for performance, beating out other non-cash and financial incentives, by most workers (67%).
- 65% of Americans report receiving no recognition during the past year at their work.
“Next to physical survival, the greatest need of a human being is psychological survival, to be understood, to be affirmed, to be validated, to be appreciated.” – The 7 Habits of Highly Effective People by Stephen R. Covey