Getting the most from your employees and building strong relationships are critical components of running a successful business. One of the most effective ways to achieve this is through employee recognition, which is defined by HR Council as “the acknowledgement of an individual or team’s behavior, effort and accomplishments that support the organization’s goals and values.” Here are four particular ways this can help your business.
1) Build Employee Loyalty
Loyalty is something that can’t be bought outright and is vital to a company’s long-term success. When you acknowledge your employees’ achievements and build up their self-confidence, it is going to inevitably breed a sense of loyalty. Employees are likely to place a bigger value on working for your company and see it as more than just a way to earn a paycheck.
This is incredibly important for you as an employer because you’re going to get more effort, and workers are probably going to do more than just the bare minimum. They’ll be more willing to give it their all not because they have to, but because they want to. It also allows you to create more of a tight knit workforce where employees may actually look forward to coming to work rather than dreading it.
2) Increase Employee Retention
These days, many companies struggle with employee turnover, and it ends up costing them thousands of dollars each year. In fact, Inc.com estimates that when you add up expenses for recruiting, training and interviewing, turnover can cost up to 150 percent of an annual salary.
However, when employees feel legitimately valued and know that their hard work isn’t in vain, you’re much more likely to retain them, and they won’t jump ship at the first opportunity that comes their way. This is especially important for highly talented employees that you want to stick around for the long haul.
3) Strengthen Company Culture
When you combine the two aforementioned benefits, it often contributes to a strong culture where there’s a lot of team chemistry. By having loyal employees who work hard and stay with your company for several years, it creates an opportunity to build a cohesive team that functions at a high level. When you don’t constantly have to find replacements, your team has time to truly gel, which allows you to create something special.
4) Improve Overall Performance
The end result of employee recognition is often a workplace with satisfied employees, high morale and a low turnover rate. These are all important because it leads to one overarching trend – a high level of productivity. By recognizing your employees and showing them the respect they deserve, it’s ultimately a catalyst for a more productive workplace.
Employee recognition doesn’t just benefit your workforce and increase employee satisfaction. In the long run, it’s very advantageous for your company and can make you more efficient and profitable. That’s why it’s so important to take the time to acknowledge your workers and let them know they’re appreciated.
To learn more about how to optimize your workplace and create a better company culture, check out our resources section.