5 Reasons Why Employee Recognition is Important
Employees are the lifeblood of any company. Without employees working day in and day out, the company will never meet its goals and may even enter bankruptcy sooner or later. With this, they need to be acknowledged and recognized for their hard work. Here are five reasons why employee recognition is important:
1. Happier employees
Happy employees make all the difference. They just don’t become more focused at work and develop better relationships with colleagues, but their work also leads to satisfied customers. Recognizing employees for all the good they’ve done in the workplace is one, if not the best way to make them happy. At the end of the day, if employees are beaming every time they report for work or regularly being praised during “Employee Appreciation Day”, the better the company eventually performs.
Employee recognition programs aren’t just limited to giving monetary rewards to employees if they achieve something. A simple email or personal message (either a simple “thank you!” or “job well done!”) can go a long way as it helps build confidence and optimism among employees. Although monetary rewards shouldn’t be discredited; every employee will feel ecstatic if they are given any form of reward especially if it involves a cash incentive, salary increase, or a gift box, among others.
2. More productive employees
Another reason why employee recognition is important because it makes employees productive. No worker in any type of industry will want to work if they feel neglected by their superiors especially if the nature of the work is very stressful. This only leads to a high employee turnover rate which is very detrimental not just for the company’s operations but also its image to would-be applicants. Essentially, the longer employees don’t feel appreciated the faster their productivity will drop.
Oftentimes, companies are very strict with the productivity of their employees. If employees can’t meet their productivity goals for even a few months, they risk losing their jobs and may not even get a recommendation from their employers if they look for another job. Although strict supervisors can’t be prevented, they also shouldn’t forget the hard work being done by their workers on a daily basis. Being strict will lead to nowhere as employees will easily file their resignations if they aren’t given enough credit.
3. Turnover rate will decrease
Satisfied employees don’t jump from one company to another. Even if they experience problems from time to time, they stick it out as long as they’re constantly recognized by their superiors. The best thing about job satisfaction is that it helps decrease the turnover or attrition rate in a profit-centered firm. Although companies hire new workers regularly, they still want to avoid letting go of tenured employees and prioritize employee retention as much as possible.
Although some of the main reasons why employees leave include low pay and poor working conditions, being neglected can also be considered a top reason. A worker isn’t just working eight to 10 hours a day just to receive a salary, but they also work to feel appreciated and develop relationships with other colleagues. Employers shouldn’t ignore the importance of human interaction or employee engagement in the workplace as no one likes to work alone regardless if they have introverted personalities or not.
4. Healthier employees
Continuous employee or staff appreciation neglect oftentimes leads to compromised mental health. It can be very stressful for any employee to work in this state which can result in both a drop in motivation and also a drop in productivity. And the longer this goes on, the employee may finally decide to hand in a resignation letter. Employee recognition is a powerful method for employees to stay motivated and optimistic, and it should be a method that employers should use every single time.
Employers should ensure that the mental health of their workers is never compromised. Policies should be in place so that employees are in good shape mentally so that if there are times when employees experience problems, the company can act fast and resolve any issue at the soonest time possible. This is where the human resource department usually comes in to help the emotional and psychological needs of its employees. Private discussions can be held where HR personnel can offer solutions to employees and also create an avenue where policies need to be created or revised.
5. The company performs better
The effects of employee recognition not just helps the employee perform better but also helps the company itself as it aims to meet all its short-term and long-term goals. As employees are now motivated, they can work better and more effectively. Communication with employees and high-ranking officers will also be improved especially when it comes to delegating tasks and communicating with external clients.
To become a successful company, everyone needs to be on the same page. The people making the decisions need to coordinate with the people doing the actual tasks so that processes are clear and everyone will be working toward the same results. And if the intended results are achieved, the company will not only be generating revenue but also setting itself for a financially secure future where it can invest in other projects and also expand at the same time. Expansion is always the goal of every company and it can’t be achieved if employees are leaving or constantly being replaced.
Final thoughts
Employee recognition should never be ignored for any type of company, whether it be a small business or large corporation. With constant recognition, employees are happier, healthier, and more productive. This also helps the company lessen its turnover rate as well as become more competitive in the industry it operates in.
