Businesses are also learning that recognition and appreciation should be genuine because most people are attuned to when businesses try to manipulate their actions using gifts, incentives, and rewards. However, Employee recognition can have significant benefits and a positive impact.

Employee Recognition Can Increase Productivity

Employees who know they will be rewarded for their hard work beyond the compensation they already receive are more likely to focus on their work. Regards given for a job well done should not be a guess, but clearly outlined. Many people would not be motivated by the promise of a vague reward they might or might not get.

It is also important to reward employee productivity that matters and contributes to your overall goals. Doing so makes employees understand how their work contributes to the bigger picture and how they and their work fit into a bigger puzzle beyond themselves.

Recognition Boosts Employee Morale

People who have been at the same job for a while can start to feel bored with it as it starts feeling like a habit. When these people are not rewarded for their work, especially if they typically go above and beyond what is asked of them, they can start feeling like you are taking advantage of them and their efforts.

Additionally, they can drop their positive attitude and might even start thinking of leaving. These feelings are not good for morale or productivity. Recognizing how much time and effort employees put into their work is a way of showing you appreciate what you do and taking care of them at a basic level. Studies show that businesses with a reward and appreciation system have a 31% less chance of voluntary employee turnover.

Employee Recognition is Important for Talent Retention

As mentioned above, disengaged employees are more likely to leave a business voluntarily. You should rethink your rewards and appreciation system if you have a high turnover. Start by sitting down with your employees to discuss what is happening and what you can do to make them feel appreciated.

Once you do, put an employee achievement and rewards system in place that has different incentives depending on employee preferences and business goals. For example, businesses can reward employee achievement with gift cards or other non-monetary rewards for the right employees.

They can also consider other rewards like flexible work arrangements and bonuses considering that replacing employees is typically more expensive than rewarding them and having them stay.

Recognition Creates a Connected Workplace

Employees who witness their colleagues being rewarded and appreciated for their hard work typically feel more grateful. Such gratefulness can translate into a greater appreciation for their colleagues’ achievements and an improved connection between them. These employees are also more likely to view the management highly, report less stress and burnout, and feel more respected at work.

Everyone wants their efforts to be appreciated and recognized for their achievements. Employee Recognition and appreciation have numerous benefits for businesses, including reducing employee turnover, ensuring a connected workplace, boosting morale, and increasing job satisfaction.