Research by Bersin & Associates has shown that companies recognizing their employees perform beyond and above those companies that don’t, and these companies that perform better have a 31 % lesser voluntary turnover rate. This is very important for companies because a lower turnover rate of valuable employees will assist greatly in the growth of the company. Also, a lower turnover rate will save the company tons of money that it would take to hire new employees.
Another great reason why recognizing employees with rewards is crucial for companies is due to the improvement of the team culture. Being in a relationship where one is ignored, run down, or abused will cause the person being harmed to want to end the relationship. This also applies with work relationships. Positive environments lead to great relationships, and a culture full of recognition leads the engagement of employees in a positive manner that will encourage employees to want to remain with the company while at the same time producing lasting impacts on their peers.
Awarding employees will also give them and others incentives to be and remain motivated in their work. These valuable employees will be driven to produce outstanding results for the company. Also, these traits will have infused them with a sense of passion, purpose, and mission. And they will take pride in knowing that their work means something valuable to the company’s goals and values.
Due to these reasons, it will behoove any organization to recognize their valuable employees. Recognizing employees in a great way is a main factor in staying ahead of the competition. Having a great brand is reachable to consumers, but poor customer service will drive customers away. And many times, poor customer service is caused by the company not recognizing their employees. In such cases, employees will feel like the company is not looking out for me, so they shouldn’t do their best for the company. Therefore, many of these employees will do just enough to keep the job which includes inferior customer service, for example.
Better Ways to Reward Valuable Employees
There are better ways to reward valuable employees besides having the “employee of the month” announcement and photo hanging up on the business’ wall. Acknowledgement of a job well done in this way or through other public display is appreciated sometimes by most key employees. However, more beneficial rewards are in order sometimes that will be an incentive to keep up the good work. Also, other employees will be even more motivated to utilized their skills with hard work and perseverance. Overall, this will be a win-win situation for the employees and the company because the hard work and skills of the employees will contribute to more company growth and sustainability.
With all of this said, the following are better rewarding incentives for employees:
- Peer to peer recognitions- having other employees to recognize their peers will build and strengthen office relations.
- Sharing success stories- during award ceremonies, the manager or higher ups should share the story of success of the employee. Handling out certificates and calling out names are not enough.
- A small monetary gift/promotion- whether it’s an appreciation gift/lunch or a promotion, these rewards are always great incentives to keep up the good work as well as encourage other workers to do their best.