Take a look at these surprising employee recognition facts to get an idea of its prevalence in the workplace today:
- The number-one reason most Americans leave their jobs is that they don’t feel appreciated.
- Organizations with effective recognition programs have 31 percent lower voluntary turnover than organizations with ineffective recognition programs.
- 90 percent of employees say their recognition program positively impacts engagement.
- 68 percent of employees say it positively impacts retention.
- Organizations with strategic retention programs in place exhibit 28.6 percent lower frustration levels than companies without recognition programs.
- 66 percent of HR managers say it helps them build a stronger employment brand.
- 86 percent of managers say it increases employee happiness.
- When asked what leaders could do more of to improve engagement, 58 percent of respondents replied, “Give recognition.”
- 85 percent of employees say it adds humanity in the workplace.
- Peer-to-peer recognition is 35 percent more likely to have a positive financial impact than manager recognition only.
It’s clear that employee recognition is vital to a company’s health and success. And yet, sometimes it seems to fail. There are two major effects that ineffective recognition has on your organization: you’re wasting money and you’re ruining the employee’s motivation.
It’s no secret that adding money to a task lowers the motivation of the task. Actually, 82 percent of employees think it’s better to give someone praise rather than a gift.
Employers often mistake the term recognition for the term reward, which is where this money mindset comes from. But in reality, recognition is simply the acknowledgment of a job well done. When deciding on methods of employee recognition, keep this definition in mind. Also, try to avoid these employee recognition traps that…
Single out a few employees with no concrete reason for receiving recognition
Sap morale out of any who failed to understand the criteria enough to compete and win
Sought votes or other personalized, subjective criteria to determine winners
Remember to stick to the right criteria when making an employee recognition plan. Don’t let the complexity of planning discourage you from administering recognition—it is highly effective and important when done correctly.