Recognizing Employees to Increase Productivity
It is now mid-January. Most businesses have taken the time to review their numbers and see where they want to go. The ones who want to grow this coming year have probably put into place an action plan.
The one element missing from most of this reflection and planning is employee recognition.
An employee recognition plan is critical if you want to grow or even maintain your current business. Each company depends on the productivity of their employees. All employees want to feel appreciated and valued. The best way to do this is with a recognition program,
To create a recognition program, you need to set goals – not just sales goals but general productivity goals. Reward cost savings, above and beyond customer service, even extra effort, and of course sales.
Next decide how frequently you will recognize and/or reward – monthly, quarterly or annually depending on your business
The numbers speak volumes about the impact of recognition programs. According to Gallup, only 1 in 3 workers in the U.S. strongly agree that they received recognition or praise for doing good work in the past seven days. This oversight is costly – companies with effective recognition programs have 31% lower voluntary turnover rates.
Consider these compelling statistics:
- Organizations with recognition programs see a 31% increase in employee productivity
- 69% of employees say they would work harder if they felt their efforts were better appreciated
- Companies with recognition programs report a 23% increase in profitability
- 92% of workers are more likely to repeat actions they're recognized for
When implementing your recognition program, remember that timing matters. While 80% of organizations have recognition programs, only 31% of them deliver recognition in a timely manner. Immediate recognition has the strongest impact on employee motivation and engagement.
Your budget doesn't need to be enormous – studies show that non-monetary recognition can be just as effective as financial rewards. Simple gestures like public acknowledgment, additional responsibilities, or flexible working arrangements can significantly boost morale and productivity.
Here are some key elements to include in your recognition program:
- Clear criteria for recognition
- Multiple categories of achievement
- Peer-to-peer recognition opportunities
- Regular communication about the program
- Consistent evaluation and adjustment
Remember that recognition isn't one-size-fits-all. Different generations and personality types respond to different forms of recognition. Gen Z and Millennials tend to prefer immediate, frequent recognition, while Baby Boomers often value formal, traditional recognition methods.
The ROI of recognition programs is clear: companies investing in employee recognition report seeing an average return of $7 for every $1 spent. This return comes through increased productivity, reduced turnover, and improved customer satisfaction scores.
As you move forward with your business plans this year, make employee recognition a cornerstone of your strategy. The most successful companies understand that their greatest asset is their people, and showing appreciation is key to unlocking their full potential. Start small if necessary, but start now – your business results will reflect the investment you make in recognizing your team's contributions.
Remember, a well-executed recognition program isn't just a nice-to-have – it's a strategic imperative for business growth and sustainability in today's competitive marketplace.