In today’s competitive landscape, it’s no use to simply churn the machine and hope for the best. The best being that your employees are happy, want to stay with your company and deliver more than is asked, as well as recruit top talent into your company in the process.
You’ve got to stand out, you’ve got to be more, in order to get more.
In fact, it’s so competitive that according to the Allied Workforce Mobility Survey, companies lose 25% of all new employees within the first year.
So, what can you give your employees, in the hopes that they’ll stay and give a little more back?
The answer?
Employee recognition and rewards.
You need to make your employees feel something great for their place of work, as well as the quality of their work.
We know what you may be thinking…
How can something like employee recognition and rewards affect my bottom line?
Whilst you may initially need to spend a bit of money to get things up and running, implementing a recognition and rewards system will actually help you save time and money. We can assure you that the benefits of employee recognition and rewards far outweigh any reservations you may have. And the results speak for themselves.
In fact, here are 6 reasons why employee recognition and rewards are good for your business:
1. Job satisfaction
The science behind this is that everyone wants to be recognised for a job well done. When you recognise and reward employees for the good things that they do, they’ll do more of it, and less of the unproductive things that they do. And satisfied employees really love their jobs.
Recognition is a motivation and satisfaction enabler. It’s the employee engagement tool that’s staring us all in the face. Your employees will love that their work is being recognised which means they’ll be happier to stay in their current roles, and within your company.
2. Attract talent
People talk. But more importantly, employees talk. And when they do, you’re going to want them to say good things about your company.
The best part about an employee recognition and rewards system is that it directly affects your employees’ happiness within your company, and it also positively influences the way that they feel about your company.
This means that when they get talking, they’ll have wonderful things to say about your company, attracting like-minded people and enhancing the credibility of your company. Your employees will build a magnet-based reputation of your business that will attract the right people to hire, and scale your business.
It’s no wonder that 47% of referral hires have greater job satisfaction and tend to stay longer in their jobs.
Also, did someone say no recruitment costs?
3. Productivity
Encouragement, recognition, and rewards breed productivity.
We don’t need to go into why productivity is good for your business. But from a different perspective, with better levels of morale, employees are more likely to improve and work on their self abilities.
That’s right, no nagging managers telling employees how they can improve, productivity enables a culture of self-improvement that need not come from a higher authority.
What’s more is that by rewarding good work, your productive employees will also be engaged employees. And with a more engaged workforce, you can share and align the workforce with your company goals and visions.
Employee recognition unlocks employee engagement.
4. Happier employees
Have you ever received a gift that made you really, really happy? What about receiving verbal appreciation from someone that really meant it? That must have made you very happy.
Your employees would feel the same way. In fact, employees are more likely to go the extra mile when they’re happier, and their work is appreciated. Plus, there’s the added bonus of having big smiles on their faces.
Happy employees are also loyal employees. If you’re happy in a place, why would you leave? They’ll put your company high up on their priority list.
Lastly, happier employees are 12% more productive. Happier employees are more likely to make better decisions, manage their time well and have great leadership skills. Which, of course, all leads to greater levels of profits at the end of the day.
5. Lower employee turnover
Hiring an employee only lets them start a job. What needs to come next, is how to train, motivate, develop and essentially keep them.
When employees feel recognised, they stick around, which means better employee retention rates and increased employee loyalty within your company.
Plus, losing employees can be expensive. According to the Center for American Progress report, it can cost an organisation anywhere from 16% to 213% of the employee’s salary.
Yikes!
When you recognise and reward correctly, your employees will want to stay for good and all those hefty recruiting and training costs decrease dramatically.
6. Positive work environment
With encouragement, morale and recognition at the core, you foster a place of teamwork, self-improvement and employee engagement. All of which create a better team culture, improves relationships, and strengthens leaders and manager-to-employee dynamics.
If that hasn’t convinced you enough, here are 5 reasons why social recognition is a powerful engagement strategy.
Key takeaways:
So there you have it, gifting and appreciation can go a long way in improving your bottom line, with some extra added benefits too. In order for it to really work though, it can’t just be a tick off the list type of task, it needs to be consistent, genuine and run all year-round.
Are you looking for a way to effectively engage with your workforce? Give bountiXP a go. The first 14 days are on us.
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