5 Ways Your Business Can Better Recognize Employees and Boost Revenue, Productivity
U.S. businesses—including those owned by Black entrepreneurs—are missing a potential windfall by not recognizing employees.
Most workers like to be lauded now and then, particularly when they get praise for an extra effort. Yet their commendable actions much too often get a lukewarm response or none at all by employers.
Experts say companies may do well to create a culture that regularly applauds workers for their extra deeds. They contend such awareness should not just come when employees work harder before an annual performance when such recognition—and a possible raise—is expected or may occur anyway.
The consequences of not having a strong employee recognition program can be detrimental to businesses in many ways. Retaining quality employees can help firms save millions of dollars in hiring and training costs. It can also help them build a strong talent pipeline and reduce turnover.
Gallup estimates that it can cost twice the annual salary of an employee to replace them. It also reports American businesses can lose $1 trillion annually because of voluntary turnover.
There are numerous other benefits of how recognizing employees can greatly help your company, including increasing productivity, boosting revenues, and creating less stressful work conditions among them.
Observers add recognition programs are a vital pillar for vibrant workplace culture. Further, they note such tribute is perhaps very timely now, given the ongoing instability ignited by crises such as the COVID-19 pandemic, along with scores of people still working remotely.
There are multiple types of employee recognition efforts you can try, ranging from offering personalized gifts to showing appreciation through verbal praise. Discovering how your employees like to be appreciated can help you determine which program to incorporate regularly at work. Here are a few tips to consider applying as you launch a program:
- Be sure all employees are given an equal chance to be recognized, regardless of their role, title, or tenure. Make certain the recognition guidelines are clear and impartial.
- Be precise when describing what an individual did; convey how the effort helped uplift your business and inspired other workers to achieve similar feats. Explain how the deed exceeded normal expectations.
- Make the employee recognition program a part of your overall corporate strategy. That way, it becomes more like an investment and priority instead of just a business expense like rent or supplies.
- A good first step for the program is clear on what you want it to achieve. For instance, how will it motivate employees to perform better, help boost your bottom line, and align with your firm’s mission?
- Get top executives at your business involved. This can show leadership values the program. Also, give recognition as soon as you see good work. Delaying appreciation can lessen its effect.
Doing your homework and research before launching the program can be beneficial. This link might also be worth checking out before you get started.