What employee recognition really is
Ever wondered what employee recognition is? It’s much more than giving the thumbs up, and it can mean the difference between a thriving business and a sinking one. This article highlights why employee recognition matters and how using it effectively can increase your business’s bottom line.
Here’s why showing your employees recognition matters
Only 1 in 3 workers in the United States reported having received recognition for hard work they had done in the last 7 days — a significant figure, given how much of the country’s workforce is employed by businesses. Showing your employees recognition when they are performing well is a low-cost, high-return investment. If two-thirds of Americans aren’t feeling their work is being recognized by their employers, then making this a priority within your workforce will raise you above the competition.
Employee retention is oftentimes overlooked as a critical issue facing businesses. Particularly during a tight economy, losing a valued worker can cost as much as 2x their original salary in flow-on effects — finding new staff, decreased productivity, training costs, and subtle negative changes to company culture can all strain your business. Showing employees the recognition they deserve routinely throughout their career increases the chances of retention massively. Studies also show that ensuring your employees’ happiness can have up to a 13% positive impact on productivity, so being proactive in showing gratitude to your workforce is key to driving success.
Ask yourself: do you recognize your employees’ efforts?
Being honest with yourself, sit down with a senior member of staff and record the ways you feel you and management display recognition in the workplace. Chances are you don’t do it enough. It’s understandable — running a business is time-consuming and other things take precedence. Moving forward, think of ways to include methods of employee recognition in your schedule, and brainstorm with staff about what makes them feel seen and appreciated. To get the ideas flowing, here are eight ways to recognize the value of your employees without breaking the bank — or your back.
1. Highlight milestones — work-related and non-work-related
If an employee has been working hard day in and day out, do not miss your opportunity to let them know you appreciate their efforts; like any relationship, nothing sours the union faster than one party never being recognized. Where appropriate, take the time to congratulate employees on non-work milestones such as getting married, having kids, or succeeding in a sporting or musical event. Although some may deem it minor, commenting on an employee’s achievements outside of work shows you have a vested interest in their livelihood.
2. Invest in them
Sometimes actions speak louder than words. Investing in your employees shows you recognize their work and are willing to invest financially in their wellbeing. This doesn’t have to be expensive dinners or events — simple gestures such as buying the lunchroom a new coffee machine, or investing in new couches and pods for breaks, state loud and clear that you want them to enjoy being at work. If a team has been asking you to invest in new technologies or software to improve their workflow, now is the time to do it.
3. Get to know employees’ passions outside of work
Learning about your employees is pivotal if you want to authentically connect with them — this is, after all, the crux of recognition: being heard, connected with, and valued. Actively listening and taking time out of a busy workday to talk about their passions and hobbies will reap dividends. Knowing more about your workforce also helps you recognize them more authentically. For example, if a marketing employee, Adam, is coming up on 10 years of service and you know he loves painting but doesn’t care much for sports, tickets to an art gallery for him and his partner will carry far greater meaning than tickets to an NBA game.
4. Utilize gamification and new technologies
Studies show only about 30% of employees have been engaged at work over the past two decades. Could this be the same one-third of the workforce receiving recognition for their work? Although not directly correlated, a link between recognition and engagement is not too outlandish. The good news is you have the power to change this. Gamifying certain aspects of your business — such as sales or customer support — makes employees’ progress and hard work more visible to you and their peers, making it easier to publicly recognize them.
5. Create a culture that encourages peer-to-peer recognition
Employee recognition doesn’t always have to come from the top. Fostering an environment that encourages peer-to-peer recognition is highly beneficial. Subtly incorporating a peer-recognition program within the workweek gives teams the ability to give each other positive feedback — you can make this more natural by enlisting a respected leader to host a casual briefing over coffee and snacks at the end of the week. This is powerful for morale, as recognition from fellow team members can sometimes be even more meaningful than from your boss.
6. Offer extra perks
Perks and bonuses are a tangible way for employees to feel their hard work has paid off. Providing access to non-purchasable items, such as more convenient office parking or larger discounts on your company’s products and services, feels like a unique acquisition rather than a paid bonus. This creates greater drive if employees know that higher performance equals better perks. Those who routinely show they can work autonomously toward company goals may also be granted a more flexible working schedule — allowing occasional work from home or a later start is a powerful way of saying you trust them.
7. Motivate with financial incentives and bonuses
Intrinsic motivation is the drive to perform for the love of the process or task at hand; extrinsic motivators are anything outside of this. Intrinsic motivation is far more effective for achieving difficult, long-term goals. That said, financial incentives and bonuses are an obvious way to show employees you recognize their performance — as long as they are used fairly and sparingly. With COVID causing financial hardship and uncertainty, monetary bonuses will be well received, and effective compensation management with clear guidelines guarantees this style of recognition is used to its fullest potential.
8. Loosen the reins and give autonomy
Taking a step back and allowing high-performing employees some autonomy is a strong, subliminal indicator that you trust their ability to work without your input. For some people this is one of the strongest forms of recognition there is — and knowing your employees on a more personal level helps you decide whether their personality would appreciate this gesture. Let them know privately that you are very happy with their work and that they will have more room to be innovative and lead future projects; this extension of freedom and trust goes a long way.
Be authentic in your recognition
The low-cost investment of employee recognition could be what drives your business to succeed. Authentically recognizing your staff’s efforts will be a catalyst for productivity. Applying all or some of these tactics will drive positive change — and remember, recognition doesn’t have to come in the form of costly bonuses and big promotions. It can carry just as much value when you have a deeper understanding of what drives and impassions your employees.