The Benefits of Employee Recognition
There’s no doubt that getting recognized by an employer is encouraging. But what many people don’t realize is how beneficial employee recognition is for every person involved.
A Gallup report found that 44% of employees are more likely to be “thriving” in their life overall “when recognition hits the mark” at work and 73% less likely to “always” or “often” feel burned out.
But recognizing employees is just as important on the organization’s end. In fact, it can save a company millions of dollars.
According to a report by Gallup, 56% of employees are less likely to be looking or watching for jobs “when recognition hits the mark” and are five times more likely to see a path to grow at the company.
And that retention pays off – literally. The report found that creating a culture of recognition can save a 10,000-employee company up to $16.1 million in employee turnover costs annually.
Recognition, in turn, leads to engagement – employees are four times more likely to feel engaged “when recognition hits the mark.”
It’s important to note that the frequency of recognition can make a difference in engagement. A study by the Achiever Workforce Institute found:
- Half of employees recognized within the past week were “very” engaged
- Less than a third recognized in the past month were “very” engaged
- Only 16% of those recognized more than a year ago were “very” engaged
Don’t think that the reason for recognition goes unnoticed, either. 92% of employees say they’re more likely to repeat actions that they’re recognized for.
For companies that want to heighten or enhance their recognition programs, there’s plenty of research on how to do so.
Gallup listed five factors that drive how effect an employee recognition program is: fulfilling, authentic, equitable, embedded in the culture and personalized.