Why should you implement an– or improve your existing – employee recognition program?
Rewards and recognition that help both an employer and their employees to get what they need represent a win-win business strategy. There is always room for a program that continues to set your performance bar higher, and at the same time, builds positive morale.
Three benefits of employee recognition include:
Improved Productivity
The cost of a recognition system is relatively small, and the resulting benefits are large from a productivity and profitability standpoint.
- For every five percent increase in employee attitude scores, Sears, Roebuck & Co., saw a rise of up to three percent in customer satisfaction and a 0.5 percent increase in revenue, after implementing its recognition program.
- On the other hand, the cost of extremely negative or actively disengaged workers makes up approximately 10 percent of the U.S. Gross Domestic Product each year. This includes the impact of related workplace injuries, turnover, absenteeism and fraud.
Greater Employee Satisfaction
Not surprisingly, a company’s bottom-line results often tie in directly to its reputation as a place to work, and the level of ongoing satisfaction experienced by employees.
- After establishing its recognition program, the Walt Disney World Resort realized a 15 percent increase in staff satisfaction. These results correlated directly with high guest satisfaction scores.
- The results a recent Society for Human Resource Management (SHRM)/Globoforce Employee Recognition Survey revealed that among companies that spent one percent or more in payroll on recognition programs, 85 percent had seen a positive impact on employee engagement. A total of 815 global corporate leaders responded.
Higher Retention
As an employer, you are well aware of the importance of retaining top talent. Among HR leaders in one recent survey, 51 percent said their companies had an increase in retention rates as a result of their recognition programs.
- In the SHRM/Globoforce study, it was shown that companies with well-structured rewards programs experienced a 22 percent lower turnover rate than those without such programs.
As noted by Globoforce CEO Eric Mosley, “Employee recognition provides quantifiable business results. It’s these types of findings that cement recognition as a critical program for any HR leader.”
Need help structuring, or restructuring, your employee recognition program? Turn to the recruitment and workforce development experts at PrideStaff Fresno. We can lead you in the right direction to build productivity, engagement and long-term employee loyalty and retention. Contact us today to learn more.