6 min read | 11 May, 2021 By Breathe Australia
When you think of employee recognition, ‘employee of the month’ awards might spring to mind. While receiving an award would certainly be uplifting for an employee, the real power of employee recognition is how it makes employees feel valued and inspired to pump out even more thoughtful, productive and profitable work - exactly what every small business needs. Implementing effective employee recognition strategies will also boost your company culture by encouraging desirable behaviours and profitable activities that will in turn catapult your company to more sales.
Employee recognition encompasses the ways a company acknowledges their employees for making an outstanding contribution to the workplace, customers and/or their colleagues.
It can come in many forms and it’s important to find the ways which suit you and your business model best. For example, you might be interested in launching a full-scale employee recognition program or more keen to start small by encouraging your managers to find small and simple ways to show their appreciation to your employees. Either way, amping up company-wide gratitude can only stimulate good outcomes.
There are three main reasons that make acknowledging your employees’ excellent contributions so important:
The main way that employee recognition will benefit your workplace is by reducing the probability of employees leaving and the costs associated with recruitment. This is a result of employing happier, more engaged and productive people.
If you haven’t yet settled on an accurate way to analyse the potential cost of employee turnover, according to some of the respondents who participated in a 2018 turnover and retention research report by the Australian HR Institute (AHRI), you can calculate turnover costs by:
As you can see, the costs of employee turnover can be significant. So, investing in some form of employee recognition is clearly valuable. In fact, leading experience data (X-data) company, Qualtrics, in their 2020 Global Employee Experience Trends report, found that “highly engaged employees are 87% less likely to leave their companies than their less engaged counterparts”.
The best way to implement an employee recognition strategy is to start with a solid, purposeful plan. To help maximise the success of your strategy consider including:
here are a number of simple ways your business can weave employee recognition into your work week, including:
Posted on 11 May, 2021