The benefits of employee recognition for employees are well known. It can increase motivation, engagement, and much more.
What is less discussed is the benefits employee recognition can have for businesses. Many businesses have not yet made the connection that employee recognition programs can have a positive impact on the wider business. They still see it as little more than a PR exercise.
It’s simply not the case and we’ve got five great reasons why.
1. Increased Business Productivity
Business productivity is at the heart of business performance and, in turn, profitability.
Employee engagement is what drives business productivity. Yet research reveals that employee engagement worldwide sits at an average of 15%. This goes some way in explaining why business productivity across G7 nations has reduced in real terms over recent decades.
Employee recognition helps increase employee engagement which can increase business productivity leading to a more productive and profitable workplace.
2. Better Employee Retention
Employees who are recognized for their contributions in their workplace are less likely to jump ship for another company.
There is a huge amount of costs involved in recruitment. It’s estimated that it costs around $4,000 to recruit a new employee in the USA and takes around 52 days.
Considering the high costs involved in recruitment processes, this is a huge benefit for businesses as it means they can save money and retain the best talent.
3. Attract Better Talent
Employee recognition programs should by no means be thought of as a PR exercise. However, the reality is having a robust recognition program can attract better talent through news stories and so on.
Everyone wants to work for a great company. Businesses that go the extra mile to ensure their employees are rewarded and recognized are the businesses that attract and retain the best talent.
4. Improve Collaboration
Team building is no easy feat, but setting clear goals through a recognition program can help improve collaboration.
Departments and teams have clear goals to aim for and are incentivized to collaborate better to achieve those goals.
5. Stronger Company Culture
Company culture is of increasing importance to employees and businesses. Studies showcompany culture is a deciding factor in applications, as well as for employee retention.
Beyond this, strong company cultures help improve employee engagement and productivity. After all, who doesn’t love working somewhere they love?
A robust employee recognition program is the backbone of strong company culture. It shows you value your employees as key players in your business vision.
Now you can see the clear business benefits of employee rewards and recognition, if you’d like to implement your own program, Axomo is a great place to start.
Learn More About the Benefits of Employee Recognition
The benefits of employee recognition for businesses are clear; increased productivity, better retention, better talent, and better company culture. But these are only the beginnings of the potential benefits of improving employee engagement.
If you’d like to learn more, we have lots of helpful business advice on our blog.