ROI of Employee Recognition

As an employer, it is your responsibility to ensure the success of an organization. The best way to secure the future of your business isn’t by investing in new technology. It is by investing in your human capital. Your employees are the skills behind your equipment or service. They interact with customers and ensure brand loyalty.

The following are some of the many benefits of employee recognition:

Low Employee Turnover

Modern employees have options for employment opportunities, and they will leave if they feel unappreciated. In this case, you risk losing some of the best talents. These could be the basis of the success of your organization. It would help if you tried to know your employees and find reasons for them to turn down better offers from competitors. Don’t assume they work for you because they lack an alternative. Be a great leader and create a connection between you and your employees.

Improved Performance

If your employees are happy, you will notice it in your organization’s performance. It’s because people tend to give their best in a respectful environment. You could appreciate your employees’ efforts by giving service awards to the best individuals or teams. Employees will work extra hard if they feel their efforts are recognized and appreciated. In this case, they will always work to meet organizational goals and exceed your expectations.

Positive Public Relations

Your employees are part of the image of the organization. How they speak to outside parties about the business plays a huge role in making or breaking relationships. For example, if you have unmotivated and angry employees, they will share their frustrations with family and friends. These family and friends are potential customers, suppliers, investors, or shareholders. They may spread negative stories about your organization, and you might lose customers or investors.

Improved Customer Service

You can tell the relationship between employees and an organization by observing their customer service. Highly motivated employees will remain positive and give their best to customers. In the case of a dispute, they will follow the procedure to ensure customer satisfaction. If the employees lack motivation or have conflicts with the management, they will show less interest in customer concerns. You will notice an increase in complaints and negative reviews, which could damage your brand reputation.

Increased Interest From Potential Candidates

Highly skilled employees will improve your organization’s performance and strengthen the brand image. Satisfied employees will share their experiences with friends and family. They will also share on social media, which can reach thousands of people interested in the business. When this happens, you will notice increased applications for open positions. In this case, you may get the chance to recruit some of the best talents within your area. Remember, this can only happen if your employees are recognized for their efforts and your leadership is outstanding.

Positive Competition and Engagement

When you recognize the efforts of employees based on their performance or skill, you challenge the rest to improve. In this case, everyone will be in the quest to receive an award or recognition. They’ll strive to do their best in teams to secure their names amongst some of the best. You can show appreciation quarterly or semi-annually to ensure your employees remain engaged. You may also set up exciting competitions or challenges but work towards achieving the organization’s goals and employee well-being.

Improved Employee Health

The work environment can be stressful for employees, so avoid becoming the cause of additional stress. If you stress your employees and fail to recognize their efforts, it could significantly impact their mental health. As a result, poor mental health could lead to poor physical health, eventually affecting their performance. As a leader, you should be the source of encouragement and positivity to keep your employees mentally healthy and motivated to be their best.

Organizational Culture

Employees will only show interest in the organization’s culture if they feel motivated to care. For example, you might observe the strength of your in-store networks increasing once you introduce an employee recognition program. The organization will suddenly become a wonderful place to work as people get to work in teams. You will also notice your employees can freely express their concerns or provide suggestions for improvement.

Most employers tend to ignore employee recognition because they believe appreciation is expensive. It shouldn’t be the case, as employee recognition is a form of investment in the organization. Also, you don’t have to offer vacations or excessive monetary compensation. Any simple gesture to show appreciation could be a catalyst to the success of your organization.