Why Use Employee Recognition

Key Results Obtained Through Recognition
Below is a description of how recognition programs affect employees and the corporate culture of the organization.

Recognition Programs Keep Employees Engaged
Recognition increases the level of employee engagement in an organization. Recognizing your employees for a job well done illustrates exactly what they did to make a difference. Positive affirmation will help your employees recognize which behaviors to repeat in the future. This type of feedback will help your employees stay engaged in their work and build a solid culture in your organization.

Lower Turnover
As a whole, engaged workplaces have low turnover, high customer loyalty, and are generally more profitable. In fact, engaged employees are 50% more productive than disengaged workers. Additionally, recognition builds a stronger relationship between the manager and the employee. As this relationship grows, your employees will develop loyalty to the manager and your organization.

Recognition Programs Improve Employee Performance
When employees are appreciated for their work, they are more likely to repeat rewarding behavior. These employees are more engaged in their work and are more loyal to the company than disengaged employees. According to Jeffery Pfeffer of the Stanford School of Business, "Thirty percent of employees improve performance after being criticized; 90% of employees improve performance after being praised." It is clear that employees who are praised have higher performance.  

Higher Customer Satisfaction
Recognition makes a company profitable because recognized employees are more engaged in their work. Engaged employees perform at a higher level of productivity and provide better service to their customers. As a result, customers are more satisfied and will continue to do business with the organization.

Recognition programs are most often used to recognize years of service and create a positive environment. Companies also report using recognition to:

Reasons for Using a Recognition Program

Percent of Organizations

Create a Positive Environment

74%

Motivate High Performance in Employees

72%

Motivate high performance

71%

Reinforce a Desired Behavior in Employees

66%

Increase morale

60%

Support the Corporate Mission or Values

56%

Support organizational mission and values

59%

Encourage Loyalty

43%

Encourage Loyalty

41%

Support Changes in Culture

18%

Other

5%

It is important to have an objective in mind when developing your recognition program. Choose the objectives that you’d like to address from the list above.

The participants in this study used these indicators to measure the success of the program:

Indicators for Measuring Success

Percent of Organizations

Employee Satisfaction Survey

57%

Usage or Participation Rates

53%

Number of Nominations

42%

Turnover

30%

Productivity

21%

Customer Surveys

18%

Return on Investment

10%


Establishing a clear Recognition Strategy and Tracking and Measurement metrics are critical to the success of your recognition program.

Sources: Jeffrey Pfeffer, Stanford School of Business and WorldatWorkWorldatWork.


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