Measuring the Impact of Recognition on Employee Engagement and Performance
Employee recognition is more than saying “thank you” to your workforce. It’s an effective means of increasing employee engagement and performance in the workplace. But how can we quantify the impact of recognition on employee engagement and performance? Let’s explore five ways.
1. Increased Employee Retention Rates
As reported by Forbes, employee recognition leads to a 31% lower turnover rate compared to companies that don’t recognize their employees. When employees feel appreciated and valued, they are more likely to stay with their current company, which ultimately saves the organization money spent on recruitment, training, and diminishes knowledge loss.
2. Higher Levels of Employee Satisfaction
Engagement and performance thrive on employee satisfaction. When employees feel valued for their hard work, they become more satisfied with their job and their contribution to the company. Recognizing an employee’s hard work helps create an environment where people want to work and contribute.
3. Enhanced Employee Performance
Employee performance measures the success of an organization. Companies that regularly acknowledge and recognize employee performance produce better results. According to a survey from Towers Watson, companies that are highly effective in employee recognition have a 14% better employee engagement and a 6% increase in net profit margins. The recognition has made stronger employee performance in achieving the goals.
4. A Boost in Employee Morale and Motivation
When an employee is recognized for their efforts, it’s a reminder of how their work is making a contribution to the organization’s success and goals. This recognition creates motivation to push harder and improve their performance for an even better result next time. High morale is contagious, and it fosters a positive atmosphere that creates a productive and efficient workplace.
5. Increased Engagement Leads to Financial Benefits
One study conducted by the Aberdeen Group found that employee engagement programs lead to a 10% increase in customer ratings, a 22% increase in productivity, and a 21% increase in profitability. Engaged employees produce higher quality work, improve customer satisfaction and retain customers, leading to higher financial rewards.
In conclusion, employee recognition is essential for workplace productivity, company culture, employee engagement, and performance. Recognition is more than merely saying “thank you.” Companies should recognize their employees’ contributions through appropriate praise, rewards, and consistent feedback to gain loyal and productive employees. Putting a dollar value on the impact of recognition on employee engagement and performance may be challenging, but it’s undoubtedly a worthwhile investment.