4 Reasons Employee Recognition is Important to Your Business

Every human being wants to be recognized and appreciated for the work they do because they like to see the reward of their efforts. However, managers often wait until the annual performance review day to give their feedbacks and show their recognitions. Managers shouldn’t wait only one day of the year to recognize their employees. Instead, they should recognize them every day. This is only possible, if employee recognition becomes part of that company’s culture. It is recommended that every company makes employee recognition an essential part of their company cultures and below you can see its reasons.

The Importance of Employee Recognition

• Lowers Employee Turnover and Retention: When employees feel recognized, they tend to stick around longer and therefore, employee turnover and retention decrease. Correspondingly, recruiting and training a new employee costs decrease. There are both foreseeable costs of replacing an employee as well as unforeseeable costs because it takes three to six months for a new employee to get used to their new roles and become as productive as the previous employee.
• Increases Employee Happiness: When employees are recognized, they become happier and as a result, their productivity increase. When they are more productive, they do more great work and should be rewarded again. This is a constant loop. Productive employees mean more successful jobs and more successful jobs mean earning more money for the employer so it is a win-win situation for everybody. Also, employees do not usually quit jobs but they quit their managers. If their managers make them feel valued, they become happy and do not think about quitting their jobs.
• Increases Employee Engagement: Companies often complain about poor employee engagement and look for ways to overcome this problem. In order to increase employee engagement, a well thought recognition and appreciation program might be a solution. A powerful program increases employee engagement as well as employee morale. Hence, employees feel valued and valued employees are more satisfied from their jobs.
• Increases Trust to the Company: Recognized employees feel more human and worthwhile. Hence, this affects the trust of employees because if a company cares about their employees and puts them first, then trust to this company increases. When employees trust their workplaces, they become more committed and embrace their workplaces. Also, if a company has remote employees, building trust becomes more difficult due to the challenges of working remotely. Therefore, managers can build trust among their employees by showing them that they see their contributions and care about their needs.

Republished by permission. Original here.

Job Well Done Photo via Shutterstock

This article, "4 Reasons Employee Recognition is Important to Your Business" was first published on Small Business Trends