The Importance and Benefits of Employee Rewards and Recognition
Employee rewards and recognition is vital to improve organizational values, encourage friendly competition, improve employee happiness & satisfaction, increase customer satisfaction and motivate employees to go the extra mile.
1. Showcase Goal Achievement
A simple “thank you” is often all it takes to show appreciation to employees. People want to know that their hard work and achievements aren't going unnoticed. When a person achieves a goal—personal or work-related—they feel a rush of achievement, and that good feeling is only amplified when others recognize and acknowledge the achievement as well.
2. Motivate Effort
Recognition can be tied to more than just performance. Celebrate strong effort when employees go above and beyond. This helps them develop emotional connections to the workplace that fuel future performance.
3. Reinforce Values
Behaviors and actions that are recognized more frequently show employees what’s valued by managers, leaders, and the organization as a whole. When employees receive recognition for adopting a behavior aligned with company values, they’re likely to continue that behavior and set a positive example for others.
What is the importance of employee recognition?
When employees feel valued, they’re more engaged, motivated, and likely to go the extra mile for their company. Organizations with formal recognition programs have 31% less voluntary turnover than organizations that don't have any program at all. And they're 12x more likely to have strong business outcomes. If leaders want to drive employee, team, and business success, they need to prioritize employee recognition.
The connection between employee recognition and engagement
Aspects such as performance, goals, recognition, development, and manager effectiveness are all inextricably linked to employee engagement. And recognition is one of the top drivers of employee engagement.
In fact, our research found that when employees believe they will be recognized, they are 2.7x more likely to be highly engaged.
Other items related to recognition that drive employee engagement, include:
The senior leaders of this organization value people as their most important resource.
If I contribute to the organization’s success, I know I will be recognized.
I understand how my job helps the organization achieve success.
Benefits of employee recognition
Employee appreciation is a fundamental human need. When employees feel appreciated and recognized for their individual contributions, they will be more connected to their work, their team, and your organization as a whole.
Here are a few other benefits of employee recognition:
1 Increased productivity and engagement
2 Decreased employee turnover
3 Greater employee satisfaction and enjoyment of work
4 Improved team culture
5 Higher loyalty and satisfaction scores from customers
6 Increased retention of quality employees
7 Decreased stress and absenteeism