Though rewards can be ideal for celebrating employee’s achievements, they are often fleeting and fix short-term motivation problems rather than sustaining long-term engagement. On the other hand, regular employee recognition can be implemented as part of your workplace culture and offers much broader benefits that can increase both productivity and employee satisfaction.
Recognition essentially boils down to showing people an appreciation for the work they do and typically falls into two camps: personal and social recognition. Both approaches can work wonders when it comes to enforcing positive working attitudes as well as instilling corporate values into your employees.
But ultimately, an employee recognition scheme indicates that your organisation acknowledges and appreciates hard work and wants to celebrate individuals’ successes.
Let’s take a look at 4 compelling reasons as to why recognition is so powerful…
1. People prefer recognition
According to Psychology Today, 70% of people said the most meaningful recognition had no monetary value at all, whilst 83% said recognition was more fulfilling than rewards or gifts.
Also, since rewards can often be perceived as putting a value on an employee’s work, the reward might not equate with how much effort the employee feels they’ve actually put in, which some staff may find demotivating.
2. Recognition changes behaviour
The science shows that whilst reward such as pay increases, and bonuses might give people a higher sense of self-worth, it doesn’t change behaviour.
On the other hand, receiving recognition releases a burst of dopamine, and creates a feel-good sensation motivating us to seek more of the same feeling and repeat the behaviour we received recognition for in the first place.
As an added bonus, showing appreciation to others creates the same reaction as receiving appreciation, driving a culture of recognition.
3. Recognition offers the best ROI
Recognition doesn’t have to be complicated or expensive - a simple ‘thank you’ can go a long way at little or no cost, and there are several tangible benefits.
Employee engagement expert, Kevin Sheridan says that recognition is the number one driver of employee engagement, and further research shows that organisations with high engagement can benefit from 89% higher customer satisfaction, 50% higher customer loyalty and 21% greater profitability.
4. Recognition is better for retention
People generally leave organisations for emotional rather than financial reasons, one of which is often reported as a lack of recognition.
According to Forbes, when asked why they’d leave their jobs, 45% of people said they would leave due to a lack of recognition, while companies which are in the top 15% in terms of building a culture of recognition said they have 46% lower rates of voluntary attrition.
All of this is not to say that there’s not a place for reward but linking it with your employee recognition software can improve the impact, making for happier, more productive and more engaged employees.
Discover our brand-new employee recognition software, Access Applause, and find out how it can engage, motivate and connect your people.
For more guidance on giving reward and recognition, download our latest HR guide.