\u00a0\u201cPeople work for money but go the extra mile for recognition, praise and rewards.”<\/p>\n
–Dale Carnegie, Leadership Training Guru<\/p>\n
Everyone is committed to their work and will be working wholeheartedly. But going that extra mile gives the advantage of innovation and exceptional growth for an organization. Only a matured rewards and recognition program can deliver the \u2018extra mile\u2019 advantage by motivating and engaging your employees and inspiring them to deliver high-performance.<\/p>\n
Take a look at what you might lose if you do not have the right rewards & recognition program in your organization.<\/p>\n
Loss 1: Higher employee turnover \u2013 A Gallup study indicates that Millennial turnover costs the U.S. economy $30.5 billion annually <\/strong><\/p>\n The global workforce is getting younger rapidly and millennials comprise a major part of this workforce. The famous American journalist Joel Stein in his cover article in Time Magazine described millennials as the generation that wants constant approval. He also remarked how DreamWorks was able to achieve a 96% retention rate by catering to their expectations.<\/p>\n According to experts lack of recognition is the number one reason for employees to leave their jobs. If you do not have well-designed rewards and recognition culture in your organization then, they do not stick around. You might lose them faster than you hire and train them.<\/p>\n [bctt tweet=”Lack of recognition is the number one reason for employees to leave their jobs.” username=”synergita”]<\/p>\n Recognizing employees\u2019 achievement could be the most inexpensive method to retain them.\u00a0 In fact, Josh Bersin\u2019s new recognition research states that the employee turnover rate is lowered by 31% if the organization has a recognition-rich culture.<\/p>\n Loss 2: Negative Employee Experience – 75.4 million millennials give priority to employee experience<\/strong><\/p>\n Recognition is an intangible, immersive experience. Recognition need not always be followed by a reward. Recognition costs next to nothing but the gains are rewarding (the pun is intendedJ).\u00a0 Simply thanking your employees and praising their extraordinary efforts can be considered recognition in its most fundamental form. Recognition is the most human way to cultivate long-term relationships and create a positive employee experience.<\/p>\n Millennials require immediate recognition for their accomplishments. Companies cannot afford to ignore the priority of the majority workforce. Improving employee experience through recognition programs is therefore critical for companies operating in a highly competitive global economy. Studies have proven that employees are 7 times more likely to stay if the organization has a good recognition and rewards program.<\/p>\n \u00a0<\/strong><\/p>\n Loss 3: Productivity \u201369% employees\u2019 will work better if they are recognized<\/strong><\/p>\n If managers do not get recognized for their contribution from the top management, they, in turn, do not recognize entry-level employees and peers. If the recognition culture flows in the company\u2019s DNA then, it will trickle down to every level.<\/p>\n Recognition, continuous feedback and career development are crucial in creating better employee engagement. Employees who feel cherished, listened to, and nurtured become highly productive.<\/p>\n When the right employees are recognized, for the right deeds in the right way, they feel motivated to work hard. They enjoy their work and deliver greater results. A survey by SocialCast revealed that 69% of employees feel they will work harder if their efforts are appreciated and recognized.<\/p>\n Loss 4: Employee Collaboration \u2013 50% of employees felt that appreciation from managers improved collaboration<\/strong><\/p>\n Appreciation and recognition is a feel-good experience that makes the workplace happy and cheerful. It helps employees to maintain a healthy working relationship with their manager and team members and collaborate better. Organizations rely on teamwork and collaboration to get the job done. Rewards & Recognition program is effective at increasing, better work relationships and stronger collaboration.<\/p>\n A global research conducted by Cicero group showed that 50% of employees who feel appreciated, have better relationships with their manager and their teammates. Now, this is an opportunity that you do not want to lose. A simple appreciate your teammates \u2018performance to strengthen workplace relationships and collaboration.<\/p>\n Loss 5: Employee Engagement \u2013 2\/3rd<\/sup> of employees feel disengaged when not appreciated<\/strong><\/p>\n The biggest cause of human effort failure can be attributed to disengagement. Employees may have the right skills, they may work hard and maybe the right people for the job, but the real magic that amplifies the result manifold is \u2013Employee Engagement. The simplest and cost-effective cure for employee disengagement is recognizing their genuine efforts and appreciating them openly.<\/p>\n A Gallup survey concluded that 50.8% of employees are not engaged and an additional 17.2% are actively disengaged in their current jobs and less likely to be productive. If you do not create an employee recognition program to improve engagement levels you are likely to lose approximately 70% of your employees\u2019 productivity.<\/p>\n