With a huge war uprising for hiring top talents, each company is trying to find numerous ways to retain the top talents at their company. Especially after most organizations are shifting to a hybrid working schedule.
Top talents are setting new boundaries and even considering leaving their jobs when their requirements aren’t met.
However, especially in areas like the EU, some countries are still developing and employee recognition is not at an adequate level. This is causing several people to leave their job and look for a replacement.
Therefore, in this article, we will learn more about employee recognition and business retention, how it affects productivity levels and how it can lower turnover rates.
Let’s dive right in.
10 Ways employee recognition will directly affect retention rates and productivity levels
360 degree feedback software helps increase employee recognition: What is 360 feedback software? It’s a feedback software that allows organizations to gather employee feedback from managers, peers and reports directly.
As a company that encourages development, you’ve most likely heard about the benefits of 360 feedback software. If you haven’t, you are only missing out. So what are the main features a 360 feedback software has to offer? Here are the main ones:
User-friendliness: Is the software responsive? If your solution is easy to use, it’ll be easier for employees to slot reviews into their daily working schedules more comfortably.
Customization: Creating questionnaires for suiting a range of roles.
Integrations: 360-degree feedback works with development paths, OKRs, engagement surveys and more. Your platform of choice will include all of these features.
Scalability: If you are working for a large organization or growing your business, you need the proper software to help your performance management scale up.
Analytics: The software will help you analyze and interpret data from performance reviews. This way, you’ll be able to make better data-driven decisions. If you are wondering what the best 360 degree feedback software is, you can rely on the following:
- Perform Yard and more
Employee reward programs experience lower frustration
Employee reward and recognition programs will experience up to 30% less frustration than organizations that don’t have any.
What better way to celebrate great work than to include rewards and recognition programs? After all, organizations with global employee rewards programmes achieve a 66% increase in loyalty, a 60% increase in individual performance and employees are 63% more likely not to leave their jobs.
A recognition program builds a global culture of appreciation that works for all teams. Additionally, it allows employees to recognize each other, whether working at the office or remotely, strengthening team relationships and providing a simple reward.
Employee recognition connects with parking too
Did you ever think of how many office parking problems most employees have when they go to the office? Well, it’s not a small issue and employee recognition is connected to available parking spots too. What better way to show appreciation than to reserve a spot for your colleague?
Finding available spots isn’t easy, but as an organization, it should be considered your responsibility to do so. Especially as prices have risen recently, parking is getting more expensive and it may become an expensive trip for your employees to come to work. You definitely don’t want them to think this. Therefore, always look for some solutions, such as the following:
First come, first served: First one to come will get the parking spot
Use parking management software: The software will automatically manage each spot and time frame.
Reserve parking: Try to count the number of team members who want to park and reserve spots for a certain period of time.
Lack of employee recognition leads to cost deficit
Replacing an employee will cost the business around six to nine months of an employee’s salary! These costs add up quickly and are more problematic for developing countries in the EU since most companies in developing countries have a limited budget. However, regardless of the country, costs do add up for businesses that lose many employees due to a lack of employee recognition.
Imagine if you are paying an employee a salary of 45,000 Euros annually, replacing that employee will cost you at least half of this salary. This adds up to 22.500 Euros wasted, meaning that it’s not a good idea to try and replace employees, especially if they are top talents. Top talents can add up the costs even more.
The financial costs of failing to recognize good work are high, so it’s important not to let it get the upper hand. Moreover, another huge loss is the productivity challenges you need to face.
Higher employee turnover rates will impact the organization’s productivity, so it’s important to pay close attention to it. Harming the company culture isn’t a good strategy and will result in higher replacement costs, as we mentioned.
Statistics claim that employees are 73% more likely to be productive when their work is recognized.
Employee morale and productivity are linked together, so when employers show their appreciation regularly, it’ll affect productivity. Staff appreciation is essential for the company’s well-being and employee satisfaction.
In other words, you can take yourself as a perfect example. If you feel undervalued at a workplace, you won’t be motivated to work and have a higher chance of leaving the company. Lacking a program of employee recognition results in lower productivity rates, thus, directly impacting long-term results.
Appreciation decreases absenteeism
Employees will always try and avoid their tasks when their work isn’t recognized and they aren’t happy. However, recognizing and rewarding employees will decrease absenteeism rates and affect individual productivity.
When employees are present at the workplace, they can complete their tasks on time, effectively meeting deadlines.
Employee recognition improves business growth and profitability
When employees feel valued at work, their recognition and contribution towards a job increase. In other words, they have more pride and ownership in their work. This makes them work harder, directly contributing to the business’s profitability and growth.
Additionally, employees are more motivated and will want to work harder. Conversely, lack of motivation is one of the main drivers of decreased energy and performance at the workplace.
Improves the customer experience
Happy employees increase customer satisfaction and experience. Unfortunately, when someone isn’t happy, they may transfer their negative energy to other people. This isn’t something you want to happen while running a business.
Hence, employees whose work is recognized will always try to exceed your expectations and manage existing customers effectively, bringing in new clients and a positive experience.
Encourages a positive company culture
Employee recognition policies directly contribute to a company’s culture. Positive work culture will create mutual trust between team members and strengthen their collaboration. When teammates collaborate, they’ll be more willing to support each other and work.
Areas with many different cultures, like the EU is an area with a range of cultures, so if you’re working with team members from different parts of Europe, it’s always a good idea to adjust to each other’s differences.
their work, they’ll put in much more effort toward achieving the goals of the company.
10. Promotes a much stronger employer brand
All organizations are concerned about having a strong employer brand and attracting industry talent. Organizations focused on their employees have good employee recognition programs that are motivated to spread good words and attract top talents.
Spreading good words will benefit both the personal and professional networks of organizations.
The most effective ways to increase employee recognition
While you are creating your employee recognition program, there are multiple benefits for the organization. Taking the right steps for creating and managing these programs includes some dedication. Here are a few tips we recommend to you:
- Ensure your recognition program is specific and measurable
- Clearly define the criteria for your employee recognition
- Offer employee recognition for increasing your results in line with business goals and objectives
- Offering employee recognition for good behaviour in line with the company’s goals
- Leveraging technology to make the process more user-friendly and efficient
- Retaining human touch as much as you can
The final cutdown
The entire idea of employee recognition is to promote growth and productivity in your business. Something you want to avoid at all costs is increasing your employee turnover rates because it’ll increase time consumption and increase costs.
Especially in an area like the EU, you want to adapt to a diverse culture and encourage employee recognition as much as possible.
About The Author:
Tony Ademi is a freelance SEO content and copywriter. He has been in the writing industry for three years and has managed to write hundreds of SEO-optimized articles. Moreover, he has written articles that have ranked #1 on Google. Tony’s primary concern when writing an article is to do extensive research and ensure that the reader is engaged until the end.