“Recognition is not a scarce resource. You can’t use it up or run out of it.” – Susan M. Heathfield
Employee reward programs are a great way to keep workers happy and satisfied while demonstrating gratitude to them for their hard work. Recognizing employees' efforts in the workplace has also become vital for improving workplace culture and creating an environment that encourages productivity and loyalty.
In addition to highlighting the importance of employee recognition, several studies also offer numerical evidence that proves the effectiveness of these programs. Here are 3 examples of those statistics:
Increased employee retention
In a survey by the Society for Human Resource Management (SHRM), 68 percent of respondents said rewards were a top factor in their motivation to stay with their current employer. The number highlights the connection between employee recognition and retention.
Employee rewards programs are one of the best strategies to make use of this connection and ensure that companies keep valuable employees while putting their experience and satisfaction first. The growing competition for talent makes having such a program a necessity to ensure that a company not only finds the best that the talent pool has to offer but also keeps them as well.
Recognition and engagement are strongly related and result in improved job performance and an overall increase in profit margins. According to Deloitte, the engagement, productivity, and performance of employees are 14% higher compared to organizations without a recognition program.
The recognition of an employee’s hard work through rewards or even a simple thank you increases their morale and boosts their productivity. Some employees thrive on public recognition of their efforts while others prefer to have a one-on-one conversation or receive their reward without too much fuss.
More memorable than cash incentives
A popular quote by Maya Angelou says, “at the end of the day people won’t remember what you said or did, they will remember how you made them feel.” The sentiment from this quote can be considered as a basis for the impact that employee reward programs have.
While cash rewards in exchange for hard work are good, a study by the Incentive Marketing Association showed that 65% of employees find non-cash incentives to be more memorable. Some examples of non-monetary rewards that can be part of an employee recognition program include travel and other gifts you can easily set up through Gifted.co. This platform offers access to multiple-choice gift cards to suit every recipient, no matter what they love.
“People work for money but go the extra mile for recognition, praise, and rewards.” – Dale Carnegie