Most companies agree that it’s important to recognize employees’ hard work and dedication on a regular basis. By recognizing employee achievements and progress, companies can foster a stronger work environment where team members are more satisfied and loyal to the company. We’ll review a few of the top benefits of an employee recognition program.safer work environment

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1- Lower Turnover Rates

High turnover rates are expensive and can affect productivity. In addition to the cost of recruiting and hiring new employees, companies will easily exceed training budgets with higher turnover rates. 

Bersin & Associates Research conducted a study finding that companies with recognition programs lower voluntary turnover rates by 31%. Lower turnover rates will typically mean better productivity, reduced costs, and a more welcoming work environment.

A positive work environment can also help companies attract top talent. When employees like their jobs and the company they work for, they’re more likely to recommend job openings to their professional network, meaning a positive work environment can help attract top talent. The benefits of recognition don’t just apply to turnover rates, either. A culture of recognition also helps minimize the number of days an employee takes off from work, which, in turn, translates to better productivity.

2- Safer Work Environment

Safety is a priority in most workplaces, but the path to a safe environment isn’t always easily or clearly recognizable. Recognizing employees who follow safety protocols can also lead to a safer work environment for everyone involved. Employee safety awards highlight safety expectations and set guidelines for the whole company.

A safer work environment can also save companies a lot of money. The National Safety Council (NSC) estimates that work-related injuries cost United States companies an average of $167 billion each year. This also doesn’t account for expensive fines and penalties, which can quickly cut into profits.

Additionally, a high rate of worker injuries can give a company a bad reputation, making hiring new team members more difficult. Of course, a safer work environment can also lead to reduced insurance costs.

3- Boosted Productivity

When employees know that their work is appreciated and valued, they’re more likely to continue being productive. Recognizing and awarding certain behaviors reinforces positive work tendencies, which can lead to a more productive workplace for everyone. Productive employees also motivate other employees to work harder. A more productive workplace pays off in a number of ways, including lower turnover rates, better team morale, and a more successful, profitable business. 

Numerous studies also show that recognition doesn’t have to be overly expensive to produce good results. Sometimes, a simple ‘thank you’ shows employees that management recognizes their hard work and dedication. Additionally, employee recognition awards or events highlight specific team member achievements, often leading to a long-term boost in productivity. Other non-monetary incentives that can help show employee recognition include work flexibility and professional development opportunities.

Personalized approaches to employee recognition also show good results. Taking the time to get to know employees and then integrating recognition in a way that best values them can help foster productive team members.

4- Better Employee Engagement

Creating a recognition program can also lead to better employee engagement rates. Employees who are engaged in the work they do are more likely to care about the outcome of their work and any associated projects. Additionally, engaged workers tend to be more loyal workers, which translates to better problem-solving and project-management skills.

Employees who receive recognition for their hard work also tend to have a stronger sense of job security, which also encourages them to continue working hard. Team members who are confident in their positions in a company are more likely to implement positive change and influence other workers to also be more engaged.

Employee engagement is especially important when choosing a company’s leaders. Management is directly responsible for hiring, training, and retaining top talent. Companies who take the time to recognize shift leaders, supervisors, managers, and other management-in-training team members can encourage them to do the same for store-level employees, helping to create more engagement at each company level.

5- Better Customer/Client Experience

A more positive work environment with employees who care about their work and the company as a whole translates to better customer or client experience. Customers can tell when employees enjoy what they do and often have a positive experience as a result. Additionally, team members who care more about their jobs are more likely to demonstrate exceptional problem-solving and customer service skills, helping to retain more customers. Essentially, recognizing your employees could ultimately lead to higher customer retention rates and satisfaction. 

Employee recognition can go a long way, reducing employee turnover rates, creating a safer work environment, and encouraging more employee engagement. In return, customers enjoy a better experience with the company. Recognizing employees for their dedication and hard work should be a part of every company strategy.