Employee Recognition: Why It’s Important, Statistics, and Tips

Most of the time, when a boss or manager is busy, the last thing on their mind is employee recognition. But while it can sometimes seem difficult to put in that little extra effort and show your employees how much you value them, it’s not as difficult of a task as you think.

Not only is it a simple task, but it’s also an important one. As much as 44% of employees switch jobs because of not getting adequate recognition for their efforts, but that is far from the only reason why you should show your appreciation.

This article explains why you need to show employee recognition and how.

You can show recognition in many ways

If you’re under the impression that employees want a salary increase or or personalized gifts like customized challenge coins, logo pen, branded umbrella etc as gratitude for their hard work, you’re mistaken. You can show recognition in many different ways, and most of them are even better than just giving money to employees.

You can gather your team and take them out to dinner to celebrate the success of an important project, send customized gifts, give them vouchers for their favorite store, spa days, and much more.

If you need any employee appreciation gifts ideas, Hoppier has you covered. Depending on what your budget is and what kind of message you’re trying to send to employees, you can choose between gifts such as educational classes, company retreats, personalized stationery, and much more.

A good employee recognition gift should be meaningful, high-quality, relevant, memorable, and personalized if possible. So don’t stick to regular cash bonuses when you’re picking out gifts. Think outside of the box and choose something your employees will remember forever.

The statistics don’t lie

If you take a look at employee recognition statistics, you will notice a lot of reasons why you need to show how much you value your employees as often as possible. Let’s go through some important ones and see what that means for your business.

The first statistic we want to focus on is that organizations with sophisticated recognition programs are 12x more likely to have strong business outcomes.

This is pretty self-explanatory. Employees who feel appreciated at their jobs have more motivation to perform well and give it their all, which leads to strong business outcomes. When you recognize the achievements of one salesperson who did an exceptional job, other team members will soon follow.

Next, did you know that when companies spend 1% or more of payroll on recognition, 85% notice a positive impact on engagement?

Engagement is an extremely important characteristic every employee should have. When your workers are highly-engaged, they will be more dedicated and loyal to your business. People won’t look for excuses to get out of work, they will welcome every new workday with a smile.

And finally, it’s important to realize that recognition for managers and other authority figures isn’t the only thing that counts. As much as 41% of employees want more recognition from their immediate coworkers.

So talk to your employees, explain how important it is for coworkers to show appreciation to one another and recognize success when they see it. This will lead to less resentment in the workplace and better teamwork.

Why recognition is important

When you take a look at the real-life benefits and reasons why recognition needs to be a part of your office culture, you will probably wonder why you haven’t been showing appreciation much sooner.

Here are just a few things you should know:

• Recognized employees stick around. There’s nothing worse than hiring a new employee and training them every few months. A reason for high employee turnover rates might be a lack of recognition and appreciation. But if you do appreciate the people who work for you, they will gladly stick around.
• Recognition equals happiness. Even a simple “thank you” can put a smile on an employee’s face and send them home feeling happy and appreciated. If their work-life keeps them satisfied, they will be happy in the office and at home, which is just as important.
• You will be seen as a trustworthy boss. Managers and bosses who take the time to show their employees how much they’re appreciated are often seen as good authority figures who are trustworthy and fun to work for.

As long as you work on creating a happy workplace and show recognition whenever you can, the benefits will be immeasurable.

Final thoughts

Your workforce is your business’s most significant asset. Without them, no sale would be completed, customer complaints would be unresolved, and products would collect dust on the shelves. So make sure to show your employees you recognize all the hard work they do and that you appreciate it.