It comes as no surprise that humans respond well to a little praise. From the time we’re young‘uns right into adulthood, getting a little spotlight for a job well-done gives us all the natural beam of pride that makes us want to keep it going.
This same principle especially rings true in a work setting. Simply put, if an employee receives praise or spotlight for their achievements or hard work, they’re statistically shown to have more job satisfaction and higher work performance.
On the same token, an employee who feels like their hard work isn’t recognized, or that they’re not seen as a valuable asset, their work can suffer as they grow more dissatisfied with their jobs.
To create the latter, and in turn, increase profitability, all you have to do is recognize that employees are the backbone of a business and should be treated as such. This handy guide will teach you all about employee recognition and how to use it to contribute to a business’ bottom line.
What is “Employee Recognition?”
“Employee recognition” refers to any gesture that proactively recognizes an employee. It can be a small gesture that's related to their personal life, such as giving them a birthday card, or a big gesture like offering a raise or promotion for their outstanding work.
The goal behind employee recognition is to not only assure them their work is appreciated but to solidify their sense of belonging. Creating a team-oriented atmosphere where everyone feels like an important part of the operation produces synergy.
Synergy is the principle that the business as a whole is greater than the sum of its parts. In essence, striving for a “one big happy family” business culture produces better results.
The Benefits of Employee Recognition
Increasing profitability through employee recognition works because the benefits far outweigh the costs. An effective employee recognition program has the power to:
- Lower job-related stress and its side effects, such as low productivity and absenteeism.
- Increase an employee’s productivity by creating the desire to repeat actions in a praised performance.
- Create higher job satisfaction and enjoyment of work, which creates a more positive attitude.
- Create higher loyalty and satisfaction from customers or clients.
- Increase employee retention which helps eliminate costly turnover.
- Increase synergy and improve morale.
- Decrease safety risks or on-the-job accidents.
The above benefits offered by an employee recognition program can substantially reduce the costs that employers spend each year without them. But the key benefit here is that when employees are satisfied, it drives your bottom line.
In a Harvard study, participants were asked to solve problems. About half of the study participants were told to ask friends and family members to send them an email just prior to their participation in the problem-solving study that detailed a past scenario when the participant performed at their best.
The study participants who read positive statements about their peak performance were overwhelmingly more creative in their approach. This made them more successful at solving the problems, and less stressed while doing so.
How to Have a Profitable Employee Recognition Program
An employee recognition program that drives your bottom line features these three core pillars:
1. A Modern Company Mission That Aligns With Your Employee Values
First and foremost, your company mission should be one that speaks to the values of your employees. If you’re a brewery, your mission isn’t to “sell beer,” it should be “uniting people through the powerful combination of positive social energy and delectable beverages.” An employee should feel like they’re a part of something more.
2. Revamping Your Program or Start From Scratch
Having a profitable employee recognition program involves creating a culture that nurtures a sense of inclusivity, family, belonging, and appreciation.
Although there are a lot of traditional methods in doing so, the truth of the matter is that the workforce is changing. Newer, more modern methods of creating a high-performing company atmosphere are ideal. Get creative, get input, and seek out newer, more engaging methods of employee recognition that new-era companies are adopting.
3. Being The Key
You, as an HR professional, manager, or company leader are the key to creating a profitable employee recognition program. Remember that whatever you put into making your employees feel valued is what you’re going to get out in attitude → productivity → profitability.
If you’re not sure where to start, Anthem Branding can guide you. We’re a boutique branding agency that creates high-quality custom merchandise and provides design services that help businesses form genuine relationships internally and externally.
Allow us to kick off your new, more profitable employee recognition program by contacting a branding expert at Anthem today.