So you want to build a recognition program for your company. But what are you recognizing? Who are you recognizing? And most importantly, why are you recognizing? As a crystal trophy manufacturer, we’re experts on the subject, so we’re here to help you!
What is Recognition?
Before you build your employee awards program, you should understand the basics of recognition. Some define it as receiving an award or celebrating a success at work. Others define it as earning and incentive for reaching a goal. These are all related to recognition, but they don’t completely define it.
Recognition Professionals International (RPI) defines recognition as:
“An after-the-fact display of appreciation or acknowledgement of an individual or team’s desired behavior, effort, or business result that supports the organization’s goals and values.”
Recognition is more than just throwing a party, giving an employee a gift, or saying thank you. It’s an acknowledgement that intentionally links behavior to corporate goals.
Does Recognition Really Save Money? Yes, It Does!
Corporate recognition programs are also extremely helpful at saving your company money. But how can that be when you have to spend money on an effective recognition program? Well, recognition programs help reduce the cost of acquiring new employees by making sure the existing staff wants to stay with the company. The cost to recruit one employee is more than $10,000. Replacing an employee with three or more years of experience takes at least six months on average. So the cost of replacing, hiring, and training only ONE key employee is 2.5 times their beginning salary. Luckily the national turnover rate has dropped from 35% at one point down to 18% in 2015, but you can see how it can still be expensive to hire and train one new employee.
You will, of course, still have to hire and train new employees, especially since baby boomers are starting to retire, which will cause an employee deficit of 30 million workers! Because of that deficit, employers are in a fierce battle with one another for talented employees. Once you find your talented employees, you need to hold onto them and get out of that battle. That’s where a recognition program comes in.
Recognition programs have positive effects on an organization including:
- 50% lower turnover, which translates to 50% greater employee retention
- 38% more productive employees
- 56% higher customer satisfaction
- 27% more profits
Really? Recognition Inspires Non-Award Winners?
Corporate recognition programs don’t only affect the recipient of the award, they also affect everyone involved in the program from top to bottom. It’s something that makes an impact throughout the company.
Think of a recognition award as a stone and your company is a pond. When you throw the stone into the pond, it produces a layer of ripples, and recognition creates a ripple effect within a company. When one employee is rewarded for hard work, another employee is inspired. That employee then inspires another employee, and so on.
Employee recognition awards motivate, build pride, improve productivity, increase retention, and increase performance. They increase the level of employee engagement in a company as well. Recognizing an employee for a job well done illustrates exactly what that person did that made a difference. Knowing what they did helps them repeat that behavior in the future which keeps them engaged in their work.
When your employees are engaged, your company experiences less turnover, your customer loyalty increases, and your company makes more money! Engaged employees are 50% more productive than disengaged employees. When employees are recognized by their managers, their relationship gets stronger which helps develop a loyalty to the manager and the company as a whole.
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What is your most memorable recognition experience? What kind of recognition keeps you engaged at your company?
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