If you think that a monthly pay cheque is all that it takes to keep your employees engaged at work, then I’m afraid you need a bit of a reality check. It takes an awful lot more than money to motivate staff and if your workforce are becoming disengaged, it’s time to assess the reasons behind it, before it has damaging consequences.
So what does it really take to keep your employees satisfied and driven in their jobs? Praise and recognition, that’s what!
Employees want to feel valued and know that they are appreciated within the business. If their hard work goes unnoticed time after time, it can become incredibly disheartening; not to mention that it can feel like a bit of a waste of time and effort. So if you want to build a happy and productive workforce, it is essential that you recognise and praise good work from your staff.
What is employee appreciation?
Employee engagement is the appreciative acknowledgement of a person or a team’s efforts, that exceed the expectations of their role, or behaviours that benefit the success of the business. This can be done formally or informally, as long as the employee feels valued.
Does employee appreciation matter?
- The top reasons that employees leave their job is that they don’t feel appreciated.
- Companies who have a strategic employee recognition program in place report 71%+ higher engagement levels among their staff, than companies without a program.
- Disengaged workers cost the economy $300 billion a year.
What are the benefits of employee appreciation?
1) Motivation –
60% of best-in-class organisations reported that employee recognition drives individual work performance. Motivated workers put more time and effort into their work, as they feel they have a purpose and play an important role in the company meeting its goals.
2) Improved work culture –
Employee appreciation creates an environment that employees want to work in and make a difference to their business.
4) Employee retention –
Companies scoring in the top 20% for employee appreciation have a 31% lower turnover of staff. Well appreciated staff stay at the organisation longer.
5) Better teamwork –
Employees work better not only when they feel appreciated by their employer, but also from their peers.
6) Improved customer satisfaction –
Customers are 41% more likely to stay loyal to a company if they experience and good attitude from the staff.
How can you show employee appreciation?
1) Instead of employee of the month awards, recognise all staff when they deserve it.
David Brown, founder of Datotel replaced gift cards and “employee of the month” with hand-written notes and direct praise for commendable behaviour.
2) Focus on peer to peer recognition
Peer to peer appreciation seems more genuine as colleagues are better acquainted with personal efforts than supervisors.
3) Public praise is more effective than monetary rewards
40% of surveyed felt that increased salaries and bonuses were ineffective in reducing employee turnover.
4) Keep recognition programs simple but frequent
Employees not recognised are 3 times more likely to leave in the following year. Frequent recognition motivates staff to achieve their best every day.
5) Be strategic
You must take a strategic approach towards your recognition program, so that you have a thorough understanding of what methods will fulfil the needs of your employees.
Find out more in the slideshow below!