44% of employers acknowledge the significance of employee recognition, yet employee appreciation is often overlooked. Nonetheless, compelling research underscores the crucial role of acknowledging employees in bolstering overall company success and enhancing financial outcomes. Bearing this in mind, let's explore key considerations when evaluating the importance of implementing an employee recognition program within your organization.
Higher employee retention
Employee turnover carries a hefty price tag, often tallying up to thousands of dollars per employee for most companies. When you factor in the expenses of recruiting, hiring, and training replacements, the cumulative costs can significantly dent your bottom line.
Employees who lack recognition are twice as likely to leave within the next year compared to employees who are acknowledged. This poses a significant concern, especially in today's competitive talent landscape. According to the 2018 SHRM/Globoforce Employee Recognition Report, 47% of HR professionals identified employee retention/turnover as their primary workforce management challenge, closely followed by recruitment at 37%. Implementing robust employee engagement and recognition initiatives can set you apart as an employer of choice, enabling you to not only retain your existing workforce but also attract new talent.
Increase customer satisfaction
It's no surprise that an employee's job satisfaction reflects in their interactions with customers. A happy employee is likely to extend their positivity to customers, whereas an undervalued employee may convey negativity in customer interactions.
According to Globoforce, 41% of companies using recognition programs have witnessed notable improvements in customer satisfaction. When employees feel appreciated, they are more inclined to go above and beyond for customers, resulting in heightened positive customer experiences and increased sales.
Increase employee productivity
Enhanced employee productivity is a direct outcome of effective recognition practices. Research indicates that employees who receive adequate recognition tend to experience greater job satisfaction. Individuals crave acknowledgment for their efforts and value knowing that their contributions are appreciated and valued. Seeking approval and recognition is an innate human trait.
Recognition of employees plays a pivotal role in driving motivation within the workplace. According to Globoforce, a staggering 78% of employees express willingness to exert more effort if they receive better recognition. This sentiment is corroborated by research conducted by economists at the University of Warwick, who observed a notable 12% increase in workplace productivity linked to employee happiness. In essence, contented employees translate to higher productivity levels, ultimately fostering a more efficient workforce.
The evidence is clear: effective employee recognition yields enhanced productivity, reduced business expenses, and heightened sales. Fortunately, companies like Breakroom offer straightforward solutions to initiate employee recognition efforts without significant time or financial investment. With user-friendly features such as Kudos, you can swiftly embark on engaging and acknowledging your employees while driving tangible business improvements. Reach out to the Breakroom team to learn more about how they can assist you in this endeavor!
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