For years
research and communications has touted the importance of recognition in
improving employee engagement. And in
turn positive employee engagement seems to be a leading indicator of
performance improvement. In fact a
Gallup study showed that companies in the top quartile for employee engagement
outperform their competitors in the lowest quartile in many categories,
including:
·
10%
higher customer ratings
·
21%
higher profitability
·
20%
higher productivity
·
24%-59%
lower turnover
·
41%
lower absenteeism
·
40%
fewer quality defects
So, why is
employee recognition seemingly limited in many companies? As is often shown in assessments employees
regularly complain about the lack of recognition and appreciation. Do companies
fail to realize the power of providing frequent and meaningful employee
recognition? Are they unaware of the impact that solid recognition and employee
‘thank you’ s’ would have on employee motivation, engagement,
and retention?
Having been
fortunate to be in the employee incentive and recognition industry for over 40
years, we can attest that this attitude is not a phenomenon. It has been around from the beginning. At the turn of the 20th century
there were programs that rewarded an employee for how long they have been with
the company 5, 10, 20, 25 years etc. And
that was often the only time they were rewarded. And that hasn’t changed much over time. Sure other types of recognition programs have
been added, but are they enough to change behavior?
If executive
management really believed that employee recognition would foster better employee
engagement and lead to the performances listed above, you’d see more and better
recognition programs recognizing more and more employees.
Does anyone really
know what a truly great employee recognition program should look like? I doubt it.
As we’ve said we been in the industry for over 40 years and can’t
remember ever seeing a recognition program that was said to be the best…only
ones that were purported to be.
I do know that if we
were to build one, or modernize one, we’d start with what you want to
accomplish, then reward any and all behaviors by every employee that leads to that outcome, every day! And don’t stop until you’ve achieved the
objectives. When you do, find some different objectives and keep going.
Unfortunately many
companies take a more traditional approach.
They start with a fixed budget of on average of say $100 per person and
build everything to fit that, whether it’s enough or not. Force only the
required number of recognitions into that budget and only that much. But don’t be surprised if at some time in the
near future you have employees complaining about the limited recognition in
your company.
There
is a knack to making other people feel important and appreciated. Try different ways to create opportunities to
provide reward and recognition and thanks to your employees. When you’re finished you will have an environment
in which people feel important and appreciated.
It really doesn’t have to be more complicated than that.
For more information on
Ultimate Choice Inc.’s products or services or other white papers please
contact us at Ultimatechoiceinfo@cox.net
