Why Employee Recognition Is the Golden Key to Retention

Does it seem as though your team is constantly changing? If you’re tired of having to devote the time and resources necessary to find recruit and hire new people, you’ll be happy to know that employee recognition can go a long way to improving office morale.

By simply recognizing your employees for a job well done every so often, you considerably increase the chances that they won’t look for other gigs. Here are five reasons your organization should spend more time recognizing employees:

1. Recognition motivates employees

It’s true that we work for paychecks. But if for no other reason than the fact that we spend so much of our lives on the job, money doesn’t always motivate us enough. 

Workers like it when they’re told they’ve done a good job. It makes them feel good. After being recognized, employees wonder what they can do to be recognized again in the future. As a result, they’re motivated to take their game to the next level.

2. You’ll experience less turnover

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According to Forbes, companies that consistently recognize their employees’ efforts enjoy a 31% lower staff turnover rate. Professionals like it when people say good things about their work.

This is good news for businesses too, because it costs a lot of money and takes a lot of time to hire new employees. By regularly recognizing your staff’s efforts, your bottom line will be healthier.

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3. Your team will be more tight-knit

Because workers aren’t coming and going every couple of weeks, your team will develop more camaraderie. In turn, staff members will work better with one another.

Not only will it be more enjoyable for your employees to show up to work each day, but they’ll also be able to deliver results more quickly. Workers who are close are much more likely to have each other’s backs and help one another out whenever they’re able.

4. They’ll also be happier

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Who doesn’t like being on the receiving end of a compliment?

By recognizing your employees' successes — it could be a simple 30-second impromptu speech delivered in an open office — you make them feel good about themselves. Even the most stone-faced member of your team might be forced to crack a smile.

Happier employees, of course, are more productive than their more miserable peers. So just by simply acknowledging folks for a job well done, you should see an uptick in your organization’s output.

5. Your customers will be happier too

Are you more likely to deliver exemplary customer service when you’re on cloud nine or when you’re having an absolutely awful day at the office?

Because your employees will be happier when you recognize their efforts, they’ll be in a better mood when they directly interact with customers. This, in turn, translates into an improved customer experience — which is critical for your organization’s success, as 72% of customers will tell at least six of their friends about a positive experience, according to The Huffington Post.

Your customers will also be happier even if they don’t directly interact with your staff. This is due to the fact that, according to a recent survey from the University of Warwick, happier employees work harder than their peers. They’ll produce better work, and your customers will notice.

It’s not hard to recognize your employees’ efforts — and the benefits of recognition speak for themselves. So what are you waiting for?

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