How Recognition Programs Improve Morale and Retention

In today’s business landscape, employee recognition is crucial to a successful workforce, proving that when employees are regularly recognized for their contributions and effort in the workplace, they are 36% more likely to be productive and engaged. In addition to this, when employees are recognized accordingly, they are approximately 22% more likely to be committed to their role and organization as a whole.

With this in mind, leaders need to realize the importance of creating structured reward and recognition programs to ultimately improve employee morale and retention.

In this article, we’ll discuss how recognition impacts employee morale and retention as well as provide a helpful summary of best practices that leaders can use to create and execute effective recognition programs.

How Recognition Impacts Employee Morale and Retention

When employees are regularly recognized in the workplace, it consequently boosts their motivation to continue performing well, while at the same time, provides them with a sense of job satisfaction. This is due to the psychological benefits of being acknowledged for putting in effort, which results in employees feeling a sense of value and that they contribute to the overarching goals and success of the organization. In addition to this, when employees are acknowledged for their contributions individually, it also creates a ripple effect to other employees, encouraging them to do their best in their roles, creating a positive workplace culture.

Moreover, when employees feel recognized and appreciated in the workplace, it fosters a sense of loyalty with the organization, ultimately resulting in lower turnover rates. When you think about it, it costs much less to recognize employees for their hard work, as opposed to the cost of hiring new employees to fill the same roles. According to a study by Bonusly, approximately 63% of employees who are either always or usually  recognized for their work said that they are very unlikely to look for a new job in the next 3-6 months. This ultimately proves that when employees are regularly acknowledged or recognized, it imprints a sense of purpose and value in your workforce.

Best Practices for Leaders to Create and Execute Effective Recognition Programs

There are multiple ways that leaders can implement effective recognition programs and practices in the workplace. As a general rule of thumb, leaders should consider the following when executing a recognition program:

Be timely and specific in recognizing employees
It is important to recognize employee efforts almost immediately or very soon after they have done a good job. In addition to this, it is also key to highlight specific details as to why you think they deserve to be rewarded or recognized for their efforts.

Maintain a fair and inclusive approach
As a leader, it is paramount to ensure that you recognize employees in a fair and inclusive manner. By avoiding favoritism and making a point of acknowledging all employees deserving of recognition will have a much greater impact as opposed to only recognizing a few certain individuals.

Make use of various recognition methods
There are multiple ways to recognize employees for their contributions in the workplace. This can take the form of verbal praise, physical awards, incentives or even peer recognition, all of which are beneficial to both employees and the organization.

Align the recognition with organizational values
When recognizing employees for their efforts, ensure that you are highlighting how their behaviour or the output contributes to the overarching goals and values of the organization. This instills a sense of purpose for the recognized employee but also sets a clear example to other employees of how their behaviour can be recognized too.

Make use of digital technology tools and platforms
In today’s fast-paced world, there are various technological tools and platforms at your disposal to help you in creating a positive work environment for employees. Employee engagement software, like Qualee, provides a platform for you to continually assess the engagement and development of your employees, which is key to creating a cycle of continuous improvement and feedback.

Leaderships Role in Building a Positive Workplace Culture

Leaders play an important role in creating a positive work environment for employees, and one of the ways that they can influence this is by setting the tone for recognition programs. Managers and leadership can do this by recognizing employees in an authentic manner, encouraging others to do the same thing, ultimately creating a culture of recognition. When leaders lead by example, it has a ripple effect on the rest of the organization, enabling appreciation to take place at all levels within the workplace.

Common Issues in Recognition Practices and Programs to Avoid

When implementing a recognition program, leaders should be careful to avoid generalised and impersonal forms of recognition. Rather, be specific and recognize employees at a personal and individual level. In addition to this, leaders should avoid recognizing employees inconsistently. This defeats the value of being recognized. Lastly, leaders should avoid relying entirely on monetary incentives or rewards as a way to recognize employees, but rather opt for a blended approach between verbal praise, peer recognition and monetary rewards.

Conclusion

In conclusion, employee recognition goes a long way in the workplace if leaders can effectively create and execute robust recognition practices and programs. When employees are regularly recognized for their contributions and achievements, it’s proven that they are not only more likely to be more productive and engaged at work, but they also become more devoted to their role and organization, forming a deep sense of loyalty and commitment. Moreover, this infiltrates into the larger organization, creating a positive work environment for all employees. For a more engaged, productive and loyal workforce, leaders are urged to lead by example and implement or enhance current recognition programs. Leaders should be timely and specific, ensure fairness and inclusivity and make use of multiple methods when recognizing employees. Lastly, to ensure continuous improvement and success, leaders should consider making use of digital platforms, like Qualee, to see real impact and benefit for the organization at large.

‍