A Time of Rough Sailing
There is no question it has been a tough several years for U.S. companies. The upheaval in normal business operations, the emergence of the hybrid workplace, and the great resignation are just some of the overwhelming challenges faced by both employers and employees.
As we look forward to 2023, what can employers do to right the ship and get their organization back on track? The answer may be to simply remember that gratitude and employee appreciation are timeless essentials to a business’s success.
Employee Recognition - More Important Than Ever
According to a recent article by Forbes, employee recognition has never mattered more than in today’s workplace. That is because employees want to feel valued—especially in the context of remote working. And when they don’t, it could cause them to quit and not look back.
According to a recent survey, almost half of U.S. workers left a job because they felt unappreciated. Recognizing employees can take many forms. What remains constant are the many benefits to both employees and the organization.
Here are some reasons why employee recognition is more crucial than ever.
- Decreased absenteeism - According to the latest quarterly survey by Slack’s Future Forum, 43% of U.S. office workers feel burned out. When you combine burnout with employees not wanting to return to the office, that is a recipe for absenteeism. But showing gratitude for a job well done does wonders for employee motivation. Consistent appreciation keeps everyone connected to their company goals, making them want to come to work.
- Higher engagement and productivity - Employee recognition also results in higher engagement among workers. According to Deloitte, recognition is highly correlated with improving employee engagement, which in turn improves job performance. In fact, employee engagement, productivity, and performance are 14% higher in organizations with recognition programs than those without.
- Increased retention and recruitment - Studies suggest that it costs, on average, six to nine months of an employee's salary to replace them. That can add up quickly in an environment where in some cases, employees are quitting and taking their entire teams with them. In an SHRM study, 68% of HR professionals agreed that employee recognition positively impacts retention, while 56% said it also helps with recruitment.
Organizations should not underestimate the power of recognizing employees in the workplace. It’s a critical leadership skill that goes a long way in boosting productivity, morale, and retention. Yet many leaders do it infrequently or not at all. The formula is so simple. Create an organizational culture people don’t want to leave—and they won’t.
Charting a New Course
Maybe it’s time to set your employee recognition program on a new path. Overcoming all the recent challenges may require an entirely new approach. You’re going to need a technology-based solution that can withstand all the winds of change the New Year can bring. We can help you build a recognition culture that is based on the organizational values of your employees and your company. We can get you sailing in the right direction.