Many would say that recognising staff for the efforts that they put in is a good thing. So why do people in ownership roles often not have staff recognition programs on their list of priorities. This is because these incentives and programs get put down by more pressing issues for the business.
But for those who do know the value of these programs, would know that these programs hold a significant place. These programs help to make a positive difference in your workplace and it is good to start with these programs as a business leader who wants to protect the bottom line.
There are some real impacts that staff recognition programs have on the business and its employees. It even helps to generate greater ROI in terms of more profits, productivity and customer satisfaction.
Staff Recognition Programs Help to Increase Engagement of Employees
When employees see that their efforts and performance are not going in vain, they tend to be more driven to perform on their job. There are research studies done all over the world that show higher engagement to be related to better productivity, more profits and higher customer satisfaction.
This is plausible seeing that if efforts are recognised and appreciated by managers; employees tend to perform better than they already are. They feel a higher level of commitment to the organisation when they are being compensated monetarily and otherwise.
You Don’t Have to Worry About Employees Trying to Leave the Organisation
As if employee engagement and the many advantages it brings to the business aren’t enough ROI on staff recognition programs, you do not have to worry about a high turnover. Studies have also shown that employee retention is increased by these programs as well. It is absolutely critical for you to retain the top performers in your organisation as they are the ones motivating others and driving growth and performance.
Take banks, for example. When you have a good representative at a particular branch, they’ll have a number of customers that they’ve worked hard to build a relationship with. When correctly motivated through staff recognition programs, they’ll be motivated to stick to that branch and keep those high priority customers around.
It may be possible that those customers will leave if the representative decides to leave. Not only will you have to bear with the costs of the turnover, which might be 50-60% of the representative’s salary, they might cause the customers not to return.
Also, when an employee is more motivated their absenteeism lowers and their drive to perform also increases. When there are staff retention programs in place, it serves to reduce the turnover by as much as 23% in the organisation.
These recognition programs are designed in a way to help with employee motivation as well as save the bottom line of the business. The amount that you spend on the incentive program will help to reduce the turnover, for example. In other words, you’ll be able to save thousands of dollars in turnover costs when you have these staff recognition programs in place.