Employee Recognition: An Essential Element of a Successful Business

Unfortunately, employees are struggling through burnout and low morale, and the pandemic has only exacerbated these issues. And while there isn’t necessarily a perfect solution, employee recognition is a great start.

Consistent and meaningful employee recognition can have a positive impact on your business, significantly improving employee engagement, retention, and ultimately your bottom line.

At ActionCOACH RGV, we know that a key tool to growing your business and increasing your revenue is having the right people on your team, and in order to keep them, you’ll need to develop a solid employee recognition program.

When It Comes to Growing Your Business, Employee Recognition is Crucial

Organizations that practice recognition generally see a meaningful improvement in employee performance, which correlates with increased sales and profit. Perhaps the most satisfying element of employee recognition is that not only do business owners see financial benefits, but you also make a real impact on the work/life balance of your team members.

Recognition truly matters and affects employees in a number of ways, including:

• Engagement - Companies with highly effective employee engagement programs are more than twice as likely to see improved employee engagement.
• Productivity - Employees who feel appreciated are more likely to be engaged in their work, boosting company productivity. When an employee is recognized for a specific action that contributed to a successful project or success story, then there’s potential for an even greater boost.
• Retention - Employee recognition is among the most notable non-financial factors that improve employee retention. A company with a culture of recognition is three times more likely to see an increase in retention.
• Employee Satisfaction - It’s essential to understand the relation between employee satisfaction and customer satisfaction. Recognition leads to improved satisfaction which, in turn, increases productivity. It’s a win-win for both companies and employees.
• Company Culture - Companies that consistently recognize their employees benefit from an improved company culture. These organizations will generally see their reputation improve as a result and thus increase the likelihood of drawing in more talent who are seeking to join a business with an exceptional culture.

Now that we know the value and benefits of employee recognition, let’s delve into how to create a solid recognition program.

Building an Employee Recognition Program That Meets Business Needs and Goals

The reality is that it takes time, effort, and a significant amount of planning to develop the right recognition program for your organization. But the benefit to your employees and company cannot be overstated, and as previously shown, it’ll all be worth the effort.

To get the process started, consider the following:

• Adaptable & Aligned - Your program should be flexible enough to adapt to changes in the workplace and easy enough that every employee has an opportunity to be recognized without affecting their workflow.
• Set Objectives - Setting goals with specific objectives is important when designing your program. What are you trying to accomplish and how will they relate to your company culture? Keep these objectives in mind when first developing how you will recognize your employees.
• Budget - You’ll need to consider the benefits or rewards that your team members will receive when they are recognized. If you’re providing monetary incentives or other sorts of rewards that will cost, you’ll want to track this spending and create a budget to ensure you have the means to follow through with your program.
• Determine Policies - This is the nuts and bolts of the program; policies will help your employees understand how they get recognized, when periods of recognition take place, what potential incentives there are, and other relevant information. Make sure to review these policies during team meetings.
• Introduce Program - You’ll likely need to provide training/information sessions to all employees and supervisors to get everyone on the same page. Additionally, you’ll want to frequently communicate what’s happening with the program via emails or brief meetings. Managers will also need to know what metrics to capture and how to assess them to determine which team members will get recognized.
• Track the Results - Tracking metrics related to retention, engagement, productivity, and customer and employee satisfaction will help you to determine if the program is effective or if changes need to be made. You should also keep track of employee feedback about the program to ensure you are delivering the incentives that they actually wan

In the End, Employee Recognition Equals Increased Cash Flow and Revenue

At ActionCOACH RGV, we have years of experience helping business owners implement the right systems, programs, and processes that improve companies’ efficiency and revenue-generating potential. We know firsthand that employee recognition is one such tool that can have a meaningful impact on your bottom line, so why wait to make the change?

Reap the benefits of employee recognition today with the help of our dependable business coaches at ActionCOACH RGV.