The acknowledgement of ones contribution in a truthful manner is something we all desire. The need to feel appreciated for our work by not only our managers but also our peers is vital to our health.
The dynamic within businesses has changed. Employees no longer feel the need to invest their entire career in one organization. According to The Bureau of Labor Statistics the average tenure for a US employee is 4.6 years. That means a lot of turnover for businesses. It can cost an average of 150% of the replaced employees base salary to recruit, hire and train a new employee.
Rather than spending money replacing lost employees, invest in the employees you have. Employee recognition consists of recognizing and rewarding employees for the work they contributed. Here are five reasons your business will fail without an employee recognition program.
- Employees that are recognized and rewarded for their work are motivated to work harder and better. This leads to increased productivity, which means increased revenue for the business.
- When employees are satisfied with their function and place within the organization they voluntarily deliver their best work.
- If employees feel that management appreciates their work they are more inclined to be loyal to the organization instead of searching for outside job opportunities.
- Satisfied employees miss less work. Annual costs for absenteeism are estimated to total $84 billion annually, according to a Gallup-Healthways Well-Being Index survey.
- Word spreads. People talk. If employees are talking about how great your organization is to work for, more people will want to work there too.
The average expenditure for employee recognition programs is a mere 1-2% of payroll. This amount is much less than the cost to replace lost employees. Start investing in a program that makes your employees feel they are appreciated. Not only will they reap the benefits, so too will your organization.