That is quite a huge number in today’s day and age when every company seems to be aware of the importance of employee happiness.
The employees who do not feel valued are more likely to lose interest in their jobs and quit. On the other hand, employees who feel recognized are 27 percent more likely to stay at the company as compared to the less recognized workers. The lack of employee recognition efforts thus means higher turnover and burnout rates, costing companies way more than they can imagine.
Making time to recognize your employees shouldn’t be treated as an option. Employee recognition is about priority – a company either actively work towards it or it doesn’t. There are examples in the world of work where some companies have set exceptional standards when it comes to their employee recognition initiatives. Walt Disney, for example, has created a culture of appreciation with over a hundred awards that publicly recognize the efforts of the employees. Walt Disney recognizes the importance of cultural values as it does all other business criteria.
Effective recognition can promote cultural values and desired behaviors. When an employee does a good job and is recognized for it, it will make them feel good about it and they will be more likely to repeat that behavior in the future. This makes employee recognition one of the silent, but most powerful tools to push employees to do their best and drive great customer experiences.
What makes employee recognition more special is that it does not need to come only after spending thousands of dollars. Something as simple as remembering an employee’s birthday, smiling or thanking someone for their contribution can also go a long way. That’s the beauty of human interaction that supersedes any technology or superior strategy. It’s about transparent communication and the occasional pat on the back, and not always backed by materialistic benefits.
The relation to employee turnover
On an average, an employee spends eight to eleven hours at work. That is a lot of time for a mere 24 hours that we all get. Along with time, they give in their knowledge, apply their skills and work for hours to contribute to their organization’s success. While doing this, they let go of a lot of personal time. Organizations need to value this compromise that employees make to make them feel like they want to stick around.
Turnover hurts every organization. There is a strong relationship between employees to feel valued and appreciated for their work and their likelihood to stick to a job. A study by Globoforce also found that 55 percent of employees would leave their current job for a company that clearly recognizes its employee’s efforts and contributions. By leveraging recognition, companies can save over half of their workforce. Employees who feel recognized have a 32 percent higher chance of reapplying that job.
Employee recognition can save companies from the additional costs that come with high turnover rates. When employees leave, they take 70 percent of their knowledge with them. Finding new talent and training them to achieve the same level of skill is a huge cost, that can cost up to 150 percent of the annual salary associated with that position. Employee recognition can be a simple tool that can save companies from letting this become a norm.
Build a culture of recognition. Start with small, simple and creative ways of valuing each and every employee. While core business parameters like sales, revenue, and marketing are important to handle, do not miss out on the human element which is the fundamental basis of any successful company. Employee recognition can do wonders for your business without costing you even a dime.
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