A well-implemented employee recognition program has the power to impact many aspects of a business including engagement, turnover, productivity, morale, and purpose. A non-existent, unintuitive, or poorly-implemented employee recognition program can have the opposite effect, decreasing motivation and even pushing good employees away.
Meanwhile, engaged employees are beneficial for workplaces in every way: they’re higher performers, they’re connected and committed to their company, and they’re willing to go above and beyond their role. In organizations that put a heavy emphasis on praising and recognizing employee achievements, engagement levels increase by nearly 60%.
When asked what leaders could do to improve engagement, 58% of professionals endorsed giving recognition. It’s no wonder that successful organizations across the world prioritize engagement through recognition.
But the needle hasn’t moved much: 40% of employees still think that employee recognition isn’t a priority in their organization. Here’s what those organizations stand to lose when they don’t prioritize employee recognition:
Do you know how much employee turnover costs you each year?
You and your team no doubt monitor spending on advertising, hardware, and workspaces, but you might not have a grasp on just how much employee turnover is costing you—which is why it’s probably costing more than you think. 💸
Between writing and posting a job description, screening and interviewing candidates, negotiating relocation packages, paying referral or signing bonuses…just the cost of finding a new employee adds up. You can use our cost of employee turnover calculator to establish a cost baseline, but it’s important to remember that like an iceberg, much of the cost associated with turnover is hidden.
Indirect costs of employee turnover include decreased productivity, lost institutional knowledge, and lower morale. When an employee leaves, their team absorbs additional work, which hurts company culture in the form of unhappy team members who are less productive. Even once an organization has hired someone to fill an open position, that new employee needs to be oriented and trained. While welcoming a new team member is typically an exciting time, it’s important to note that productivity might drop with the addition of a new team member before it goes up.
Source: Bonusly Blog