In today's workplace, employee recognition is more vital than ever. It's because recognition assures employees of their value, especially in remote-work settings.
When they don't feel appreciated, it can lead to quitting, and even the inability to return. According to a survey by OnePoll conducted on behalf of Bonusly, 46% of U.S. employees left their jobs because they felt unappreciated.
Meanwhile, 65% stated that they would work harder if management acknowledged their contributions.
Although appreciation from managers is essential, appreciation from co-workers can persuade 65% to remain in a position with an unappreciative boss.
Employee recognition has various forms, such as bonuses, verbal praise, or handwritten notes. The benefits of employee recognition remain constant for both employees and organizations. Here are the facts why employee recognition is more critical than ever:
43% of U.S. office workers feel burned out, causing them not to return to the office.
In fact, the number of searches for excuses to miss work has increased by 630% from 2018 to 2022.
Employee recognition results in higher engagement among workers.
Studies have shown that when management recognizes employee achievements, employees are 2.7 times more likely to be highly engaged.
In addition, 37% of surveyed employees said more appreciation would motivate them to produce better work more often.
Employee engagement, productivity, and performance are 14% higher in organizations with recognition programs than those without, according to Deloitte.
Replacing employees who quit can be costly, with studies showing that on average it can take six to nine months of an employee's salary to successfully make a replacement.
However, organizations focused on employee appreciation can experience a 56% decrease in employee turnover, according to a Gallup/Workhuman survey.
In a corresponding study conducted by SHRM, 68% of HR professionals confirmed that employee recognition had a positive impact on retention, while 56% agreed that it also boosted recruitment efforts.
Given the numerous benefits of employee recognition, companies should prioritize this critical leadership skill to improve productivity, morale, and retention rates. Regardless of the company’s size, this simple formula can create an organizational culture that employees don't want to leave.
Check out our recognition and rewards platform which provides organizations of all sizes with simple, customizable solutions to engage and inspire employees to perform their best.