All across the world, businesses are built with an extreme laser focus vision; to reap profits off an idea, and create value for shareholders. Business Studies 101 tells us that a novel idea, combined with a market gap and some investment is the right mix for a successful venture. If you’re thinking something is amiss, you’re spot on. All other factors assumed, the chances of success of a business are based squarely and undoubtedly, in the passion and engagement of your employees.
“Great companies are built by people who never stop thinking about ways to improve the business”
~ J Willard Marriott
Modern business landscape has, fortunately, moved far ahead of Friedman’s 1970 article. Thanks to the stakeholder theory, employees are finally getting their due as a pillar of corporate success and longevity. Today, as the world battles the upheaval caused by Covid19 and redefines the very basic ideas of corporate success and work, employees are stepping up to the task of leading their organisations through the tough times with innovative ideas and maximum resourcefulness. Unfortunately, that’s coming with a cost.
Multiple studies conducted in the last 3 months show that changed work conditions are adversely affecting employee wellbeing and productivity. Being locked up in the house, worried about the uncertainty of their jobs, being pushed to think out of the box for every challenge is leading to increased stress, anxiety and loneliness. The lack of a physical professional space, and in-person interactions that humans are wired for is leading to disengagement and disinterest in work. It is therefore, extremely crucial at this moment, for companies to pay attention to employee engagement and wellbeing. One of the well-known but seldom practised ways of doing that is Employee Recognition.
Employee recognition has come a long way from being a mere formality and a feel good gesture to being an important part of employee engagement. More often than not,
Why is employee recognition important?
LEt’s explore the several ways in which recognition can drive employees at your organisation.
Employees stick around
Employee recognition has a direct correlation to improved retention rates. Now if you are thinking of tenure based recognition, that awards employees for sticking around, you need to step into the future. Modern workplace recognition softwares like BHyve are engineered to acknowledge contribution, achievement and incentive. And it yields clear results. According to Forbes, organisations exploring modern recognition practises have 31% lower voluntary turnover rates.
Employees are motivated and thus more productive
A study by Glassdoor found that 81% of employees surveyed felt motivated to work harder when their boss showed appreciation. Essentially, when bosses take time to appreciate employees, it pays huge dividends on your bottom line. Recognition boosts employee engagement, which then increases productivity. When you add encouragement and appreciation to inspiring employees, productivity skyrockets
Employees feel a sense of purpose
Employees with a strong sense of purpose show increased creativity, determination and work harder towards achieving the company goal. As humans, we’re encouraged by understanding how our work helps others, and recognition is a crucial aspect of that.
Why is employee recognition scarce?
Looking at the clear benefits above, you are right to wonder; why is Employee Recognition scarce?
There are several reasons for this. Most simply, traditionally, employers looked at work as a transaction rather than a contribution. Money for the value of work done. Bonuses therefore were viewed as the way to show worth, something that Gallup recently denounced as a form of recognition.
A second reason is, recognition often gets tangled in the monetary transactions trap. Departments like sales, who have the numbers to prove it, usually get a lot of appreciation because the work they do is quantified. However departments like HR, Marketing, or even Technology, which enable revenue generating teams like Sales often go unappreciated.
One of the lessons we have learnt during Covid19, and one we hope to carry forward into the new era of work, is the importance of appreciating employees. It doesn’t have to be a grand gesture! In a survey by Deloitte, it was found that 85% employees only expect to hear a ‘Thank You’ for the work they’ve done.
Peer and Social Recognition has emerged as a standout approach, one that can foster improved workplace relations and promote a general sense of achievement between colleagues at the workplace.
Our work at BHyve, takes social recognition a notch higher through learning and gamification. We look at collaborative, workplace learning and growth as a cornerstone of employee engagement and look at social recognition to enhance this learning experience for your employees. If you’re willing to go the extra-mile for your employees, contact our experts at BHyve to know how to roll out a successful social recognition platform today!