A recent Lifeworks monthly Mental Health Index revealed that one in five Australians had quit their jobs due to feeling underappreciated. This statistic is hardly surprising, given that many employees are struggling with low morale, disconnection, and burnout more than ever before. Thankfully, there is a clear answer: recognition. Recognition is one of the foremost things many workers demand from their employers today, and whether you satisfy this desire can have huge effects on your bottom line. Here are some good reasons why you should launch an employee reward and recognition initiative.
- Encourage friendly competition
It is no secret that rewards motivate people to accomplish things, so giving employees something to look forward to is an excellent way to keep them highly productive. These reward programs will stir up friendly rivalry amongst workers, so don’t be surprised if teams start putting in more effort to win the next batch of corporate hampers or a free lunch service at a restaurant of their choice. However, note that the Harvard Business Review highlights new research showing that how leaders communicate this competitive event can make staff either anxious or excited, influencing whether they will act positively or negatively. Excited employees are likely to be more productive and creative, while anxious workers will try to cut corners or sabotage one another. You can create excitement by highlighting the positive consequences of competition instead of singling out low performance, which will only create anxiety.
- Boost retention
Satisfied and highly engaged workers are likely to stick around instead of jumping ship, and implementing a rewards and recognition program can help with your retention efforts. An estimated 68% of HR professionals in a survey said that their rewards and recognition programs positively affect employee retention. Indeed, employees want to work for brands that value them and show appreciation in tangible ways. Launching a rewards and recognition program is just the kind of action that will retain more workers who will contribute to your company’s long-term growth and success.
- Create a positive workplace
Teams made up of motivated, appreciated, and content workers are not only more efficient but also more positive. These feelings of positivity can be contagious, resulting in a workplace full of passionate and happy employees. This can work wonders for your company culture, one of the most vital components of any successful business. Rewards and recognition initiatives encourage satisfaction, motivation, engagement, and collaboration, all of which work together to make your company a great place to work.
- Make work more purposeful
Your staff will develop a bigger sense of purpose if you recognize their work and its impact on their teams. This way, employees can understand how their roles tie into the company’s big picture and how their efforts matter. A sense of purpose is vital, and many people want to be part of something that helps others or makes some other tangible difference in society. We are humbled and motivated by knowing how our work assists others, and a recognition and rewards program is the best way to remind deserving employees of their contributions.
