Good news for business owners: Happiness among workers in the United States is up!
85% of people said that they were either somewhat or very satisfied with their job.
So where does that leave the remaining 15% of workers? Well, that’s the not-so-good news.
There are plenty of employees who feel dissatisfied or flat-out unappreciated at their current place of employment. But it’s not too late to inspire a positive change in the workplace.
Keep reading to find out the five biggest reasons why employee recognition is so important.
1. Recognition Boosts Employee Retention
When people feel appreciated, they’re much more likely to stick around. While that may seem obvious, many business owners don’t care about turnover as much as you’d expect.
Despite this, a low employee retention rate has the capacity to negatively impact a business’ bottom line.
On average, businesses with a high turnover rate spend more money due to severance pay, lost productivity, and massive onboarding costs. Keeping employees happy might just keep your business afloat.
2. Employee Recognition Improves Productivity
Recognition at work can have a lasting impact on productivity, as it turns out.
Studies found that employees who reported feeling happy with their current job were 12% more productive than respondents who felt little or insufficient recognition.
Think about what this means for your business. All it takes to generate more sales and inspire your team is a little appreciation.
3. Recognition Establishes Belonging
Businesses share a lot in common with machinery. When everything (or everyone, in this case) works together in perfect harmony, it’s easy to keep chugging along.
Since people are inherently social creatures, it’s important that we have a sense of belonging, be it in our friend group, relationship, or even at work.
Belongingness is so important that it’s even smack dab in the middle of Maslow’s Hierarchy of Needs.
4. Unhappy Workers Cost Your Company Money
As previously established, an employee who feels unrecognized is likely to feel unmotivated.
Think about how you tend to act when you’re feeling down. You might not have the motivation needed to complete even simple tasks at work.
A lack of motivation results in a lesser quality of work, slower output, and more.
5. It’s so Easy to Do
Perhaps the biggest reason to implement recognition in the workplace is that it’s easy to do.
Recognition doesn’t have to mean an elaborate awards ceremony or fancy dinner — though those things are certainly nice from time to time, and a trophy from something like the Trophies Plus Medals Website is quite affordable.
Sometimes, all it takes to make an employee feel appreciated is a compliment or a public shout-out.
A Little Employee Recognition Goes a Long Way
As we wrap up, we can’t help but stress once more how important employee recognition is.
Public recognition, even in a small way, makes employees feel noticed and appreciated. And, in turn, you’ll notice increased productivity, an overall higher sense of happiness, and improved morale.
Want more tips on how to better connect with your employees? Check out our tips on how heightening your emotional intelligence can improve your business.