The ROI of Frequent Recognition

It’s no secret that recognition is a critical part of your employee engagement strategy. Without proper recognition the spark of employee engagement dims, job satisfaction decreases, and overall productivity begins an inexorable slide with diminishing returns. Frequent recognition has a powerful impact on ROI across the board, and can help stoke the fires of employee engagement.

Recognizing often doesn’t need to feel daunting—in fact it can be something as simple as recognizing your employees once a quarter, or once a month. In our experience the average employee is recognized only once a year, which is far too little. Recognizing more often will only stoke that fire of engagement and will have a massive impact on your organization as a whole.

To help you light your own fire of employee engagement, here are 5 specific ways frequent recognition can bring dramatic return in all aspects of your organization:

#1 Retention

In a recent survey 63% of Americans said they would be “very unlikely” to look for another job if they were recognized often. Regular recognition saves you the high cost of employee turnover—and the best part? Recognition doesn’t have to cost you a dime. Think about how a handwritten note or an expression of thanks might change the course of one employee’s workday, and then think about how that one day might change their whole viewpoint on their job. With that in mind, can you afford not to recognize often?

#2 New Talent

Attracting new talent, and the best talent, can sometimes be a challenge. What better way to bring in good people than through referrals from your current employees? In fact, employee referrals have the highest applicant to hire conversion rate over any other hiring method.  Referrals from excellent employees often lead to excellent hires, and when current employees feel recognized and appreciated on a regular basis they are much more likely to refer their friends. 

#3 Cohesion

No one is an island, as they say, and keeping your teams cohesive is an important part of employee engagement—especially if you have remote employees. Without timely, appropriate, regular recognition, your employees might feel isolated and forgotten, and the warm blaze of employee recognition and engagement will dim. Teams lose productivity and profitability if they aren’t cohesive, but as employees recognize each other publicly it will boost morale, encourage other teams to success, and reignite your efforts.

#4 Focus

If you ever find yourself lacking a little focus at work, you’re not alone. With so many tasks demanding our attention, focus is unfortunately the exception, not the norm. While that may be a daunting idea to wrap your head around, consider this: like nice dry wood to a flame, recognition improves focus and engagement in all aspects of work. When employees are recognized often, engagement and focus increase. It’s a natural byproduct. 

#5 Profitability 

While it might be passé to talk about profitability in the same breath as employee engagement, let’s be real: one of the main goals of every business is to be profitable. Without profitability there would be no business, right? Right. Thankfully there’s a strong link between engaged employees and profitable business, and the best way to ensure your employees are engaged is to recognize them often. 

Regular Recognition

While ROI and bottom line often aren't terms spoken of in the same breath as employee recognition, the impact of regular recognition is not something that can be ignored. No matter your organizational size or health it is absolutely crucial to keep your engagement fire burning bright by ensuring you are recognizing frequently. As you do you may just find you have a competitive edge in all aspects of your organization!

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