If there’s one thing employers aren’t doing enough of these days, it’s recognizing their employees. Seriously. Recent studies published in the Harvard Business Review and The McKinsey Quarterly both found that recognition tends to be underutilized when providing compensation for employees. As a result, many companies end up overspending on seminars and other programs to increase productivity when all they really need to do is to hand out a reward and a compliment once in a while.
Consider this. The McKinsey report found that a $1,000 payment was 10 times more effective when it was made through a rewards program than when it was given as an increase in base pay. This is because people have an intrinsic desire to be acknowledged for their efforts and achievements. When you provide meaningful and personalized tokens of appreciation to employees who do exceptional work, they begin to see themselves as valuable contributors who are crucial to your organization’s success. In turn, they’ll be more motivated – and therefore more productive.
Recognition is also great for the office culture. By frequently recognizing all of your standout employees, not just the “employee of the month,” you’ll create a more collaborative and energized working environment. When anyone may be rewarded for good work at any time, star performers start to look more like role models and less like competitors.
Effective employee recognition techniques come in many different forms. You might send an employee a personalized email from the CEO, or you might throw a company-wide pizza party during one of your tougher weeks. Many companies choose to work with an employee recognition service, one of the easiest and most effective ways to increase employee engagement. These services monitor accomplishments and distribute rewards when an employee exceeds expectations.
In the end, it’s up to you to choose which methods work best with your company – the important thing is to recognize good work when you see it. That’s how you create self-motivated workers. That’s how you create the kind of productive working environment that can push a company forward through this economic recovery.
Jason is the CEO of Kudough, the country’s fastest growing web-based employee recognition solution. We’re committed to making employee rewards effective and affordable for organizations of all sizes. Visit our website www.kudough.com or email us at email@example.com to learn how easy recognizing your employees can be.