Over the past six years economic concerns have affected everyone. Pay rises disappeared, benefits were cut and people lost their job as companies struggled to survive. The stress of financial concerns and perhaps having to take on extra responsibilities without any additional compensation meant job satisfaction plummeted, yet loyalty remained high as employees focused on keeping themselves in a job.
The economy is now improving and the threat of redundancies is lifting, and now the promise of a salary is no longer enough to keep people loyal to their employer. In fact, 37% of UK workers are planning to leave their current job in 2015, according to a survey by the Institute of Leadership and Management (ILM).
Employee retention is the key to success
Resignations come at a high price for employers who incur direct recruitment costs. A report carried out by Oxford Economics reveals that replacing members of staff incurs significant costs for employers: £30,614 per employee. Organisations can suffer from reduced production or service delivery whilst the new recruit is trained up, which will also have a negative effect on profits.
If employers want to not only survive but also thrive and make the most of their competitive advantage then they need to address employee retention. The number one reason employees leave an organisation is from lack of recognition, so it makes sense to put in place an effective employee recognition scheme to improve staff loyalty.
Why choose a peer to peer recognition
Recognition doesn’t need to be a complicated, the best recognition programmes show that expressing regular appreciation for a job well done and presenting smaller, lower value rewards more often will have a greater impact on employees than occasional, large scale events.
But manager-led recognition programmes put an additional pressure and burden on managers to ensure that employees are being recognised. Also in many organisations the teams can be so large, or their locations so diverse, that the manager may not know about or see the extra effort that an individual employee puts in.
Peer to peer recognition programmes allow any member of the organisation to recognise their co-workers: every employee is empowered. Which makes peer to peer recognition programmes particularly effective because team members often have a better understanding of the contribution each other has made than managers. This means that recognition from peers had a greater impact on employees than recognition from a manager.
The benefits of a peer to peer recognition programme
Peer to peer recognition programmes are easy to set up and have a greater positive impact on a larger number of employees than a traditional recognition scheme, and there are also additional benefits, such as:
- Improved communication between co-workers and between managers and employees.
- Contributes to a greater sense of team and make the organisation a more fun place to work.
- Develops stronger working relationships and improves collaboration within, and across, teams and departments.
- Improves employee loyalty, retention and reduces staff absenteeism.
- Creates a positive working environment – an organisation which employees are proud to work for.
If your organisation is dedicated to improving staff retention, loyalty, employee engagement and motivation then a simple peer to peer recognition scheme can have positive impact on your business. By empowering your employees to recognise the contribution each other makes you’ll be creating a positive working environment and culture in which employees want to work and you’ll avoid the over-burdening your managers with additional recognition responsibilities and tasks.