We all have good days and unfortunately the majority of us have bad days – but when the bad days start to outweigh the good, it’s hard to keep your feelings hidden. The same can be said for employees, particularly if the reason for their bad mood is feeling undervalued in the work place.
A survey carried out by APA found that over half of employees asked feel undervalued at work.
That’s a staggering figure, particularly as the same survey also found that employees who feel valued are more likely to report better physical and mental health, as well as higher levels of engagement, satisfaction and motivation.
A lack of recognition in the workplace is a massive factor for employees feeling undervalued and underwhelmed, often resulting in the ‘feel good factor’ becoming the ‘used and abused factor’.
The link between employee recognition and turnover
According to the recent SHRM/Globoforce Employee Recognition Survey, companies with employee recognition programmes experienced a 22 percent lower turnover rate versus those without.
The power of recognition
Responses from the 815 HR professionals who completed this survey also show the positive impact of recognition on employee engagement, performance and satisfaction. Key insights include:
- More than two-fifths (41 percent) of those surveyed cited Succession Planning as one of the top HR challenges, followed by Employee Engagement (40 percent) and Culture Management (30 percent). This finding underscores the need for companies to identify high potential, high performing individuals as part of their talent strategy.
- Recognition programmes positively impact performance management. The influence of a recognition programme on performance appraisals and evaluations among companies that have a programme in place is evident:
- 58 percent said performance reviews are an accurate appraisal for employees’ work (versus 44 percent of companies without a recognition programme)
- 66 percent said employees are rewarded according to job performance (versus 39 percent without a recognition programme)
- Nearly double the percentage of said employees are satisfied with the level of recognition they receive (compared to companies without a recognition programme)
According to the survey, companies that allocate just one percent or more of payroll to recognition observe higher levels of employee engagement and retention and stronger financial results. Among these companies:
- 85 percent have seen a positive impact on employee engagement
- 61 percent have seen an improvement in employee retention rates
- 59 percent have seen stronger financial results
Consistent recognition is vital in any workplace. Put yourself in your employees position, how would you feel if you hit your targets each month or achieved certain goals, but didn’t receive any kind of thanks or appreciation? It would get tedious pretty quickly! In fact, you’d be surprised how far a little thanks would go.
John is responsible for the motivation division of p&mm ltd and a Director on the board of the IPM. Specialising in developing, implementing and directing many large scale staff motivation, recognition and employee communications programmes.
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- Fall 2012 SHRM/Globoforce Report: The Business Impact of Employee Recognition
- Are you ‘giving’ your employees the ‘thanks’ they deserve?
- Employee engagement is a true measure of the health of your business