Today’s business owners are always on the lookout for new and better ways to cut costs and raise revenues. Expressing appreciation through employee recognition programs can be a simple and effective way to do both. If you’ve been debating the value of an employee recognition program.
Here’s a look at 6 solid money saving benefits of employee appreciation for your company.
1. Appreciation raises morale:
We are all hard-wired with the need to feel appreciated—that our efforts are valued. Companies that make it an ongoing practice to recognize and reward employees for a job well done tend to have more positive work environments and happier, more motivated employees. And since motivated employees tend be more efficient than those who are just there for the paycheck, this increase in efficiency will save your company money.
2. Appreciation increases productivity:
Along with the general benefits of raising morale and motivation, appreciation that recognizes and rewards employees for setting and achieving performance goals can dramatically increase productivity. Creating an atmosphere of healthy competition encourages all your employees to be more productive—to do their best work for a company that genuinely appreciates their efforts.
3. Appreciation insures high attendance:
When employees fail to show up for work, everything suffers. Workloads increase, morale drops, the customer experience suffers, and ultimately money is lost. Employees who feel undervalued tend to take more days off—including unwarranted sick days—than employees who feel appreciated at work. Smart employers use appreciation to create the kind of challenging, stimulating, and rewarding work environment that employees will look forward to returning to each and every day.
4. Appreciation creates loyalty:
Employees want to continue working for a company they feel good about. And companies that show appreciation by recognizing and rewarding employee performance typically have higher levels of employee loyalty than companies that don’t. Loyal employees are more likely to be open to constructive criticism. They are also more likely to accept change—such as a transfer, a temporary wage freeze, or even a cut in pay if necessary. And just like your loyal customers, loyal employees help to increase your brand awareness, which can lead to greater profitability.
5. Appreciation increases retention:
When it’s all said and done, employees are a company’s greatest resource. And business owners know that it’s much more difficult and expensive to find and train qualified employees than it is to retain the ones they already have. It’s also very difficult to build a successful business without trusted, well-seasoned employees you can rely on for the long run. Employers experiencing high employee turnover rates may turn to desperate measures such as raising salaries or giving workers unwarranted promotions.
Instead they should ask themselves if they are showing their employees proper appreciation. Employees who are recognized and rewarded for their performance are far less likely to look for or be lured away by another employer than those who feel undervalued. And since appreciation in the workplace tends to improve employee efficiency and productivity, the likelihood of having to deal with the unpleasant and costly task of letting an employee go is also greatly diminished.
6. Appreciation enhances reputation:
As a business owner your company’s reputation is everything. There was a time when your reputation rested primarily on your customer word-of-mouth. And to some extent that is still true today. But with the Internet and Social Media, both positive and negative word-of mouth can reach thousands in a very short amount of time. You strive to build your reputation by showing appreciation to your customers, and you should do the same by recognizing and rewarding your employees.
With plenty of public sites designed for employees to express what it’s really like to work inside a company, you should make every effort to ensure that—should your employees ever critique you—they show you the appreciation that you deserve, having done the same for them.