Employee recognition programs are a low-cost method for promoting better performance in the workplace. Employees who are recognized for their work perform better than those whose contributions go unnoticed.
All companies should concentrate their efforts on recognizing their employees’ contributions. Fortunately, there are many ways to show employees that they are valued, going beyond expensive cash bonuses. Simply giving employees custom awards plaques can go a long way toward recognizing their contributions to the company’s mission.
This article will explain why employee recognition is so important and how companies can implement recognition programs.
Morale
Employees whose work is recognized have much higher morale than those who go unnoticed. Everyone likes to know that they are appreciated, and when a culture of gratitude exists, people have better feelings about their jobs and about their coworkers. Too frequently, workplaces devolve into toxic competition and giving out fair and well-deserved awards can serve to level the playing field.
Turnover
Turnover rates are significantly lower for businesses with robust employee recognition programs. An employee who feels that their contributions are being properly recognized is far more likely to stay in their position for a longer period of time.
Turnover is costly, in many cases costing as much as $4,000 with over 40 days of lost work productivity while attempting to fill a vacant position. It is understandable that companies want to reduce their turnover rate in as many ways as possible, and employee recognition can go a long way.
Loyalty
Workers who are recognized for their efforts are more likely to feel personal loyalty to the company. This is part of the turnover equation, but it also plays into proper job performance. When employees feel that they are valued, they are more likely to put their heart and soul into their jobs rather than treating them as a necessary evil.
Productivity
When employees know that they could receive recognition for their efforts, they are more likely to work hard. Being in a thankless job is disheartening and can reduce productivity. Having public recognition, even if it involves something as simple as an engraved plaque, can help to encourage employees to work harder.
Better Leadership
Recognition also improves the quality of leadership in the workplace. Employees can be asked to evaluate and commend their supervisors for supporting them and doing a good job with management issues. A supervisor who is properly rewarded is more likely to treat all of their employees fairly and to turn around and give recognition where it is due.
Starting a Recognition Program
If your company has not had a recognition program in the past, you may be wary of the cost and the amount of time that it will take to administer the program. Fortunately, employee recognition is a low-cost way to promote good work. Most companies that have recognition programs spend only one or two percent of their payroll expenses on recognition.
Recognition programs don’t have to involve cash bonuses, but they are certainly helpful to increase employee morale. Many nonprofit organizations, as well as companies that have been negatively impacted by the recent upheaval in the nation’s economy, are not able to spend very much money on recognition. However, there are many programs that are more affordable.
Adapt Your Company Culture
If you have not previously had a recognition program, it is a good idea to think about how employee recognition fits into your company culture. As much as possible, let recognition become one of the keystones of your employee experience. Encourage employees to recognize one another’s efforts as well as the positive activities of their supervisors.
Having a recognition-focused company culture will help your organization build a good reputation in the community, making it more likely that you will be able to recruit the best talent for any vacancies that may come up.
Decide on a System
Points-based employee recognition programs are gaining traction as one of the most popular systems. Employees accumulate points in their accounts when others appreciate their work. Employees can save up points for rewards like branded merchandise or even gift cards. This will cut down on the problem of awards being generic afterthoughts.
Encourage Participation
It is best to set up your program so that all members of your organization can participate. In accordance with your company culture, begin giving out awards right away. Employees can be rewarded in milestone years, when they have accomplished something valuable for the company, and when they have demonstrated outstanding performance, among other occasions.
Ideas for Custom Award Plaques
Here are several great ideas for plaques that can be awarded to outstanding employees:
- Employee of the Year
- Outstanding Leadership Award
- Overachiever Award
- Mentorship Award
- Teamwork Award
- Top Performer Award
Remembering the Importance of Recognition
Employers often find that they are focused on profits more than on the well-being of their workers. When they take the time to sit down and evaluate each employee’s job and how they have been performing, they can recognize outstanding contributions. Giving gifts like custom awards plaques is a good way to provide tangible proof of the company’s appreciation.
