We all strive to be seen. To be heard and valued. To be recognized.

Every morning, millions of Americans get out of bed, head into work and begin their day. We are providing for our loved ones and ourselves – contributing to our local societies and global economies.

Why then, are more than half of all U.S workers unhappy in their jobs?

This is a multi-faceted question that could be discussed at length. If you are reading this, I’m sure you have either been in a job you dislike or are in one now.

We have all been there. Dreading getting out from under the warm duvet to begin the commute to an office we don’t even want to be at. Looking at the clock every 10 minutes and seeing it’s only been 5. Upon reflection on personal experience and calling on studies and conversations with our families and friends, we can usually see that peoples nagging disengagement with their jobs stem from a few key sources:

• Not being rewarded or recognized for their work – financially or in other ways.
• No room for progression – unchallenging work roles with dead ends.
• Poor company culture.

These key points are reported by workers from across the United States and the globe and seem to be ubiquitous as to what leads people to feel dissatisfied in their jobs.

In this article, we are going to dive straight into how employee recognition is a fundamental investment for all businesses, and how showing you have a vested interest in not only the work they do but the lives they lead will lead to increased motivation, happiness and productivity.

Does employee recognition make a difference?

Employee recognition has been directly correlated with employee engagement and happiness.

Given that disengaged employees are 12x more likely to leave their job, and the cost of recruiting and retraining can be up to 2x the salary of the lost employee, effective recognition can help safeguard against this unnecessary financial strain.

This is just one example of how employee recognition can make a difference financially, but oftentimes the flow-on effect of its efficient use are less tangible in nature. Do not let this negate its importance – below we dive deeper into how it can benefit your business.

The benefits of employee recognition

• Employee Retention

Losing great employees is one thing. Losing them because you did not show them the loyalty they required is another. Having a high churn-rate of employees is never a good sign and is any workers first red flag when starting a new job. If you are investing time and resources into training new workers only for them to leave 6 months later you are throwing money down the drain. Keeping quality staff members long-term should be the highest-priority within your business, as it nurtures the loyalty needed to drive success. Many workers cite not being recognized and valued enough by their workplace as a reason they left.

• Cultivates a healthy workplace environment

Regularly recognizing employees creates a healthy environment that people will feel comfortable coming to every day. Creating a healthy workplace environment is a vital factor you must get right if you want to have motivated and healthy workers. Like any ecosystem, the environment and its inhabitants rely on each other to create a sustainable and healthy relationship – and will correct the balance through evolution. Not enough recognition will result in a company culture that has a high-churn rate and disengaged employees. This is where your businesses environment withers and dies, leaving space for a new business which may value their employees. The evolution of business.

• Happy employees are productive employees

Happy employees are productive employees. It is that simple. Of course, it is unrealistic to expect workers to cartwheel into the office every Monday morning, but there are measures you can take to make sure you are doing your part to contribute towards their wellbeing. As we have discovered, employee recognition is a low-cost, high-return investment in your worker’s happiness and fulfilment. Given that studies repeatedly show how employee happiness and business performance go hand in hand, the benefits of employee recognition can no longer go unnoticed.

Efficient ways of showing your employees the recognition they deserve

There are many ways to giving your employees recognition that goes far beyond a pat on the back. Some are more subtle than others, but all of them will provide dividends for your business.

Celebrate Milestones

Celebrating your employee’s milestones in and out of the workplace is one of the greatest ways to show you genuinely care about their wellbeing. 1, 3, 5 and 10 years are all big milestones for employees in-house and should be celebrated appropriately.

If you have just taken on a graduate and they excelled in their first year, let them know their fast-learning and dedicated work has helped the company. If you have a seasoned employee approaching a decade of service, be sure to seize the opportunity to thank them. Extra-long service leave or bonuses to go towards a holiday for them and their family will be well received. Should you miss the opportunity to recognize their efforts, it will not fall on deaf ears. Other workers may be disheartened that such long-service is not rewarded and begin searching for alternative employment.

As well as internal milestones, commenting on personal achievements and large events can go a long way. If one of your younger employees has worked incredibly hard and is celebrating buying their first home, be first in line to congratulate them.

Showing a genuine interest in their progression outside of their careers is an effective way to show authentic recognition.

Improve the work environment

With the average American spending 90,000 hours of their lifetime at work, making the space that your staff occupy pleasant should be at the top of any employer’s list.

This doesn’t require a total overhaul of your current setting – find what your staff use the most and determine its value.

A great place to start looking is in shared spaces. If you want to encourage staff to socialize and feel comfortable at work, purchasing a new coffee machine and stocking the fridge with healthy snacks will make the work environment much more enjoyable.

Studies show that shared spaces move people and encourage innovation. Large companies like Apple and Samsung utilize floor design to increase the likelihood of different teams being in the same space at the same time. Sound simple? This has been said to lead to some of the most valuable breakthroughs in their business.

Take time to know your employees

Getting to know your employees on a personal level is one of the best things you can do for employee recognition. Staying in the loop and understanding what makes your workforce tick will allow you to be more authentic in any other method of recognition you utilize.

In large companies, this can be a daunting or near-impossible task, so taking steps to ensure you remember details about workers is a good idea. Actively listen and pay close attention to conversations you and other staff members are having. Note it down that Sandy from Marketing loves live music and Tom in IT is diving deep into the fascinating world of VR. Think of this as a knowledge bank for future bonuses and incentives, or more personal topics of conversation.

Taking the time to know your employees will make it easier for you to understand what makes them intrinsically motivated to work for your company, which is truly valuable information. This knowledge can be leveraged to be far more useful in our next tip.

Thoughtful gifts

More often then not, thoughtful gifts are not expensive. Their value comes from the knowledge that the giver took the time to know what would make the receiver of the gift genuinely happy.

If Sandy has just performed exceedingly well in the latest project she was assigned to, gifting her tickets to see a live band would seem far more thoughtful then a card and restaurant voucher of equal monetary value.

Remember these gifts do not always have to remain strictly work-related. If a worker has publicly announced the arrival of a child, then a card signed personally will be a tactful way to recognize this momentous occasion. It is important to note that some employees will wish to keep their personal lives more discreet, so gift giving outside of work-related achievements may be seen as intrusive.

Give autonomy

Giving an employee autonomy is one of the most powerful ways of indicating that you recognize their work. If a worker or a group continually exceed expectations and perform with little input from yourself or supervisors, then responsibly loosening the reins and giving them a chance to be innovative will be remembered.

Opting to give employees autonomy has shown to promote engagement and motivation at work. Where possible, give autonomy to teams or individuals that have been performing and explain why you choose to do so.

Providing workers with the ability to work from home or across departments shows that you trust them to continue performing at the highest level without your management – which will lead to higher motivation.

Foster peer-to-peer recognition culture

One of the healthiest things you can do for your business is to facilitate peer-to-peer recognition.

Ingraining a positive atmosphere within your company culture that revolves around constructive recognition will help boost team morale.

Perhaps ask a senior staff member who is well-liked and sociable to host a weekly briefing. As the employer, you could provide lunch (thoughtful gift) from a local business. Aim to make the briefing a more casual space for employees to share thoughts on recent projects and offer peer-to-peer recognition.

Receiving praise from your peers can be even more rewarding than from a boss, so making this sort of event a regular occurrence is definitely worthwhile.

Provide a path of opportunity

There is nothing more disheartening than being boxed in with no light at the end of the tunnel. People always need to be striving towards a goal, no matter how big or small in order to feel fulfilment and satisfaction. This of course applies to the workplace.

Always consider promoting and upskilling workers already under your employment. If an individual can see there is room to grow and opportunities to grasp then they will be far more motivated to dedicate their time to your cause.

This ties in nicely with celebrating milestones and taking time to know your employees. If you have a worker who has been working for your business for a longer period of time, or you are aware of someone who has been thinking about branching out and learning a new aspect of their trade (or a new trade altogether), offering them the opportunity before looking elsewhere will promote healthier company culture.

This may require more effort in the short-term, but showing values of loyalty and helpfulness will breed more of the same. Lead through your actions.

Showcase goal achievement

Showcasing goal achievement will tie everything in nicely that has been said up until this point. Knowing your employees personally will allow you to judge the best way to acknowledge these achievements.

Timing your praise to be during a large screen sharing call with multiple employees will yield far greater results with extroverted employees who are comfortable being in the spotlight. This also gives the other members of the call an opportunity to recognize their efforts, reinforcing the peer-to-peer recognition ethos.

For more introverted and private individuals, dropping by for a quick chat or a personal letter/email to give your thanks may be wiser.
Employee recognition, the most valuable investment you can make

So there you have it. Employee recognition is truly one of the best low-cost, low-risk, high-return investments you can make in your company. Behind every great business are even greater employees and they should always be treated as such.

Like any great investment, if you are timely and smart, highly effective employee recognition doesn’t have to break the bank.

Just be authentic.

Genuinely want the best for your workers and watch your businesses bottom line skyrocket.