We all know that money is a necessity for doing any job. But to truly excel in the workplace, we need to feel valued too, and money is just the bare minimum. So why does employee recognition work, and why is it so important?
It’s simple – our brains thrive on recognition, which stimulates the production of dopamine by stimulating the hypothalamus, the area of the brain that regulates stress and metabolic processes. Receiving recognition gives us an external sense of validation, making us feel good! Research has shown that empowering employee recognition results in happier employees and increased revenue.
A recent study by Harvard Business Review found that employees who reported that their managers were great at recognising them were 40% more engaged than those with managers who were not. And whilst managers play an important role in highlighting employees’ achievements, it’s also important to foster a workplace culture that encourages staff to recognise each other’s accomplishments. An easy way to implement this is through peer-to-peer recognition platforms.
“Getting better at giving recognition requires focusing on both the substance of the recognition itself and the manner and context in which you deliver it.”
Harvard Business Review
So, what are the direct benefits of employee recognition? Well, a lack of recognition can leave employees feeling unmotivated and underappreciated. However, when employers focus on employee recognition, they’re much more likely to see an increase in productivity, profitability and motivation.
Here are a few other benefits of employee recognition:
- Boosts workplace culture
- Higher employee engagement
- Decreased employee turnover
- Attracts and retains top talent
- Creates a sense of purpose
- Builds a positive work environment
- Fosters company loyalty
- Alignment with core values
- Better customer experience
- Improves mental health & wellbeing
With that in mind, it’s no wonder some of the most successful businesses in the world make employee recognition programs one of their top priorities.
Are you wondering how to get started with employee recognition?
Don’t worry, we’ve got you covered! With our online recognition portal, you can make recognising and rewarding your team easy. From peer-to-peer thank yous, employee of the month, long service awards and instant recognition, we have it all. Plus, there are a huge variety of rewards you can choose from on our catalogue – over 5,000!
Now that you know the proven benefits of employee recognition, it’s time to take the next step and think about your recognition strategy.
Get in touch with our friendly sales team today to find out how we can work for you, your business and your employees.
