ADP finds that more people are staying in their current roles than last year, and while this news illustrates a slightly rosier outlook on the job market, the labor shortage is far from resolved. Achievers Workforce Institute (AWI) research shows that 66% of HR leaders say the labor shortage is getting worse.
This figure should come as a call to action for employers everywhere. If you don’t show appreciation for what your employees bring to the table now, they’ll look for a new opportunity where they’ll receive the recognition they deserve. However, employers need to know how and when to provide meaningful recognition to make a significant impact.
What Does Employee Recognition Look Like?
Recognition shows employees that your organization values their hard work and that the company values their talents. It can come in the form of a sincere welcome note or a shoutout from an employee’s manager on the company’s recognition platform of choice. Though these acknowledgments of a job well done may seem less important to business leaders than building beautiful company branding or compelling board slides, harnessing a strong recognition strategy can have excellent business benefits that HR professionals should champion. AWI finds that employees recognized monthly are 36% more likely than those recognized quarterly to say they are engaged and productive and are 22% more likely to have high job commitment.
The Current Economic Outlook Is Challenging. How Much Do I Invest in Recognition?
AWI’s science-backed recommendation is that HR leaders implement a recognition strategy that encourages monetary and social (nonmonetary) recognition. However, in tight economic times, HR professionals are seeking low-cost ways to boost performance. Luckily, AWI research indicates that social recognition alone can still have a notable impact on employee productivity, engagement, and job commitment. Therefore, for companies struggling to decide how to include recognition programs or initiatives in their budget, there’s no need to fret.
The culture of recognition has proven that social recognition can help everyone in the company understand that there’s value in showing appreciation, even if there isn’t an associated monetary reward. Your action as an HR leader? Focus on encouraging these rewarding actions and integrating them into your overall company culture so much so that your employee population is aware that recognition is crucial to company values and ethics. Oh, and don’t forget to practice what you preach. Recognize your team frequently and intentionally to ensure your people are aware of what kind of behavior to emulate. We’ve found that when social recognition happens often and consistently, team members feel a sense of belonging and pride in their work and are more eager to pay it forward by recognizing their coworkers in return!
OK, Now I’m Ready to Implement a Successful Recognition Program
We could talk all day about why recognition is essential to all organizations. However, depending on the number of employees, it can become time-consuming for HR leaders, especially if a recognition program wasn’t in place. An employee recognition platform is a beneficial solution, streamlining a program launch. These tools also power consistent and balanced employee recognition across all departments and fields within the company.
Though a recognition platform makes it easier for an HR leader to build a culture of frequent praise, you don’t have to do it alone. One AWI science-backed recommendation that can encourage others to participate? Mobilizing “program ambassadors” to encourage recognized employees to pay it forward and reward their peers, creating an even stronger sense of community at work. Appointing ambassadors also allows managers to reinforce the culture of recognition by ensuring public recognition is shared around the team or company rather than consistently focusing on a small group of high performers.
Ultimately, with the right tools and meaningful action, employee recognition will help improve employee retention, contribute to the company’s resiliency, and help your company create a strong sense of belonging for all employees.
Hannah Yardley is a Chief People and Culture Officer at Achievers and focuses on empowering employees and creating a culture of performance through her work with sales, product, and people development. Before joining Achievers in 2021, Yardley spent nearly a decade at Deloitte delivering consulting services to some of the world’s largest companies in talent strategy and cultural transformation. Most recently, she served as the global vice president of people and culture, helping the scaling organization manage its rapid growth.