Here are the 7 most distinctive benefits of rewards and recognition in business :
- Company culture
Frequent and timely recognition profoundly impacts the culture of the company. A company’s culture is the combination of a company’s vision, goals and ideologies for achieving the greater good. An appreciative work culture builds trust and respect among the members of the workforce. Employees get a means to learn and praise their peers’ strengths and unique qualities.
- Give competitive edge to organisations
Rewards and recognition promote healthy competition among employees. Implementing a culture of recognition in a structured and meaningful manner assures the employees that their hard work and efforts will not go unnoticed. Employees try to bring their a-game to work, and it is always beneficial for the company. This not only helps the company in achieving its goals faster but is also aids to employees’ personal and professional development.
- Improves manager-employee relationships
People don’t leave jobs; they leave managers. As harsh as it may sound, this is often the truth. A big part of employee experience is dependent on the relationship that employees share with the managers. R&r practices give managers a way to connect with the employees and convey their regards. It helps both the parties to bridge the gap between them. It also makes feedback more effective.
- Boosts team spirit
Recognition in the workplace is itself a culture-building initiative. One of the biggest challenges for leadership is to build a team that works collectively towards the greater goals of the company. The need to create a cross-functioning and collaborative work environment is huge in today’s date. When recognition (especially peer-to-peer recognition) becomes a norm in the company, it builds camaraderie and enhances team spirit. Team/ department recognition and rewards can play a significant role in boosting team-building.
- Empowers employees
An exciting benefit of recognition is that recognition sparks empowerment among employees. Recognising employees for their outstanding work gives them a clear idea about the expectations of their higher-ups. It inspires them to take autonomy and ownership in their work. They take pride in their job and their contribution to the success of the company.
Also, by praising and recognizing efforts, you offer them room to grow and learn.
- Employee retention
Employees whose managers consistently acknowledge them for good work are 5x more likely to stay at the company. Those whose managers consistently help them manage their workload are 8x more likely to stay.
Managing high employee turnover is the biggest challenge of human resource departments worldwide. High attrition can derail projects, disturb the momentum of the ongoing work and incur high hiring and training costs. Although a lot of factors lead to an employee’s decision to leave a company, employee satisfaction is a crucial one.
Employee satisfaction is mainly dependent on how people are treated inside the organization. When you make it a point to duly recognize your employees, they are emotionally invested in the job and the company as a whole. They naturally tend to stay longer.
- Employer branding
In today’s competitive world, strong employee branding has become strategically important. Good employee branding attracts the right candidate and promotes positivity and employee engagement.
Recognition helps in building a strong brand identity. When employees feel appreciated in the workplace, they become active advocates for the company and its products. They organically indulge in positive word-of-mouth promotion. Because of the massive surge and engagement in various social media sites, they have now become the prime platform for company recognition and promotion.
Recognition fuels good relationships helps to create a positive atmosphere at work and subsequently increases employee advocacy.