So, the question might be, "Why is that important?"
Most organizations tend to focus on productivity and efficiency. These are certainly critical aspects of a successful business, but without a great culture and an intentional approach to employee recognition, effectiveness and profitability can suffer.
On the other hand, companies with a positive and supportive culture reap a number of benefits as a result. It's not enough to simply treat your customers well, treating your employees well has a measurable impact, as well.
Research has shown that employee recognition has a significant influence on an organization’s workplace culture. For example, one international study showed that companies with great cultures are:
Numbers of surveys and studies have reinforced and underscored these types of statistics. By intentionally pursuing a strategy of employee recognition, organizations can create great workplace cultures that employees want to engage with. As a direct consequence, they will see measurable improvement in business results.
Employee recognition impacts every aspect of a company culture and employee experience, including recruiting, employee engagement, productivity, innovation, and employee retention. In addition, being a company with a great culture and employee experience helps to attract desirable talent.
In today's economy and business climate, the search for workplace talent is highly competitive. And every growing business will find itself looking to attract and recruit new talent. What has been determined by a number of research studies is that prospective talent consider far more than just salary and benefits when evaluating a job offer.
Among other things, prospective candidates consider company culture and the employee experience as reliable indicators of a great place to work. And having and fostering a reputation for recognizing and appreciating employees is one of the most effective qualities that companies can have for attracting top talent.
According to a Gallup article,
“In today’s war for talent, organizations and leaders are looking for strategies to attract and retain their top performers while increasing organic growth and employee productivity. But in their search for new ideas and approaches, organizations could be overlooking one of the most easily executed strategies: employee recognition.”
Unfortunately, simply desiring to build and foster a "positive" culture isn't very helpful for managers and others in an organization. It is necessary to understand what qualities or aspects of a culture make it a great one.
According to the study by O.C. Tanner, an international employee recognition solutions provider, there are six aspects of workplace culture that appeal to prospective talent:
Purpose (connecting employees to your organization’s reason for being)
Opportunity (providing opportunities to grow and develop)
Success (employees innovating, doing meaningful work, feel like they are part of a winning team)
Appreciation (feeling valued and appreciated for unique contributions)
Well-being (employees’ physical, social, emotional, and financial well-being)
Leadership (good leaders who are mentors and create a sense of camaraderie)
Their research shows that employee recognition has a positive impact on all of these areas. Consequently, this also means that employee recognition can help your organization be an attractive place to work.
Employee recognition does not need be expensive nor complicated. An organization's efforts should be intentional and strategic, however. Random, inconsistent efforts can actually be less effective and can appear insincere or inauthentic.
Here are a number of suggestions and "best practices" for recognizing employees on a regular basis:
Managing a workforce is a multi-faceted task that involves a number of activities and functions. Creating and maintaining a great culture should be a significant part of that task. The responsibility for culture building falls primarily on the leadership of any organization and management is tasked with incorporating the various aspects of a great culture on a daily basis.
Along with making wise hiring decisions, a key strategy for reducing overhead, employee costs, and streamlining operations is to outsource many of the time consuming and labor intensive processes. For most businesses, the most strategic option is to outsource their payroll management functions.
A professional agency such a Accuchex can provide much-needed help with Human Resources needs and questions. Accuchex is a full spectrum Payroll Management Services provider offering expertise in Time Management, Insurance and Retirement issues, as well.
If you are looking for reliable resource for your HR issues, we can help. Get your Free Download: Payroll Outsourcing Guide to help you make an informed decision, or call Accuchex Payroll Management Services at 877-422-2824.
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