Spark Team at ADP (Originally published on ADP’s blog, “Spark”)
To foster a culture of recognition, companies should incorporate both formal and informal opportunities that celebrate employees’ work, personal milestones, and well-being achievements. Measuring program effectiveness is essential for enhancing employee engagement, retention, and productivity.
Employee recognition is a powerful way to retain, motivate, and engage employees within any organization and has been associated with many positive benefits, such as:
- Improved talent acquisition
- Increased employee engagement
- Increased employee satisfaction and happiness
- Better employee performance
- Increased employee well-being
- Reduced worker stress and burnout
- Decreased company turnover and retention
For example, research from MetLife’s 22nd annual U.S. employee benefit trends study found that when employers demonstrate care for employees, they see a positive impact on talent outcomes, including a higher likelihood of employees feeling valued, saying they are happy, feeling a sense of belonging at work, and to say that they are successful. Employee recognition firm O.C. Tanner’s research correlated employee recognition with company performance: They found that organizations that practice recognition effectively are 12 times more likely to have strong business results, including increases in shareholder return. Studies like these can help provide the business case for organizations seeking to start or expand upon their employee recognition program(s).
Employee recognition programs should not be delivered in an ad hoc, one-time fashion at companies; ideally, they are part of a holistic, aligned approach. Following is a framework to help guide a company’s employee recognition efforts and build a culture where employees are valued and appreciated for their efforts.