Thanking employees by rewarding and recognition seems to be a common practice, but obviously many companies do not apply it. One reason is that still some companies believe paying compensation (or raise salary) should be enough to motivate their employees.
On the other hand, many studies from previous years show that salary is important, but not the most important thing for employees anymore. Employees want to be engaged on what is going on in their company and they want to be a part of the progress the company is doing. Skill enhancement by progressive trainings becomes more and more important for a learning organization in a fast turning and globalized world. For this reason many companies have installed a strategic and formalized continuous improvement process like TPS, Lean Six Sigma or similar culture changing methodologies. Rewarding and recognition is one of the basic pillars for being successful and sustainable by applying these methodologies.
The info graph on the right side shows the massive impact on employees as well as the performance of the company by having a system for rewarding and recognition installed.
A carefully installed rewarding and recognition system will provide a lot of benefits to employees and the company:
- Employee turnover will decrease significantly
- Engagement of the employees will increase significantly
- Productivity will increase
- Positive impact on the ROI will be measurable
In the end, a strategic rewarding and recognition program will be a strong competitive advantage for your company. Such a program should not be neglected.