No matter how old, or how far up the career ladder we get, everyone likes to hear the occasional well done, or thank you.Rewarding staff for good work, milestones and achievements through a structured employee incentive scheme can bring company values to life, help businesses attract the best candidates and retain top talent. Here’s why employee recognition needs to rise up your list of priorities: 1. Retain your best talent It’s not just salary that motivates people to work. If an employee doesn’t feel an organisation values their contribution, you are more likely to lose them. Potential new employers will entice talent with flattery and promises of greater recognition and seniority within their firm. That’s why deploying a formal recognition process, particularly in larger SMEs when it can be hard to keep track and reward your best people, is so important. You don’t need me to tell you that retaining high performing employees saves both time and money if you consider the full cost of the loss, replacement, recruitment, and training up new talent. 2. Better engage your employees It might sound banal but, trust me, employee engagement can have a real impact on your business. You can engage with your employees by making time for face to face discussions about their career path and progress, learning and development, making sure your staff are striking a sensible work-life balance, upholding healthy company practices and offering competitive rewards. Implementing a recognition scheme that allows employees to both win awards and congratulate their peers on winning awards is one of the best ways to increase employee engagement. 3. Re-enforce company culture and values Most organisations have a unique culture they wish to preserve as time passes and the organisation develops. Writing a set of company values and promoting it internally is one way to reinforce that culture. Read more about how to motivate your workforce: 8 ways to keep your staff motivated at work How to motivate Gen Y employees Creating a motivated workforce begins with recruitment This provides consistency in good and bad times – something for employees to refer to, and a framework in which to recognise employees who have performed particularly well. A recognition programme with a social media style wall will allow employees to share, like and comment in addition to any interaction that takes place directly with management. Each social interaction can be linked to a company value thereby re-enforcing values with every nomination, recognition, like and comment. 4. Boost your bottom line Now we understand the importance of recognising employees on a micro level– what about the broader context? Well, if employees feel appreciated and acknowledged by management and their fellow coworkers, this can have an enormously positive impact on performance, improve efficiency, productivity, and ultimately company profits. And the results are conclusive. Standard Chartered Bank demonstrated that branches with higher increases in engagement levels had a profit margin 16 per cent higher than branches with decreased levels. Adam Sidbury is director of Digital Fibre.
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