And as a result of wellbeing issues, workplaces lose up to 27 days of productive time per employee each year. Can staff recognition solve this?
The issue of wellbeing is at the top of most HR professionals’ agendas right now – for good reason. Compared to employees who report poor wellbeing, those with excellent wellbeing rate their personal work output as 19 per cent higher (83 per cent) and the work productivity of their immediate team 20 per cent higher (81 per cent).
Many businesses are offering a range of solutions targeting different aspects of employee wellbeing, including providing financial advice, discounted gym membership and employee assistance programmes that offer a listening ear to stressed employees. But businesses are struggling to develop an effective, centralised approach to tackle this.
It is good practice to combine and layer a number of different employee wellbeing programmes alongside staff recognition and reward programmes, for maximum impact.
Interestingly, companies spending just one per cent of payroll on staff recognition are 79 per cent more likely to see better financial results. Yet, only 14 per cent of organisations provide managers with the necessary tools for staff recognition and rewards.
Staff recognition also improves “social wellness”, another key component of wellbeing. Good social wellness is grounded in work-life balance and the presence of high quality, positive interactions with others, both at work and at home.
Too often, businesses overlook the influence social interactions have on employees. In the drive to improve productivity, companies focus on getting more work done when in fact employees who have excellent social wellness yield higher productivity at work than individuals with poor social wellness.
There is no doubt that employee wellbeing aligns directly with the wellbeing of the business. This begs the question, can businesses do more to improve staff wellbeing and staff recognition?
Here are three steps to develop a staff recognition programme and improve staff wellbeing:
(1) Improve team and inter-departmental bonds
Recognition from colleagues is valued more highly than recognition from team leaders. As companies grow, a silo mentality can become the norm, with different departments, divisions and offices concentrating on their own projects in isolation from other areas of the business.
Empowering employees to give non-financial peer recognition can help to break down these barriers.
A centralised platform for peer recognition, sometimes dubbed social recognition, is highly effective. Employees can send each other quick e-cards, thanking colleagues for working late with them on a project, for example. A second tier to the programme could allow employees to use peer recognition mechanisms to nominate each other for monthly awards.
Such a centralised peer recognition platform also enables the business to appeal to millennials’ desire for public, real-time recognition and is much more effective than traditional annual award ceremonies. It also drives continuous positive interaction between employees and between teams.
Read on the next page for insights of the remarkable impact embracing recognition can have for managing performance.