9 Reasons Properly Recognizing and Rewarding Your Employees is the Key to Employee Retention

9 Reasons Properly Recognizing and Rewarding Your Employees is the Key to Employee Retention
Last Updated: March 24, 2023


Its no secret that happy employees lead to a productive workforce. In order to have a thriving business, it is essential to invest in your team and show them that their hard work is appreciated. There are many ways to do this, but properly recognizing and rewarding your employees is key. Below are 10 reasons why Properly Recognizing and Rewarding Your Employees is the Key to a Productive Workforce.

Demonstrates that you value people

Proper recognition is the key to employee retention because it shows that you value your employees and their contributions. When you take the time to recognize your employees, they feel appreciated and are more likely to stick around. A lot of companies and managers think employees don't need recognition or thanking because, as Don Draper said, "that's what the moneys for." 

 

Quite the contrary, however. Employees are very often motivated to work hard and stick around longer when their efforts were better recognized. So, if you want to keep your employees happy and engaged, start by properly recognizing and rewarding them. It doesn’t always need to be grand gestures. People are very often appreciative of the little things like thoughtful company swag or other small gifts for a job well done.

 

Encourages the desired behavior

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Rewarding your employees is important because it reinforces desired behavior and lets your employees know that their efforts are appreciated. When you see an employee going above and beyond, make sure to let them know that their hard work is noticed and appreciated.  A great way to do this is to give them custom trophies to recognize their achievements. This will not only make them feel good, but it will also encourage them to continue working hard.

 

It motivates employees

Rewarding your employees is a great way to motivate them. When you give employees rewards, they feel appreciated and are more likely to work harder. Rewards also let employees know that their efforts are noticed and that their hard work is appreciated. This can be a great motivator for employees who might otherwise feel like their work is going unnoticed.

 

Helps build a positive work environment

Recognizing and rewarding your employees helps build a positive work environment. When employees feel appreciated, they are more likely to be happy at work and to feel like they are part of a team. This can lead to increased productivity and a more positive work environment overall. Positivity is such an important factor in the workplace, and it all starts with proper recognition. 

 

Increases employee satisfaction

Recognizing and rewarding your employees usually ends up having a positive impact on employee satisfaction. When employees feel appreciated, they are more likely to be happy at work and to feel like their efforts are valued. This can lead to increased satisfaction with their job and a greater sense of loyalty to the company, not to mention increased productivity.

 

Promotes a sense of ownership and belonging

Employees who feel appreciated and that they belong are more likely to feel a sense of ownership over their work. This means that they will be more likely to take pride in their work and to be invested in the company. When employees feel like their efforts are appreciated, they are more likely to want to do their best for the company and, importantly, stay with the company.  

 

Can lead to increased productivity

When employees are properly recognized and rewarded, it can lead to increased productivity. This is because motivated and satisfied employees are more likely to work hard and be productive. When employees feel like their efforts are appreciated, they will be more likely to go above and beyond to get the job done.

 

Monetary compensation is not the most important thing for many employees

Beyond a certain amount of money and monetary compensation, many employees care about other things such as being appreciated, having a good work/life balance, and feeling like they are part of a team. If you want to keep your employees happy and engaged, start by properly recognizing and rewarding them for their efforts.

 

Its the right thing to do

Think about other facets of your life in which you might do things for other people. It could be favors or caring things for friends and family. It might be taking in your neighbors mail while they're away on vacation or doing the grocery shopping for an elderly relative. You don't do these things for the recognition, but you have to admit, its nice to be recognized. Just because an employee receives a paycheck, it makes people feel good when they know others have noticed their efforts.

 

Conclusion

Recognizing and rewarding your employees is the key to a productive workforce. By properly recognizing and rewarding your employees, you can motivate them, build a positive work environment, increase employee satisfaction, promote a sense of ownership, and lead to increased productivity. All of these factors are important for a thriving business. So if you want to have a productive workforce, make sure you are properly recognizing and rewarding your employees.


Nicholas Mushayi
Super User
This article was written by Nicholas a Super User at Industrial Psychology Consultants (Pvt) Ltd

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