You know that a quality employee recognition program could do wonders for your company.
But how do you convince the leadership at your company – especially if they’re looking closely at ROI? It's not always easy to draw a correlation between positive company culture and a boost in a company's bottom line.
The answer: point your leaders towards these eight stats on the numerous benefits and immense value that an employee recognition program can provide.
Let's dive in!
According to Job Seeker Nation, a big portion of your team is either actively looking for a new job, or at least open to the idea of working for a new employer right now. That is bound to include some key people who are crucial to your organization. It’s a good thing to remind your leaders. And then, to really make your case, also remind them ...
Replacing employees isn't cheap. The costs of advertising for open roles, screening resumes, interviewing candidates, and training new team members really adds up. And we haven't even factored in the dip in productivity and employee morale your company will experience when an employee decides to move on.
According to PeopleKeep, it can cost 16% of annual salary to replace low-wage workers and 213% of annual salary to replace highly-educated executives. This translates to anywhere from $3,328 to $213,000 dollars on average.
A proper employee recognition program that boosts team engagement won't just help you save money, it'll also help you make more of it.
Harvard Business Review tells us that, of the companies they surveyed, ones that were committed to providing top-notch employee experiences rather than simple perks were able to increase annual profits by an average of 400%.
Additionally, many of the companies surveyed who had achieved these amazing results were 25% smaller than those who didn't. This leads us to believe that engaged employees are also more productive and innovative than their disengaged counterparts.
The Wall Street Journal tells us that when your employees are happy and enjoy the work they do, they'll be much less likely to call in sick. Additionally, they'll stick with your company for twice as long and spend twice as much of their on-the-clock hours focused on what you're paying them to do. Win, win, win!
One of the best ways to create happy employees is to simply recognize them for the contributions they make. (In other words, implement an employee recognition program.)
Nobody wants their employees to suffer an injury while working for their business. And maintaining a stellar safety record is crucial to the success of your company. Organizations that don't maintain safe working environments are subject to bad press, low employee morale, and the extra expense that stems from on-the-job injuries. By prioritizing employee engagement, you'll take a practical step towards reducing harmful accidents.
Companies that excel at employee engagement are 17% more productive, on average than companies who don't. Imagine how many more projects you'll complete with this level of added efficiency!
Productivity is directly related to team member satisfaction and greater revenue, making this benefit of employee recognition one of the most powerful.
If the other stats listed in this article don't convince your leadership to adopt an employee recognition program, maybe this one will: recognizing employees can increase sales by as much as 20% according to Gallup. That should get their attention!
Engaged employees generate more sales because they're willing to work harder and care more about the customers they serve, which often leads to repeat business.
At the end of the day, greater productivity and employee satisfaction wouldn't matter as much if it didn't affect your company's bottom line. Fortunately, a proper recognition program that successfully engages employees has been shown to increase profitability by 21%.
A proper employee recognition program can give a big boost to your company, enabling it to achieve greater productivity levels, better team morale, and higher profitability metrics. Hopefully, the above stats are more than enough to convince your leadership of these facts.
If you're looking for an employee recognition tool that will allow you to easily and effectively recognize your employees for their contributions, give Kudos a try. Our award-winning software is used by hundreds of companies in 80 countries around the world. Talk to the bot below (it’s pretty smart) to arrange to see Kudos in action.
Kudos® is an employee engagement, culture, and analytics platform, that harnesses the power of peer-to-peer recognition, values reinforcement, and open communication to help organizations boost employee engagement, reduce turnover, improve culture, and drive productivity and performance. Kudos® uses unique proprietary methodologies to deliver essential people analytics on culture, performance, equity, and inclusion, providing organizations with deep insights and a clear understanding of their workforce.Talk to Sales
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