What Employee Recognition Really Is.
One of the greatest mistakes that leaders make with regards to employee recognition is confusing it with rewards/incentives.
Acknowledgment isn’t rewards; you don’t need to spend any cash to recognize employees.
It appears that such a large number of leaders still don’t completely understand what employee recognition is.
Employee recognition is the acknowledgement of a job well done.
That is it. It’s just about showing employees the respect they deserve. It’s about showing them that you notice and welcome all the hard work they’re doing.
For what reason is Employee Recognition Important?
Recognition is a most important thing you can do to increase retention and lower turnover.
This is important for you to be aware of, turnover is very expensive.
On average, most estimates say that turnover costs in regards to 30% of the employee’s annual salary, yet a few estimates say it can cost as much as double the employee’s annual salary, particularly if it’s an executive or highly skilled position.
When you think about all of the time, energy, and cash that goes into recruiting and training, the estimates on the high end seem very plausible.
These are some of the factors that go into replacing an employee:
1. Normal recruiting costs like interviewing, screening, advertising.
2. Cost of onboarding
3. Lost profitability – it takes somewhere around three months previously an employee begins adding value.
4. Training costs
Employee Recognition Statistics
Here are a couple of more important statistics that will show you the true value and importance of recognition for employees.