Companies are starting to understand that when employees are happy, the organization is better off. The employee-employer relationship should be founded on appreciation, trust, and support on both sides, especially as employee expectations change and evolve.
That’s where employee recognition comes into play. Recognition is the perfect starting point for showing appreciation and value, which then leads employees to work harder and reciprocate that appreciation. In this post, we’re going to look at some mind-blowing recognition statistics that will show why employee recognition is so important. But first…
What Is Employee Recognition?
Employee recognition is the act of showing appreciation or gratitude to an employee for what they bring to the table. It can be given for the work they’ve done, for a special event or milestone they’ve achieved, or just to show appreciation for them as a human being.
The goal of recognition is to ensure employees feel valued and cared for. And 93% of employees say that when they feel valued, they are motivated to do their best work and are much more engaged. (We’re already jumping into the stats!)
How to Implement Employee Recognition?
Employee recognition programs are the best way to start recognizing. These programs are structured, often digital ways to easily recognize, celebrate, and reward employees for all sorts of things. Birthday programs, holiday programs, wellness programs, and peer-to-peer recognition programs are some examples.
With an employee recognition software such as Awardco, you can create custom recognition programs to suit your wants, needs, goals, and core values; you can automate recognition processes to save time and money; and you can offer millions of rewards for employees to choose from.
Now that you know the what and how, let’s dive into the why. Why is recognition important? Why should you care? Here are some stats to answer these types of questions.
Why Is Employee Recognition Vital? (Employee Recognition Statistics)
86% of Employees Say Recognition Improves Their Experience, Relationships, Engagement, and Happiness
Let’s start off with how much employees enjoy being recognized. When a company puts effort into recognition, employees are happier, have better work relationships, are more engaged in their work, and are more satisfied with the entire employee experience. Not bad, right?
82% of Employees Don’t Feel Recognized Enough
Lack of recognition affects a big chunk of the workforce. Despite the fact that employees are happier and more engaged with recognition, 8 out of 10 employees don’t feel appreciated enough. We can do better.
80% of Senior Leaders Think Employees Are Recognized at Least Monthly—only 22% of Individuals Agree
This disconnect is a big deal. While leaders think recognition is plentiful, the majority of individual contributors don’t get recognized even once a month.
Employees Who Aren’t Recognized are 2X More Likely to Quit
The Great Resignation isn’t over yet. Turnover rates are still alarmingly high, and without recognition, employees are twice as likely to look for other, more gratifying opportunities.
Recognition Lowers Voluntary Turnover by 31%
On the flip side, regular recognition can lower voluntary turnover because employees enjoy working for a company that cares about them.
40% of American Employees Would Put More Energy Into Work If They Were Recognized More Often
Do you want employees who are excited to come to work and put in as much effort and energy as possible? Well, here’s your answer! Recognize employees more and you’ll see a boost in effort.
70% of Employees Say Recognition Is Most Meaningful When Personalized
A generic “thank you” does more harm than good most of the time—employees strongly agree that recognition and gratitude needs to be specific, genuine, and meaningful.
93% of Employees Are Motivated to Do Their Best When They Feel Valued
Employee recognition conveys value; it shows that a company cares for the efforts its employees put forward. And when employees feel that value, they work their hardest.
94% of Employees Who Receive Daily Recognition Are Satisfied With Their Jobs
Daily recognition raises satisfaction more than many other benefits—and it can be easy to do. Managers simply need to thank employees for their efforts, point out what they did well, or compliment them on their abilities. Simple, daily comments can have a huge impact.
When Leaders Recognize, Employees Are in the 70th Percentile of Engagement
This means that when employees are recognized, they are much more engaged. And engagement leads to more happiness, higher retention, lower absenteeism, and more productivity.
When Leaders Don’t Recognize, Employees Are in the 27th Percentile of Engagement
See the above stat to find out what you’re missing out on!
72% of Businesses Agree That Recognition Improves Engagement
It’s not just employees who see the positive impact of recognition. Business leaders agree that they’ve seen it, too!
Employee Productivity and Performance Rise By 14% With Recognition Programs
When employees feel valued, they perform better. It’s as simple as that.
Employee Recognition Emphasizes Important Days
A global financial institution that uses Awardco created an Employee Appreciation Day program that celebrates employees for an entire week—because of that, they saw an increase of over 50% in total recognitions that week compared to a regular week.
Another company created an International Women’s Day program and saw a 217% increase in recognition compared to last year (when they didn’t have a program).
65% of Employees Prefer Non-Monetary Recognition Rewards
When it comes to employee rewards, many employees prefer non-cash options. So recognition doesn’t have to be expensive to implement—oftentimes items, experiences, or extra PTO can be great incentives.
The Stats Are In: Employee Recognition Is Vital
Employee rewards and recognition have a huge impact on all aspects of business, from engagement and productivity to turnover and happiness. Employees who feel valued are more likely to stay at a company, work harder each day, and enjoy their time. And effective recognition doesn’t have to be hard to offer—it can start with genuine, meaningful gratitude.
