Boost The Bottom Line

Giving your employees the recognition they deserve isn’t something that can be ignored. Recognition is a pretty important part of positive work relationships. According to a recent article from Talent‘s Derek Irvine, giving deserved credit also effects the bottom line.

What kind of recognition program does your organization utilize? Giving credit where credit is due supports and reinforces your company culture. There don’t need to be certificates of merit printed and framed when daily praise is given to your employees. They’ll know year-round that their work matters and is seen by management and their peers.

Recognition strategies have evolved as talent management procedures have come to include more non-traditional elements, like focusing on company culture and core values. Earlier noted was the idea that this credit-where-credit-is-due tactic enhances the bottom line. This is based on research from two different studies, finding that businesses that have a recognition program have a better return on profit margin and generate stronger business results than competing businesses.¬†Some of the five ways using recognition can help enhance your organization’s bottom line are:

Engage Employees: Strategic employee recognition provides a foundation for the measurement and analysis of culture, a traditionally difficult-to-quantify commodity of an employer. Start using it to bring about a cultural change that engages employees, reinforces company values and helps meet business goals.

Increase Employee Retention: While salary and benefits fulfill baseline needs, other factors – such as challenging work, trust in leaders and being acknowledged for dedication – fuels a higher level of intrinsic motivation. Identify for employees what is important, and then show appreciation for their contributions to drive their loyalty to the organization.

You need to identify your top performers. When you recognize your employees for their contributions, it will be easier to differentiate top-talent from the rest. This also makes performance reviews more beneficial for the individual and the company. When you have a more direct link with your employees’ performance on a day-to-day basis, performance reviews are better rounded and provide more complete information. The last, and maybe most important, way to use recognition within your workplace is to support and enhance company culture. To read more about what implementing a recognition program within your company can do to help the bottom line, click here to read the full article.

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