Rewards and Recognition are equally impactful to keep the workforce engaged, rather one leads to another, says a recent report released by global employee benefit provider Advantage Club focussing on the significance of rewards and recognition on employees’ performance and their overall tenure with an organisation.
Recognition is the second most important trait for an employee to focus on while working at an organisation, says the report. It was also identified that attrition rate went down by 45% among the recognised employees.
As per the report only 15% of employees fall worldwide in the engaged category. Among actively disengaged workers in 2021, 74% are either actively looking for new employment or watching for openings, it adds.
Motivation and recognition go hand in hand. More recognition leads to higher motivation, says the report. Employee recognition and rewards have been shown to strengthen organisational values, teamwork, customer satisfaction, and motivate specific behaviours among employees.
“Our report clearly signifies the importance of rewards and recognition in today’s work environment. At a time, when organisations coined the term “talent wars”, it was paramount to engage and retain the good talent. R&R programmes are effective because they focus on the positives and give a clear message to employees that their contribution to the organisation matters. Rewarding great performance and accomplishments with items that your staff desire will keep them engaged and driven to do better,” said Smiti Bhatt Deorah, co-founder and COO, Advantage Club. The report says that nearly 85% of the organisations use the platform exclusively for R&R programmes.
Creating the right culture where employees' work and achievement are celebrated, fosters affinity towards both the company and the job role.
The report identifies that effective reward and recognition programmes positively influences employee productivity and also helps in retaining them for a longer period of time.
Nearly 21% companies are more profitable and productive with a highly engaged workforce and 90% of companies want to drive employee engagement to keep the employees motivated, the report adds.