However, a higher level of employee engagement isn’t the only benefit, and employers could also notice:
An increase in employee motivation
Introducing an employee rewards program or loyalty scheme is one of the best actions you can take to motivate your employees. What’s more, employers who understand the importance of a structured recognition and reward system also have a competitive advantage in attracting new talent over those that don’t. In the current employment climate, many people are prioritising employee experience over salary and want to work in places that value their contributions and ideas. They want to be in an environment where their leaders inspire and motivate them to do their best work. When people feel their efforts are noticed, they not only do more, but also think more innovatively. This will consequently will drive your business forward and lead to more growth.
![Motivated employees sitting together and working]()
A boost to team morale
Employee morale is a reflection of your teams’ mental wellbeing, job satisfaction and attitude. So if morale is high, your employees are likely in a good place and love what they do. Incentives and rewards boost employee morale because they give your people focus and encourage them to do their best work. Plus, if you open your incentives to include peer-to-peer recognition, this promotes greater collaboration, which creates a strong and inclusive culture. However, for a loyalty or reward program to have the biggest impact on morale, we recommend taking a personalised approach. For example, if you’re thinking about introducing a reward and recognition platform, make sure it includes functionality such as displaying the recipient’s full name and a dedicated space for a customised message. Additionally, if there’s the option of adding company values to each recognition, even better!
Higher employee retention rates
More often than not, people stay at a company because they feel valued, not because of their salary. In fact, salary plays a smaller role in retention than previously thought. According to Forbes, 66% of employees said they would likely leave their jobs if they felt unappreciated. Fortunately, there are plenty of ways an organisation can recognise their employees and some of them are very cost-effective solutions. Sometimes, a simple thank you note is all it takes. That said, a more significant non-cash reward could include giving someone the day off, or letting them start later or finish early on a Friday. Other rewards may link to employee development, such as offering the opportunity to pursue a particular passion project, or work in another department for a month. Either way, it’s important to keep in mind that your employees are individuals who want praise and appreciation — and if you make recognition a priority, they stay.
![Employees with great team morale sitting together and smiling]()
Better customer satisfaction
Let’s face it, increasing customer satisfaction is challenging. Yet, while many factors can influence how your customers feel, encountering an enthusiastic and happy employee can make all the difference. When your teams feel appreciated, they’re more willing to go the extra mile and deliver an exceptional level of service. Happy employees are excellent brand ambassadors for your business, as often their enthusiasm and can-do attitude are obvious to customers. Honestly, there’s no better feeling than hearing people speak highly of your company and helpful teams, which is why it’s important to give your employees the recognition and appreciation they deserve.
Higher levels of productivity
Setting up an employee recognition scheme is one the most significant promoters of productivity, with over 78% of employees acknowledging they would work harder if they received more recognition. The reason recognition has such a positive effect on productivity is that people feel a sense of accomplishment after receiving a compliment for something they’ve put a lot of effort into. Usually, employees say the most memorable recognition comes from their manager. Consequently, senior leaders should make an effort to let their teams know they’re doing a great job. That’s not to say peer-to-peer recognition isn’t important — because it is. Without peer-to-peer recognition, teams don’t collaborate and support each other as well as they could. Ideally, a business should strive to build a recognition-rich culture, with employees receiving recognition from colleagues of all levels of seniority.
A more supportive company culture
First and foremost, when creating a purposeful and supportive culture it’s important to develop a set of core values and principles that attract like-minded individuals to your business. So, what do we mean by this? Well, if you want to build a supportive culture you should first consider how you’ll prioritise recognition. Saying your employees are the heartbeat of your company loses its meaning if you overlook their achievements and take their hard work for granted. However, before choosing a recognition platform, we recommend asking your employees what they value and how they want to be appreciated. Some people like public gestures, such as employee of the month, whereas others prefer a discreet thank you card.
If you're looking to improve your workplace culture by giving employees the credit they deserve, check out this list of the best employee recognition tools.
![Happy employees sitting together and sharing coffee as a team]()
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