Employee recognition is a very effective method for improving employee motivation, engagement, productivity and job satisfaction. It’s a fact.
The truth about employee recognition
In a time of war for talent, employees have the power to choose their employer. Losing your top talent to your competitors can be detrimental for your business.
This is why many employers invest a lot of time, money and effort to improve their employee experience. They are doing their best to keep their employees happy and satisfied. For example, most companies these days try to provide fancy perks and benefits, implement an employee wellness program, etc.
But the question is how effective are all of their efforts? What do employees really care about?
Is it really true that a simple act of saying praise to your employees can improve your company’s bottom line by keeping your best employees?
I won’t say a word. The following statistics speak for themselves.
Top 5 employee recognition statistics
Statistic #1: Half of the U.S. employees are unsatisfied with their job
The Conference Board’s latest survey on job satisfaction has found that only 51% of employees feel overall satisfied with their job. This survey gauged approximately 1,500 employed individuals, who together comprise a snapshot of the U.S. workforce.
Statistic #2: Half of the U.S. employees are considering a new job
Half of U.S. employees are watching the job market or actively looking for a job, based on findings from a new Gallup Workforce Panel study. Results are based on a Gallup Panel Web study completed by 13,008 U.S. adults who are demographically representative of the U.S. adult population.
Statistic #3: The main reason why employees leave their jobs is a lack of recognition
The main reasons why employees leave their jobs is that they don’t feel appreciated, according to Gallup’ research.
Statistic #4: Employees aren’t recognized (enough) for their work
According to Gallup’s analysis, only one in three workers in the U.S. strongly agree that they received recognition or praise for doing good work in the past seven days.
Even more, Gallup Poll shows that 65% of employees haven’t received any form of recognition for good work in the last year!
Statistic #5: Employees want praise, not money
According to Officevibe’s recent study, 82% of employees think it’s better to give someone praise than a gift.
In a recent Gallup workplace survey, employees were asked what types of recognition were the most memorable for them. Respondents emphasized 5 methods in particular – and money isn’t the only (or the top) form of recognition employees prefer. Most employees prefer employee recognition in the form of:
- Public recognition or acknowledgment via an award or a certificate
- Private recognition from a boss, peer or customer
- Receiving or obtaining a high level of achievement through evaluations or reviews
- Promotion or increase in the scope of work or responsibility to show trust
- Monetary awards such as a trip, prize or pay increase
Bonus statistic: High cost of turnover
Total costs associated with a turnover range from 90% to 200% of an employee’s annual salary, according to a report from the Center for American Progress.