Organizations have finally started understanding the power of recognition to retain employees in the fast-paced corporate world. Gone are the days when monetary rewards sufficed to retain employees. The new-age employees seek acknowledgement and appreciation for their dedication and hard work.
Recent studies suggest that non-financial incentives are equally valuable as monetary rewards. There is not just one but multiple ways to recognize good work done by the employee. Studies indicate that more than 20% of employees root for promotion than salary hikes. Given a choice between a higher position and a 3% hike, 1 in 5 employees chooses a rise over a raise in salary. This indicates that career advancement and personal growth are major motivators for new-age employees.
The study further explored that company-wide recognition also stimulates the employees to bring their A-game to work. For example, given a choice, 33% of the employees would choose company-wide email acknowledging their work rather than having a hidden $500 bonus. And why not? Public acknowledgement and appreciation are crucial in creating a strong sense of belonging and pride.
The study peeped into human psychology further and found that men sought public recognition more than women. 36% of males said they would opt for company-wide recognition over monetary reward. On the contrary, 24% of women asserted the same, while 76% were happy with financial gain. This also highlights that there is no one-size-fits-all recognition program for employees. It needs to be tailored to the workforce’s requirements and aspirations.
Employees find their jobs satisfactory when they receive frequent positive recognition from their supervisors. The study reveals that a staggering 94 percent of satisfied employees are those who receive frequent credit. On the contrary, those who hardly receive appreciation or recognition for work are highly dissatisfied. This establishes a direct correlation between recognition, employee happiness, and engagement.
You would also be surprised to know that companies with recognition programs have employee satisfaction rates as high as 83% compared to organizations without recognition programs. The stark contrast underscores the importance of reward and recognition in maintaining employee loyalty.
Another finding that forces organizations to think beyond monetary rewards is that employees also value extra vacation days, gift cards and brand-name products. You would also be surprised to know that symbolic accolades such as trophies and medals come last.
It is now apparent that companies need to think beyond paycheque to create an ecosystem where employees feel rewarded and satisfied. As the saying goes, “A happy employee is a productive employee”. So, it is time for organizations to change their stance and incorporate rewards and recognition as a strong part of organizational culture.
