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4 reasons why employee recognition is important to your business

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Every human being wants to be recognized and appreciated for the work that he does because he likes to see the reward of his efforts. However, managers often wait until the annual day of performance evaluation to give their comments and show their acknowledgments. Managers should not wait just one day of the year to recognize their employees. Instead, they should recognize them every day. This is only possible if employee recognition is part of the culture of this company. It is recommended that each company make employee recognition an essential part of their company culture, and below that you can see why.

The importance of employee recognition

  • Reduces employee turnover and retention: When employees feel recognized, they tend to stay longer and, as a result, staff turnover and retention decrease. Similarly, recruitment and training of new employees is decreasing. There are predictable costs of replacing an employee as well as unpredictable costs because it takes three to six months for a new employee to get used to his new roles and become as productive as the former employee.
  • Increases Employee Happiness: When employees are recognized, they become happier and, as a result, their productivity increases. When they are more productive, they do more good work and should be rewarded again. It's a constant loop. Productive employees mean more successful jobs and more successful jobs means earning more money for the employer, so it's a win-win situation for everyone. In addition, employees usually do not leave jobs, but they leave their manager. If their managers make them feel valued, they become happy and do not think about quitting their jobs.
  • Increases employee engagement: Companies often complain about low employee engagement and look for ways to overcome this problem. In order to increase employee engagement, a thoughtful recognition and appreciation program could be a solution. A powerful program increases employee engagement as well as employee morale. As a result, employees feel valued and valued employees are more satisfied with their work.
  • Increases Confidence in the Company: Recognized employees feel more humane and worthwhile. As a result, it affects employee trust, because if a company cares about their employees and puts them first, then trust in the company increases. When employees trust their workplace, they engage more and embrace their places of work. In addition, if a company has remote employees, trust becomes more difficult because of remote work challenges. Therefore, managers can build trust among their employees by showing them that they see their contributions and care about their needs.
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