A study from 2018 found that almost half of employees in the US are dissatisfied with their jobs. Job dissatisfaction harms your bottom line because employees are less motivated, less productive, and less invested in your company.
So, how do you fix this? According to many experts, making your employees feel valued and recognized is the key.
Implementing an employee recognition software program is a simple but effective way to do this. In just one year, you could see a 1576% return on investment!
Keep reading to learn more about employee recognition software, and how it can benefit your business.
What is employee recognition software?
Employee recognition software is a tool that companies can use to implement and manage an employee reward and recognition program. This software allows you to send recognition to your employees as a reward for their hard work.
This recognition can come in different forms, such as points systems where employees are awarded points which can be redeemed for rewards from a catalog, or non-monetary recognition where employees give each other recognition with no reward attached.
The Guusto rewards program allows employees to send gift cards which can be redeemed at a wide variety of retailers, restaurants, and other experience providers, as well for swag, charity donations, and other custom rewards. You have the option to let employees choose the merchant they would like to redeem their gift from, and even pay their gift forward.
Our platform also includes a non-monetary recognition option – known as Shoutouts – which allows employees to nominate others for recognition without a budget for gifts.
Rewarding your employees like this helps them feel recognized for their hard work. Giving them the choice of what to do with their rewards adds to this since you're allowing them to choose a reward they really value and find meaningful.
What happens when employees feel recognized?
Because employee recognition is linked to job satisfaction, it can have a huge impact on your company's bottom line. Despite this, 65% of employees don't receive recognition for their work. It can be difficult for managers to take the time to make sure all of their employees feel valued and appreciated, particularly in a large company.
If employees are doing good work and not being recognized for it, they are much more likely to be frustrated with their job. This frustration can lead to lowered engagement and productivity, negatively impacting the company culture. Over time, it can even lead to problems with employee retention.
Using employee reward software makes it easier to recognize all of your employees consistently, rather than just a few standout performers. You're also able to recognize them in a way that is more meaningful to them. While praise is almost always appreciated, a company investing back into their employees through a reward program makes recognition tangible and more impactful.
You can measure the results of an employee reward and recognition program in several ways, ranging from what percentage of people are participating in your program, to what people are being recognized for, to what kind of impact your program is having on larger goals like engagement and retention. These measurements can help you tailor your approach to ensure you're getting the best out of it. Here are just a few possible areas that could improve as a result of your recognition program.
Employees who are recognized for their work are more likely to continue to put in that effort. They are motivated to stay engaged with their work because they know that doing so will earn them more rewards, but also because they can see that their work is valued.
This engagement is good for business. You're telling your employees exactly what parts of their work you appreciate them doing, and this way they are more likely to keep doing it.
Employee rewards can also be a solution for disengaged employees. Those who might not have been as engaged as others will be encouraged to take a more proactive approach to their work.
A more engaged workforce can also improve productivity by as much as 21%. By rewarding employees when they hit their targets, you give them more reason to strive to continue doing it.
Rewards programs can even promote healthy competition among employees, both in terms of giving and receiving recognition.
Guusto’s platform, for instance, offers an optional Leaderboard in its Dashboard which tracks both the top recognition recipients and the top recognition senders. You can offer additional rewards for the leaders in each category every month, helping to both boost adoption of your program and give your employees extra incentive to go above and beyond.
Reduced stress and absenteeism
Feeling recognized and respected at work can make people happier. When work is draining or frustrating, it takes a toll on employee mental health. By improving the work environment, your employees will enjoy their time at work more. This may even spill over into their home lives, as they are less likely to carry the stresses of their jobs into their downtime and will be free to enjoy their time outside of work.
It's not just the company culture that has a role in this. The rewards themselves make the lives of employees easier. Your employees are able to treat themselves to something special, giving them something to look forward to and enjoy.
Happier employees are better for your bottom line, too, as they are less likely to become burnt out or ill, which can result in reduced absenteeism.
Job satisfaction and company culture
Put simply, employees are happier when they are getting recognized for their work and earning rewards for it. Your company fosters a culture of respect and appreciation where people feel valued.
Overall, everyone's moods are lifted. This boosts the company's morale and can have an immeasurable positive impact on the work environment.
Better customer service
A by-product of that positive company culture is an improved relationship with customers. When employees are satisfied in their jobs, the engagement between them and your customers will improve, too.
Your employees will be more patient with customers and more willing to help them. These positive customer experiences will translate to good reviews, repeat customers, and more business for your company.
Employee turnover is expensive. The process of advertising for a position, going through the hiring process, and training new employees takes up a lot of time and money. And frustrated employees who feel underappreciated are more likely to look for work elsewhere.
By providing additional rewards and recognition, you show employees how valuable they are, which can encourage them to stay committed to your company. If employees are leaving less often, you are spending less replacing them, reducing your business costs. You also gain the benefit of having knowledgeable, experienced people in your team for longer.
Getting started with employee recognition software
Interested in implementing an employee recognition program at your company? In The Ultimate Employee Recognition Playbook, we detail 6 simple steps to plan and launch a successful program:
- Make the case for Employee Recognition
- Build Your Team of Champions
- Find the Right Solution for Your Needs
- Set Your Goals
- Launch Your Program
- Measure the Results
Download your copy today here