Many companies don’t consider the true benefits of recognizing employees. After all, your company has plenty of perks, like gym memberships and quality benefits packages. So why dedicate more resources to improving your employee recognition statistics when you could be spending elsewhere?
Your organization might not know that disengaged employees deprive your company of innovation, dedication, and profits, and investing in employee engagement can be a strategic method to mitigate these losses. Here are five employee recognition statistics you should know to understand how employee engagement benefits your employees, your finances, and your business.
1. Engaged employees outperform others by 202%.
Most employees want to feel connected to their environments, and you can easily accomplish this by engaging them with recognition in the workplace. If your workforce disengages, they are unhappy at work, feel disconnected with their environment, and are therefore less likely to exert effort on the job.
Dale Carnegie Training surveyed over 4,500 employees across 28 countries about their engagement in the workplace and found that employees who believe in their company’s values feel more loyalty to their work environment, are more productive, and stay focused on their jobs for longer. In fact, these employee recognition statistics showed that companies with engaged employees outperform others by 202%.
That being said, it’s crucial to reward and recognize your employees to keep them engaged and productive at work.
2. Companies lose $11 billion a year to turnover.
When employees don’t feel recognized at work, the likelihood that they will look for alternative positions increases, along with the risk of costly interviewing, training, and onboarding. On average, turnover costs companies approximately double the average employee salary. In fact, the Bureau of National affairs estimates that companies lose a massive $11 billion a year to turnover.
Empowering employees to feel more loyalty to your brand, message, and company values reduces churn and impacts your bottom line for the better.
3. Employees who are recognized regularly are 22% more productive than employees who are not.
Employee recognition is a strategic priority to empower employees to work harder, smarter, and faster. In fact, there’s a direct correlation between employee recognition and employee productivity. An analysis of 1.4 million employees conducted by the Gallup Organization showed that companies with a high level of engagement report 22% higher productivity. The Harvard Business Review’s report on employee engagement statistics states that companies with highly engaged workforces maximize their profits and improve productivity. Engaged employees are better creative problem solvers and provide more innovation to your company, encouraging growth and innovation.
4. Nearly 2/3 of the workforce struggles to understand what management is asking of them.
Lack of communication hinders growth and productivity. Nearly two-thirds of all employees in the workforce struggle to understand management’s requests, which results in a significant loss in productivity. Employees who struggle to communicate with their peers also hinder efficiency and stop projects from progressing quickly.
Employees who feel heard and recognized in the workplace work better with management, other departments, and customers. Employee recognition helps break down siloes between departments, encouraging others to recognize each other for hard work when departments collaborate. Additionally, engaged employees are more likely to participate in creative brainstorming sessions, drive innovation, and encourage growth.
5. Happy employees increase brand awareness, and people are 4x more likely to buy from you when they know your brand.
Word-of-mouth advertising is one of the most important forms of brand awareness a company can leverage. Happy employees promote your company outside the office, both by word-of-mouth and online platforms like Glassdoor.
Your target audience is also more likely to trust you with their business if they know your employees believe in their company’s vision. Prospects can get a sense of your company’s morale with a quick Google search, so keeping your company’s name circulating positively — whether it’s online or in conversation — is key.
According to Impact, people are four times more likely to buy when referred by friends. By regularly recognizing employees for hard work, you can bolster your company’s credibility online and increase brand awareness, all without spending a dime on marketing initiatives. So track your employee engagement statistics and if they start falling behind, take action.
Improve, Inspire, and Empower your Workplace
Employee engagement extends far beyond simple office perks. It encourages productivity, profits, and innovation. When your employees genuinely enjoy coming into work, they work harder and dedicate more time to helping your company reach its full potential.