Employee recognition essential for business success
The global employee recognition software market size is projected to reach $50.85 billion by 2030, growing at more than 6% annually from this year. Further research shows that those companies who have employment recognition programmes in place have more engaged and productive staff. Those who do not recognise their staff have a high churn rate, with 39% of people less likely to remain with the business.
This reinforces the sentiment of most (91%) HR professionals that recognition and reward make employees more likely to stay despite any other challenges that might exist within the organisation. It extends beyond giving a financial reward. Rather, a company needs to show employees that they are a critical part of the business and have a direct impact on its success.
“In the wake of the pandemic, business leaders have realised that becoming more people-centric and taking care of their staff are fundamental components to remaining relevant and operational while also being able to capitalise on opportunities for growth. An unhappy workforce significantly impacts on the productivity of the organisation. With things like the great resignation and quiet quitting becoming more prevalent, employee recognition becomes a cornerstone for business success,” says Frik van der Westhuizen, Marketing Director at leading independent customer relationship management company, LoyaltyPlus.
Recognition is also important during times of upheaval such as what has been experienced over the past two years. It helps employees build a sense of security in their value to the company, motivating them to continue great work. With the normalisation of a hybrid workforce, it becomes more critical than ever to do this as those employees who might only be working remotely could easily feel separated from the organisation and that their efforts are not noticed.
Even prior to the pandemic, research showed that 79% of people work harder due to the recognition they receive in the workplace. In turn, this makes employees more willing to go the extra mile. Fast forward to the present and it is this willingness that helps differentiate the organisation from its peers. It not only builds customer loyalty as the experience of engaging with the brand is good, but it also makes the company attractive for future talent.
“Recognition can extend from a straightforward thank you to something more concrete. Yes, financial incentives play a part but beyond that it could be more flexible working hours, access to additional family time, and so on. But to measure and understand employee performance, a company needs the software in place that can analyse people’s effectiveness. The growth of employee recognition software reinforces this as more businesses, both locally and abroad, turn to making data-driven decisions and reward those individuals who deserve it most,” concludes Van der Westhuizen.