Reap the Rewards of Recognition

Power of Recognition

• Everybody likes recognition

• Show your employees love or risk losing them

• No. 1 reason employees leave jobs…they don’t feel appreciated (U.S. Dept. of Labor)

• Making people feel good is good for business

Power of Recognition

• Employees are motivated by recognition– It is three times more important

than salary as a satisfying element of work (Harvard Business Review)

• Leads to increased productivity and employee retention

• In turn, leads to improved customer relations and increased business

Recognition drives results

• A good recognition program can:– Motivate and encourage good behavior – Improve morale and build loyalty – Retain employees; cut recruiting and

training costs– Increase productivity and sales– Increase customer satisfaction– Boost profits

Recognition drives results

• 50% lower turnover– Key employees cost 150% of their salary to replace

• 38% more productivity– Engaged employees perform more efficiently,

are more loyal and are easy to manage

• 27% more profitability– Companies with motivated employees

are more financially stable

• 56% higher customer satisfaction– When employees are happy, customers are happy

Creating a Recognition Program

• Best recognition programs use gifts and awards – Thoughtful, last in memory– Constant reminder of achievement– Motivate to do better

• Gifts are better than cash bonus– Used immediately, nothing to show for

accomplishment– Don’t remember why received cash award

in the first place

Creating a Recognition Program

• Promotional products are effective for motivating, rewarding and recognizing

• Service-based events– Watches, timepieces, crystal, glass,

plaques, pens, artwork, leather gifts

• Performance-based recognition– Electronics, leisure/sporting goods,

apparel, desktop/computer accessories, household items

Reward the right way

• Recognize with a tangible, visible reward– Seen by peers, family and friends

• Make them proud – Proud to receive and display– Bring positive emotions and reminder

of why recognized

• More personalized, the greater its impact– Gives higher perceived value

Reward the right way

• Informal recognition is important– Hand out spontaneous awards when an employee

excels– Not just for employment milestones

• Sooner, not later– Start recognizing right away to develop loyalty

• 90 days, 6 months, 1 year, etc. • Retention isn’t fought at 20 years, it’s fought at

one-to-5 year level

Reward the right way

• Consider the recipient– One-size-fits-all doesn’t work– Offer choice and let employees help choose items

• Involve the family– Rewards than can be used in leisure time– If an employee’s spouse is on board, he/she will be

more engaged in the workplace

Reward the right way

• Give more frequently, but on smaller scale– Generation Y employees crave constant

recognition– Reward for day-to-day

achievements• Unusual action to please a customer• Long hours to meet project deadline• Cost-saving or productivity enhancing suggestion• Completing a big sale

Summary

• Increased business is the result of customer satisfaction

• If you want customer satisfaction, motivating and retaining employees is key

• Retention is directly tied to rewarding and recognizing individuals