An employee survey conducted by O.C. Tanner found that 37% of respondents felt personal recognition and appreciation would encourage them to produce better work. Now that is something that every new business owner needs to know.
Employees are the backbone of your business, and they crave acknowledgement. No matter if you are a big business or a small business owner. Your employees need attention and appreciation for the work they do.
They need to feel that sense of belonging at their workplace. And that is only possible if you make space for a culture of recognition and appreciation.
Promoting a culture of appreciation is not rocket science. It is easier than you think. In this blog, we will be discussing just that and how you can boost your efforts towards creating a company culture that your employees crave.
What does it mean to have a culture of appreciation?
Appreciation is the act of rewarding and recognizing your employees for their hard work, effort, and dedication. And when this act of acknowledgement forms the foundation of a workplace, it develops a culture of appreciation. However, your approach towards creating such a workplace culture needs to be purposeful.
The goal is to increase employee engagement and improve the overall productivity of the workforce.
But the concern here is that a lack of recognition has been the catalyst that employees leave an organization. A survey conducted by Achievers found that 44% of employees will switch their job because there was no room for recognition and engagement.
As a business owner, that is a significantly worrying number, and it highlights the importance of employee recognition. And the statistics do not lie, do they?
Let us not worry much here. Everything has a solution, and with the help of this article, we will provide you with ways to boost your employee recognition and appreciation efforts.
5 Ways That You Can Boost Your Culture Of Appreciation In A New Business
1. Promote Timely Recognition
One of the handy rules about recognition is that it needs to be done in time. 90% of managers feel the same and prioritize timely appreciation. It is crucial to grasp the moment and let your employees know about their work.
It is the same as missing out on project deadlines to create a chain of underlying unwanted events. The employees will never express their desire to get recognized. But as a leader, you must understand the power of a simple act of appreciation. It can be a pat on the back or a heartwarming “thank you” message. The main aim is to do it at the right time and environment.
However, if the recognition is not done in time, then it will lose its purpose. Employees will feel undervalued, which can harm their morale. In the long run, it can diminish their desire to work and reduce their productivity.
2. Try to be specific and frequent
Employee recognition does not have to start with achieving huge milestones. It can start with small wins. You just have to be consistent and specific with your efforts.
Organizations that acknowledge employees at least once a month have 71 per cent of highly engaged employees—just a stat to help you understand how critical it is to become frequent with your recognition process.
When recognition is done in a systematic manner, you will find more engaged employees, more substantial business outcomes, and less turnover. Employees are constantly giving their best every week that needs to be appreciated. On top of that, they need honest feedback as well to improve their skills. If you miss out on doing that, the employees might feel unappreciated, decreasing their zeal to work.
Moreover, in addition to being frequent, you need to be specific while providing recognition. When you become specific, your employees will understand their contribution towards achieving the team goal. Being particular also shows that you are honest and sincere while appreciating the employees.
3. Focus on Peer-to-Peer Recognition
Being a business leader requires good people management skills, swift decision-making abilities, becoming a problem-solver, and providing a work culture compatible with the workforce. And it does not stop there. You must provide them with the best employee experience possible for them to perform at their peak. However, out of all the things, you should also encourage employees to practice the art of appreciating peers.
But why the need for peer-to-peer recognition?
According to a study conducted by SHRM and Globoforce, peer-to-peer recognition has a 35.7 per cent greater influence on financial results than manager-only recognition. That is a significant number to emphasize more on peer-to-peer recognition.
However, that number alone is not going to help you. You need to onboard a program that will provide the flexibility for your employees to indulge in peer recognition activities. In the long term, it will build good working relationships and develop strong team bonding.
4. Facilitate Employee Centric Incentives
Appreciation sometimes needs to be more than a message or notes. To keep the workforce motivated and afloat, you need to show appreciation in different ways. One of the effective ways to do it is by offering incentives that go beyond words.
But what are these incentives that we are talking about?
Well, if you are thinking of monetary incentives, then that is not our answer. A survey found that 65% of employees prefer non-cash incentives.
The rewards should be something that matters and offers value. It should make a significant difference in the overall employee experience and motivation of the workforce. Make sure to make it employee-friendly and listen to their opinions.
The rewards can include-
- Flexibility at work
- Providing autonomy
- Experiential Rewards
- Good learning programs
- Sabbaticals after a specific achievement
5. Ditch the bias
A survey done by Deloitte found that 68% of employees had a negative impact on their productivity after witnessing or experiencing bias. Now that can hurt a business right at its core.
The practice of being biased in the workplace is quite detrimental to the workforce. It creates an existential crisis for the employees that are on the other side of a biased leader. It can severely harm the employee’s health psychologically and that can ruin your business.
Instead, what you can do is ditch the biased attitude and appreciate the individuals that deserve it. As a leader, you must be aware of who is responsible for which tasks. It will help you assess the functions based on the employees’ performance to keep the recognition process neutral and fair.
Doing so will diminish the chances of a toxic work environment and increase team cohesion in the long run.
How does a culture of appreciation help a new business?
We have now talked about how appreciation is and how one can boost their efforts towards facilitating a good process. But the critical question is, how does it help a business in the long run?
Here are a few pointers that will help you understand the vital role of a culture of appreciation in the current business environment-
- When employees get recognized on time, it increases their morale and encourages them to become better at their job.
- The act of employee recognition or appreciation is pivotal in employee satisfaction. 75% of employees receiving at least monthly recognition (even if informal) are satisfied with their job.
- Recognition and appreciation is an excellent way to support employee development and progress. When you acknowledge your employees, even for the small wins, it supports them and helps them edge closer to completing their goals.
- Good employee recognition and appreciation culture help businesses in reducing their turnover rate. A stat to support our statement- 20% of companies with a rich recognition culture have a 31% lower voluntary turnover rate.
- As mentioned above, how 44% of employees would switch their job if there is no room for recognition highlights the fact that employee recognition is crucial in building a sense of belonging and loyalty among employees.
Summing it Up!
Appreciation is a powerful tool that businesses need to leverage in the right way. However, many organizations and businesses are still finding it difficult to make room for a recognition-rich culture. It is not complex as many would think. Instead, it is a catalyst that can boost your workplace culture and attract individuals who would love to be a part of it.