Positive employee recognition improves business performance
- Claire Lee
- Topics: Employee Experience, Home Page - News, News, Talent Management
For businesses to improve their return on investment, more recognition should be awarded to deserving employees.
A survey of 12,000 employees in 12 countries by management consulting firm Gallup and Workhuman, a human resources software company, revealed that positive employee recognition reduces burnout and improves performance.
In contrast, a lack of recognition can lead to financial losses. Some US$20 billion is lost per 10,000 workers due to low wellbeing and subsequent low performance, adding up to a cumulative figure of US$322 billion.
Scott Dussault, Workhuman’s Chief Financial Officer, said, “For a long time, employee wellbeing was oftentimes considered a ‘bonus’ or ‘nice to have’ for organisations looking toward significant growth and financial success.”
“Times have changed – with ‘quiet quitting’ and disengagement running rampant, leaders should be turning to employee recognition to increase engagement, productivity, inclusivity, and overall loyalty to their companies.”
Middle managers caught between hybrid work policies
“Considering that the cost of voluntary turnover due to burnout alone is 15% to 20% of the payroll budget each year, protecting and promoting employee wellbeing amounts to hundreds of millions of dollars toward organisations’ bottom lines annually,” he said.
