Positive employee recognition improves business performance
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.”
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“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.