Every business starts out with the intention to grow, but growth never comes easy. To make matters more interesting or rather worrisome – a growing business isn’t always the one that is effective. You could be small but still have a greater impact on your surroundings than one created by a business twice your size.
So where exactly do businesses go wrong in achieving effectiveness?
In most cases, businesses will look for opportunities to enhance and improve the seemingly more important functions like business accounting and production – but there would be very few of them who’d focus on something like employee recognition.
Employee recognition is often counted as an HR expertise – something that just the human resource department in the organisation is responsible for. But is that really so? Obviously not! This is one of the most prominent differences one gets to notice between the effective and ineffective businesses.
The successful businesses believe in the power of rewarding staff and employees that help them attain the growth and success they have been looking for; and here’s why employee recognition is so important:
The Human Factor
Even the most tech-savvy businesses cannot operate with robots alone. They need humans for streamline, supervising, and managing the overall operations. The thing with robots is that you can make them work endlessly without recognition and it wouldn’t affect their performance (unless there’s a technical problem), but for humans, it’s different.
Humans need appreciation. They want to be acknowledged for their efforts. They seek respect from their colleagues and managers for they what they do. This appreciation, even if it is in the form of branded gear used for promotional purposes, encourages them to be better at what they do.
The Satisfaction Factor
Employees that are appreciated and lauded for their efforts tend to be happier and more satisfied than the employees that aren’t recognized for their work. When employees are satisfied with their jobs, they tend to stick around longer. This means the business has high employee retention ratio, which ideally means low recruitment expenditure. With the employees staying loyal to their employers, an organisation can ideally bank on growing and expanding successfully.
The Trust Factor
The relationship between the management and its employees is another crucial aspect that tends to impact the overall performance of the company. Recognizing employee strengths, nurturing them, and helping them improve in what they do goes a long way in establishing positive working relationships between management and the employees.
However, the job doesn’t end there. The management needs to be careful about providing employees with ample opportunities and challenges to prove their worth – and when someone does they should be appropriately lauded for their effort and their achievements.
While business accounting still doesn’t consider employees as an asset in the books, one cannot overlook the contribution they make in driving the organization to success. Today, when companies both big and small are striving endlessly to create organisational cultures that are flexible, rewarding, consistent, and fun at the same time – incorporating employee recognition into the culture is something that just cannot be ignored – especially if it’s long-term success that the organisation is after.