Some business owners postpone setting up a recognition system for their employees based on the mistaken belief that such schemes can only be implemented once the finances of the company improve. This article discusses how your business may benefit if you instituted a recognition system.
Employees are likely to be more productive when they know that they will be recognized for outstanding performance. For instance, trophies awarded to the best salespeople each year may motivate your sales personnel to be highly productive as each one hopes to be the winner of that trophy. That increased productivity will boost company profits as many research studies found that companies that recognize employee efforts register higher revenue growth than companies that do not have staff recognition events.
Reduced Staff Turnover
Some people thrive when they are placed in a challenging workplace. Others are more attached to a company that recognizes the effort they put into their daily work. A recognition system (such as the award of a trophy to the best person or department) addresses both needs. For instance, competition for the trophy will turn daily work into a fun activity since there is the added dimension that best performers will be recognized at the end of a cycle (such as at the end of a year). The importance of employee recognition has been emphasized by an employee survey that confirmed that recognition avenues (such as trophy awards) help companies retain their best employees. This reduced turnover will save you from the headaches of disrupted activities as you recruit or train new employees.
Increased Customer Satisfaction
An employee who knows outstanding performance will be recognized is likely to be more engaged when dealing with clients. This increased employee engagement will have a positive impact on the way customers perceive your business since they will 'feel' how much employees strive to attend to all needs of the client. This will result in higher customer loyalty and you may end up spending less on advertising because current customers will spread the word about the excellent service they receive from your company.
As you can see, you should not put off setting up a recognition system for your business since such a delay will deny you the possible benefits discussed. Be creative as you implement the trophy award ceremony so that it is as unforgettable as possible. For instance, you can give a handwritten note detailing the highlights of what a given employee did to earn that trophy. Such a note will be a source of motivation and pride to the recipient since it will be proof that he or she is very valuable to the company.