Employee turnover is a major problem for businesses both large and small. While working with employment agencies can ensure those gaps are filled by highly qualified candidates, a staffing agency won’t necessarily convince an employee to stay at a company once they’re hired. That’s why businesses need to be proactive about keeping great employees within the company. And one of the best ways to do that is by making employee recognition a priority. In fact, 86% of companies with employee recognition programs cite increases in worker happiness.
You might not think that matters in terms of your bottom line, but the reality is that employee loyalty has the power to impact it a lot. Employee absences and vacancies come with immense costs to your company. Financially, it’s much more beneficial to invest in your current employees than to have them leave, work with staffing agencies to find new ones, and train them. If you can zero in on employee loyalty, you’ll only need to work with a job placement agency every so often, instead of during frequent crises.
So how does employee recognition have a positive impact on retention?
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- It improves productivity: It’s true what they say — employees who feel valued will often do more than expected. If you want your employees to do more than the bare minimum (i.e., care about the success of your business rather than just keeping their job), recognizing them for their achievements can encourage them to keep working hard. For employees to keep up their momentum and want to go above and beyond, they typically need to know that their efforts are making a difference and that they don’t go unnoticed. Making sure they know they are valued within your organization will motivate them to keep going.
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- It enhances personal investment: It’s hard not to get caught up in your own individual job responsibilities, and it can be a challenge to see how one person’s efforts affect the entire company. But by recognizing your employees, you can make sure they’re emotionally invested in their position and in your business as a whole. Some young people will think of their job as just a way to make some money, rather than a career. But if you can switch the script and show them how their work is making a difference, they’ll be much more likely to be loyal to your organization for a longer period of time. That way, you won’t have to work with employment agencies any time soon and you’ll actually have an opportunity to mentor and help these employees grow within the organization.
- It increases morale overall: A good company culture is imperative to a business’s success. But if your employees don’t feel valued, they’ll probably feel like the work environment is unhealthy. That’s the kind of atmosphere that makes people leave within weeks or months. But if you take the time to show your employees how much they matter and how much you care about their happiness, that will likely improve your team’s overall morale. Even if it takes a longer time to implement major changes, employees need to know they’re being listened to and that their opinions are valued. They’ll also be a lot happier when they’re told to keep up the good work, rather than feeling ignored.
Employment agencies can help you find candidates who are a good fit for your business, but you need to do your part to make sure they stay. When you want to build a strong team of employees, rather than dealing with a constant revolving door of new hires, having an employee recognition program is vital.