Organisations risk losing their people by failing to provide feedback at work
A new study of HR workers, employees and managers in the UK from global employee engagement company, Reward Gateway, found that over three in five of employees would rather work for a company that had a culture where people were praised and thanked regularly for doing good work, than for a company that paid 10% more but offered no praise or thanks.
While the survey provides overwhelming evidence that HR leaders believe recognition and reward programs make a positive impact on business outcomes, 45% of HR workers don’t agree that their current recognition and reward program is as effective as it could be.
The top frustrations HR leaders have with their recognition and reward programmes are;
- Employees aren’t motivated by the rewards
- Moments of recognition aren’t seen or celebrated by other people and
- It doesn’t allow for continuous or immediate recognition.
To overcome these challenges and improve their programmes, almost three quarters of HR employees surveyed said they would be likely to invest in recognition and reward within the next year.
Another barrier to successful recognition programmes is that managers are ill-equipped to give effective recognition. Only 16% of managers strongly agreed that their company provides them with the tools and understanding on how to recognise their colleagues effectively.
Finally, many managers are failing to recognise their employees effectively, as just 20% of managers strongly agreed that their company praises or thanks employees for the good work they do based on their company’s values, and over a quarter agreed that they struggle to find the time to give out thanks and praise.
Commenting on the research, Doug Butler, CEO at Reward Gateway said:
“While it’s great to see so many HR leaders understanding the positive impact of employee engagement on business, traditional methods and manual processes to achieve current workforce employee engagement goals are no longer an option. What employees want is continuous, instant and impactful recognition which reflects the ‘always-on’ workplace culture and the “always connected” personal life many now have.
- 84% of HR workers agreed that an effective recognition and reward program helps drive business results, and 85% agreed it has a positive effect on employee retention
- Only 16% of managers strongly agree that their company provides them with the tools and understanding on how to recognise colleagues effectively
- Half of employees agreed that they would leave a company that didn’t praise or thank them enough for the work they did