Every organization looks to grow in its space consistently and looks to emulate successful giants in their field. There are many aspects to keep in mind when you think about consistent organizational growth, with employee engagement being one of the most important of them. Taking measures for employee engagement ensures that your team is in good spirits and would look to contribute their 100%. A one-stop destination for you to be able to enable it is by setting up an employee rewards and recognition programs. Implementing a rewards and recognition program has a lot of benefits. It is something that every organization wants to implement in some capacity but first wants to understand its impact. Implementing an R&R program benefits aspects like employee engagement and productivity, which are crucial for the organization.

What makes an employee R&R program so important? How and to what extent does it help the organization and what efforts do you need to make to measure its impact and consistency? The answer to these questions are written below – the most important benefits of setting up an R&R program.

5 Reasons to Implement an Employee R&R Program

Motivation

One of the biggest perks of setting up employee rewards and recognition platforms is motivation. Research shows that when it comes to motivating employees to act, rewards outperform punishments. Survey results from the Workforce Institute indicate that 87% of employees report a high level of inclusion at their company when there’s a strong culture of recognition. This means that even a simple “Good Job” might go a long way in boosting employee morale.

Motivation is a very important factor, especially in terms of employee engagement and productivity. Motivated teams are more committed and work with a distinguished sense of purpose. Employees are motivated when they realize that their efforts go beyond profit. Leaders should show them the big picture by connecting the dots and how each task contributes to the overall vision and goal of the organization.

Appreciating Efforts and Success

The key aspect of a successful rewards & recognition platform is that it not only awards success but also efforts. According to a 2019 NBC News article, 79% of employees who quit their jobs noted a “lack of appreciation” as a key reason for leaving. 

Employees who are appreciated are crucial for organizational success and want to work hard to help the company grow and succeed. One of the most powerful motivators of employee engagement is the recognition of outstanding results. On the other hand, when employees believe they are working extremely hard and exceeding expectations but are not being recognized for it, they are naturally demotivated. Aspects like Vega Social gives you a chance to create strong interpersonal relationships with your employees and make them feel more at home at the workplace!

The entire system must be built on a belief that acknowledges the importance of effort in any task. By paying attention to all these aspects, we can build a feedback-based structure where appreciation goes beyond the obvious factors.

Team Productivity

When employees receive necessary recognition, they are left with being more confident, self-assured, and better performing. According to studies, 78% of workers work harder and more enthusiastically when their efforts are rewarded. The more you emphasize recognizing your employees’ efforts, the more likely you will keep them happy and committed to your company’s overall goal. 

According to Research by Harvard Business Review, if satisfied employees are at an index level of 100, then engaged employees to produce at 144, and inspired employees produce at 225 on this scale. With employees frequently coming from diverse backgrounds and with a wide range of experiences, fostering a collaborative environment allows your staff to brainstorm collectively and provide feedback from multiple perspectives. 

Trust

41% of companies that use peer-to-peer recognition have seen an increase in customer satisfaction. Peer-to-peer recognition has become a crucial part of any employee engagement strategy, as it fosters interpersonal relationships and boosts the morale of the workplace. Vega HR facilitates this feature by encouraging employees to give shoutouts to their colleagues and giving them the opportunity to raise feedback for each other, which creates a firm structure of communication. Trust is a very positive consequence of employee recognition, irrespective of whether it comes from a superior or a colleague. It shows the belief that employees have in the management and the confidence that the leaders have in their teams. 

Interpersonal trust is key for long-term positive results. A happy, motivated employee means higher productivity which in turn leads to happy customers. Clear recognition and a surefooted employee recognition platform give the opportunity to foster these traits in the organization.

Profitability

Employees who are personally invested in their work are far less likely to seek new opportunities outside. Reduced turnover means fewer hours spent on new employee onboarding and training. They are more likely to think outside the box and come up with creative solutions to problems or improve processes and strive for continuous improvement. 

An effective R&R program is a great reflection of the company as well. According to Lighthouse Research, High-performing companies (i.e., those with higher profits, employee retention, and engagement scores) were 14 percent more likely to focus on employee strengths. 37% were more likely to use recognition to encourage and reward outstanding performance. This shows the extent to which they are putting efforts to foster a positive environment, and sets them apart from the other organizations.

Conclusion

The reasons for setting up an employee recognition program can be plenty. You need to ensure that along with keeping these reasons as your end results, you need to have a firm objective of setting up a positive workspace for your employees. Such programs are driven by leaders wanting to positively impact the work environment. Along with implementing it, you need to consistently measure its impact with set KPIs by collecting feedback from your employees and modifying it to best suit their needs. By ensuring that your employees are positively benefitting from their experience in their organization, your R&R program would definitely bring a positive change to your organization