EMPLOYEE MOTIVATION AND RETENTION

benefits of recognition

Recognition goes far beyond gifts and points. It's about changing the corporate culture to not only meet goals and initiatives but to connect employees to the company's core values and beliefs.

Everyone likes to be recognized for a job well done, but at Michael C. Fina we know that you can achieve better business results simply by celebrating the success of your people. Recognition is an important factor in building employee engagement, which Hewitt has found to directly correlate to total shareholder return (TSR), sales growth, and profitability. Companies with an engagement score of 60% or higher produce an average 5-year TSR greater than 25%, while those with engagement scores between 40% and 60% report an average TSR of 9%.*

When considering the benefits of recognition, both the ROI (Return on Investment) and VOI (Value on Investment) should be considered. While ROI is solely based on profitability, VOI is less measurable and focuses on the “softer” measures such as teamwork and company culture.** An effective employee recognition program will-

• Reinforce behaviors that improve individual and team performance, align with organizational values and result in better overall company performance
• Increase employee engagement, which in turn leads to higher performance levels and higher profits
• Create a positive work environment, raise morale and promote team spirit throughout your organization
• Encourage loyalty and improve employee motivation and retention
• Provide clear insight into your company’s goals and expectations across your workforce

*Hewitt: The Missing Link: The Role of Employee Engagement in Business Success
**Human Capital Institute: The Value and ROI in Employee Recognition