What is Reward and Recognition (R&R), and why is it critical in enhancing employee satisfaction, motivation, and retention?
Staff rewards – whereby a manager rewards employees with a monetary or non monetary gift for a job well done, achieving a particular goal, or hitting a career milestone – play a significant role in attracting and retaining top talent. Recognition, on the other hand, helps build a culture of appreciation, where peers and managers show their colleagues that they are valued by giving praise or thanks in a personal or public way. This could be via a message board, text, verbally or in an email. There are several ways in which implementing a well-structured employee benefits scheme can help when it comes to an effective R&R strategy.
Rewards are a motivator
Recognition makes employees feel valued, which increases their motivation to perform well. A Gallup study in 2023 found that employees who feel adequately recognised are 63% more likely to stay with their current employer for the next three to six months. Similarly, engaged employees are more productive and committed to their work. Companies with high employee engagement report 21% higher profitability.
Boost retention rates
Reducing turnover is one huge benefit of implementing and R&R strategy as part of a wider employee benefits scheme – in fact, most companies report lower employee turnover rates after putting R&R in place. Being recognised for your contribution really does help people feel valued and that their hard work is being acknowledged – and rewarded. What’s more, companies known for their strong R&R culture attract better talent. A Glassdoor survey in 2023 highlighted that 76% of job seekers consider a company’s culture and values important when applying for a job.
Cost Savings
It costs to hire and replace staff, so having a tool to help keep on top of the numbers is essential. Retaining employees reduces the costs associated with hiring and training new staff. The Chartered Institute of Personnel and Development (CIPD) reported in 2023 that the average cost of replacing an employee in the UK is £12,000!
Gives productivity a prod!
According to a 2023 study by the Institute of Leadership & Management, companies with R&R programmes in place saw a 14% increase in productivity. This is because when employees know their efforts will be acknowledged, they are more likely to produce higher quality work. The same study reported that 85% of employees felt that recognition initiatives positively impacted the quality of their work. These employees are more engaged, happier, more secure in their roles and satisfaction is reported to be higher – a survey by PwC in 2023 backs this up with 70% of UK employees stating that workplace recognition contributed significantly to their job satisfaction.
Implementing Reward and Recognition within your workplace is not just about making employees feel good; it’s a strategic move that can drive substantial business outcomes. UK companies that invest in effective Rewards schemes see significant benefits in terms of employee engagement, retention, attraction, productivity, and overall workplace environment.
To find out more about our R&R programmes, give our friendly team a call