Do you get the impression that your employees are increasingly disgruntled, disengaged and frustrated with their roles, or even your company in general? Given the increasing importance placed on employee experience, it is vital that we investigate and get to the bottom of what is costing us dearly in terms of talent and resources. What toxic element within your organization is causing your employees to become disillusioned with their working lives?
\r\nA recent workplace study conducted by Clear Review, a performance review software system, found the number one workplace frustration to be a lack of appreciation regarding effort and performance. A remarkable 40 percent of employees, from a diverse range of fields and positions, stated that employee recognition was simply not a priority in their business, something that limited their motivation to truly excel.
\r\nWe have known for a long time that employee recognition is a critical aspect of performance management. As a result, many companies make it a point to acknowledge employee performance during monthly check-ins. But how can employee recognition benefit a company? And how can you give your employees the appreciation they deserve?
\r\nMany sources will attest to the fact that recognition is a fundamental human need. In order to feel engaged at work, we need to know that what we are doing actually matters, and that it is appreciated. Without this knowledge, employees consider their role purposeless, and employee engagement levels within your organization will plummet. In fact, recognition has consistently been shown to be a top engagement driver. If, however, you dedicate time and resources toward developing an employee recognition program, employees will become more loyal and positive toward their company.
\r\nTo further demonstrate the effect of recognition on employee engagement, we can look to the following facts and figures:
\r\nIncreasingly, employees care more about recognition than money. In fact, one source states that as much as 82 percent of employees would prefer praise to a gift. A further survey found that 30 percent of employees would rather be recognized in a company-wide email from an executive than receive a bonus of $500. This desire for appreciation is particularly true of millennials. Generation Y desire frequent feedback, both in terms of constructive criticism and recognition for efforts.
\r\nIn terms of job satisfaction, the shift from weekly to daily recognition has the power to increase the number of satisfied employees from 85 percent to 94 percent. And if there is one thing satisfied, engaged employees are likely to do, it’s work harder. After all, if an employee is more likely to be praised and rewarded for their efforts, it makes logical sense that they would put in extra effort to receive further recognition. If you want further evidence, we can look to data from Socialcast, which shows that 69 percent of employees would work harder if they felt they would be appropriately recognized and appreciated.
\r\nIt’s already widely known that the employee-manager relationship has a huge impact on employee engagement levels and performance management in general. Employees need to be able to communicate with their managers, preferably in regular one-on-one performance meetings that allow relationships to develop.
\r\nThe foundation of this relationship is trust, and it is clear that the exchange of honest recognition fuels levels of trust. In fact, an incredible 50 percent of employees believe that a simple \"thank you\" from their managers enhances trust and transparency, which is of critical importance when you consider the connection between financial performance and employee trust.
\r\nIt is logical that an employee who feels valued, appreciated and supported feels more inclined to remain with a company than one who feels superfluous. Employee recognition doesn't have to be pricey; in fact, it can be something as small as a simple \"thank you.\" Putting in this minimal extra effort can save you substantial time and money when it comes to replacing existing staff.
\r\nRemarkably, C-Suite executives remain oblivious to the value of recognition. One large-scale study that shows 34 percent of their senior decision-maker respondents did not believe recognition had a significant impact on retention. The same study showed that 49 percent of employee respondents from the U.K., U.S. and Australia stated they would leave an organization if they failed to receive regular recognition.
\r\nIn support of this trend, we can look to another source that shows companies with recognition programs have 31 percent less voluntary turnover. In this highly competitive business environment, this isn't a risk you can justifiably take, particularly given how simple recognition can be.
\r\nSo how can you adjust your performance management system to facilitate the exchange of honest recognition and appreciation?
\r\nFirst, it's important to not limit your performance discussions to a single performance appraisal. This doesn’t allow for fluid communication between manager and employee, and it's not conducive to a trusting relationship. Instead, follow in the footsteps of corporate giants such as IBM by switching to more regular check-ins. On top of recognition, this allows you to cover objectives, performance concerns and development opportunities.
\r\nGallup has shown that the most effective recognition is individualized and honest. The same Gallup poll also showed that recognition is most memorable when it is given by a manager or C-suite executive. Other research shows that timeliness is critical when it comes to feedback and recognition. If you're a small and growing business and can't afford to invest any money into recognition, you should be aware that there are a number of meaningful ways of doing so that won't put you out of pocket.
\n","docType":"article","guid":"articles_bfdd594f199b3bc6f8e1cf38941bb63b","lastModified":"2017-06-29T07:00:00.000Z","published":"2017-06-29T07:00:00.000Z","structuredData":null,"subtitle":"When employees feel undervalued, it's usually not about money","template":"legacy","title":"Your Employees Feel Underappreciated. Here's What You Can Do to Fix It","type":"article","author":{"avatar":"https://staging.business.com/images/author/58a/749de2f87b1d170bd304e/100-100","bio":"Stuart Hearn has twenty years of experience in the HR sector. He co-founded plusHR, a leading UK HR consultancy, and previously worked as International HR Director for Sony Music Publishing. Stuart is currently CEO of Clear Review, an innovative performance management software system.","name":"Stuart Hearn","image":null,"slug":null,"social":{"facebook":"","linkedin":"https://www.linkedin.com/in/stuarthearnuk/","twitter":"https://twitter.com/stuarthearn","website":"http://clearreview.com"},"status":"enabled","title":null,"type":"New BDC Member","user":null},"breadcrumbs":null,"channels":{"primary":{"name":"Human Resources","slug":"human-resources"},"sub":{"name":"Employees","slug":"employees"}},"meta":{"robots":"index, follow","description":"A recent study finds that 40 percent of employees feel unrecognized in their current job.Here's how you can improve employee satisfaction and performance.","title":"Nearly half of U.S. workers feel underappreciated - business.com"},"parsedContent":{"toc":[{"id":"employee-recognition-improves-engagement-levels","title":"Employee recognition improves engagement levels"},{"id":"employee-recognition-boosts-productivity,-motivation-and-satisfaction","title":"Employee recognition boosts productivity, motivation and satisfaction"},{"id":"employee-recognition-builds-trust","title":"Employee recognition builds trust"},{"id":"saying-thank-you-can-improve-employee-turnover-and-reduce-absenteeism","title":"Saying 'thank you' can improve employee turnover and reduce absenteeism"},{"id":"advice-on-delivering-employee-recognition","title":"Advice on delivering employee recognition"}],"json":[{"component":"p","children":["Do you get the impression that your employees are increasingly disgruntled, disengaged and frustrated with their roles, or even your company in general? Given the increasing ",{"component":"a","props":{"href":"https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/jeannemeister/2017/01/05/the-employee-experience-is-the-future-of-work-10-hr-trends-for-2017/&refURL=https://www.google.co.uk/&referrer=https://www.google.co.uk/","rel":"nofollow"},"children":["importance placed on employee experience"]},", it is vital that we investigate and get to the bottom of what is costing us dearly in terms of talent and resources. What toxic element within your organization is causing your employees to become disillusioned with their working lives?"]},{"component":"p","children":["A recent workplace study conducted by ",{"component":"a","props":{"href":"https://clearreview.com/book-demo/?utm_source=enoutreach&utm_medium=article","rel":"nofollow"},"children":["Clear Review"]},", a performance review software system, found the number one workplace frustration to be a lack of appreciation regarding effort and performance. A remarkable 40 percent of employees, from a diverse range of fields and positions, stated that employee recognition was simply not a priority in their business, something that limited their motivation to truly excel."]},{"component":"p","children":["We have known for a long time that ",{"component":"a","props":{"href":"http://www.gallup.com/businessjournal/12157/power-praise-recognition.aspx","rel":"nofollow"},"children":["employee recognition is a critical aspect of performance management"]},". As a result, many companies make it a point to acknowledge employee performance during monthly check-ins. But how can employee recognition benefit a company? And how can you give your employees the appreciation they deserve?"]},{"component":"h2","props":{"id":"employee-recognition-improves-engagement-levels"},"children":["Employee recognition improves engagement levels"]},{"component":"p","children":["Many sources will attest to the fact that ",{"component":"a","props":{"href":"http://www.cuttingedgepr.com/articles/emprecog_so_important.asp","rel":"nofollow"},"children":["recognition is a fundamental human need"]},". In order to feel engaged at work, we need to know that what we are doing actually matters, and that it is appreciated. Without this knowledge, employees consider their role purposeless, and employee engagement levels within your organization will plummet. In fact, recognition has consistently been shown to be a ",{"component":"a","props":{"href":"http://www.aon.com/attachments/human-capital-consulting/2012_TrendsInGlobalEngagement_Final_v11.pdf","rel":"nofollow"},"children":["top engagement driver"]},". If, however, you dedicate time and resources toward developing an employee recognition program, employees will become more loyal and positive toward their company."]},{"component":"p","children":["To further demonstrate the effect of recognition on employee engagement, we can look to the following facts and figures:"]},{"component":"ul","children":[{"component":"li","children":["In companies where there is a strong focus on managers praising and recognizing employee performance, ",{"component":"a","props":{"href":"https://www.towerswatson.com/en-US/Insights/IC-Types/Survey-Research-Results/2009/12/Turbocharging-Employee-Engagement-The-Power-of-Recognition-From-Managers-Part-1","rel":"nofollow"},"children":["engagement levels increase by nearly 60 percent"]}," percent."]},{"component":"li","children":["Workplaces making use of strategic recognition are ",{"component":"a","props":{"href":"http://www.globoforce.com/resources/research-reports/shrmgloboforce-fall-2012-report-the-business-impact-of-employee-recognition/","rel":"nofollow"},"children":["48 percent more likely to report high employee engagement"]},"."]},{"component":"li","children":["According to a Canadian workplace study, when employees were asked what their managers could do to improve engagement, ",{"component":"a","props":{"href":"http://www.psychometrics.com/wp-content/uploads/2015/04/engagement_study.pdf","rel":"nofollow"},"children":["58 percent answered with \"give recognition.\""]}]},{"component":"li","children":["Businesses that spend as little as 1 percent of payroll on recognition have a 79 percent greater likelihood of seeing more positive financial results."]}]},{"component":"h2","props":{"id":"employee-recognition-boosts-productivity,-motivation-and-satisfaction"},"children":["Employee recognition boosts productivity, motivation and satisfaction"]},{"component":"p","children":["Increasingly, employees care more about recognition than money. In fact, one source states that as much as ",{"component":"a","props":{"href":"https://www.officevibe.com/state-employee-engagement","rel":"nofollow"},"children":["82 percent of employees would prefer praise to a gift"]},". A further survey found that ",{"component":"a","props":{"href":"https://www.bamboohr.com/blog/reward-and-recogntion-survey","rel":"nofollow"},"children":["30 percent of employees would rather be recognized"]}," in a company-wide email from an executive than receive a bonus of $500. This desire for appreciation is particularly true of millennials. ",{"component":"a","props":{"href":"https://www.pwc.com/gx/en/hr-management-services/pdf/pwc-nextgen-study-2013.pdf","rel":"nofollow"},"children":["Generation Y desire frequent feedback"]},", both in terms of constructive criticism and recognition for efforts."]},{"component":"p","children":["In terms of job satisfaction, the shift from weekly to daily recognition has the power to ",{"component":"a","props":{"href":"https://www.bamboohr.com/blog/reward-and-recogntion-survey","rel":"nofollow"},"children":["increase the number of satisfied employees from 85 percent to 94"]}," percent. And if there is one thing satisfied, engaged employees are likely to do, it’s ",{"component":"a","props":{"href":"https://hbr.org/2013/07/employee-engagement-does-more","rel":"nofollow"},"children":["work harder"]},". After all, if an employee is more likely to be praised and rewarded for their efforts, it makes logical sense that they would put in extra effort to receive further recognition. If you want further evidence, we can look to data from Socialcast, which shows that ",{"component":"a","props":{"href":"http://blog.socialcast.com/e2sday-the-power-of-recognition-in-the-enterprise/","rel":"nofollow"},"children":["69 percent of employees would work harder if they felt they would be appropriately recognized"]}," and appreciated."]},{"component":"h2","props":{"id":"employee-recognition-builds-trust"},"children":["Employee recognition builds trust"]},{"component":"p","children":["It’s already widely known that the employee-manager relationship has a ",{"component":"a","props":{"href":"http://www.gallup.com/businessjournal/182792/managers-account-variance-employee-engagement.aspx","rel":"nofollow"},"children":["huge impact on employee engagement levels"]}," and performance management in general. Employees need to be able to communicate with their managers, preferably in regular ",{"component":"a","props":{"href":"https://clearreview.com/using-one-to-one-meeting-templates-to-motivate-performance/?utm_source=enoutreach&utm_medium=article","rel":"nofollow"},"children":["one-on-one performance meetings"]}," that allow relationships to develop."]},{"component":"p","children":["The foundation of this relationship is trust, and it is clear that the exchange of honest recognition fuels levels of trust. In fact, an incredible ",{"component":"a","props":{"href":"http://www.eadion.com/site/uploads/OCT-Performance-Recognition-White-Paper-Intl-Updated-2014-01-07.pdf","rel":"nofollow"},"children":["50 percent of employees believe"]}," that a simple \"thank you\" from their managers enhances trust and transparency, which is of critical importance when you consider the ",{"component":"a","props":{"href":"https://hbr.org/2016/07/the-connection-between-employee-trust-and-financial-performance","rel":"nofollow"},"children":["connection between financial performance and employee trust."]}]},{"component":"h2","props":{"id":"saying-thank-you-can-improve-employee-turnover-and-reduce-absenteeism"},"children":["Saying 'thank you' can improve employee turnover and reduce absenteeism"]},{"component":"p","children":["It is logical that an employee who feels valued, appreciated and supported feels more inclined to remain with a company than one who feels superfluous. Employee recognition doesn't have to be pricey; in fact, it can be something as small as a simple \"thank you.\" Putting in this minimal extra effort can save you substantial time and money when it comes to replacing existing staff."]},{"component":"p","children":["Remarkably, C-Suite executives remain oblivious to the value of recognition. One large-scale study that shows ",{"component":"a","props":{"href":"https://www.employeebenefits.co.uk/issues/may-online-2017/exclusive-49-would-leave-an-organisation-due-to-a-lack-of-recognition/","rel":"nofollow"},"children":["34 percent of their senior decision-maker respondents"]}," did not believe recognition had a significant impact on retention. The same study showed that 49 percent of employee respondents from the U.K., U.S. and Australia stated they would leave an organization if they failed to receive regular recognition."]},{"component":"p","children":["In support of this trend, we can look to another source that shows companies with recognition programs have ",{"component":"a","props":{"href":"https://www.bersin.com/News/Content.aspx?id=15543","rel":"nofollow"},"children":["31 percent less voluntary turnover"]},". In this highly competitive business environment, this isn't a risk you can justifiably take, particularly given how simple recognition can be."]},{"component":"h2","props":{"id":"advice-on-delivering-employee-recognition"},"children":["Advice on delivering employee recognition"]},{"component":"p","children":["So how can you adjust your ",{"component":"a","props":{"href":"https://clearreview.com/what-is-effective-performance-management/?utm_source=enoutreach&utm_medium=article","rel":"nofollow"},"children":["performance management system"]}," to facilitate the exchange of honest recognition and appreciation?"]},{"component":"p","children":["First, it's important to not limit your performance discussions to a single performance appraisal. This doesn’t allow for fluid communication between manager and employee, and it's not conducive to a trusting relationship. Instead, follow in the footsteps of ",{"component":"a","props":{"href":"http://fortune.com/2016/02/01/ibm-employee-performance-reviews/","rel":"nofollow"},"children":["corporate giants such as IBM"]}," by switching to more regular check-ins. On top of recognition, this allows you to cover objectives, performance concerns and development opportunities."]},{"component":"p","children":["Gallup has shown that ",{"component":"a","props":{"href":"http://www.gallup.com/businessjournal/193238/employee-recognition-low-cost-high-impact.aspx","rel":"nofollow"},"children":["the most effective recognition"]}," is individualized and honest. The same Gallup poll also showed that recognition is most memorable when it is given by a manager or C-suite executive. Other research shows that ",{"component":"a","props":{"href":"http://www.lvb.com/article/20130805/LVB01/308029992/Managing-Millennials:-It%E2%80%99s-all-about-immediate-recognition","rel":"nofollow"},"children":["timeliness is critical when it comes to feedback and recognition"]},". If you're a small and growing business and can't afford to invest any money into recognition, you should be aware that there are a ",{"component":"a","props":{"href":"https://smallbusiness.americanexpress.com/ca/en/big-ideas-for-small-business/employee-retention-and-engagement/101-ways-to-reward-employees-without-giving-them-cash","rel":"nofollow"},"children":["number of meaningful ways of doing so"]}," that won't put you out of pocket."]}]},"resource":null,"sponsorship":null,"thumbnail":{"path":"https://staging.business.com/images/content/595/551b91039ebe76e8b45b8/1500-0-","caption":"pathdoc/Shutterstock","isBlurred":true},"bestPicks":null},"related":{"relatedArticles":[{"title":"The Numbers Don't Lie: Quantifying Employee Engagement","canonical":"https://staging.business.com/articles/the-numbers-dont-lie-quantifying-employee-engagement/","slug":"the-numbers-dont-lie-quantifying-employee-engagement","thumbnail":"https://staging.business.com/images/content/551/170243287b174698b45cd/1500-0-","dek":"Investing in your people will not only increase their confidence and help them perform better, it will help your bottom line, as well.","lastModified":"2015-03-24T17:00:00Z","published":"2015-03-24T17:00:00Z","sponsored":null},{"title":"Steps to Motivate Your Employees","canonical":"https://www.business.com/articles/tips-for-motivating-employees/","slug":"tips-for-motivating-employees","thumbnail":"https://www.business.com/images/content/5d0/8ef0e5a215e45238b4571/1500-0-","dek":"Follow these tips to keep your employees motivated and excited about the work they do.","lastModified":"2020-08-18T18:18:00Z","published":"2018-11-28T08:00:00Z","sponsored":false},{"title":"Can a Gamified Work Environment Get Your Employees to Better Collaborate?","canonical":"https://www.business.com/articles/can-a-gamified-work-environment-get-your-employees-to-better-collaborate/","slug":"can-a-gamified-work-environment-get-your-employees-to-better-collaborate","thumbnail":"https://www.business.com/images/channel/human-resources.jpg","dek":"Employee engagement is a critical component in the success of large organizations and businesses. 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