Employee Recognition Strategy has come to the prominence after the economic recovery as per an article written by the Principal and Founder, Bersin by Deloitte, Josh Bersin. Employee Recognition Strategy is simply the communication between the management and employees of any company or organization that is specifically done to get specific goals or results in the workplace.
All the queries regarding the implication of this strategy in businesses, the difference in the impact of it in various organizations, prevention of loss of an employee and likewise would be cleared here. Further in this write-up you will get to know the answer to the above questions that would lead your organization to get higher returns and reliable name among the employees.
Consequences of employee turnover
Businesses that fall under the service sector face the impact of employee turnover more as compared to those that fall under the manufacturing category. The reason behind this is that the manufacturing companies are dependent on the machine, automation and its processes while, the service sector companies like banking, cloud computing, IT companies and likewise depends upon the people working and their dedication with which they are performing their roles.
Thus, in the service sector companies it is essential to maintain the employee turnover to get more turnovers. Even in the service sector companies, customer facing businesses like supermarket chains can achieve higher departures than technology-based companies.
Employee turnover costs a lot
Do you know the fact that the cost of losing an employee can range from thousands of dollars to double the annual salary of the employee? In addition to it also includes the expenditure did in hiring a new employee, the cost of getting the new employee trained, time spent in adjusting the new employee to give its best. On top of these financial losses trailing the employee, company also has to suffer for the errors of the new employee and the environment of the whole company faces the dip in motivation level and there is pessimistic effect of the departure of an employee that is quite irreparable.
Loyalty of an employee
This is where Employee Recognition Programs play their role. An employee needs overhauling from time to time to maintain the interest of the employees ensuring their stability and loyalty. This employee loyalty creates an everlasting impact on the coming new employees as well. The loyal environment created by the existing employees gives proof of healthy work environment and the strong coordination among the employees that also lets a newcomer get into the same mood.
Employee Recognition Programs is a strategy
The changing economic complications have let the companies plan strategically about the recognition programs. In an article in Morgan Brown, the recognition programs have stepped up from just a nice thing to do by a company. A credit program well planned can have long lasting effects on the turnover of the company as well as it helps in aligning the behavior of the employees along with the achievement of the goals of the company.
Case study of strategized employee recognition program
Here is a very interesting employee recognition program adopted by SES, a prominent satellite operator. The company wanted to imply some new recognition program for the purpose of which they provided their employees with conceptualized brand merchandise survival kit to each of their employee. The smartest approach that the company adopted to make this program successful was that they provided the equipment as per the condition of the environment as the company spreads from South America to North Kazakhstan. This was done keeping in mind those employees who play a critical role during satellite launch and most important it was all done in the budget. The kit included a pair of gloves, safety multi-purpose bag, pen and similar safety materials.
Just like SES planned their recognition program, it is crucial to keep in mind the feature of the employee that the company wants to encourage. The management of the company needs to study and survey the needs, demands and requirements of the company as well as the employees and streamline them together to get the perfect recognition program that will help in getting success to the company.