Benefits of Employee Engagement and Recognition

Benefits of Employee Engagement and Recognition




The benefits of employee engagement are not only related to the bottom line, profit, or shareholder value outcomes. Service strategic benefits can be viewed in a way that might be described as 'vertical,' i.e., applying to a specific sector such as health or not for profit organizations; or horizontal as they apply to activity undertaken for service within an organization, whether it be profit or not for profit (Turner, 2020).

Monetary and non-monetary rewards significantly influence employees' job motivation and satisfaction level within the job (DeCenzo, Robbins and Verhulst, 2009). Recognition plays a significant role, and it might be characterized as appreciating and accepting employees' strenuous efforts (Caligiuri, Lepak and Bonache, 2010). According to (Gostick and Elton, 2007), it might even be in the form of a handwritten message to highlight how valuable that employee recognition is.

The need for recognition

Recognition or recognition of one's efforts might contribute to job satisfaction and improve self-confidence (Stolovitch et al., 1999). According to (Allen and Helms, 2002), research findings have shown that regular appreciation assists companies to reach their goals and aims. Once an employee is praised, they feel confident about their talents, and capabilities feel more capable of working, and they start delivering more excellent outcomes (Stolovitch et al., 1999)

Ways of recognition

Employee recognition is the timely, informal, or official appreciation of a person's or team's conduct, effort, or business outcome that promotes the organization's aims and values which have been beyond the usual expectations. Further, to be genuinely productive, management needs to grasp the psychology of praising others for their outstanding work, implementing employee recognition among the organization, and encouraging others to begin it in their working relationships (Harrison, 2021).

As suggested by a member of the customer success team at 6Q in Australia (Heryati, 2021), employees can be recognized in many ways. Some of them are,

• Announcing the best performer of the month.
• Conducting Employee recognition programs.
• Having them posted in the Company's annual calendar.
• Firm-wide email/social media.
• Publishing in the Company's magazine or journal article.

Example : 01

I am working at a leading private bank in Sri Lanka. My organisation currently conducts a staff recognition program named "Service Heroes" to highlight & recognize the employees who have gone the extra mile to delight the customer needs. Further, the best service story is being selected monthly & employees are rewarded with an appreciation certificate & included in the "CEO's club," where staff is eligible for a lunch out with the CEO.

Video : 01 - Employee Recognition

Video 1.0 illustrates how employees are rewarded individually and collectively for their contributions to the business. Recognition can be done in various ways and take numerous forms, i.e. formal or informal, monetary or non-monetary. By praising employee accomplishments, employees may feel that they have been valued and appreciated by the employer; as a result, firms could enhance employees' happiness, morale, and self-esteem. The firm itself may benefit since higher employee engagement may lead to higher productivity while decreasing employee turnover and attracting and retaining high potential employees.



(Source: Employee Recognition – APA Pschologically Healthy Workplace Programme, 2017)

What differentiates Engaged and Disengaged workers?

(SHRM INDIA CORPORATE INFORMATION, 2021) explains that organisations with research employee engagement categorize employees based on their degree of involvement, although they have used various methods.

Disengaged people have no meaningful connection to their occupations and tend to accomplish the bare minimum. Disengagement may present itself in a variety of typical ways, including a sudden 9-to-5-time clock attitude, an inability to participate in social gatherings outside the office, or a propensity to fox hole oneself aside from colleagues. It becomes most evident when someone who is generally gregarious and energetic seems to fall by the wayside and has nothing constructive to give. They may detest their employment, be prone to grumble to co-workers, and drive down workplace spirit (SHRM INDIA CORPORATE INFORMATION, 2021).

Table : 01 - Behaviours of engaged and disengaged employees

Engaged behaviours

Disengaged behaviours

Optimistic

Pessimistic

Team-oriented

Self-centered

Goes above and beyond

High absenteeism

Solution-oriented

Negative attitude

Selfless

Egocentric

Shows a passion for learning

Focuses on monetary worth

Passes along credit but accepts blame

Accepts credit but passes along blame

(Source : SHRM INDIA CORPORATE INFORMATION, 2021)

References

Allen, R. S. and Helms, M. M. (2002) "Employee perceptions of the relationship between strategy, rewards and organizational performance - ProQuest," JOurnal of Business Strategies, 19(2), pp. 115–139.

Caligiuri, Paula., Lepak, David. and Bonache, Jaime. (2010) Managing the global workforce. Wiley.

DeCenzo, D. A., Robbins, S. P. and Verhulst, S. L. (2009) "Fundamentals of Human Resource Management, Tenth Edition." Wiley, p. 410.

Employee Recognition - YouTube (2017) APA Psychologically Healthy Workplace Program. Available at: https://www.youtube.com/watch?v=EhE4ECnscBk (Accessed: November 14, 2021).

Gostick, A. Robert. and Elton, Chester. (2007) The daily carrot principle : 365 ways to enhance your career & life.

Harrison, K. (2021) "Why employee recognition is so important," CUTTING EDGE PR.

Heryati, R. (2021) 7 Awesome Methods for Employee Recognition, 6Q Blog. Available at: https://inside.6q.io/7-awesome-methods-for-employee-recognition/ (Accessed: November 14, 2021).

SHRM INDIA CORPORATE INFORMATION (2021) Developing and Sustaining Employee Engagement, Developing and Sustaining Employee Engagement. Available at: https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/sustainingemployeeengagement.aspx (Accessed: November 14, 2021).

Stolovitch, H. D., Keeps, E. J., Mager, R. F. (Robert F. and Gilbert, T. F. (1999) Handbook of human performance technology : improving individual and organizational performance worldwide. 2nd ed. San Francisco: Jossey-Bass/Pfeiffer.

Turner, P. (2020) Employee Engagement in Contemporary Organizations, Employee Engagement in Contemporary Organizations. Springer International Publishing. doi: 10.1007/978-3-030-36387-1.

 

                                                                                       

 

Comments

  1. Hi Nirmika, you have organized well. Adding to this Employee engagement is expected to have a direct impact on improving job performance which is a prerequisite for organizational revenue. Work-specific energy and determination engagement helps employees maximize their work potential (Gruman and Saks, 2011).

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    1. Hi Lakshan, Agreed. I would like to add more benefits which employers get from employee engagement. Satisfied & happy employees create loyal customers (Robertson-Smith and Markwick 2009). Further, engaged employees are more likely to stay with their organisation, reducing overall turnover and its costs. They feel a stronger bond to their organisation’s mission and purpose, making them more effective brand ambassadors. They build stronger relationships with customers, helping their company increase sales and profitability (Cummins, 2014).

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  2. Hi Nirmika, in addition to the points you have mentioned about recognizing employees, Clarke (2019) states that encouraging collaboration, mentoring employees and showing gratitude are all proven methods of further improving employee engagement in the workplace.

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    1. Hi Amila, Thank you for the comment. Adding more, Job challenges, opportunities for development, autonomy, feedback, variety, fit, rewards, and recognition play significant roles in applying the employee engagement concept (Crawford et al., (2013).

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  3. Hi... Nirmika. I like to add something. Organization culture also very important concept of the Employee engagement. Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. Also, organizational culture may influence how much employees identify with their organization (Schrodt, 2002).

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    1. Hi Indika, Thank you for your thoughts. I want to add more to the comment; According to Korzynski (2013), employee motivation depends on technological, generational, and organisational changes. The idea that the new generation is more familiar with new technology and more practical when dealing with customers or organisations further, employees like to work under modern organisational culture, increasing their effectiveness.

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  4. Agreed with you Nirmika, Rewards can be defined as a person receiving it in exchange of doing some tasks which is beneficial for the company further reward means anything the company gives its employees in exchange of their contributions (Chiang and Birtch, 2008).Employees not only want compensation but also need to be valued by their supervisors it will increase employees’ morale, employees will be well motivated if they are recognized by the supervisors (Saunderson, 2004).

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    1. Hi Ganith, I Agree with you. Also, As per Lewis (2013), the effective ways of appreciating an employee are through praise and recognition. The employer pays a reward or a benefit which is the most common thing in an organisation, in return for the employee’s handwork (Agarwal, 1998).

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  5. Agree with you Nirmika. According to Nelson (2003), Organizations should consider the following factors to ensure effective, genuine, and meaningful employee recognition activities: recognition should be fair, transparent, inclusive, frequent, timely, and varied; the structure of recognition used should be appropriate to the efforts made; recognition should be meaningful and reflect the preferences of the receivers.

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    1. Hi Janakan, Thank you very much for your thoughts. Clarke (2019) states that encouraging collaboration, mentoring employees and showing gratitude are all proven methods of further improving employee engagement in the workplace. Recognition and compliments from the hierarchy to the customer helps an employee feel satisfied (Agarwal, 1998).

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  6. Agree that reward and recognition increase performance and engagement. However, it should be provided exclusively to the best performers in timely manner (Bradler, 2016). In my organization popular voting system is being launched to select best performers with people skills to consider for rewards which is very successful.


    Bradler, C., Dur, R., Neckermann, S. and Non, A., 2016. Employee recognition and performance: A field experiment. Management Science, 62(11), pp.3085-3099.

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    1. Hi Ravi, Thank you & agreed. (Alm, 2018) also stated that rewarding specific performances positively reinforce those actions, leading to organisation development: receiving a gift or prize for an excellent performance has the power to reach and motivate different individuals. In employee engagement, reward and recognition are critical factors that lead the employees to perform their duties effectively.

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  7. Hi Nirmika, Well explained, further the process will help to identify the organization values are in order contribute the best of the employees to the organization (Johari, Adnan, , Yean, Yahya and Isa, 2013), however this will create a huge impact on the organization performance where it consist of engage employees. recognition is also important to engage employees towards to contribute as an motivational factor. Considering the both factors it is important for an organization to achieve the goal (Kumar and Pansari, 2015).

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    1. Hi Deshani. Agreed with the argument about the benefits of employee engagement; to gear up the organisation with higher profitability, the organisation’s leaders should keep the employee engagement (Kortmann et al. 2014). Bersin in 2014 also mentioned the same thing differently than employee engagement is positively affected the organisation’s financial performance. However, it is identified that some leaders limit their focus to company products and processes than employee engagement to the organisation (Hill & Birkinshaw, 2012).

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