In today’s working world, a physical office space is becoming a thing of the past. The number of organizations employing distributed workforces and offering telecommuting options is on the rise. But the downfall of this shift is that managers are struggling to keep their remote employees engaged.
Without the daily face-to-face interactions or visibility, it’s difficult for leaders to take notice of an employee’s efforts. According to TINYpulse’s Employee Engagement and Organizational Culture Report, nearly 80% of employees already don’t feel valued at work. And when people don’t feel appreciated at work, there’s a good chance that the company will lose them.
But turnover is extremely costly. Recruitment, training, loss of productivity — they all add up. A report by TalentWise found:
- When employees leave, they take 70% of their knowledge with them
- To replace an employee, it costs up to 150% of the annual salary associated with that position
Since that’s the cost of losing one employee, imagine the cost of losing multiple people over the course of one year. However, there’s one commonly overlooked solution that organizations seem to forget about: employee recognition.
Recognition and Retention
A survey by Globoforce discovered that 55% of workers say they would leave their current jobs for a company that clearly recognizes its employees’ efforts and contributions. As we mentioned earlier, turnover is extremely expensive. Because remote workers don’t have that consistent interaction with their managers or coworkers, they start feeling ignored and unappreciated.
Recognition is a critical player in keeping remote employees engaged and for organizations to fight attrition. Bersin & Associates reported that organizations with recognition programs experienced 31% lower voluntary turnover than organizations without them.
And when you think about it, recognition is completely free — you don’t have to spend a single penny to say “thank you” to someone. And second, you’re making an employee feel valued. That simple phrase lets employees know that you’ve noticed the hard work and effort they’re putting in.
Building a Culture of Recognition
The traditional method of recognition fell upon the shoulders of managers and supervisors. However, this strategy leaves employees playing the waiting game. According to TINYpulse’s research:
- 3 out of 4 employees don’t feel fully recognized for doing great work
- 30% of employees haven’t received recognition in the past two weeks from their boss
Employees want to be recognized, especially remote workers who go without consistent communication. But not only that, people want to recognize their peers. Employee recognition does wonders for your organization in terms of engagement, retention, and making people feel valued for the time and effort they put in.
David Niu is the Founder and CEO of TINYpulse, an employee engagement survey solution that empowers leaders with actionable feedback to make positive changes in their workplaces. David is a serial entrepreneur, having founded and successfully sold two prior businesses, NetConversions and BuddyTV.