Higher employee satisfaction linked to better financial performance
Want your CFO to allocate funds for better technology? No problem. Need an increased budget to improve the phone system? You got it. Keen to lease upgraded office equipment? Consider it done.
Want a new line item to establish a meaningful and effective employee recognition and rewards program? Dream on.
Sound familiar? And yet, while technology keeps advancing, customer demographics keep changing and product offerings keep growing, human nature remains the same. But enough is enough, because corporate vision can’t be fulfilled unless employees are doing the work to fulfill it.
They are the true force behind every success. While organizations are funding everything that cranks, rolls or beeps, people appreciation is ignored despite the fact they are the only asset that grows in value year after year.
We water the landscaping to keep the grass green, healthy and inviting to visitors but the spigot runs dry when it comes to the employees — those who shoulder the brand and protect the integrity of the mission through the good and the bad. A pat on the back, a personal note and an e-card are all great ways to say thanks for a job well done. But why not shift budget dollars around by investing and announcing an employee points program or an on-the-spot recognition program that can also provide a tangible gift item?
The old saying “You get more from honey than vinegar” is truer in the workplace than anywhere else. Demonstrating genuine appreciation toward employees pays huge dividends in loyalty, commitment, retention and passion that will start a supply chain of positive momentum from the mailroom to the middle to the top and out the door to customers. Yes, satisfied employees translate to satisfied customers.
Employee recognition isn’t just a worthwhile investment, it’s a necessary one. It’s so important that, if an organization can’t find the money, it should tap another initiative budget. In his book Practice What You Preach, David H. Maister cited research — based on a worldwide survey of 139 offices in 29 professional service firms — that shows if you increase employee satisfaction by as little as 10 to 15 per cent, company financial performance can increase by up to 42 per cent.
Highly recognized employees who are more engaged increase company profitability through more loyal and happy clients. It’s a great argument for increased spending on employee recognition — not only do you strengthen the internal workforce but you will drive up customer satisfaction.
So, why, with so much evidence, are companies cutting employee recognition budgets while boosting spending on customer relationship management programs and other brand-building marketing campaigns to either attract new clients or enhance current relationships? The good old paycheque excuse. The C-suite thinks a weekly paycheque is all the appreciation employees should need — but they’re wrong.
Employees show up for the paycheque. But good recognition programs create motivation, initiative, commitment, loyalty and pride — the difference between just doing a job and doing a job well.
Don’t just tell employees they are more valuable than ever to the company’s success and you need them to work smarter and harder to beat the competition. Show them. Design and deploy employee recognition and rewards programs that will fuel increased levels of customer service both internally and externally to ensure you keep your current business and grow new business at a higher rate.
It’s time execs decide to put their money where their mouth is and embrace employee recognition — workforce morale will rise and so will productivity and profits.
John Mills is executive vice-president of business development at Rideau Recognition Solutions, an employee recognition and rewards provider. He can be reached at [email protected] or visit www.rideau.com for more information.
