Why Employee Recognition is Vital to Organizational Success

cup-1010916_960_720MMR has grown significantly in the past year alone. We’ve added new offices and expanded existing locations, adding new facilities to service our growing professional community. At the same time, we’ve been fortunate to receive several awards and the honor of being considered one of the Best Places to Work in Baton Rouge. Such success, we know, is a testament to the brilliance of our workforce and the privilege I’ve been afforded to lead a team that not only understands the company’s vision, but is passionate about bringing it to fruition. Thusly, a part of our company’s culture is celebrating one another and recognizing the efforts of the team.

If you frequent MMR’s website or follow us on social media, you’ll see multiple examples where we highlight individuals whose contributions benefit the entire company. Many times these individuals have worked with MMR for decades, making an invaluable impact on every part of the company just by doing their jobs. So we make it a point to say thanks, and I think every organization, large or small, should do the same.

Of course, recognition is not a requirement for employing people. Subsequently it is often overlooked as long as fair pay and benefits are provided. However, employee recognition (or the lack of it) has a major impact on the success of your business in the following ways:

  • Retention: Recognition of great work is likely increase employee loyalty. When employees feel valued where they work, they will stay (and may even bring along promising recommendations). Why is this important? Employee turnover stalls growth. Having to use value time on retraining and getting new hires up to speed can be counterproductive for key goals. Additionally, it hurts the bottom line. The amount of loss increases when replacing more experienced employees, and the longer it takes to find them.

  • Morale: Creating a workplace in which people feel excited about coming in, and are ready to work when they do, is essential to a thriving organizational culture. Acknowledgement of the time and effort people invest into the company’s goals will encourage continued, meaningful investment and it is infectious–as is low morale, so do what you can to keep engagement high.

  • Productivity: With high morale comes an increase in productivity. That means employees  can get more done more done more efficiently. When this is the case, continued growth and expansion as an organization is inevitable, creating a cycle of success that reaches every level of the company.

Take the time to give back to your employees by acknowledging their effort and celebrating success. It makes a world of difference for the company at large and it’s the right thing to do.

The Truth About Why Employees Stay And What It Means For You

startup-photos-largeRecent data from the Bureau of Labor Statistics show that, as of 2012, the average length of time an individual remains in a given job is just under four and a half years. Over the course of a lifetime, the number of jobs a person may have on his or her resume is about 11 (more specifically, 11.4 for men and 10.7 for women). Furthermore, the studies show that the decision to leave is not particular to any one career or industry. These numbers are true for bankers and musicians alike, resulting in turnover anxiety for companies and HR professionals everywhere. Yet, the factors determining why employees leave are equally true for why they stay. Examining such could save companies the estimated $40,000 it costs to replace staff member..

With regard to those who stay, MMR Group recently honored a number of employees which have been with the company for over a decade, some of them almost two. It’s an absolute privilege to be able to say that we have people on our team who have worked with us for so long, who’ve watched our company grow, and likewise, have had a hand in our success in the time they’ve been with us. Other than being amazing people, as all of our employees are, based on this research, I wonder what makes them an anomaly.

According to an older issue of the Harvard Business Review (HBR), employees stay at a company for two reasons. The first is they enjoy the work they do/their job description is aligned with their passion. This concept was confirmed more recently by a poll in TIME magazine, which shows that over 67% of people surveyed remained at a job because they enjoy the work, making it the number one influence for retention. Secondly, people stay because of what the HBR called a good “company environment” or what we call workplace culture, today. It means that employees feel connected to companies with which they share values, ideals and ways of living (or working, in this instance).

However, the latter is usually more ambiguous. What defines a workplace culture, really? It could be a number of things from how you communicate with employees, whether via email or face to face. And with that, are employees required to make a meeting or can they in whenever? Also, does the office go out for drinks after work or do most people at the company abstain from alcohol? Is the office quiet? Is there vacation time? Do most people use that time for vacation? All of these questions help better define what the culture of your workplace is–from simple to more complex results. Everyone has a company culture/environment, and no particular one is better than the other. Unless, of course, it isn’t a proper fit for the people you hire.

Thus, it’s important for companies to be aware of both factors. Make sure that job descriptions are expressed clearly and comprehensively. In interviews, get to know prospective employees on a deeper level than credentials and job history. Finding out someone’s true passion and how they work on a daily basis can make a world of difference in losing an employee and keeping a great one for life.