From Praise to Profits: The Business Case for Recognition at Work

With so much change and uncertainty affecting workplaces globally, it can be easy to forget that employees are at the center of any organization’s success. And what those employees feel – about the companies they work for, their leaders, their teams, and themselves – ultimately provides the fuel for high performance.

Gallup and Workhuman research finds that strategic employee recognition – that is, recognition that is fulfilling, authentic, equitable, embedded in company culture, and personalized to the individual – is critical for cultivating an environment where both employees and the business thrive.

Recognition is a simple way for organizations to demonstrate their investment in and commitment to their employees. But it makes good business sense, too.

By making recognition an important part of company culture, a 10,000-person organization with an already engaged workforce can save up to $16.1 million annually due to reduced employee turnover.

But that begs the question: If recognition has such an impact on reduced turnover, are there other cost savings it can yield throughout the organization? A new report from Gallup and Workhuman describes correlations between employee recognition and business outcomes across hundreds of organizations and thousands of teams in different industries.

In this report, you’ll learn:

• 3 ways recognition improves business performance through increased productivity, safer workplaces, and decreased absenteeism.
• What leaders can do to start their organization on the path to human growth and development with strategic recognition.