New report emphasizes the importance of recognition in the labor market

Increase engagement by simply recognizing the effort

Boostworks, a leading provider of employee reward and recognition, benefits and wellbeing solutions, has launched the findings of its latest research-based whitepaper: The Heart of Workplace Engagement. Importantly, the article shows that 70% of employees emphasize the importance of recognition, but less than half (42%) report receiving regular recognition from their CEOs.

The research, conducted among 3,000 HR professionals, C-suite leaders and employees in UK businesses, highlights the importance of the crucial role of emotional connections in fostering an engaged and productive workforce and is a deep dive into the role of employer recognition. It highlights the special importance of line managers and colleagues and how they are the ‘unsung heroes’ for recognizing employee performance and progress. Receiving recognition from managers was cited as crucial, impacting the morale and engagement of 51% of employees.

Andy Caldicott, CEO of Boostworks said: ‘In today’s dynamic workplace, cultivating a thriving culture must go beyond words; it requires embedding emotional connections and personal recognition in employees’ daily experiences.

‘Our research shows a significant disconnect between employees’ need for recognition and what is actually given, underscoring a substantial gap in leadership practices that are not fully meeting employees’ emotional and professional needs.’

Diving deeper into the report confirms what the most successful leaders have been saying for some time

Emotional connections are important:

• 70% of employees emphasized the importance of emotional connections, highlighting empathy as a crucial part of the recognition process.
• Unfortunately, less than half (42%) of employees report receiving regular recognition from their CEO.
• 81% of HR professionals resonated with the need for emotional connections, with an emphasis on direct feedback from managers and recognition from colleagues.
• 76% of C-suite leaders recognized challenges in aligning these practices with business objectives due to traditional compensation strategies.

Note the gap:

• Nearly 70% of employees and 81% of HR professionals believed in the importance of emotional connections at work.
• However, only 42% of employees felt recognized by their CEOs.
• Receiving recognition from managers was cited as crucial, impacting the morale and engagement of 51% of employees.
• Peer-to-peer recognition also had significant value, with (55%) recognizing work milestones and 59% recognizing their personal milestones.
• Yet half of employees surveyed (50%) agree that senior managers receive more recognition than lower-level managers.

Unsung heroes: line managers and colleagues:

• 51% of employees felt that direct recognition from managers had a positive impact on their morale and engagement.
• 53% agreed that their line managers regularly recognized work milestones, while 51% recognized personal milestones.
• Colleagues also play a role in recognition: 55% recognize work milestones and 59% recognize personal milestones.
• Managers need adequate support; 48% of employees felt they should regularly share information about available rewards and benefits.

Communication and transparency:

• While 76% of C-suite executives viewed communication as open, only 51% of employees shared the same view.
• A significant portion of employees (25%) wanted more frequent updates on rewards and recognition. Meanwhile, 40% of HR professionals and 39% of C-suite executives agreed to communicate about compensation every two to three months, although 38% believed this should be monthly or more often.

Support, communication and recognition – these are all the basics of being kind on a basic human level. Amid all the data collection, growth targets and sales targets, these are often the first thing that gets lost. Yet the evidence is clear: communication and recognition are key to a happy and fulfilled workplace. Fulfillment is the key to people’s pride and work ethic. Why would anyone work harder if his or her regular results are not even recognized? They leave and go to a place where they are appreciated.

Employee turnover and resulting recruitment costs are among the highest employee costs in business and having a ‘recognition strategy’ in the workplace is critical, and here’s the caveat: it must be genuine. Simply naming someone employee of the month is not enough to motivate a workforce. Goals and incentives with recognition of larger teams as a whole and individual praise are essential. This goes beyond good management and communication skills with regular check-ins and a safe space where employees can decompress and resolve any issues.

“The story here is clear: the journey to a thriving workplace culture is a collective endeavor, requiring a strategic approach to harmonize recognition practices with the holistic aspirations of all employees,” concludes Caldicott.

‘Companies need to prioritize emotional connections and recognize the unsung heroes: line managers and colleagues. By fostering a culture of recognition and setting the tone for better, more transparent communication, organizations can increase engagement, satisfaction and, most importantly, retention.”