70 percent of Australians would rather get praise over pay
A new study from Reward Gateway, an employee engagement company, has revealed a discord between how employees and employers perceive the importance of thanks and recognition.
Research released on 29 May 2017 has revealed that 79 percent of Australian workers say that they would prefer to be thanked by their managers on a continuous, all-year round basis, rather than with a single annual event for recognition such as work anniversaries, performance reviews or company events. Despite this, the majority of the $62.24 billion per year that companies spend on employee recognition is instead focused on rewarding tenure, through long service awards, for example.
The research surveyed over 500 employees and over 500 senior decision makers has found that over half (56 percent) of workers in Australia would leave a company if they weren’t regularly thanked and recognised for their efforts; a striking statistic for businesses struggling to curb falling employee retention rates.
The disconnect between employers and employees is also apparent in the fact that almost 8 in ten of senior decision makers (79 percent) say that they prioritise showing appreciation and thanks to employees who have done good work in a timely way, on a regular basis, yet over 60 percent of workers feel that their colleagues could be thanked and praised more regularly by managers and leaders when they do good work.
A whopping 85 percent of workers think managers and leaders should spot good work and give praise and thanks whenever it happens and the majority (79 percent) think this should happen on a continuous, all year-round basis. However, in the study, managers were asked how much they were encouraged by their own line managers to show appreciation and thanks to employees in their teams, and one in ten said that they did not receive this encouragement. Further to this, just 61 percent of managers have tech-based tools to say thank you and recognise good behaviour and fewer have access to tools that enable sharing of praise publicly between teams.
Founder and CEO of Reward Gateway, Glenn Elliott says, “This is another really strong data point that tells us what we’re doing with recognition is wrong. If companies want to improve employee engagement, motivation and retention they need to urgently divert investments from tenure based, long service award programmes which aren’t working but are costing businesses a fortune. We’ve worked hard to make our SmartAwards product support what today’s employees want for recognition and deliver a much improved ROI for clients.”
Liz Crutchley, head of Reward and Benefits from HomeServe Membership, which uses Reward Gateway as part of its engagement strategy, says, “At HomeServe, we have a People First culture, where empowerment and recognition form a huge part of the way we do things.
“We actively encourage our people to recognise each other based on our ‘People values’. One of the many ways we do this is by using the Reward Gateway online portal which enables our people to send thank you e-cards to one another in a really simple and accessible way. To date, we’ve sent over 33,000 across our business.
“We’ve worked really hard to create a culture that every single person who works at HomeServe is proud to be a part of, and this type of recognition along with the many other initiatives we have implemented, have helped see a huge rise in our engagement,” Crutchley says.
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