Your employees are one of your company's most valuable resources, but do they feel valued? If not, you could risk losing top talent to competitors, especially in the current climate.

COVID-19 has had a significant impact on the Australian workforce, encouraging many to re-evaluate their careers and what they want from an employer.

Dubbed the Great Resignation, this global trend that has seen workers leaving unsuitable employment and is expected to hit Australia early in 2022. With unemployment currently sitting at 14 year lows of 4.2% and forecasts pointing to it going lower, employees have never been in a stronger position to switch jobs. 

A survey by Gartner last year found that 26% of Australians said a lack of recognition was a main reason for changing employer. Employees who feel their work is taken for granted are now more likely to seek more fulfilling opportunities elsewhere.

Here are three reasons why employee recognition should be a focus in your company and how to let your staff know they are valued:

1. More satisfied and productive workforce

Making sure your employees are recognised and fairly rewarded for their hard work can help them to feel more satisfied and engaged in their roles, leading to higher productivity.

2. More trust in employers

Showing appreciation to workers helps them to feel more like an integral part of your company, working towards a common goal. This can foster brand loyalty and trust in management.

3. Improve employee retention

Employees who feel valued are more likely to stick around. The minimal effort to thank and reward hard workers can mean avoiding losing talented employees and having to train their replacements.

Gravity Payments, a US-based credit card processing company, is a great example of how valuing and recognising employees can result in positive outcomes for all company stakeholders. In 2015, CEO Dan Price announced that the company will move all employee salaries to a minimum US$70,000. Productivity jumped from 30% to 40% and in 2015 the company had a 91% employee retention rate vs. the industry average of 68%. Additionally, customer retention rates increased from 91% to 95% which helped double company profits.

Five tips to improve employee recognition

Not sure exactly how to acknowledge and reward your employees for their efforts? Here are some ideas:

1. Provide opportunities for recognition

Firstly, employees should have the chance to get noticed, or they could feel their career is stagnant. Provide opportunities for training so they can grow their skills and encourage them to take on more responsibilities so they can become an even more valuable asset to your company.

2. Make it personal 

Recognition means nothing if it's impersonal. Employees should be thanked personally, with reference to specific accomplishments.

3. Spread the word

After thanking employees personally, make sure they get credit in front of their peers or the rest of the organisation by highlighting their achievements in a newsletter, social media, team meeting or other appropriate forum.

4. Financial rewards

Money isn't the best motivator for everyone, but it's a clear demonstration of recognition. This may come in the form of a one-time cash bonus or pay rise, depending on the situation.

5. Non-financial rewards

Other rewards should be offered based on the size of the achievement and the individual's personality and interests. This could range from a free lunch, personal gift or gym membership to extra holiday days or a better parking space.

Managed reward programmes

A successful employee recognition programme should be designed around your customers' needs and must be well-managed to avoid problems. While most businesses lack the expertise to setup and operate a reward scheme, the advent of digital platforms make it easier than ever to manage reward schemes through specialised vendors. 

My Rewards International (ASX:MRI) is a global leader in providing white-labelled loyalty, reward and engagement programs for businesses and consumers.

They serve more than 100 leading corporate clients providing 4.6 million members with discounts and special offers from a network of over 4,500 individual merchants. These services are delivered through a self-managed cloud-based e-commerce platform.

To keep up to date with MRI or for more information about loyalty and reward programs as a whole, subscribe to the My Rewards International Limited Chairman's List.