5 ways effective PX strategies rely on employee recognition
With our evolution into hybrid and remote working models, employee priorities have shifted with this. Many now look above and beyond salary, taking a more holistic approach when choosing – and remaining with – their employer. Just like customers, employees are looking for a great experience. Factors such as benefit packages, flexible working options and organisational culture are now critical influences. This has led more and more HR teams to re-examine how their current engagement and culture strategies are either boosting, or damaging, their employee value proposition (EVP).
To place their brand above the rest, we’re seeing a rise in businesses appointing dedicated People Experience teams and strategies to enrich each stage of the employee lifecycle – from initial application through to exit.
But what metrics define a successful people experience (PX) strategy? And how does employee recognition deliver on each of these?
Why do PX strategies matter?
In a turbulent post-pandemic recovery, businesses have been challenged with the ripple effects of employee disconnection and disengagement. Latest stats show 85% of the global workforce is now disengaged. Plus, in 2023, 35% of employees are predicted to leave their role, rising to 40% for deskless workers. In what has been predicted to be the ‘year of recalibration’, HR leaders have never more urgently needed to prioritise their people experience strategy to attract and retain their best talent.
Yet, still too often, many perceive a strong people experience to be an optional bonus. But when prioritised, an effective PX strategy will define success across hiring, productivity and retention, as well as transform an employer brand.
How does employee recognition deliver the key metrics of an effective PX strategy?
1. Sharpens the EVP.
79% of Millennials say recognition and reward programmes boost their loyalty to their employer. Recognition cultivates and showcases a culture where people and performance are valued, polishing the EVP to secure future talent. Through championing belonging, purpose and development, recognition programmes create a fulfilling workplace that stands above the rest.
2. Enhances engagement.
72% of businesses report effective employee recognition to positively impact workforce engagement. When people feel valued at work, they are more motivated to reach their potential. And happy people lead to happy businesses – engaged teams can outperform competitors by 202%.
3. Boosts retention.
Nearly half (44%) of employees report leaving their last role due to inadequate recognition, highlighting a worrying blind spot for why many businesses are missing the mark. Those delivering effective recognition programmes have a 31% lower voluntary turnover – emphasizing recognition as a key retention tool that is too frequently overlooked.
4. Instils belonging.
Employees who receive regular recognition are nearly 5x more likely to feel like they belong in the organisation. Effective programmes build inclusion and an authentic sense of community across dispersed teams, especially when also leveraging the power of peer-to-peer recognition.
5. Fosters authentic culture.
83% of HR leaders report employee recognition to strengthen the organisation’s values. Effective programmes align with core values and celebrate examples of how these are embodied in the day-to-day. This is key to ensuring business culture is built upon its values, and supports teams to authentically deliver its mission.
To find out how Rippl can transform your PX strategy through the power of recognition, chat to us.