The advantages of recognition trophies and a highly engaged workforce

Employee engagement is the extent to which an employee is willing to exert extra effort into their work to help a company exceed. Presenting a trophy, award or plaque is a great way to boost engagement levels in the workplace. Altough the definition of the term varies across fields and researchers, in practical terms is it about an employee highly identifying with their role and company. Previous posts have shown why it is important to recognise employees with trophies, awards or plaques. Today i will look at a few measurable advantages that engagement can bring; they are productivity, profitablilty and staff retention.

JRA conducts an annual best places to work survey of New Zealand organisations and companies. Their 2011 report identifies these three advantages as being exhibited in companies with highly engaged staff. Earnings per employee are $34 239 for low levels of engagement; this jumps to $58 782 for medium and $60 963 for highly engaged workforces (a difference of $26 000 !). Holding an annual awards and recognition event for employees can thus turn into an investment and growth strategy for the company rather than an expense. Renting a function hall at a decent hotel with catering will cost around $20 000 for a hundred employees. Corporate trophies, awards and plaques can be done for around $2000. If such a programme can raise engagement levels in just one employee you would have paid for the function already. Such recognition programmes are more likely to raise engagement levels in all employees as a culture of performance is created in the company, so really the return on investment is many times over. JRA identifies a 10% change in engagement levels as resulting in additional earnings of $606 500 per year for 50 staff, $1 819 500 for 150 staff and $6 062 000 for 500 staff.

The second measure highlighted by JRA is return on assets being much higher for highly engaged workforces. They identify low engaged workforces getting a return of 6% on assets versus 9.8% and 22.8% for medium and high engagement companies. This effect will especially evident for companies using assets and capital that are not at full operating capacity. A human can only work so fast, but a human operating a computer or machine can push the machine to its limits. Thus we can see a ratchet or exponential increase in output due to a more highly engaged employee increasing productivity of assets to a higher degree than they have improved their own performance. This makes sense looking at the numbers; the jump from low to medium RoA is 3.8% but jumps steeply by 13% from medium to high. Having an award, trophy or plaque sitting in front of someone in the workplace is sure to reinforce they are valued and drive them to maintain high performance levels.

Lastly, highly engaged workforces have higher staff retention. If employees are being recognised for a job well done then they are more likely to stay. A ten percent increase in engagement levels is associated with a 7.7 percent increase in likelihood to stay in one's role. This can save costs on retraining as well as lost opportunity costs during the downtime of seraching for and hiring a new employee. For an increase in engagement of 10% JRA estimates a saving of $48 000 for small companies ( less than 50 staff), $144 000 for medium (150 staff) and $480 000 for large workplaces.

For these reasons it is worth investing some thought into boosting employee engagement levels. JRA states recognition as one of the key drivers of this for Kiwi companies. The top workplaces always have well run recognition programmes for employees. Xpress Awards and Trophies NZ Ltd specialise in corporate trophies, awards and plaques. Give them a call on 09 3775705 to discuss design options, or have a look through their website.

Improving employee engagement through recognition trophies, awards and plaques

Employee engagement is a somewhat new term used by HR firms and has become a popular measure used in businesses to improve performance and other employee attitudes. First coined by Kahn, W. A (1990) it is now a popular subject in academia and the workplace. While there is no universally accepted definition of the term, generally it involves psychological and behavioural elements. Psychologically, engagement is energy, absorption, involvement and commitment in one's role. Behaviourally it involves performing above what is expected in a positive manner. Engagement levels are assesssed most commonly with pen and paper tests given to employees as well as objective measures. This article gives a brief overview of engagement and how awards, trophies and plaques can be important in achieved high engagement levels.

The advantages of high employee engagement for an organisation include; more productive employees, higher profits and less staff turnover. As employees are most often the most valuable asset within a company, it is important to maintain an engaged workforce. It is even more important considering that lower engagement levels will lead to reduced productivity and high staff turnover. Having just a few disengaged employees can make the culture within a workplace drop, spreading to more disengaged employees. Therefore assessing engagement levels is important in preventing drops in productivity and then motivating employees to perform at thier best to improve organisational success.

New Zealand has seen a surge in the popularity of this measure which has been helped with by the annual "Best Places to Work" survey run by Kenexa|JRA . In thier 2011 annual report JRA identify four key drivers to high engagement levels; Vision and Values, Sense of Community, Learning and Development and Performance Culture within an organisation.

An employee recognition programme can contribute to the four key driver, achieving a performance culture within an organisation. A perfomance culture involves employees being valued for their contributions and being rewarded for them as well. Presenting awards, trophies and plaques can serve both goals. Presenting a plaque or trophy for performance shows that people are valued as well as being rewarded with a tangible trophy they can hold in their hands and display in the workplace.

A regular and consistent recognition programme can quickly create a performance driven culture. Once this culture is created it becomes the norm, thus disengaged employees will be seen as outcasts and may become more engaged as everyone around them is positive. Having awards and trophies displayed in the office provides a permanent reminder of people's success and cements a performance culture in the workplace. Having a large honours board or plaque is another great way of implementing a recognition programme. Displaying this near the entrance reminds and enforces the performance culture for everyone. Having this at the entrance is also great for visiting clients who will be able to see they are dealing with an organisation that recognises success.

It is important that the type of award, trophy or plaque reflects the achievement of the individual as well representing the company brand and culture. Xpress Awards NZ Ltd specialises in corporate trophies, awards and plaques. Have a look around their website to get some ideas. The timing and consistency of rewarding performance is also important, this will be the topic of my next post.

Why trophies and recognition are important

Abraham Maslow published his Hierarchy of Needs theory in 1943. It describes what being human is all about, what we need and want as we grow as humans. The needs are often portrayed as a pyramid shown below, the bottom being the basic needs, moving up to self-actualisation at the top.

So what do trophies and awards have to do with self-actualisation and psychology? They play a part in fulfilling the third and forth layers; belonging and esteem. Recognition is a key component in letting someone know they are loved and respected. Trophies, awards and plaques offer a formal way to provide this recognition that is a lasting reminder.

Maslow's Hierachy of needs (Wikipedia)

Providing you live in a developed country, the first two tiers of the pyramid are met; physiological needs such as shelter and food, and safety needs such as policing, healthcare and employment. Therefore in order for us to be happier we can move onto the next layers; a sense of love and belonging from friends, family, community and a sense of esteem from our jobs and hobbies. It is undeniable that in our daily life we respond positively to praise and postive comments from others, especially from our peers and those we look up to.

It is no wonder that trophies, awards and plaques play a large role in sports and corporate settings. They provide people with a sense of belonging and esteem which then further drives them to continue doing what they were rewarded for. This allows individuals to perform to their potential, trying harder to do better everytime they are rewarded. This is important in a business setting as well as sports and the economy in general.

Next time i will talk about employee engagement and how this is influenced from feedback and recognition in the workplace. If you are looking for ideas on what type of award, trophy or plaque to give to someone check out Xpress Awards and Trophies NZ for some ideas.