We have all heard about the importance of employee engagement. And now more evidence and case studies are surfacing that cite the specific correlation between employee engagement and employee recognition.

First, let’s define each. The Gallup organization defines engagement as “those who are involved in, enthusiastic about and committed to their work and workplace.” Recognition, which is not the same as rewards or compensation, refers to “acknowledgment, formal or informal.”

Gallup, a leader in research regularly conducts studies on engagement and recognition. In their latest State of the American Workplace  study they asked over 180,000 workers if they had been recognized in the last 7 days for doing good, only 70% stated no. The 30% who answered yes, also said they were more satisfied with their job and engaged in their work. Recognition is a simple yet overlooked way to easily increase engagement. So how does this all tie into performance and productivity? The study also showed that engaged employees average 20% higher in sales, productivity, and profitability.

So why is it so hard for managers to recognize often and consistently? Most say time restraints, including competing priorities, business objectives, sales goals, etc.  However, good managers and leaders know that this single factor, when prioritized, can impact the culture of the store, one employee at a time, creating a more positive work environment, which leads to an increase in retention and engagement. And remember, engagement is directly correlated to productivity.

Key points to remember when it comes to engagement

1. Impactful recognition is not just from a manager to employee. Social and peer recognition has the same impactful and positive effects on worker satisfaction and engagement. Make this as easy as possible for your team by employing a social recognition app or tool that has been specifically designed for this.
2. Use the The “Facebook effect”to your advantage. By using a social engagement platform you can tap into the desire employees have for instant feedback, recognition and to “be seen.”
3. Ask employees. Recognition is not one size fits all. Each employee may prefer to be recognized in different ways. For some, an email blast to the entire dealership may not be their ideal choice of recognition. Keep in mind individual personalities and preferences. The goal is not to overwhelm or embarrass.
4. Don’t confuse recognition with monetary rewards. Most managers underestimate the importance of recognition and overestimate the value of monetary compensation. And while salary and compensation are important, once a decent living wage is achieved, what motivates talent to go above and beyond is more than their paycheck.
5. Frequency is key. But recognition that is done at the same time and for the same thing loses its positive and motivating effect over time. While once in 7 days is the magic number, make sure the recognition does not start to feel routine and impersonal.

Written by T.J. Bellafiore, Director of Automotive Solutions

Specializing in automotive leadership development, executive coaching, and performance improvement, T.J. is passionate about evolving the industry through engaging leaders and challenging the status quo.  She can be reached via email at tj@theminery.com.