It is often said that employees and loyal customers are the most valuable assets of a business. Whether we recognise this to be true or not in our case determines the kind of impact they will ultimately have on our business success. Recognising their value sooner will help deliver positive impact not only on your profit, but also on your long-term business relationships.
REWARDING YOUR EMPLOYEES
The Bersin & Associates research shows that modern recognition programs dramatically improve employee engagement.
The study found that:
- Three out of four companies have a recognition program, but only 58% of employees believe their organizations have these programs. Many employees do not even know their programs exist.
- Nearly two-thirds of HR respondents indicated that HR does not effectively enable recognition in their company.
- The previous point underscores the finding that senior leaders are out of touch with how often employees are recognized. Nearly 80% of senior leaders believe employees are recognized at least on a monthly basis, with 43% of senior leaders stating that employees are recognized weekly or more often.
Kevin Curse, in his article on Forbes, came up with 25 low-cost ways to reward your employees. In his article he says that:
“Research shows that feeling appreciated—which comes from recognition from others—is one of the top three drivers of employee engagement. The best news is that showing appreciation doesn’t have to cost a lot of time or money.”
WHY REWARD EMPLOYEES?
It’s the thought that counts when rewarding your employees, a simple “Thank you” note can uplift their morale. Hence, increasing their productivity. Jim Pruitt, an editor, an educator, and a writer responded via Quora about rewarding your employees and he stated that:
“People find it rewarding to be appreciated, to know that what they do is valued. Raises are one of the best ways to communicate this to employees. Praise is essential and should be given often. When that praise is backed-up by periodic raises, the employee knows that the praise is authentic and genuine–not a form of manipulation.”
REWARDING YOUR CUSTOMERS
One of the measure of success of any business can be determined by the size of its customer base. It is also important to recognise the impact of customer rewards in retaining customers and gaining new ones through positive word-of-mouth.
Mr. Pruitt added some insights on his response in Quora about how to reward your customers. He said:
“Most people find it rewarding to have their evaluations and judgments affirmed. High quality products do this over and over again. Each time the customer uses my product, they are reminded of the excellent choice they made in selecting it. People find it rewarding to be appreciated, to know that what they do is valued.”
High quality products and services with value for money is a manifestation that you also value your customers. In his article in Econsultancy, Chris Lake came up with 25 ways of encouraging and rewarding your customers. According to the Econsultancy research, engaged customers tend to stick around for longer, buy more often and refer your brand to their friends. Further, Kelsey Herzog, on her article for New Angle Media, talked about the importance of rewarding loyal customers. It also has some tips on how to effectively attract customers to become loyal to your brand.
In conclusion, the response of Mr. Jim Pruitt via Quora summarizes it best.
“The idea of manipulation brings up one of the most important ways to reward both customers and employees: give them respect–treat them as human beings that have value beyond the profit margin. They were people of value before they bought my product or started working for me, and they will be after they’ve taken their product home or left for the day. They should be able to take the experience of being respected and valued with them.”
ABOUT REDMAKO BUSINESS SALES
Redmako Business Sales have been selling hospitality businesses and franchises in Queensland for over 11 years. We bring together our expertise in hospitality and in buying and selling businesses to ensure a service tailored to you.