Employee engagement is at an 11-year low according to Gallup, and even though resignation rates are stable, new research from Blackhawk Network (BHN) has uncovered that seven in 10 employees are actively searching for new opportunities. While the job market currently favors employers, the tides will eventually turn and organizations that failed to prioritize employee engagement will be at risk of losing their top talent at the expense of their long-term business health.
The BHN research highlights a clear disconnect between what employers are offering and what employees want. Fewer than half of companies offer rewards and recognition programs despite the fact that they are key loyalty drivers. Nearly nine in 10 respondents reported having concerns regarding their employment and nearly 70 percent reported feeling undervalued. The research confirms the fact that many employees may be simply biding their time with their current employer (a term called “The Great Stay”) until they find greener pastures.
Recognition is table stakes, and businesses must rethink how they are engaging and recognizing their employees to avoid costly attrition in the future.
Technology Plays a Major Role in Employee Recognition
Technology is permeating the workplace in a myriad of ways—including how you show appreciation for your employees. While many businesses may be focused on how available technology can differentiate and improve their services and capabilities, others are wisely leveraging those same solutions internally. The reliance on technology within everyday workflows is becoming more prevalent, and one of the most powerful ways to engage with employees is by integrating recognition and rewards directly into the workplace technology already in place and constantly in use.
For example, many of the most popular office SaaS platforms (e.g. Microsoft Teams, Qualtrics) provide users with the opportunity to embed digital rewards (e.g., eGifts) directly into collaborative tools. This empowers businesses to seamlessly acknowledge employees during 1:1 chats, during video meetings or other everyday interactions. It also facilitates peer-to-peer recognition that can build company culture. Leveraging tech to recognize employees is a game-changing strategy as employees desperately seek to feel seen by their employers.
Timely Recognition Goes a Long Way
Adding a layer of complexity to the employee engagement crisis is the fact that recognition is indeed valued, but so is the timing. BHN research uncovered that waiting too long to acknowledge achievements or milestones is almost as detrimental as not recognizing them at all. More than two thirds of respondents reported wanting to receive recognition within a week of earning it, and a third of respondents reported that the value of rewards diminishes if received more than a week late. Prioritizing timely recognition, no matter the distribution channel, is essential to ensuring recognition programs are impactful—and technology paves the way for doing so.
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A Globalized Workforce Isn’t Hard to Reach Digitally
As the world continues to shrink, businesses that operate across borders will increasingly need to cater to a globalized workforce. Thanks to technology, reaching a global or hybrid workforce to show recognition doesn’t have to be a tall order. Digital rewards offer scalable solutions, as they empower companies to deliver meaningful recognition regardless of location or currency. And they can also help cut overhead such as shipping costs often associated with physical gifts. Points, eGifts, and other digital options fit the bill for fast, impactful rewards.
People Want to Grow
Although AI-driven recruiting and skills-based hiring strategies will continue to evolve, they will also remain imperfect solutions for closing workforce gaps. Businesses can hedge their bets by taking some of the guesswork out of hiring and instead focus on recognizing existing employees’ desire to grow professionally.
Upskilling initiatives, including those that leverage fresh technology to streamline business offerings and showcase key differentiators, are in demand for about one in five employees surveyed in the BHN study. Investing in and recognizing employees and demonstrating a willingness to support their long-term futures also helps short-term. Not only can you custom-build your own in-office talent and skip expensive recruiting, hiring, and onboard activities, but recognizing existing employees will strengthen productivity and loyalty quickly—ultimately providing a more cost-effective approach to filling skill gaps while retaining top talent down the road.
Younger Generations are Reshaping Recognition Expectations
This year, the Department of Labor estimates that Millennials and Gen Z workers will comprise the majority of the US workforce—driving a shift in expectations for recognition preferences. Younger generations, especially Gen Z, value different and more frequent types of recognition compared to older generations that are starting to exit the workforce. Organizations must align their recognition strategies with evolving expectations tailored to younger audiences. For instance, BHN’s study found that younger employees value personalized incentives, peer-to-peer recognition and acknowledgment for personal milestones like work anniversaries. Tech-driven solutions can accommodate these diverse preferences efficiently and distribute recognition in many forms.
Conclusion: Recognition is Imperative and Tech Can Help
Employee engagement is not just a “nice-to-have”—it’s a must. Organizations that embrace and smartly apply technology to integrate meaningful recognition into their day-to-day operations will be better positioned to withstand the inevitable power shift when the next jobseekers market emerges. Recognition and rewards are key drivers not only for engagement, but also for loyalty, productivity and retention. The businesses that invest in their employees now can circumvent today’s engagement crisis and be positioned to retain—and perhaps attract—top talent tomorrow.
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