Despite increasing layoffs in the fourth quarter of 2022, there’s no doubt that the current job market heavily favors the employee. There are more open positions than employees to fill them, meaning it’s even more difficult for a business to retain quality employees. 

When someone becomes dissatisfied with their situation or treatment at work, it doesn’t take them long to find a new job. If you want to keep your best employees, people that make a real contribution to your business, it’s time to adapt and find new ways to keep them engaged and happy at work.

Using different types of recognition

Don’t make the mistake many employers do: you aren’t able to buy your employees’ happiness, loyalty, or engagement. “If you treat your employees as if they are only there for the paycheck, they’re going to behave like it,” explains Logan Mallory, VP of Marketing at Motivosity, a revolutionary employee rewards software. “Remember, compensation is more than just money — find exciting ways to compensate your employees, and engagement will follow.”

Motivosity recently conducted a study of the top reasons people love their job, discovering that few people love their jobs because of compensation. In fact, the survey showed that financial compensation wasn’t even among the top 5. Taking the first spot was “clients and co-workers,” followed by “roles and responsibilities,” “the ability to maintain a good work/life balance,” “the industry,” and “manager/boss.” These responses give businesses a strong understanding of their employees’ values in the workplace.

Studies show that not only is employee recognition one of the easiest and cheapest ways to build engagement, but also one of the most effective. Employees who feel recognized tend to be far more motivated and eager to do their best work — and it doesn’t require a big or costly reward. Simply thanking team members for their daily efforts will go a long way. However, if the recognition offered feels insincere and forced, it likely won’t yield amazing results.

The importance of being personal and sincere

Most companies recognize an “employee of the month,” but generic awards like this have little overall effect on employee morale, plus it leaves the majority of employees feeling left out. A small “thank you” that is personal and sincere improves mental health, creates a deeper relationship, and makes employees happier.

You can also improve engagement at work by celebrating achievements and giving awards, customizing them to align with your company values or preferences. “Not every company is the same, so Motivosity created 30 awards ideas to get you started. We’ve found that when companies create a culture where recognition is a focus, it goes a long way in making employees feel more encouraged and motivated,” Mallory explains. “Awards like ‘The Motivator’ or ‘The Energizer Bunny’ add an element of playfulness to the system and recognize employees for their specific contributions.”

It’s also beneficial to have recognition come from more than just the management of an organization. “Although the boss should still play an active role in employee recognition, peer-to-peer recognition has amazing benefits for employee motivation,” says Mallory. “Try taking steps like allowing employees to nominate their co-workers for awards or allowing direct recognition. You’ll be surprised at how much these measures can increase employee engagement.”

A manager doesn’t typically have the bandwidth to see all the great work happening, let alone the time to recognize every positive thing happening. If you put this power in the hands of your team, they will constantly recognize the great work of their peers. This improves connections between team members and builds a culture of gratitude – which both lead to reduced turnover and higher engagement levels. 

Nevertheless, the most important thing an employer must do when implementing measures for employee engagement is to be sincere. “Employees know when you do something for the sake of the business, rather than because you actually value them,” Mallory asserts. “Start by looking at your motivators; If you’re motivated by a particular incentive, chances are it will come across as much more sincere than something you’re not passionate about.”

Still, employers must remember that different things will engage different people. Don’t expect a one-size-fits-all solution for engagement; an opportunity that one employee might find exciting, another could see as cheesy. “Talk to your employees and figure out what they value,” Mallory suggests. “Feedback is helpful in any part of your business, but particularly when dealing with the needs of your team.”

By implementing employee recognition strategies that emphasize specific contributions, employees will feel more motivated in their positions. Additionally by offering more specific, qualitative feedback, these specific recognitions allow employers to “spread the love” and recognize employee contributions. 

“Your employees are what allows your business to function,” Mallory reinforces. “As their leader, make sure they know how much you value their hard work.”