By: Michael Howe
Life is short, there is no doubt about that. As short as it is, an interesting and enlightening point is that, on average, individuals spend about one third of their lifetime working. Given that, not only is it important to be happy in what you do, it is also important that you are good at it and employers recognize those that are good at it. Recognizing outstanding employees is important for a multitude of reasons, and it is perhaps one of the easiest things an employer can do to enhance their employee’s satisfaction – a satisfaction that carries over to personal life as well.
One compelling reason to recognize outstanding employees is financial. Employees that are recognized are more likely to stay with their employer long term. Obviously, there are several reasons employees might leave an employer, but if recognition can help retain them it is worth doing. On average, the direct replacement cost of a truck driver is $8500 – that includes recruitment, advertising, screening, onboarding, and more. Then there are the indirect costs such as idle equipment, lost institutional knowledge and route efficiency, training investments, service disruptions, and more. Those costs are for just one driver – imagine a fleet of 100 trucks with a high turnover rate.
For non-drivers, the direct and indirect costs are similar. In addition, a direct impact on morale across the workplace culture and increased workload for others creates new challenges. Some turnover is good, but when losing outstanding employees due to lack of recognition it is far from worth it.
Recognition of outstanding employees can have a positive impact on the indirect financial aspects of any business. Employees that feel appreciated are more likely to feel motivated, which may in turn lead to increased productivity. This naturally leads to a higher sense of satisfaction in the workplace and tends to lead to a longer tenure with the employer. The retention of outstanding employees also means that the workforce is much better because the outstanding employees help drive performance. Recognition also has the effect of encouraging most employees to perform at their best, or even to improve.
Recognition is not always easy for employers though. A Forbes 2021 article noted that generational differences in today’s workforce can be challenging as there are different core values, needs and appreciation languages. To be fair, generational differences are nothing new, but the workplace focus on the importance of recognition is a relatively recent area of emphasis. Leaders in any organization need to take a step back, identify the differences in their workforce, and develop recognition programs that are meaningful and equitable. Recognition should not result in “participation trophies” – recognize outstanding employees and / or results.
As an employer in the trucking industry, or any industry for that matter, the recognition of outstanding employees can have a very real impact on the bottom-line, both direct and indirect costs. Recognition of outstanding employees also will lead to a better workplace in general – attitudes, productivity, motivation, and more. Recognition needs to be meaningful, equitable, and consistent. The days of “employee of the month” are likely a bit dated, but there are many other ways to effectively begin a recognition program. If you don’t already have a program in place, why not start simple – say thank you and great job!
