Employee-driven growth

Employee-driven growth (EDG) is a business philosophy that centers an organization’s growth on employee support, engagement, and development.^[1] It uses employee recognition, engagement, and rewards as strategies for business growth and customer satisfaction.^[1]

Key principles

Development

EDG uses feedback loops and incentive structures to improve job performance and satisfaction, which result in enhanced customer experiences.^[1][2][3] Employee development includes additional classes, certifications, and training that keep employees engaged with their jobs.^[4][5]

Recognition and rewards

EDG emphasizes recognizing and rewarding employees for exceptional service, positive online reviews, and contributions to business success.^[1][6][7] This recognition often takes the form of financial incentives, but could also include non-cash rewards and other more intrinsic motivators.^[8][9][10]

Impact

Employee-driven company practices have been shown in studies to increase customer satisfaction by as much as 30 percent.^[2][3] Research has also suggested that the use of recognition and rewards results in increased employee satisfaction, retention, and productivity.^[1][7][8] Positive employee experience metrics have also been correlated with a 50% increase in revenue growth.^[11]

In both franchise businesses and larger corporations, EDG principles such as reward and recognition systems are used to increase hiring and retention rates.^[12][13]