When considering strategies for employee retention, employee recognition is a must. Recognition is a powerful way to make people feel valued for their hard work, dedication, and stellar performance. How powerful exactly? The proof is in the (statistical) pudding.
First, let’s start with some statistics for what happens when you don’t have any recognition program in place. According to a report by G&A Partners, the cost of replacing an entry level employee is about 30%-50% of that person’s yearly salary. For higher salaried employees, that percentage can grow to around 150%! So on top of the known pains of high turnover, companies are losing money trying to recruit and train new employees. A Gallup study added the costs up and determined that US business lose $1 trillion per year due to voluntary turnover.
If those numbers were a little hard to swallow, these next statistics may help put your mind at ease. Recognition is proven to improve employee retention and is actively desired by most of the US workforce. According to a survey by OGO, 82% of American professionals feel they are not sufficiently recognized for their efforts. While that’s not a great statistic for American employers, it presents the opportunity for your company to rise above your competitors. By creating a culture of recognition, your company becomes more desirable to jobseekers. In addition, your long-term employees will want to stay where they’re valued. This, of course, can be backed up by studies as well. When SurveyMonkey partnered with Bonusly to conduct a survey, they found that out of 1,500 respondents, 63% of those who were “always” or “usually” recognized said that they’re also “very unlikely” to job hunt in the next 3-6 months. However, only 11% of respondents who are “never” or “rarely” recognized said the same.
Some may believe that recognition is more of a subconscious feature of the workplace landscape, but receiving recognition is very much at the forefront of many jobseekers’ minds. A 2018 study by Achievers found that out of 1,700 respondents, 55% were planning to switch jobs, citing the lack of the recognition as the top reason. When asked if better rewards and recognition would encourage them to stay at their company, 69% of all respondents said yes! This is all the more reason to embed recognition into your company’s culture. By adopting a formal recognition program, you can avoid inconsistencies, fleeting trends, and empty gestures. Align your program with your company’s values and choose rewards that will help motivate employees and create meaningful professional relationships.
The numbers don’t’ lie - properly rewarding your employees for their efforts will boost your company’s retention. No one likes to do a thankless job. By creating a well-thought-out recognition program, your employees won’t feel overlooked and taken for granted, causing them to seek other opportunities. (Plus, saying “thank you” is just good manners.)
By Aubrey Dion
Aubrey Dion is proud to be back working for the family business she grew up in. Over the years, she has performed a wide variety of jobs in both the office and factory, becoming a true "jack of all trades." Aubrey credits her quick learning ability to her strong theatre background, where memorization and attention to detail are vital. Working in the marketing department allows her to stay creative and work on exciting new projects for the company.