4 Ways Employee Recognition Can Increase Employee Retention

How often are members or your staff acknowledged for high levels of performance in your organization? The amount of recognition workers can be linked to employee retention and turnover rates within a company. Gallup reports that voluntary employee turnover in the United States costs organizations almost 1 trillion dollars per year. Additionally, for the last few years, those figures continue to increase annually. Another way to consider turnover is to relate the estimated costs per employee to be anywhere from half to two times their salary. Turnover-related costs can include the time it takes to recruiting, hiring, onboarding, fill the position (when no work is being done), and training. This costly problem can be heavily influenced by interactions with management teams and how employees are treated.

SurveyMonkey partnered with Bonusly to identify how American workers feel about recognition received within their organizations. They surveyed over 1,500 employees to get real opinions about how distinction affects their thoughts and actions within an organization. The results of employee recognition programs were overwhelmingly positive in many sections. Here are four ways employee recognition can increase employee retention!

1. Employees Feel Optimistic about Their Career Development

Receiving public acknowledgment affects how employees think about their career growth within a company. 68% of survey respondents believe that public recognition has at least some impact on their ability to get a raise or promotion. When employees feel positive about their current role, they are usually more inclined to work harder, be engaged, and increase productivity. Engaged workers are often more enthusiastic about their organizations, which often generates better online reviews about the company and a good reputation within the local community.

2. It Increases the Happiness of Employees

Employees are also more satisfied overall when they are recognized. 82% of participants consider recognition an essential part of their happiness at work. Simply letting employees know that you appreciate and see the results they are achieving can go a long way when taking into account the overall morale in the work environment. When studying people who got recognition for their work, higher levels of confidence were observed. Feelings of confidence and happiness are usually found together in high-achieving employees.

3. Employees Are Less Likely to Seek Other Jobs or Opportunities

Organizational loyalty is also improved when employees achieve recognition. 63% of people who are “usually” or “always” recognized at their job consider themselves “very unlikely” to seek new employment opportunities in the next three to six months. In contrast, 43% of respondents in the unrecognized category indicated “extremely likely” to seek work elsewhere. The mindset of employees is critical because many of them are actively targeted for employment by competitors and other companies regularly. Preserving your in-house team in the long term keeps turnover expenses low.

4. Gain the Respect of Underrepresented Employee Groups

Recognition was also identified to be associated with high levels of employee respect. This is important when studying the thoughts of women and many other underrepresented groups in the workplace. 54% of women think recognition is “very important,” compared to 46% of men. This appreciation may be in the form of a more formal award, a cash bonus, or a verbal thank you in a group meeting. Individuals have different types of recognition they prefer. However, an organization making an effort to highlight an employee’s contribution shows that you respect them and influence their coworkers.

SurveyMonkey and Bonusly studied how employee recognition relates to employee retention. Their research showed that public, positive acknowledgment improves happiness at work and encouraged employees to positively view their career development. It can also lead to more loyalty to your company, making employees less likely to seek other employment opportunities. Finally, employee recognition seems to correlate with increased levels of respect with women and other underrepresented groups. Does this article change your perspective on how your company publicly recognizes employees?

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