There are a number of factors that may play a role in employee retention. These include things like compensation, benefits, perks, flexibility, and growth opportunities. Another major factor is recognition. Employees love to be recognized for a job well done, and failing to provide that recognition may cost you valuable talent, not to mention the costs that come with finding a replacement.
Recent findings from Gallup indicate that high quality staff recognition simply reduces turnover. If you value your employees, then let them know.
"The key takeaway from this research is that employees who receive high-quality recognition are less likely to leave their jobs," says Gallup's Rachael Yi.* "Longitudinal data from 2022 to 2024 show that well-recognized employees are 45% less likely to have turned over after two years. In 2024, new findings show that the risk of future departures is further reduced when looking at employees currently receiving high-quality praise that fulfills at least four pillars of strategic recognition. These employees are 65% less likely to be actively looking or watching for another job opportunity compared with those receiving lower-quality recognition."
The research identifies five "pillars of strategic recognition" in total, and these include:
- Fulfilling employees' recognition expectations (the amount received makes sense)
- Authentic (not just a "checklist" thing)
- Personalized (one size doesn't fit all)
- Equitable (given fairly, without playing favorites)
- Embedded in an organization's culture (integrated into the day-to-day)
The more of these pillars you can meet, the better you're likely to be viewed by your employees, which means they are more likely to stick around.
"At its most basic, companies that make recognition a core part of their culture offer employees gratitude, praise, and appreciation in a way that feels genuine and consistent," says Susan Caminiti at CNBC.** "Workers feel that what they do matters and that the contributions they and their colleagues make are noticed and valued in a fair and equitable way."
Ways to Show Recognition
Making recognition a part of the overall culture is a good idea, but there are also some specific ways you can show your appreciation.
Acknowledge them in front of the team. Publicly recognizing an employee's good work can make them feel good as they will likely get additional compliments from other team members. For example, mention an accomplishment during a meeting or even in a team email or Slack channel.
Acknowledge them in private. While it's nice to call out your appreciation in front of others, your employee will also likely appreciate a personalized, private acknowledgement. Whether it's in person, in an email, or in a private message, take the time to let them know how you feel.
Have an employee of the month. This is a classic recognition system that companies have utilized for ages, and for good reason. It gives a team member who has done a particularly good job a sense of pride and accomplishment, and helps set an example for other employees to follow.
Provide a Bonus. Few things say "job well done" better than a cash bonus recognizing great work. Even a gift card can have a similar effect.
Encourage team recognition. Don't feel like you should be the only one recognizing good work. Suggest to your team that they acknowledge each other's achievements as well. This is great for workplace culture and can help build morale. A compliment doesn't have to come from the top to feel good.
Offer a promotion. If an employee has consistently shown great work, and a promotion makes sense, this is a fantastic way to ensure they will want to stay with the company.
Staff recognition is critical to maintaining a positive company culture, and as Gallup's study shows, it is also important for reducing turnover. Consider how frequently you're giving praise and how authentic it is. Remember, personalization can help demonstrate your appreciation in a way that resonates with the recipient. Make sure your team knows how much you appreciate them.
* https://www.gallup.com/workplace/650174/employee-retention-depends-getting-recognition-right.aspx
