How recognition can help lower turnover rate

Proper recognition is a secret weapon for reducing staff turnover. Studies show that employee appreciation is a vital driver of employee experience and workplace culture, leading to improved retention. HR specialists also highlight its positive impact on business outcomes such as ROI, productivity, and financial results. 

However, many leaders struggle to achieve tangible results with employee appraisal. This guide, Aniday will explore how recognition can help lower turnover rate and boost your retention rate through effective recognition.

The Role of Recognition and Rewards Programs in Employee Turnover

It should come as no surprise that rewards and recognition are major factors in employee turnover. Studies have consistently demonstrated that workers who experience a sense of worth and appreciation are more likely to stay with their company, whereas workers who feel unappreciated are more likely to quit.

To establish a robust recognition and rewards program, consider implementing the following strategies:

• Authentic and Specific Recognition: Generic compliments or rewards may not carry the same weight as sincere and specific praise. Take the time to observe and acknowledge what your employees excel at, and communicate your genuine appreciation for their efforts.

• Innovative Rewards: While monetary bonuses are a popular choice, alternative methods of showing appreciation can be equally effective. Explore options like offering unique experiences, flexible work hours, or additional time off to diversify your recognition approach.

• Cultivate a Recognition Culture: Foster a workplace culture where recognition is ingrained into the organization's DNA. Encourage all levels of staff, from senior management to front-line employees, to openly acknowledge and commend outstanding achievements. The more people feel comfortable both giving and receiving recognition, the more profound the impact it will have on reducing turnover.

The Correlation Between Recognition, Rewards, and Employee Productivity

It is obvious that employee productivity and recognition and incentives programs are related. Workers who feel that their efforts are recognized and valued are typically more productive than those who do not. Furthermore, employees' engagement and job happiness are increased when they frequently receive awards and acknowledgment for their hard work.

Therefore, to enhance employee productivity, it's imperative to maintain effective recognition and rewards programs. By doing so, you can not only retain your most valuable employees but also witness a substantial increase in overall workforce productivity.

How Often to Give Recognition

Let's address the timing of recognizing your team's efforts. Should it be done monthly, quarterly, or yearly?

 You should offer verbal praise to your team members at least once a week because it's vital to realize that without ongoing recognition, employees might start questioning their significance in the organization. They could wonder, "If no one seems to care, what's the purpose of my efforts?"

The positive impact of recognition, akin to a dopamine boost, tends to fade relatively quickly. To establish a continuous loop of motivation, consistent exposure to praise is essential.

Giving your team members a pat on the back once a year won't suffice. To maintain engagement and productivity, it's crucial to provide feedback and recognition on a weekly basis..

Four Awesome Methods for Employee Recognition

1. Implementing Peer Recognition

Colleagues are the individuals your employees spend the most time with. They understand the ins and outs of the job, making peer recognition feel more genuine than recognition from you, the manager.

You might be wondering, "How can I introduce peer recognition? Are there tools available to facilitate this process?"

The good news is that there is a variety of technology options, from dedicated Slack channels like #kudos to comprehensive recognition apps. One tool worth considering is Hi5, which empowers co-workers to offer real-time recognition to each other. At the end of each day, your employees receive a list of their colleagues, allowing them to give a virtual "high five" along with GIFs or images. In return, each person receives one or more "high fives." Pretty cool, right?

However, it's important to note that peer-to-peer recognition is just one facet of a broader employee recognition program. Let's delve into how you can excel in recognizing your team members.

2. Align Recognition with Effort

Let's consider a scenario: Raj, who devoted extra hours on a Friday to complete a time-sensitive project, and Tattiana, who devised a groundbreaking solution with the potential to save your company a substantial sum in the long run. Kudos to both!

Now, should Raj and Tattiana receive the same level of recognition, perhaps in the form of a Starbucks coffee card? Unlikely.

Recognition should correspond to the effort expended. This is why it's essential to establish clear guidelines for your recognition endeavors. It's crucial to differentiate between a "thank you praise," like a Starbucks card, and something more substantial, such as a few extra days off.

Failure to tailor recognition to each team member's effort can leave an individual feeling undervalued and unappreciated, prompting them to explore alternative career opportunities.

3. Tailor Your Appreciation

Think about it—some people are coffee enthusiasts, while others relish a trip to the movies.

Now, what occurs when you offer a Starbucks coffee card as a thank-you gift to someone with a fervor for the silver screen? They might perceive the gesture as somewhat thoughtless, even though it's well-intentioned.

This is a reminder that recognition is not a one-size-fits-all concept. People have diverse preferences and interests. As a leader, it's vital to acknowledge your employees' efforts with something that genuinely resonates with them.

Pro tip: For employees who consistently go above and beyond, providing a choice in their recognition item is a great strategy. Remarkable programs like BlueBoard empower employees to select experiences that align with their individual interests.

4. Prioritize Timely Recognition

Imagine returning from vacation to find Linh, a team member, excelling in collaborative projects and marketing tests. Promptly expressing admiration and offering appreciation boosts Linh's motivation. 

Conversely, delayed recognition may lead to feelings of neglect, impacting future efforts. Recognize promptly to inspire consistent excellence. High employee turnover is costly, but effective recognition programs can mitigate it by enhancing morale, engagement, and workplace culture.

For the blog post, Aniday has explored "How recognition can help lower turnover rate”. Regular and thoughtful recognition results in increased job satisfaction and a more committed workforce. Prioritizing recognition fosters a happier, more stable, and productive workplace.