It’s no secret that recognition creates a great workplace culture and makes people feel valued. Research from the O.C. Tanner Global Culture Report shows that praising effort and recognising people for their great work impacts the six essential aspects of an attractive workplace culture. These “talent magnets” include purpose, opportunity, success, appreciation, wellbeing, and leadership.
But recognition can help with additional HR challenges, too, from retention to data management to workload issues.
“We’re losing people who’ve been here a long time. They’ve got institutional and technical knowledge, and that hurts us.” – HR Leader
Here’s a sobering fact: Almost 25% of Millennials have worked for five different employers. That’s a lot of employers in a short amount of time. And a lot of expense for the employers.
Turnover can be one of the most expensive challenges a company faces. The costs of replacing an employee range from 20% to 150% of their salary, depending on how you calculate it. That means even a mere 3% change in this number could translate to tens of millions of dollars, depending on the size of the company.
Simply put, it pays to keep your employees. And one of the best ways to do that is to make them feel appreciated.
It’s not all about the money.
While 80% of employers think employees leave for higher pay, only 12% of them actually do. Global studies reveal that 79% of people who quit their jobs cite “lack of appreciation” as their reason for leaving.
When leaders frequently appreciate great work and care about their people, employees are 38% less likely to look for another job, according to the Global Culture Report. In fact, employees whose managers regularly acknowledge them for good work are 5X more likely to stay.
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