SALT LAKE CITY, UT -- March 6, 2013 -- Many organizations establish employee recognition programs to enhance levels of engagement and reinforce core company values and culture. Often overlooked is the strong return on investment that effective employee recognition programs can deliver.
A recent study commissioned by O.C. Tanner, the global leader in the appreciation and recognition business, revealed that programs that celebrate key service anniversaries for employees (e.g. 5-year, 10-year, 25-year anniversaries, etc.) were linked to decreased turnover. The cost of replacing an employee can be a significant expense for many companies ranging from 30 to 400 percent of his/her annual salary. By contrast, an effective employee service recognition program costs roughly $25 per employee per year.
The O.C. Tanner study aligns with another recent survey which found 39 percent of employers are concerned they will lose top talent in 2013, and 50 percent of employees believe an increase in recognition is the best way to boost retention.
The following are highlights from the O.C. Tanner Study and White Paper, “Celebrate Careers: An Effective Strategy for Driving Employee Engagement and Retention”:
“Celebrating key service anniversaries has long been an integral part of the O.C. Tanner approach for increasing employee retention among our clients,” said David Sturt, Executive Vice President of Marketing and Business Development at O.C. Tanner. “The study found that employees who work at organizations with effective service anniversary recognition programs plan to stay at their current company up to an additional four years — thereby reducing hiring costs, delivering a strong return on investment and positively impacting workplace culture.”
Learn more about strategies for driving employee retention and engagement, along with Six Best Practices for Recognizing Employees’ Career Achievement, in the recently released O.C. Tanner White Paper. Additionally, reference the related White Paper from The Cicero Group for further insights on the return on investment of service awards programs.
O. C. Tanner helps the world appreciate great work. We build strategic employee recognition solutions that drive behavior, unify teams and increase engagement. More than 8,000 global organizations rely on our smart technologies, social strategies, award fulfillment and thought leadership to shape cultures where people, teams and profits thrive.
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