Boost Retention through Employee Recognition

While the world of work has changed dramatically over the past four years, one thing that has not changed is the important role that recognition can play in keeping employees engaged and retained. According to Gallup, employees who do not feel adequately recognized are twice as likely to say they’ll quit in the next year. Showing appreciation for employees on a regular basis boosts morale, encourages people to go the extra mile, and increases productivity and loyalty – all of which can lead to higher retention.

While many think of recognition in terms of a monetary reward, there are plenty of other cost-effective and creative ways to thank employees. Below are some best practices and thought starters to help you show appreciation for your employees.

• Tailor recognition to the individual – When it comes to recognition, one size does not fit all. For example, while some employees may prefer to be recognized publicly in a company-wide email or with a shout-out during a team meeting, others may not like the attention and would prefer to be recognized privately, such as a personal note from their leader or CEO. Consider the employee’s personality, age and career stage when choosing a recognition method and any associated reward.
  
• Allow peer-to-peer recognition – Many employees seek recognition from leaders or managers, but they also find equal – if not more value – in being recognized by their peers. Encourage employees to find ways to show their appreciation for their colleagues in formal and informal ways. For example, designate a place where employees can leave notes of appreciation for their colleagues. This can be done in-person by leaving physical notes on employees’ desks or virtually through a platform like Teams.
  
• Vary the type of reward – Use different types of rewards for different types of recognition. Perhaps a monetary reward makes sense to recognize a larger achievement, while smaller rewards make sense for other recognition. This can include an extra day off to be used at a future date, free breakfast or lunch in the office, a gift card to a local restaurant, company-branded gear and more.
  
• Recognize in real-time – While formal recognition programs like annual employee awards are valuable, recognition shouldn’t happen only once a year. Encourage employees to recognize their direct reports and peers often and in impromptu ways. Consider starting meetings by sharing recent examples of employees doing great things for the company or each other. Encourage employees to do shout-outs for their peers via Teams and other platforms, as mentioned above. Make regular recognition a part of your company culture.

Recognition doesn’t have to be complicated or expensive. So, the next time you’re thinking about how to boost employee retention, remember that a little can go a long way when it comes to making your employees feel appreciated and valued.

For our thoughts on communication and brand strategy, industry trends and more, subscribe to Padilla POV here. This post was updated from April 2020.