As companies are still feeling the effects of what business analysts have dubbed “The Great Resignation,” more focus is being drawn to employee retention strategies. Employee recognition plays a pivotal role in fostering a positive workplace culture, boosting morale, and ultimately reducing turnover. This not only saves the company money, but creates a much more enjoyable experience for everyone.
Definition: Recognition
The act of employee recognition is simple: it’s publicly praising and rewarding employees for their hard work and successes. This praise can come from both managers and peers, and can be applied to both big and small accomplishments. Receiving recognition for one’s efforts is vital to feeling valued at a company. Unfortunately, over 80% of employees say they don’t feel recognized or rewarded at work. This means that employers with robust recognition programs have a clear advantage in today’s competitive job market.
The Cost of Turnover
Employee turnover refers to the rate at which employees leave a company and are replaced by new hires. High turnover can be a significant challenge for businesses, leading to increased recruitment costs, disruptions in workflow, and a loss of institutional knowledge. The average estimated cost for replacing an employee is 33% of that employee’s annual salary. Beyond finances, turnover has the potential to “snowball” as current employees scramble to cover those who have yet to be replaced. The strain can compound the issue and create a cycle of high turnover that is difficult to break out of.
Recognition to the Rescue
Recognition is much more than a feel-good exercise; multiple studies and polls have shown the powerful impact it can have. A report by the Brandon Hall Group found companies that prioritize recognizing their employees multiple times per month are 41% more likely to see increased employee retention and 34% more likely to see an increase in employee engagement. A recent poll by Bonusly found that 65% of respondents would be likely to stay at their job with an unappreciative manager if their coworkers and peers still recognized their work. The same poll showed that almost half (46%) of the 2,000 people surveyed had left a job because they felt underappreciated. The influence of recognition cannot be understated.
How to Recognize
When recognizing employees, companies should employ a healthy mix of casual and formal recognition. This allows for frequent opportunities to highlight good performance and maintain a culture of appreciation. We highly recommend checking out some of our previous blogs about understanding recognition, its 5 key pillars, and where to start when implementing a recognition program.
One great way to recognize employees is through custom award jewelry. Whether it’s a pin or a championship style ring, award jewelry can be customized to fit any company’s culture and branding. Precious metal and stones have a high perceived value, so recipients can appreciate its worth. Most importantly, unlike trophies or certificates, jewelry awards can be worn and shown off. They serve as a constant reminder of the employee’s success and the company’s appreciation.
Dion Can Help
At Dion, our mission is to create the perfect custom award for any occasion. No matter how you award your team, we can design and create an award to match. Getting started with Dion is easy. Get inspired by browsing our gallery of past products, or This email address is being protected from spambots. You need JavaScript enabled to view it. give us a call, or message us to get started!
