According to industry experts, over 63% of workers who feel their organizations recognize them have a minimal likelihood of searching for new job opportunities. Besides, some companies’ lack of recognition and engagement programs accounts for 44% of employee turnover.
Therefore, developing an effective employee recognition program in your workplace is of utmost importance. Besides, employee recognition can boost your company’s employee retention by lowering turnover rates. So, how is employee recognition related to employee retention?
Here are key statistics that demonstrate the relationship between employee recognition and retention:
Recently, Survey Monkey and Bonusly undertook a study to determine how employee recognition and retention are related. Approximately 1,500 respondents participated in the survey. 63% of those who were “regularly” or “always” recognized reported being less likely to search for new job opportunities within the next three to six months.
On the contrary, a small percentage of about 11% of the workers who are “never” or “hardly” recognized would assent to this.
Constant employee recognition cultivates a sense of purpose among your staff. Thus, they are very unlikely to search for better job opportunities elsewhere.
Moreover, it develops a line of communication where workers can pursue new career development opportunities within your organization without necessarily quitting. Therefore, this indicates that employee recognition and retention are closely related and interdependent.
2. About 52% of Workers Feel there is a Disconnection Between Rewards Strategy and Organizational Goals
Deloitte conducted a study involving 9,400 HR and business respondents. The study determined that workers perceive a disconnection between the rewards strategy and organizational goals. In particular, about 38% of the respondents replied that the two aspects were “somehow aligned,” while 14% noted that they were not “aligned” altogether.
For your company to mitigate and lower high turnover rates, you must redefine your rewards program to align it with organizational goals. To promote employee retention, it’s paramount that you revamp your rewards program by incorporating a formalized employee recognition strategy.
You can realize this by, for instance, recognizing your top-performing workers with employee of the month plaques as a gift. That way, you can redefine your rewards program holistically, leveraging it to inspire workers and build meaningful workplace relationships. This indicates a positive relationship between employee recognition and retention.
Incidentally, most business organizations, including yours, understand how employee recognition relates to retention. That explains why boosting retention or lowering turnover is a primary objective for 60% of recognition initiatives.
As a matter of fact, 23% of enterprises leverage a reduction in turnover rates to gauge the success of their employee recognition and retention programs.
According to a recent study, inadequate or absence of recognition negatively affects how your workers perceive their workplace.
More specifically, about 82% of the American workers feel they aren’t sufficiently recognized for their role in the success of their companies. If not taken care of, this can easily increase your company’s turnover rates to an alarming level.
By developing an effective employee recognition program, you’ll ensure that your workforce is adequately recognized, motivating them to give their best in their job. Therefore, this demonstrates how employee recognition and retention are related.
5. Workers Who Get Promoted After Three Years Have a 70% Likelihood of Remaining in Your Organization
In a study that LinkedIn conducted involving 32 million employee profiles to develop a retention curve, a direct relationship was found between job promotion and retention. Promoting your top talent is often one of the most effective strategies of showing you recognize their input and contribution to your company.
On the other hand, workers who don’t experience a change in their job responsibilities have only a 45% likelihood of staying with your company after three years. Therefore, this indicates that promotions or career progression are a crucial recognition strategy besides the regular rewards and social recognition initiatives.
From the above statistics, it’s clear that there’s a strong relationship between employee recognition and retention. Therefore, depending on how your company orients its strategies, these two aspects can build or destroy your company. That’s why you must redefine your company’s recognition strategy to increase retention and reduce turnover.