Why Proper Employee Recognition Drives Retention


One of the biggest concerns for many companies is employee retention. If employees are constantly being replaced, too much time goes into searching for new talent and training new employees instead of actually getting the job done. Unfortunately, one of the most common reasons why employees choose to leave a company is because they feel underappreciated. Luckily, by better appreciating employees, these statistics can quickly fall. So, why exactly does proper employee recognition drive retention?

The Competition Will Always Fill the Under Appreciation Void

If a business owner or management team fails to recognize a job well done, the competition will fill this void. This can come in the form of higher wages, a more accommodating work schedule and other additional benefits. The odds of an employee looking to the competition for a job are greatly increased when a company fails to properly recognize those who go above and beyond.

Allows Other Employees to Strive for Better

By publicly recognizing employees, it allows other employees to strive for greatness. This can come in many forms, ranging from public acknowledgements at an appreciation lunch, to corporate plaque awards that can be hung up around the office. This way, the names of those who have worked so hard can be permanently enshrined on the walls of the company that they have given so much to. Seeing these things done can motivate other employees to work even harder so that their efforts are also noticed and similarly recognized.

Employees Want to Work Harder 

The likelihood of an employee who feels appreciated staying late to finish a project is far greater than the likelihood of an underappreciated employee staying late. The underappreciated employee may feel as if their work already goes unnoticed, so why should they sacrifice their private time if it continues to go unnoticed? Fully appreciating your employees builds a sense of family that just doesn’t exist when the relationship between a boss and employee is nothing more than a financial transaction.

Appreciated Employees Improve Business Performance

Given that appreciated employees are more likely to work harder, businesses that properly show appreciation are much more likely to succeed. Although going out of your way to appreciate employees may cost the company more money, it will likely pay dividends far greater than the initial investment. By avoiding excessive training and instead focusing on productivity, companies with low turnover rates can blow the competition away.


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