27 Jun Attrition Rate Is 3.3% Higher At Firms That Don’t Offer Recognition Programs
According to a study of 573 human resources professionals and 261 employees, companies experience a much higher turnover rate if they do not offer recognition and rewards programs.
Specifically, companies with subpar appreciation programs have an average attrition rate of 10.5%, compared to the 7.2% attrition rate at companies with top-notch programs. The study, conducted by the research and advisory firm Bersin & Associates, also showed that to be an effective program, rewards and recognition must be given to employees for achieving business goals or exemplifying the company’s mission and value, rather than focus on tenure. Unfortunately, 87% of the HR professionals who took part in the study said their company’s recognition programs focus on tenure.
So how can you boost employee morale? The study showed that most employees value recognition that speaks to a specific action they took rather than general praise for a job well done. Also, recognition doesn’t have to come from managers for it to have an impact. It can come from co-workers, too.
If you would like help in implementing recognition and rewards programs in your organization, contact a Prestige HR Business Partner.