I read a piece from John Sylvester recently that said the Number 1 reason employees leave a company is from lack of recognition.
Not sure if you would all agree with that, as some managers I’ve recently talked to say their people are leaving for more money. But isn’t that exactly the same thing? If they want to leave for more money, are they really saying that you do not recognise their contribution and they want to go to a company that does?
A recognition scheme can help you to improve retention and morale by giving your employees a sense of belonging and a feeling of actively contributing to the success of a wider team.
A well thought out recognition scheme can help you to:
• Reinforce employee actions to mirror company values
• Promote your brand
• Foster a sense of belonging and a recognition culture
• Reduce recruitment costs – the average cost per employee currently stands at £8,200
• Empower line managers to award positive behaviour
• Improve customer service levels – For every 1% increase in staff loyalty a 0.5% increase can be seen in customer loyalty – (Study by Harvard Business School)
• Create a more productive team
• Reduce attrition
A good recognition programme will include awards and merchandise incentives, rather than simple money bonuses. Cash incentives could cost up to 6 times as much as non-cash incentives and provide similar results. Over time employees come to expect cash incentives and as such, rather than recognising performance that goes above and beyond the norm, cash incentives lose their value over time.
So you need to identify what kind of things will not only motivate your teams but also provide the recognition they are looking for.