It’s also well understood that increasing recognition giving within the workforce has a number of bottom-line business benefits, including reducing voluntary turnover.
High employee churn is a key issue for businesses large and small, with enterprise-level firms dealing with the ongoing cost of recruitment and small companies struggling to attract and retain talent.
In fact, the latest Growth Europe research report placed recruitment as the primary challenge for businesses across Europe, far ahead of even Brexit.
Yet with Forbes finding that increasing recognition can see staff turnover rates drop by almost a third, there is plenty if causal evidence linking showing timely and authentic gratitude in the workplace to beneficial outcomes on the employee retention front.
But what is that link? First, let’s start with how a lack of recognition can negatively impact turnover.
A lack of recognition
For older generations in the workforce, regular recognition and feedback weren’t expected. In fact, no news was often good news when it came to the relationship with higher-ups and job security.
But this has been one of the biggest shifts in the workforce over the last 20 years, with millennials and now Gen Z requiring far more frequent positive feedback.
What happens when that regular recognition doesn’t take place.
Employees can feel a lack of security in their current position and become unsure if they’re on the right track. They also may feel that they aren’t learning or progressing quickly enough to sustain long-term engagement.
Read more: A lack of appreciation is the reason two in three employees are considering quitting their jobs
Most importantly though, they don’t feel appreciated by the organisation they’re giving their all too. They don’t feel they’re contributing to the overall success of the business.
These are all critical reasons that can cause top performers to start looking elsewhere where they feel their contributions will make a difference, be noticed and thanked.
A culture of appreciation
You can’t build a culture of appreciation without enhancing the recognition conversation and integrating it with the daily conversation of the workplace.
Increasing recognition ensures that every employee understands how their contributions are adding to the overall success of the business. They’re not working meaninglessly in a silo. Their actions and behaviours are having a direct impact on the success of the entire business.
This is an extremely powerful feeling, it drives productivity and that intrinsic desire to go above and beyond to succeed.
Recognition also builds greater bonds between colleagues and also management, increasing trust within those relationships and encouraging greater participation too.
When an employee feels appreciated, understand how their contributions are influencing business results and form strong relationships with colleagues, they feel like they belong.
Voluntary turnover decreases, your top workers remain and everyone within the organisation is aligned with its mission and purpose.
Employee recognition programmes
The advent of online recognition platforms has made it easier than ever for organisations to make recognition frequent, genuine and easy, reducing the burden on management to be great at noticing great behaviours and finding the time to adequately recognise them.
Learn more about Fanclub’s recognition platforms and building a culture of appreciation in your workplace here.