A fundamental part of employee retention

Employee recognition is a fundamental part of employee retention. Employees who work for companies with well-organized forms of employee recognition are more likely to show indicators of job satisfaction, as long as the program is consistent, regular, and offers everyone a fair chance to be recognized. Therefore, companies must identify their hardworking employees effectively because it reduces employee turnover rates, improving company performance.

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Failure to recognize one’s employees is much more costly than one thinks, as it makes them feel undervalued, which in turn affects their job performance because they lose their love for the job. When employees quit their jobs, It’s not always because they’re underpaid or overworked; more often than not, it’s because they feel underappreciated and unloved. According to a recent Gallup poll, 65 percent of employees claimed that their manager had given them no acknowledgment in the previous year (“How to Stop Losing Your Employees”). Consequently, such high rates of employees feeling undervalued leads to them being under-engaged in their work, affecting an organizations’ performance. Additionally, Gallup discovered that world-class organizations had nine engaged employees (“How to Stop Losing Your Employees”). Employee unrecognition makes them feel undervalued, which causes them to disengage from their jobs. Therefore, unrecognizing one’s employees leads to poor work performances affecting the overall company.

Additionally, employee recognition significantly reduces turnover because rewarding makes them reinforce positive feelings about their jobs, thus increasing retention. According to a recent study, there is a 10% reduction in employee turnover between employees who receive minimal praise and frequently receive it (Buzeti et al. 4). Recognizing employees makes a significant difference in staff retention. Employees want to feel valued for the time and effort they put in daily to help the firm. Therefore, employee appreciation helps to minimize turnover by reinforcing good sentiments about their employment and thus boosting employee retention.

Overall, it is critical for businesses to recognize and reward their diligent employees since it lowers employee turnover and improves corporate performance. Failure to acknowledge one’s employees is far more expensive than one may imagine since it makes them feel devalued, which affects their job performance because they lose interest in the job. Furthermore, employee recognition decreases turnover since rewarding employees promotes good sentiments about their work, resulting in higher retention. Therefore, if one wants to keep their employees, recognition is the sure way to go.

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