Employees Who Feel Appreciated Stay Longer
British performance-improvement agency P&MM has just released a report confirming the value of employee recognition programs. P&MM studied companies that have formal employee recognition programs. They collected and analyzed feedback from 12,331 full-time, part-time, and freelance employees with a range of responsibilities.
What they found was that employees who had never been formally thanked for their work by management or peers tended not to stay in their companies very long, leaving anywhere from an average of 4.7 years to 9.8 years. On the other hand, workers who had been formally recognized for their contribution stay far longer, with an average range of 8.16 years to 14 years, an increase of 3.7 years. In fact, say the study’s authors, “This sort of analysis provides a valuable insight for managers as it means that recognition program data can be used to highlight those staff who are a flight risk.”
High turnover is an expense few companies welcome. P&MM says that as much as a third of employees are likely to change companies in 2016, and that it can cost employers up to £30,614 (about $44,374 US) each time it happens.
P&MM’s analysis doesn’t suggest that just an occasional plaque or reward is a necessarily a panacea. However, P&MM’s John Sylvester says, “The data clearly indicates a propensity for individuals who are recognized to be more engaged at work, to go above and beyond and to have better relationships with managers and colleagues.’’
It makes sense. The emotional connection employees feel toward their companies is acknowledged to be a driver of high performance. And who would feel good about working hard and not being appreciated?