Employee turnover is expensive. Gallup estimates that replacing leaders’ costs 200% of their salary, technical employees 80%, and frontline workers 40%— not including losses in morale and expertise.
Businesses in Australia can help reduce staff turnover using reward & recognition programs within a suggested framework for success.
Some Key Statistics:
· Companies with reward & recognition programs experienced 62% lower turnover rates.
· Gallup found that organizations in the top quartile for employee engagement experienced up to 51% lower turnover, 78% less absenteeism and 70% more employees thriving in wellbeing.
· Well-recognized employees were 45% less likely to have changed organizations two years later.
· 51% of all employees without recognition programs were watching for or actively seeking a new job
Strategic recognition generates Employee Engagement
Implementing quality reward & recognition should be incremental, well-defined and personalized with 5 key Pillars to success:
· Fulfilling Employee Recognition Expectations – the amount makes sense
· Authentic – owned not just ticking the box
· Personalised – one size doesn’t fit all
· Equitable – don’t play favourites
· Embedded – make it part of your culture
Employees who receive recognition that meets at least four pillars are nine times as likely to be engaged as employees. Employees who receive recognition that satisfies even one of the pillars are 2.9 times as likely to be engaged. So even simple Reward & Recognition programs drive employee engagement.
MicroGifts provides a simple online platform to enable any business in Australia to run a Reward & Recognition program that can easily sit within the 5 pillars framework with a minimum of administration involvement with no IT requirements.
Strategic Reward & Recognition using the five pillars framework is proven to help facilitate drastic, long-lasting improvements in both retention and employee engagement, two of an organization’s most vital outcomes in the modern workplace.