Employee recognition to ensure employee retention

Employee recognition is not simply a nice gesture, but an effective communication tool which reinforces and rewards the most significant outcomes people create for your business. Effective employee recognition programs reinforce through a specifically chosen method of recognition, the behaviours and actions that you want your employees repeat.

The Society for Human Resource Management (SHRM), the world’s largest association devoted to human resource management recently revealed that as the job market improves, the turnover rate will rise significantly. [1] Retaining your best and most desirable employees is a major challenge for organizations.

When you consider recognition programs and methods, which are critical to the success of your organization, you need to offer recognition awards and gifts that will specifically motivate and reward your employees

Employee retention to benefit your organization
Employee turnover is not only poor for morale but it is costly to your organization’s bottom line, workflow and customer service. Here are some of the effects of employee turnover:
1. Cost: Employee turnover costs money! Hiring costs, training costs and loss of productivity. Although difficult to fully calculate, costs associated to a turnover range from 25% of the employee’s salary to 200%!
2. Knowledge: Upon departing, an employee not only gathers their personal effects, but inevitably takes with them precious company, current projects and customer knowledge. When an employee leaves your organization, the time and money that was invested in anticipation of a future return is not achieved.
3. Customer service: Business is built on relationships. When an employee leaves, a relationship with a customer may be temporarily severed and lead to potentially losing a customer.
4. Morale: The impact of an employee’s departure resounds throughout the entire organization. Co-workers not only frequently pick up additional work, but questions concerning workplace satisfaction may be intensified for the employees left behind.
5. Bad press: An organization with a high turnover rate is often identified as such. High turnover rates are not a motivator for potential employees to join your company.
6. Efficiency: A resignation is accompanied by the future hiring and training of a new employee. The time and energy spent is not often taken into consideration on the bottom line, but the new employee’s efficiency cannot be guaranteed.

Avoiding employee turnover
Here are some key employee retention tips:

• Offer attractive and competitive benefits packages (components such as life insurance, disability insurance).

• Respect employees, listen to them, request and use their ideas.

• Award recognition; recognize performance, praise good efforts & results, and ensure that employee recognition awards are individualized and publicized

• Allow employees to balance their work and personal life (flexible work hours and core business hours)

• Identify and reward excellent performance (employee recognition programs, bonuses, salary increases, recognition awards)

• Recognize and celebrate success and landmarks (years of service awards, days without accidents, sales awards)

• Supply opportunities for career and personal growth (training, education and demanding projects)

• Share company goals, employees’ roles and responsibilities so that everyone is aware of what is expected

Employee recognition is a critical path to employee retention. Employee recognition programs and recognition awards are one of the easiest ways to acknowledge your employees’ hard work. Not only will it help you retain your valued staff, but it will also boost your entire team’s morale and increase productivity. Williams specializes in the implementation and administration of custom employee recognition programs and service award programs. Contact us for more information about our many employee recognition programs, long service awards, sales awards, retirement gifts, insignia and unique championship rings.

http://www.articlesbase.com/human-resources-articles/employee-retention-995426.html
http://humanresources.about.com/cs/retention/a/turnover_2.htm