It鈥檚 great when the bottom line and golden rule line up. For example, keeping good
employees happy is cost-effective, and churn is costly. In fact, the Society for Human
Resources Management (SHRM) estimates that on average, losing a salaried employee
costs a company the equivalent of up to nine months of that worker鈥檚 salary. One do-unto-others
tactic that is golden for your bottom line is fighting employee turnover by showing appreciation.
Recognition Versus Appreciation
In an article titled 鈥淭op 10 Reasons Why Employees Quit Their Jobs,鈥� the last thing writer addresses is employee recognition. In fact, the article notes that employees did not rank recognition among the top 14 concerns cited in a SHRM survey done in 2017.
Being the last issue referenced in the Balance article definitely does not make the recognition issue the least important, even by SHRM鈥檚 lights. Consider this bullet point from the SHRM-Globoforce survey on 鈥渆ngaging employees through employee recognition and other workplace efforts,鈥� done in 2017:
鈥淩etention/turnover was the top workforce management challenge cited by 47% of HR professionals, followed by recruitment (36%). Most respondents agreed recognition can help create a positive workplace culture and employee experience, and more than one-half said their program positively affects retention (68%) and recruitment (56%).鈥�
In terms of employment/employees, 鈥渞ecognition鈥� and 鈥渁ppreciation鈥� often are used
synonymously, but there are important differences.
Recognition Is 鈥�
notes that 鈥渞ecognition is about giving positive feedback based on results or performance.鈥� It takes the form of bonuses, raises, promotions, or kudos. The article also notes that recognition is conditional:
- It is performance-based.
- It is recognition of deeds.
- It is scarce because it鈥檚 limited by resources.
- It typically comes from the top down.
The article also says recognition can backfire. It cites a London School of Economics
finding that 鈥渢hese incentives may reduce an employee鈥檚 natural inclination to complete
a task and derive pleasure from doing so.鈥�
Appreciation Is 鈥�
Per the same Review article, appreciation is about a person鈥檚 inherent value, 鈥渢heir worth as a colleague and a human being.鈥�
Appreciation isn鈥檛 expressed through pay increases or bonuses, though fair compensation is a policy that can positively affect turnover. Appreciation can be expressed effectively, per the article, by:
- Listening. It doesn鈥檛 get much simpler than this or more effective.
- Noticing. This is about positive recognition of deeds and traits.
- Checking in. This is as simple as 鈥淗ey! How are you doing?鈥�
The author of the Review article is Mike Robbins, an author, speaker, and consultant. Here鈥檚 his closing thought:
鈥淩ecognition is appropriate and necessary when it鈥檚 earned and deserved. Appreciation,
however, is important all the time.鈥�
Tools and Strategies for Keeping Employees
There are distinct differences between employee appreciation and recognition, but
there is a lot of shared space, too. These ideas, strategies, and tools for motivating
and keeping employees live in that shared space:
Ideas
The software company touts:
- Employee appreciation days and events.
- Bonuses and treats. The cash is a sweetener, and goodies such as T-shirts and grub bring smiles, too.
- Employee recognition wall. Post kudos from management, and leave space for co-workers to weigh in.
Be sure, eFront says, to make recognition programs all-inclusive, and reward positive
deeds and behavior in a timely fashion.
Strategies
says, 鈥淓mployee recognition programs were rated higher by HR when they were aligned with organizational values and talent strategy. Monetary investment is also important, but it had a more positive impact on employee recognition program ratings when recognition was core to the organization鈥檚 talent strategy.鈥�
praises four companies 鈥渢hat have nailed their employee recognition strategy.鈥�
Zappos
The essence of the e-commerce chain鈥檚 strategy is a wherein recognition comes from co-workers and team members. The aim is to boost engagement
and build a positive culture of teamwork. Elements include Zappos Dollars earned for
training participation; personalized and location-centric rewards; peer-to-peer bonuses;
and HERO awards, including a HERO Cape.
GE Healthcare
The provider of medical goods and technologies embraced continual communication in
its recognition strategy, exemplified by its Employee Forum and weekly meetings, and
made employee recognition a formalized part of monthly team briefs and six-word employee
success stories presented as posters.
E.On
The German utility company created a Buzz recognition program that encourages personalized recognition via digital and physical thank-you notes. The flow of the plaudits is vertical and horizontal, designed to 鈥渃ut across organizational hierarchies.鈥� Results include:
- An increase in the staff motivation score from 61 percent to 69 percent
- Employees 鈥渇eeling valued鈥� rising from 39 percent to 52 percent
- Employees鈥� clarity on E.On鈥檚 business vision going from 57 percent to 75 percent
Apple
Elements of the digital giant鈥檚 recognition/appreciation program have included a week off during the winter holiday season and three days for Thanksgiving. The perks are personalized, too, adapted regionally, culturally, and according to duties:
- Employees in retail or other holiday-sensitive positions are given equal time off at other times.
- Cultural differences are recognized by giving equal time off to employees who celebrate
in other ways at different times.
Tools
It鈥檚 time to think beyond manager-driven and peer-to-peer recognition/appreciation. Consider:
- and exit interviews can shape strategies based on why employees are still with you and why they are leaving.
- Digital tools include employee recognition software, from Blueboard and Preciate to Motivosity. (See system reviews on the .)
- Personal touches that exceed expectations, such as a handwritten thank-you note.
Here Are Some Ways to Make Every Day an Employee Appreciation Day
Officially, Employee Appreciation Day is the first Friday in March, but don鈥檛 make your only nod to an employee鈥檚 value a 鈥渨orld鈥檚 greatest employee鈥� coffee mug given on March 6 (that鈥檚 when it fell in 2020 鈥� the day, not the mug).
Crunch these numbers from SHRM: About 41 million people quit their jobs in 2018, representing an 8 percent year-to-year increase. The Work Institute, a Tennessee-based company, projects the number will be 47 million in 2020.
The cost? estimates the average cost of turnover per employee is $15,000.
Here are a dozen ideas from random sources for showing employees they鈥檙e appreciated:
From The Balance Careers
- Learn their interests.
- Offer flexible schedules.
- Create a fun tradition.
From TINYpulse
- Use your company鈥檚 social media sites to recognize employees.
- Let employees use a floating holiday for their birthday.
- Have an in-office trophy that鈥檚 awarded for, say, embodying organizational values.
From SnackNation
- Test recognition ideas by surveying your employees.
- Recognize your team members by recognizing their passions.
- Commission custom oil paintings of employees.
From Business News Daily
- Initiate a system.
- Offer fitness opportunities.
- Feed them.
At day鈥檚 end, treating employees well is good business 鈥� and there鈥檚 that golden rule thing. It鈥檚 also a facet of good leadership.
鲍厂贵鈥檚 Office of Corporate Training and Professional Education can give you an edge if your goal is to improve your leadership skills. CTPE鈥檚 new Corporate Leadership Program is tailored to the needs of aspiring, first-time, and director-level managers.