Your team is highly successful, they are achieving their targets and you’re set for the next quarter but you start to receive resignations from your top performers – Why?
According to a 10 year study by O.C. Tanner (Employee Recognition Software) 78% of employees resign stating lack of appreciation as a key factor. The report concluded organisations that most effectively appreciate achievement and excellence enjoy vastly superior profitability, and organisations with low recognition have low morale amongst employees.
While pay and bonuses must be competitive to attract talented employees, potential employees need to understand how their potential employers plan to retain them. It may sound harsh, however the demand for talent is at an all time high.
Financial reward can only go so far as we all have other intrinsic motivators and needs. The O.C Tanner study shows us a Manager’s ability to recognise employees talents and contributions in a purposeful manner will contribute to successful retention of talented employees.
When employee recognition is considered effective, managers:
We can therefore see employee recognition accelerates a leader’s effectiveness. Consider the story of Dee Hansford, former head of Walt Disney’s cast recognition department. During a year of no pay raises or bonuses, the theme park saw an increase of 15% in guest attendance and no additional hiring. A formula for a disaster? Well, employee job satisfaction rose by 15% as did business revenues. To achieve this, Disney trained their management team to deliver purpose-based recognition that wasn’t based on monetary reward.
For more information on attracting and retaining the right talent for your business, get in touch with JIE Search.
If you liked this blog, read our latest blog on Attracting Top Talent with an Employee Value Proposition.