Increase Employee Loyalty Through Employee Recognition: 10 Low-Cost, High Reward Strategies

Employee recognition programs are a cost-effective way to increase employee retention and morale. High turnover at a company can lead to reduced productivity, low morale, and difficulty in recruiting quality candidates. This is why it is essential for a business to create and maintain a valuable and loyal workforce. Here are 10 low-cost, high-reward strategies that can help cultivate a culture of recognition and reduce turnover.

What is Employee Recognition?

Employee recognition is the acknowledgement of a person’s contribution to an organization’s goals or values. The recognition can be formal or informal, public or private, but should be frequent and timely. 

Why is Employee Recognition Important?

Studies have shown that employee recognition is an important way to increase employee engagement and satisfaction. With the growing popularity of remote work, employees have even more options when it comes to their jobs. A Dice Tech survey found that two thirds of workers believe they could find a better job in less than 60 days if they were looking. This means it is more important than ever to have an employee recognition program in place. 

Employee recognition is strongly correlated with higher employee productivity, lower turnover, and absenteeism. One study found that a simple ‘thank you’ from a person of authority increased productivity by 82%.

10 Proven Employee Recognition Strategies

1. Make recognition specific and relevant. Vague or generic statements may seem less sincere.
2. Timing matters. Give recognition promptly after the employee has done something worthy of recognition.
3. Align employee recognition to your company’s core values and goals. This way, the recognition program does not clash with other parts of company culture and policies.
4. Recognize top performing groups rather than one individual. Praising teams that have worked well together can boost morale and increase productivity among all members of the group, which benefits the company.
5. Celebrate both small and large wins. This keeps the culture of recognition growing and reduces the amount of time between celebrations and keeps positivity flowing.
6. Tailor recognition to the recipient’s personality. Some may like having a big announcement during a meeting, while others may prefer a thoughtful email.
7. If you attach a reward to the recognition, offer the employee choices to ensure they like what they get.
8. Use gamification and competition to engage employees. This can help provide motivation to participate in the employee recognition program.
9. Recognition is most meaningful coming from leadership. Learning how to give effective recognition to staff should be a part of all leadership training.
10. Celebrate important employee milestones, such as work anniversaries or the successful end to their first large project. This tells the employee they are appreciated and promotes company loyalty.