Study reveals recognising employees' good work is key to better retention rate

A research report emphasized on the power of recognition to make employees feel more valued and stay in the organisation.

The sad demise of 26-year-old CA Anna Sebastian Perayil became a wake-up call for professionals and companies, sparking discussions online with people sharing their stressful work experiences. Her mother alleged that work stress and long working hours caused her death.

Recognition helps the employee feel empowered in the workplace. (Pexels)

A research report published by Gallup and Workhuman revealed that high-quality recognition is the key to retaining employees and making them feel valued.

Recognition is important

The report found that employees who receive meaningful recognition are less likely to leave the organisation. And those employees who feel well-recognized were 45% less likely to leave after two years. Employee retention by valuing them is beneficial for the organisation too. It removes the additional costs of replacing the employees and filling the vacuum in the roles. The company culture gets disrupted by the lack of employee continuity. When employees are acknowledged, they feel connected to the organisation more. This organic connection is the bedrock of the organisation’s culture. Those who are connected, form a bond and stay longer in the organisation.

The gap in belief and implementation

As per the report, senior leaders believe in the value of recognition. In fact, in 2024, senior leaders are 50% more likely to agree about the positive correlation between employee retention and recognition, than back in 2022. However, this belief is not translated into everyday interaction with their subordinates. Recognition should not be lip service. Even in 2024, only a meager 22 % agree that they receive adequate recognition for their work. To narrow this gap, senior leaders should also focus on the delivery of the recognition, by making it high-quality, meaningful, and consistent.

5 pillars of recognition

The report identified 5 pillars that strengthen the power of recognition, making it more effective. To maximise the impact and foster a positive relationship with the employees, 5 key strategies for recognition need to be adopted.

1. Fulfilling Employees' Recognition Expectations: The recognition should align with the employee expectations to come across as impactful. The amount should be proportionate with the goals met. Employees when they feel undervalued with poor recognition feel dissatisfied at work. Or too inflated praises skew their perception of work outcome and recognition. By maintaining the recognition’s proportion with the work, employees understand and feel valued.

2. Authentic: Genuine and honest recognitions are more likely to be accepted and appreciated. The sincerity of honest acknowledgment helps to gain trust. Recognition should not be treated like an obligation. It then loses its meaning to the employees.

3. Personalized: Recognition has to be tailored to personal performances. Generic recognition lacks the warmth of true and personalised recognition. Personalised recognition makes the employees perceive that they stand out before their leaders and develop a deep understanding.

4. Equitable: Eliminating the bias, recognition needs to be fair. It inculcates a sense of inclusivity. By playing ‘favourites’ with recognition, employees feel disconnected and alienated. It reflects that everyone has the opportunity to feel valued and get praise regardless of their backgrounds.

5. Embedded in an organization's Culture: Recognition has to be an essential element of the culture. The culture of positive recognition creates a holistic and motivating work environment. The integration of recognition in company culture in everyday ensures that positive acknowledgments are not bound by hierarchies, and every employee can feel valued.

Recognition with feedback

Recognition needs to be dynamic, and coupled with meaningful feedback to help the employees improve themselves. Feedback brings clarity to their work outcomes, and is the practical side of recognition. While recognition bolsters the emotional connection, feedback is crucial for work performance. According to the report, employees who receive feedback are 57% less likely to experience work burnout, while 48% less likely to be looking for another job.