Recognition Frequency as an Indicator of Turnover

Every company CEO and HR specialist has surely read many articles and statistics on the importance of employee recognition and knows how plot-twisting it can be.

Employee recognition is a key component for enhancing employee performance. It encourages them to go above and beyond, unlocks productivity, helps to see that their efforts are valued and noted.

In fact, 37% of employees consider recognition as most important in boosting their productivity level (source: Forbes). Yet another statement which proved itself right many times. This automatically makes recognition the strongest engagement driver.

But recognition is not merely tied to performance and increased business outcomes. Appreciated employees develop warm emotional connections with the company which in its turn lowers the chances of turnover intentions.

These are surely the most important benefits that companies get when their employees feel appreciated and recognized. But this time we at Lucky Carrot tried to look at recognition from a completely different point of view.

Since day One we’ve been asked a lot: What does recognition say in numbers? So, now it’s high time we answered it.

Having all the necessary data we can not only measure its effect on the employees and their performance but also make predictions based on the lack of recognition or even identify red flags that companies need to take into account. That is to say, low recognition frequency gives hints and now it’s measurable.

So, after continuous analysis, we came to a very interesting conclusion.

What Does Recognition Say in Numbers?

After studying the symmetry noticed in all companies using Lucky Carrot, we can state that the 80% of employees who left their job received 2 times less recognition from their peers in the last 3 months compared to the company average and the average recognition they received before.  

This comes to prove that those employees who started receiving less recognition are in the risk zone and are likely to leave their job. Of course, this is not a 100% indicator of quitting as there can be many other reasons for not getting recognition, but this is an important point to pay attention to and even take action beforehand.

Now let’s understand how comes that turnover intentions are reflected on recognition frequency.

The peer-to-peer recognition model is highly effective due to several factors, especially when it’s linked to company values. These programs do not simply enable employees to appreciate one another’s hard work, but they also allow them to give recognitions based on the values the company wants to promote (Ownership, Teamwork, Quality, etc.). In this case, employees’ actions become aligned with those core values making them rather a habit and the basis of their working ethic.

Now that an employee no longer receives recognitions on those values which he/she should have still carried, in most cases it directly pinpoints a problem with performance. So, these value-centered recognition models like ours can easily reflect employee experience.

Another factor that makes this recognition model much more effective is that employees themselves recognize each other. Peers spend most of the day together, they are more connected to each other and know about daily challenges and obstacles better than anyone else. These meaningful recognitions not only make the bonds among employees stronger, and develop a sense of belonging, but also make performance-related details visible to the whole company.

Going back to our point, 3 months is quite a long period of time to get less recognition than average. There can still be other reasons for it, but our analysis mostly pinpoints turnover intentions.

Having intentions to leave and being in a process of looking for some new opportunities in other companies, without doubt, affects employees’ motivation to stay engaged, go extra mile, or be involved with the team.

As a key engagement driver Employee Recognition should become an inherent part of any company culture. Celebrate your employees and their achievements, inspire and uplift them. Otherwise, they will leave, as in many cases, lack of recognition becomes that decisive point helping to make the final decision to quit.

Its importance can no longer be questioned but choosing wisely and using the right employee recognition program makes a big change, as every detail about recognition and its frequency enables to make data-driven decisions.  


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