Why Recognition Is HR’s Top Tool For Retention

Why Recognition Is HR’s Top Tool For Retention

Organisations looking for ways to improve their recruitment and retention might do well to examine their employee recognition programs.

A new survey, Using Recognition and Other Workplace Efforts to Engage Employees, has confirmed that most human resource professionals believe that recognition programs have a positive impact on two of HR’s top challenges – recruitment and retention.

The survey, conducted by the Society for Human Resource Management (SHRM) and Globoforce, randomly selected 738 SHRM members with a title of manager or above from organisations of 500 or more employees.

Of the HR professionals polled, 68% agreed that employee recognition programs have a positive impact on retention and 56% said they also help with recruitment.

Employee recognition emerged in the results as the most common type of workplace program used to influence workplace culture, as cited by 80% of respondents.

This was followed by health and wellness programs (70%) and learning and development (68%).

A further 60% of respondents said their organisation celebrates their employees’ life events, such as birthdays, retirement or having a child.

Recognition programs that are tailored to the organisation were shown in the research to have the most positive impact.

Programs that are aligned with organisational values and integrated with the organisation’s talent strategy were most highly rated by HR professionals.

“Rewarding employees for performance that reinforces organisational values and contributes to the organisation’s overall business goals can help engage employees and create a purpose-driven culture,” said Tanya Mulvey, SHRM researcher.

“While monetary investment is also important, the research found it had a more positive impact when recognition was core to the organisation’s talent strategy.”

When asked about performance reviews, 71% of HR professionals said they conducted performance reviews annually.

However, the respondents also said reviews are a more accurate appraisal of an employee’s work when they are semi-annual or more frequent.

In fact, HR professionals were twice as likely to agree their organisation’s performance reviews were accurate when reviews were ongoing (90%) compared to being conducted on an annual basis (46%).

The accuracy of a performance review is also increased when it is expanded beyond just their line manager to include ‘Upward’ and peer group feedback.

A Competency and Feedback Assessment System such as CATIL® 360 obtains feedback from a range of key contacts, focusing on competencies necessary for the employee’s position.

With these objective, role-focused results, you are able to present the feedback to the employee in a meaningful way, paving the way for more productive discussions or coaching sessions.

How is your organisation using recognition to positively impact your recruitment strategy?

How could more accurate and objective performance reviews impact retention in your organisation?

Share your thoughts with us below, we look forward to hearing from you.

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