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How can employee recognition help reduce attrition
Mandar Bhagwat | March 21st, 2018, 8:00 am

With Millennials stepping in the workplace in larger numbers than ever before, job hopping appears to have increased significantly. Most companies have several plans in place focusing on How to Reduce employee turnover. Although, it would be unfair to directly attribute this increase in attrition to one specific generation, let’s face it,work environments have changed from the past couple of decades and millennials are one of the reasons for the change.

How to reduce employee turnover?

If your organization is facing high employee turnover, then what can you do to reduce it. There can be many ways to reduce employee turnover. But, one of the best ways is investing in employee recognition. Employee recognition can help to reduce employee turnover significantly in your organization.

Earlier, people wanted stability in their jobs whereas today they seek to work in environments where they can get better job satisfaction. Salaries and benefits are not the only criteria that satisfy them.

People want a more caring workplace that actually values and appreciates their contribution to the company. It makes them feel more committed to a company that reciprocates this feeling. If they feel that their efforts are not being recognized, they do not hesitate to look for better options. Such companies can be easily identified as employee engagement levels are dismally low in the workplace. Check for Glassdoor reviews (or similar platforms) and you will find that most ex-employees were not happy. Employees here appear to work for the sake of it and just want to get the bare minimum done so that they are paid on time.

Hence, attrition rates seem to be at an all time high these days. However, there are certain measures that a company can take to make sure that this situation does not arise.

Out of all the employee engagement initiatives in the organization, employee recognition has been proven to increase satisfaction levels significantly. In our previous blog, we spoke how employee recognition practices can help a company attract the talented bunch of individuals. On the same lines, it can also help to reduce attrition in the company.

Appreciate employees for all their hard work and accomplishments and you will see a dramatic increase in their engagement towards your company.

Here are some of the ways employee recognition can help reduce attrition in the company:

Increases engagement:

Recognition is one of the biggest motivators for employees to stay committed and become more productive in their work. They are more likely to strive towards the achievement of company goals when the motivation is intrinsic.

Improves relations:

Apart from managers appreciating performance of their team members, enable peer to peer recognition so that employees can appreciate their team members as well. This will help you to improve the relation between your team members. It will also encourage them to help each other overcome obstacles and achieve their goals in collaboration.

Increases happiness levels:

Give credit where it’s due and you will see that employees are more than happy to give their best. Being recognized in front of everyone raises happiness levels significantly thus making the job all the more enjoyable. It could be difficult but at least the employee will not do it begrudgingly but willingly. Plus, once individuals see that their peers are being appreciated by their managers, it will also increase their desire to perform better to receive this admiration publicly.

Promotes fairness in the workplace:

If the company is able to introduce a fair recognition policy where there is minimum scope for subjectivity, then there will be hardly be any chance of favoritism. Everyone who gives their best will have an equal chance of receiving positive recognition as bias will be eliminated. Another aspect is, office politics will reduce and individuals will refrain from sabotaging the work of their colleagues to get ahead.

Recognition based incentives:

Incentives are a good way of increasing engagement in the organization and have become a standard practice in most companies, particularly for the sales department. However, if these incentives are recognition-based and every department becomes eligible for it, then it gives everyone a fighting chance to succeed and earn these incentives previously enjoyed only by sales teams. You might also like to read 4 ways an employee recognition platform improves your employee engagement


When you inculcate recognition in your culture, make sure that you do not limit yourself to recognizing only based on completion of tenures! Most companies associate recognition with duration in the company. A recognition rich culture should be all about instant positive feedbacks shared in public. In case of negative feedback, they should be given privately. It should be based on specific results and behaviours that are expected to be replicated in the future.

With practice, the company will be able to reap the benefits of this culture and reduce attrition rates to a great extent. At the same time, employees will find it better to work in such a supportive environment.

I hope this blog post has given you idea about how to reduce employee turnover through employee recognition. And you will implement some employee recognition program that will help you to reduce employee turnover in your organization.

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Pozitive” a Product Division of SpadeWorx is next step in taking forward our mission - “Employee Engagement To Drive Productivity & Innovation”. We have been privileged to work with lot of customers over the last decade and have learnt a lot when it comes to the increasing importance of Employee Engagement as organizations are getting on the digital transformation journey.

Increasing Employee Engagement requires a cultural transformation at many organizations and we believe reimagining recognition is a good start. For this purpose, SpadeWorx launched “Bravo – Workplace Recognition Reimagined

With our research, surveys ,participation in expos and conferences a very clear message has emerged which is voiced by thought leaders in HR space that Culture is the most important catalyst in a company for vibrant and positive work place which can bring increased productivity and efficiency.

Bravo is aimed at promoting desired cultural traits which is so very essential for strategy execution.