Employees are the most valuable asset of any organization, and thus recruiting and retaining the best talent is at the forefront of every CEO’s agenda. Some industries and some roles show higher employee turnover than others, but minimizing top talent turnover is key to all companies.
But this can be a costly proposition. Employee replacement costs can be as high as 400% of the departing employees’ annual salary, based on several factors such as skill level, tenure, role, training requirements, the availability of adequate talent, and learning curves.
According to the Society for Human Resource Management (SHRM), the top three reasons why employees leave a company are:
- Lack of recognition for their work effort by the company and/or their supervisor
- Employees’ lack of awareness of their impact in the entire organization
- Employees’ perception that compensation is not on par with their expectations
A 5% increase in employee retention can generate a
25% to 85% increase in profitability
Source: Harvard Business Review
41% of customer loyalty is attributed to positive employee attitudes
Source: MCA Brand Ambassador
70% of brand perception is determined by experience
Source: Ken Irons, Market Leader
The good news is that these issues can be minimized if the employer provides recognition programs with these concerns in mind. There are a number of specific employee reward programs that address these issues in a cost-effective manner:
- Years of Service or Anniversary
- On-the-spot Awards
- Training or Certification Incentives
- Peer-to-Peer Recognition
- Yearend Bonus or Holiday Gifts
These programs provide employees with a tangible sense of appreciation and can apply to everyone in the company. The key requirement of these Employee Incentive programs is to make sure that the communication is in place so that when an employee is recognized it is effectively communicated to all their peers, whether through an email or a post in a company Intranet that everyone has access to.
For financial compensation, we provide a cost-effective solution in the form of a company-branded prepaid Visa®, or MasterCard® Rewards Cards that can be reloadable as needed. This way the employee will keep that card with them as a constant reminder that the company cares about them and they will continue to be rewarded for their loyalty and dedication.