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Appreciation - A Tool For Employee Retention!

In this post I'm gonna share brief notes on Why Employee retention is important for any organization? What are the various Employee retention approaches? And, How can Appreciations at work help retaining employees?

Why Employee Retention?

Employee Retention is one of the most crucial work areas for HR people. Some of the reasons why higher retention rate is important for any organization are as follows:
It saves re-hiring and training costs.
It helps better utilization of an employee’s potential & to get fair / good return on training and hiring costs invested in them. No company wants to invest its time and money to train people for its competitors.
It strengthens employer- employee comradeship
It helps better adjustments to organizational changes because people are familiar with and have better understanding of Company policies, guidelines, culture and functioning.
Longer stay equals to higher loyalty
It gives assuring impression of the company to new joiners and people outside the organization
Retention of good talent and skills result into good company growth

Employee Retention Approaches

Employee Retention program incorporates various methods and strategies. Different approaches work for different organizations. HR people are not hesitating being innovative to make it work for their organization these days. However, some of the common grounds for all include:
Competitive Pay,
Employee Benefits / Perks,
Employee Assistance programs,
Rewards and Recognition,
Skill Enhancement Opportunities

How does Appreciations at work help Employee Retention?

Appreciations motivate people to perform better. It’s been confirmed in numerous researches and studies on the topic.

Good performers do leave organizations where their work is not recognized or appreciated all the time. Fat salaries, perks, big names sure have impact on employee’s decision to stay with an organization but those are short-lived motivation. There are always going to be better offers in the market to lure talents. But Appreciations and acknowledgment practiced in everyday work life has long-lasting positive impact for employee retention.

According to Professor Norihiro Sadato, the study lead and professor at the National Institute for Physiological Sciences in Japan, "To the brain, receiving a compliment is as much a social reward as being rewarded money”. 

Chemically speaking, when one is complimented and feel pride in his work, the brain releases Serotonin chemical. It makes them feel good and Happy!

So basically Appreciations / acknowledgments from authorities and peers lead to a happy state of mind which further leads to better performance.

Terms and conditions for practicing Appreciations:

However, it’s important that the appreciations being given are Genuine and Sincere. Shallow praises may backlash and cause unnecessary meddling with employee’s trust.

Appreciation Approaches

Appreciations can be shown in many ways at work, some of it may include:
Listening to their ideas,
Freedom to be innovative and make mistakes,
Trusting with challenging responsibilities,
Involvement in decision making,
Financial rewards,
Public recognition,
Personal recognition,
Interest in their personal / professional growth

Appreciation is a continuous process and needs to be practiced in day to day work life at both authorities as well as peer level. When employees enjoy their work and the environment they are working in, they are more likely to stay long with the company.

As Maya Angelou says:
"I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel."