Remember back in grade school, getting that gold star on your test, or the encouraging comments written at the top of your assignments? As kids, we took that praise to heart, reveling in a sense of accomplishment.

Turns out, our individual need to be recognized doesn’t change much with age.

Gallup research shows that the number one reason most Americans leave their jobs is that they don’t feel appreciated. In fact, 65% of people in a survey said they didn’t get any recognition for the good work they did last year.

Moreover, another survey reported that 69% of employees say they would work harder if their efforts were better recognized. 

Unfortunately, gratitude is often overlooked.

Recognizing your employees is one of the easiest, yet most effective ways to keep engagement high (and keep turnover low!)

Still – not all employee recognition programs should be considered equal. Some methods are better than others when it comes to showing your team that you appreciate their hard work.

While many employers believe their ‘employee of the month’ initiatives are an easy way to motivate employees, new research indicates that these programs can actually hurt the company’s overall performance.

According to the study published earlier this year in Organization Science – This type of traditional recognition are counter-productive for business, as they affect perceptions of equity and fairness, which can demotivate employees who are internally motivated and don’t need this extra recognition to perform well.

If this is the case – what should you be doing as an employer? How should you let your employees know you appreciate them? What are the best employee recognition programs?

There’s a one size fits all solution here. Every organization is unique with its purpose, people, and culture.

Before we get into some ideas – There are a few, quick guidelines to be noted:

• All employees should be eligible for the recognition
• It should be clear what behaviors / results are being rewarded or recognized
• The recognition should occur as close to the performance as possible, so that it reinforces the behavior you want to encourage as an employer.

Even following those guidelines, there are lots of different ways you can recognize and reward your team:

Your employee did an outstanding job – Offer them some time off! Even just the afternoon. Everyone can appreciate some added R&R out of the office.

Okay – maybe your employee’s work was on the smaller scale. They don’t need a day off work, but you can still make them feel special. Make it public. Take to your company’s newsletter, Facebook, Twitter, or LinkedIn to let others know about their success - Great for employer branding as well!

Do you know your employee well enough to be personal? Do some digging into their interests or hobbies! Get them tickets to that hockey game, concert, or art show.

Did a whole team or department reach a milestone? Organize a dinner somewhere close by after work and let everyone celebrate their success together.

Finally – don’t overlook the value of a handwritten note. In this digital day and age, the effort involved in writing something thoughtful by hand doesn’t go unnoticed.

Still unconvinced that recognizing your employees is crucial to keeping them around? Check out our Real Cost of Hiring worksheet and see exactly what turnover will cost you.