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Why is Recognition Important?

  • Companies that start recognition programs experience a 50% lower turnover rate.
  • 90% of voluntary resignations are due to feeling under appreciated by their managers.
  • Key employees cost on average 150% of their quarterly salary to replace.
  • Only 30% of employees will improve their performance after being criticized, but 90% improve after being praised.

Recognition programs are used to:

  • Create a positive work environment
  • Motivate high performance
  • Reinforce desired behaviors
  • Increase morale

In this economic climate, it is more critical than ever to make your staff feel recognized for their contributions. Harvard Management Update sought the advice of best-selling author and employee motivation expert Bob Nelson, who has worked with such companies as FedEx, Time Warner, and IBM, on how to best handle this...

"Recognition is most powerful when it's contingent. Companies will bring in doughnuts on Friday and give people cards on their birthday, and all of a sudden you've got an entitlement culture. If you do stuff just to be nice, people end up expecting more. So make recognition contingent upon desired behavior and performance; they'll value the recognition more and you'll get better results." Harvard Business Review

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