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The Impact Recognition and Rewards has on Employee Turnover

If you want to keep your employees around, recognition makes a huge difference in retention. 

What is the connection between recognition and turnover?

BI WORLDWIDE conducted a study on the correlation between employee turnover among employees that receive recognition and those that don’t.

Does recognition work?

The 2015/2016 study revealed that among employees that don’t receive recognition, churn is as high as 43.9% compared to 26.2% among those that received at least one recognition throughout their eligible tenure. 

2015/2016 Employee Churn
Note: Only employees active in a program prior to 2015 are included to identify a static audience count from which turnover is calculated. Employees must have AT LEAST 6 months of eligible program tenure to be included.

Does how often employees’ are recognized matter?

As discovered, there is a link between the amount of recognitions employees’ receive and turnover. Data from the survey shows turnover decreases as the frequency of recognitions increases. A 10% reduction in employee turnover was found between employees that receive little recognition to those that receive it often.

Employee churn compared to frequency of recognition

Do rewards make a difference as a part of the employee recognition process?

In conjunction with recognition, receiving rewards also has an impact on decreasing turnover.

The BIW study uncovered that turnover is 4x higher among employees with low ‘recognitions with awards’ receiving rates compared to the highest rate of receiving recognition with rewards.

The most powerful rewards are ones that people can pick for themselves, it just makes sense. This is made possible by distributing points to employees that act as a currency, through recognition.


If you want to keep your employees around, recognition makes a huge difference in retention. Employees want to know that they are appreciated for the hard work and effort they put in daily to benefit your company.

Recognition isn’t hard, but it is more than just saying “thank you” - among many other things, it needs to be meaningful and it needs to be sincere. Along with saying you appreciate their hard work, show them too; after all, action is better than talk.

Rewarding employees for their hard work will reinforce positive feelings about the company, their job and the great work they have done, inspiring them to continue to do great things.

Recognize employees. Reward employees. Retain employees.