10-03-2024
Gallup and Workhuman recently evaluated the relationship between recognition and turnover by tracking the career paths of 3,447 employees from 2022 to 2024. The results of their research provide insight into one of the more pressing issues facing employers today – retention of valuable employees.
A report from Mercer earlier this year shows that the average voluntary turnover rate in the US from 2023 to 2024 is 13.5%, excluding retirees, volunteers, and contractors. Additionally, Gallup reports that replacing a leader or manager can cost up to 200% of their salary and well‑recognized employees were 45% less likely to have turned over two years later. The 2024 Work Trend Index Annual Report from Microsoft and LinkedIn survey of 31,000 people across 31 countries showed that 46% of those surveyed say they’re considering quitting in the year ahead – even higher than the 40% who said the same ahead of the great resignation post-pandemic. LinkedIn studies show a 14% increase in job applications per role since last fall, with 85% of professionals considering a new job this year.
Key takeaways form the Gallup/Workhuman study include the finding that employees who receive valuable feedback about their performance are five times more likely to be engaged. In addition, employers who encourage their employees to learn new skills often find that those employees are 47% less likely to search for other job opportunities. Coupling feedback with recognition – including peer to peer input – not only increases engagement, but also serves to decrease burnout as well.