This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Break Out the Cake and Speeches: Workers Need Formal Recognition

NEW YORK ( TheStreet) -- A little cake, a little speech, a little bonus in the paycheck: If you want happier, more productive workers, make sure you recognize their career achievements formally.

If your firm is slow on the draw to show appreciation for their achievements, employees could reasonably think it's time to move on to greener, more benevolent pastures.

O.C. Tanner, a Salt Lake City employee services company, has the goods on this issue, but let's add a caveat: The company specializes in employee recognition, so it's in Tanner's best interest for such programs to flourish on the U.S. corporate landscape.

The firm links formal service anniversaries such as a 10-year or 20-year anniversary to decreased employee turnover and increased worker satisfaction. Meanwhile, Tanner points out, it costs firms up to 400% of a given employee's salary and benefits to replace that departing employee:
  • It costs 30% to 50% of annual salary to replace entry-level employees.
  • It costs 150% of annual salary to replace mid-level employees.
  • It costs 400% of annual salary to replace executive-level employees.

The Tanner data also show that companies who show workers a little love stand a better chance or getting more out of those employees.

According to the survey, 58% of employees who are recognized formally for key service and workplace achievements believe their company "cares about them." That's opposed to 39% who aren't generally recognized in the workplace and don't believe their company cares about them.

In addition, 69% of workers who feel they are properly appreciated say they "fit in" with their company, and this leads to increased stability for workers and their employers.

"[Our] study found that employees who work at organizations with effective service anniversary recognition programs plan to stay at their current company up to an additional four years -- thereby reducing hiring costs, delivering a strong return on investment and positively impacting workplace culture," says David Sturt, a vice president for marketing at Tanner.

So it's an easy equation for U.S companies: Show some appreciation and reap the benefits of a more stable and more loyal employee.

Because if you don't, another company down the road will.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.59 -0.97%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs