As the recession eases, and companies begin hiring again, there is optimism amongst organizations bringing in fresh faces and growing again. However, as we see employment numbers improve we see employee engagement steadily decreasing. According to Mercer’s 2012 Attraction and Retention Survey 60% of employers surveyed expect to see higher voluntary turnover as the job market improves. The survey also reveals that non-cash rewards play a significant role in motivating employees in their current positions and creating a culture of loyalty amongst employees by showing recognition and appreciation. Employees have come to expect merit based increases and cash rewards/bonuses for a job well done. However, supporting employees with non-cash rewards such as gift cards is effective because it shows an employer going "above and beyond" for their employees, and it provides a trophy value to employees when they get public, tangible recognition for a job well done. These kinds of tangible appeals that employees feel the impact of, whether the reward is a gift card for living expenses like healthy food for their families at
Whole Foods Market, or clothing for their children from
The Children's Place, or a dinner out at the
Cheesecake Factory. Employees remember this recognition and reward system, and show that same kind of respect and recognition by dedicating themselves to their organization, and growing within that organization rather than looking for outside employment opportunities. So as employers plan both their end of year compensation, and budgets for 2013, keep in mind the ROI that is evident for employee rewards, happy employees are productive and retained, which means your business' greatest asset, its staff, will be more stable and perform better.
For more information on the importance of employee engagement and the Mercer 2012 Attraction and Retention Survey check out this article in the Credit Union Times.