Employers that offer their employees non-monetary rewards should achieve higher rates of retention than those that do not.
A survey of 1,000 employees by GfK NOP found that a higher percentage of staff planning to quit their jobs within the year work for line managers who do not provide non-monetary rewards (44percent) than those who work for managers who do (25percent).
In addition, more than half (51percent) of employees who receive non-monetary rewards intend to stay in their job for the foreseeable future, compared with just 32percent of those who do not regularly receive such an incentive.
Despite the fact that development opportunities, non-cash prizes and being thanked were found to be highly effective by employees (see chart), almost one-third (32percent) of staff questioned say they have received no form of personal non-monetary recognition in the past 12 months.
However, only 24percent of staff whose line managers do not offer a non-monetary form of recognition claim to be satisfied in their job, and 49percent say they would not be in their current role if they had the choice.
Sukhi Ghatore, associate director in GfK NOP’s business division, said: “It is well documented that non-monetary reward is an important motivator for staff, but the effect on employee retention of failing to embrace such recognition is quite startling.”