How HR Teams Reduce Employee Turnover Using Recognition (With Examples)
When a valued team member walks out the door, they take with them their expertise, organisational knowledge, know-how and the work relationships they’ve built. The gap they leave hits hard the team morale, productivity and budget.
Employee turnover doesn’t start with the resignation letter. Employees evaluate their decision to leave long before they hand in their notice. What leads to it is losing motivation, not seeing the purpose of their work and not feeling valued.
Employee recognition is one of the strongest assets HR teams have against employee turnover. When people feel seen, their engagement is strong and multiple studies have shown that engaged employees are less likely to leave.
In this article, we share practical examples that HR teams can use to reduce employee turnover using recognition.
What is Employee Turnover?
Employee turnover is the rate at which employees leave an organisation. While some turnover is healthy, a high turnover is a bad sign that points to cultural issues.
Employee turnover can be: Voluntary or Involuntary.
Involuntary turnover happens when the decision to part ways is made by the employer. It includes redundancies, performance-related dismissals or structural changes.
Voluntary turnover means that an employee chooses to leave the organisation. This is the type of turnover that you can influence through recognition.
How to calculate employee turnover rate?
You calculate employee turnover by dividing The Number of Employees Who Left by The Average Number of Employees, then multiplying by 100.
To find your average number of employees, add your headcount at the start and end of the period, then divide by two.
What is a good employee turnover rate?
There’s no universal benchmark. Average turnover differs significantly between industries.
In the UK, the average employee turnover rate was 34% in 2024 (CIPD). Hospitality is one of the highest-turnover industries, sitting at 40.7%. While manufacturing and some public services (for example, the NHS and community health services) see significantly lower turnover.
In Ireland, the average voluntary turnover in 2025 was 10.8% (PRC).
The Real Cost of High Employee Turnover
Employee turnover is expensive both from a financial and cultural perspective.
The financial implications are clear. According to SHRM, replacing an employee costs between 50% and 200% of their annual salary. This cost is before you factor in the hours spent recruiting, interviewing, onboarding and training new employees.
Employee turnover also disrupts team dynamics and morale. An employee who leaves is not only a loss to the organisation, but also to other team members, who lose a teammate and sometimes a friend.
Remaining employees usually take on extra responsibilities to cover for the gap in the team before new hires are fully up to speed. During this period, there might be tension, increased stress and lost productivity.
How to Reduce Employee Turnover Using Recognition
The good news is that 42% of employee turnover is preventable, according to Gallup. The same research also found that 30% of employees who left their organisations believe that additional compensation or benefits could have made a difference.
But it’s not always only about the money. Employees at the UK’s Best Workplaces report that they feel respected, connected to and valued by the people they work with. A sense of belonging increases employees' likelihood of staying at their workplace by 5-fold.
Recognition is one of the most effective yet most overlooked tools HR teams have to increase employees’ sense of belonging and reduce turnover. Here’s how to put it into practice:
Celebrate everyday wins
Recognition shouldn’t be reserved for big milestones only. It should be woven into everyday work.
According to Gallup, well-recognised employees are 45% less likely to leave within 2 years. This means celebrating small and big wins alike, including when someone goes out of their way to support a colleague or completes their probation period.
Example: Congratulate employees on reaching their 6-month or 1-year mark at the company with a thoughtful, personalised gift card.
Encourage peer-to-peer recognition
Getting kudos from managers is important. But recognition should come from peers as well. Peer-to-peer recognition can have a significant impact on employees’ confidence, team bond and sense of belonging.
Example: Organise a monthly spotlight event where employees can nominate colleagues for their contributions. The employees mentioned most often receive a personalised gift card and a well-deserved shoutout.
Offer meaningful and flexible rewards
Different people value different things. One-size-fits-all rewards can feel impersonal at best and tone-deaf at worst. The most impactful rewards feel tailored to the recipient.
Example: Give employees the freedom to spend their reward on whatever matters most to them. Regular one-store gift cards can feel restricted, especially if you’re not sure what the employee likes. But a Choice link multi-brand gift card or prepaid Mastercard can provide more flexibility.
Recognise personal achievements
Employees have hobbies, interests and goals outside of work. Work achievements are important to celebrate, but celebrating personal milestones can show employees that you value them as people and that your organisation encourages work-life balance.
Example: Congratulate an employee on finishing their first marathon with an Adidas gift card. Surprise an employee for their birthday with a prepaid Mastercard they can spend anywhere, on anything they love. The opportunities to show appreciation are endless.
Closing the turnover gap with recognition
There is still a gap between what employees need from recognition and what they receive. According to People Management, 70% of employees say they want recognition from leadership, yet only 42% get it regularly. If not addressed, this gap can show up in your turnover rate.
Organisations can no longer afford to overlook employee recognition. Cultivating a culture of appreciation can improve employee engagement, happiness, well-being and employee retention.
Human beings crave connection in all aspects of our lives, and the workplace is no different. Closing the recognition gap gets you one step closer to closing the turnover gap as well.
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