CMN 124 Lecture Notes - Boston Consulting Group, Employee Engagement, Turnitin
Document Summary
Statistics have proven that companies who value their employees less have a higher voluntary turnover rate and lower employee productivity than companies who reward and value their employees. Forbes, companies that scored in the top 20% for building a recognition-rich culture enjoyed a 31% lower voluntary turnover rate1. Turnover rates costs companies thousands of dollars in recruiting, hiring and training employees for work effectiveness. It is estimated that it costs 30-50% of a company"s annual salary to replace an entry-level employee. A decrease in a turnover rate of 31% could save your company thousands of dollars2. With many companies offering annual monetary awards to employees, it is becoming a major trend in the business to business marketplace. Companies are introducing this fad as a competitive advantage contributing to their success. Recent studies indicate when employees are recognized for their contribution, they began to work harder and more effectively.