When your employees do something awesome—whether it’s finishing a project three weeks ahead of time, figuring out how to streamline a process, or just talking down an angry client—you, as a manager, want to reward them.
Except, if you’re not the top dog at your company, you may not be able to dole out free days off or give your employees hefty bonuses. But as it turns out, the secret to employee happiness isn’t rooted in those things anyway. In fact, one of the most effective ways to reward your employees is by simply recognizing their hard work and accomplishments.
A study by Bersin and Associates revealed that companies that provide ample employee recognition have 31% lower voluntary turnover rates than companies that don’t—a good sign that those employees are happier. Plus, basic psychology indicates that employees who are affirmed for good behavior are more likely to repeat those actions—and that, in the long run, will build a stronger company.
Article source: http://www.forbes.com