Recognise This! – Give employees the specific recognition and feedback they need, and save yourself from over-the-top retention costs.

In today’s stagnant jobs climate have you heard this comment (or something similar) from a senior leader: “I don’t care if they leave. They’re not senior. We can replace them easily enough.”

Do you think that reaction would change if you told that manager, “Sure. It will cost us $104,185 to replace that employee. Are you okay with that hit to the budget?”

Blogging4Jobs recently provided a brilliant infographic (be sure to click through for the full graphic) of the results of a recent Harris Interactive  and Cornerstone OnDemand study revealing 21 million Americans will change jobs in the next 12 months, for a total cost to employers of more than $2 Trillion.

The infographic includes these compelling stats:

These requests are not unreasonable – more feedback, from more sources, on things that matter to both their personal jobs as well as the organisation as a whole. All employees are asking for is the big picture – where do I fit, does what I do every day matter to our group success?

Strategic recognition is a critical factor for meeting this need with tools for social performance management. By encouraging all employees to frequently and in a timely way notice and recognise the efforts, contributions and successes of their peers and colleagues you meet two goals. You give employees the feedback and sense of purpose they so clearly crave, and you get far more data points on employee performance for a more complete performance picture year-round.

And, of course, meeting employee needs for this kind of frequent, timely and specific recognition and feedback is also proven to increase employee engagement by double digits – for far less cost than $104,185 per employee.

SO what’s the ROI? Taleo recently reported:

 “Taleo Research estimates a company that loses 500 employees during the economic recovery may face turnover costs of $75 million, whilst a company that spends $2 million raising employee engagement could avoid these costs and see an ROI of 3,650 per cent.”

Now, what hard-hearted senior manager could argue with that?