---
title: What is the ROI of Employee Recognition? - Terryberry
description: What's the real ROI of employee recognition? In this post, find out how employee recognition programs impact turnover rates and profitability.
---

<https://50114820.hs-sites.com/terryberry-blog>

# [What is the ROI of Employee Recognition? - Terryberry](https://50114820.hs-sites.com/terryberry-blog/blog/roi-of-employee-recognition)

 Written by [mindutopia](https://50114820.hs-sites.com/terryberry-blog/author/mindutopia) | Jun 6, 2017 9:10:41 AM

<https://www.terryberry.com/roi-calculator/>  
 Most people would agree that recognizing employees for their efforts and contributions is a nice thing to do. But unfortunately it’s sometimes difficult for “nice things to do” to get prioritized in the daily grind of business.  For those wanting to make a positive difference in the workplace, the good news is that employee recognition is the right thing to as a human, and as a business leader who needs to protect the bottom line.  In this article, let’s look at what is the real ROI of employee recognition.  How does an effective recognition program impact a business’s bottom line?

## Recognition Increases Engagement

Study after study shows that employee recognition is the number one driver of employee engagement. And further research has shown that organizations with high engagement have 50% higher productivity, 44% higher profits, and 50% higher customer satisfaction.  Check out this [infographic](http://live-terryberry.pantheonsite.io/wp-content/uploads/2017/02/Employee-Recognition-Infographic-Terryberry.pdf) to learn more.

## Employee Recognition Programs Reduce Turnover

Above and beyond the astronomical benefits from improved employee engagement, new research shows that [employee recognition programs](https://www.terryberry.com/products-and-services/recognition-programs/) have a measurable impact on retention.   A study from the Society of Human Resource Management showed that organizations with employee recognition programs have 23.4% less turnover than organizations without.

> Organizations with employee recognition programs have **23.4% less turnover** than organizations without!

## The Financial Impact

The cost of turnover is at least 20% of an employee’s salary, and often much higher.   Using these statistics, even a small company with average turnover could save hundreds of thousands of dollars annually by implementing an employee recognition program to reduce turnover.   Try Terryberry’s **[Employee Recognition ROI Calculator](https://www.terryberry.com/roi-calculator)** to find out what the impact on turnover would mean to your business using your own data.  
    
  

[View full post](https://50114820.hs-sites.com/terryberry-blog/blog/roi-of-employee-recognition)

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