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How to Keep Employees and Profits from Walking Away

Recognizing employees for a job well done increases retention, reduces costs

November 9, 2007

Grand Rapids, MICH.-- How would you react if one-third of your employees resigned within two years of their start date? Research conducted by the Hay Group, a global HR consultancy based in Philadelphia, found this statistic to be far from extraordinary. According to Hay’s research, one-third of workers plan to resign within two years. Having top performers walk out on your organization can be damaging to employee morale and company image, so how do you convince them to stay?  

Debbi Coleman of Ross Innovative Employment Solutions says the answer is simple: treat your employees well. “The number one reason employees leave their jobs is because of the behavior and lack of support from their immediate supervisor,” Coleman says. “But employees will keep a lower paying job if they’re treated well – across the board.”  

Positive feedback from managers does more than spread warm sentiments throughout a company; it can line their pockets, too. According to the Great Place to Work Institute, a research management consultancy whose100 Best Companies to Work For list is published annually in Fortune magazine, the 100 best companies significantly out-perform their peers financially.  

Today, turnover costs in the U.S. are estimated to reach $40,000-$100,000 for a mid-level position. With a slowing economy in Michigan, companies can’t afford not to make employee initiatives top priority. “Companies today are beginning to realize that treating employees well impacts the bottom line,” says Brad Darooge, President and CEO of Baudville, Inc., a leading provider of recognition tools and awards.  

Darooge knows about creating a great place to work. His company, Baudville, specializes in creating the tools for organizations to recognize employees and practices active recognition within its own walls. “The business practice of recognizing employees can give companies a competitive edge,” explains Darooge. “Create a place where people want to work – that recruits for itself.”  

In 2007, Baudville was named one of West Michigan’s 101 Best and Brightest Company to Work For, sponsored by the Michigan Business and Professional Association. The program’s nomination and award process includes criteria of both recognition and retention and employee engagement and commitment.  

As the recognition experts, Baudville offers a few suggestions for companies looking to improve employee satisfaction and retention. “Start with the managers,” says Darooge. The managers have the most contact with the employees and as Coleman attests, directly affect whether employees stay with a company or leave.    

“Train your managers, and make sure to stress the importance of recognition,” says Darooge. “Explain the impact recognition can have on the bottom line, and they will come on board with your new programs, too.”  Train managers to become recognition champions by equipping them with a few simple tools to practice recognition and appreciation on a more regular basis.  

Coleman suggests the keys to a great workplace and loyal employees are motivation, recognition and rewards. “Treating people well increases retention significantly,” she reports. She encourages companies that desire to improve their retention rates can begin with a pat on the back for a job well done.  

Both Coleman and Darooge are members of the Grand Rapids Recognition Roundtable, a local forum for human resources and recognition practitioners to advance their knowledge and skills of employee recognition. “There is definitely a need in West Michigan,” says Coleman. “So many employers think a pay check is adequate recognition, and it’s just not.”

Baudville is a leading provider of employee award and recognition products and tools. Today, Baudville continues to build on its past success, aggressively upgrading and expanding product development and marketing efforts. A recent renovation doubled operations to nearly 65,000 square feet to provide room for all departments to grow as the company looks to future initiatives. Its 90 talented and dedicated employees will satisfy over 200,000 customers this year.


Images and company logos can be obtained by emailing pr@baudville.com or by phone at (616) 698-0889.


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