How to build a recognition program that actually drives retention

Employee recognition goes beyond motivating people. When recognition resonates, it impacts employee retention. 

According to Gallup, 45% of employees are less likely to leave after two years because they feel meaningfully recognized on their teams. Consistent recognition gives employees a clear understanding of their contributions and of the company culture and values. Instilling that sense of purpose and belonging gives employees a reason to stay and grow. 

How employee recognition drives ROI 

Recognition brings teams together with a shared set of values and purpose.  

“Recognition reinforces the greatness of our culture,” said The Home Depot SVP of Culture & Values, Crystal Hanlon. She told ITA Group’s employee experience podcast, “We talk about our culture and live the values. It gives us the vehicle to resonate with other people. Everybody wants to be part of something bigger than they are. Everybody wants to be part of a purpose, and that's what we do through our culture.” 

The Home Depot uses recognition to reinforce the brand values across its 2,300+ stores and facilities. It fosters strong internal mobility, with 90% of its leadership team coming from the store floor. 

Recognition drives people to grow, resulting in stronger sales performance, productivity, customer experience and employee retention.

Related: The most effective employee retention strategies you’re probably not doing

How to build a recognition program that resonates with employees 

A manager’s recognition doesn’t just feel good. It shows employees that their work isn’t going unnoticed by their leadership. This leads to a supportive, engaging workplace where people want to grow, strengthening talent development and improving retention. 

However, there’s no out-of-the-box recognition program that works for every team. For recognition to resonate, managers and HR leaders need to poll employee sentiment on their current workplace environment. 

Whether you have a recognition program that’s underused or are starting from scratch, use employee feedback before strategizing initiatives, challenges or nudges.

Re-launching your existing recognition program 

ITA Group’s employee engagement experts hear this often: “We have a recognition program in place, but no one uses it.” That doesn’t mean that recognition won’t work for your team. It means that the current program isn’t meeting your team’s needs. 

Example: ITA Group helped Ecolab refresh its milestone rewards to better connect its brand through a variety of meaningful reward experiences. After hearing associate feedback, the team discovered that the current approach of waiting 5 years to recognize tenure was outdated and that this reward strategy wasn't resonating. 

Associates are now recognized starting in year one, and the reward experience is tiered as milestones are reached. Rewards include Ecolab-branded swag, merchandise gift selections and travel experiences. 83% of rewards have been redeemed, and associate responses have been positive.

"Feels good to be rewarded. Good treatment = good attitude at work." 

"Knowing that I work for a company that cares and offers prizes such as this is great." 

"This was a fantastic experience. The (reward) options were robust and covered a broad spectrum. This was a pleasant surprise, and I feel adequately recognized and celebrated for my time with (Ecolab)!" 

Takeaway: When recognition programs speak to an organization's unique needs, employees feel celebrated and seen. They take ownership of the culture and pride in their work. That sense of purpose drives retention. 

4 steps to re-evaluate your recognition program 

1. Run a gap analysis on your existing program

See what’s working and where gaps exist. Many teams don’t track program success, so even early launch data can pinpoint areas of opportunity. 

2. Poll employees through surveys and focus groups

Gathering employees' sentiment helps focus your strategy. It saves time and resources and ensures a more impactful re-launch that resonates with teams. 

3. Train managers on expectations prior to launch or re-launch

Involving others in the process builds ownership. More importantly, employees model their leaders’ behaviors, which drives adoption across teams. 

4. Empower managers to continually poll their teams

Tools like pulse surveys make it easier for managers to quickly survey key groups. AI support can help review and offer next steps seamlessly.

The best way to start a recognition program 

Recognition connects employees to the company’s mission and values, helping teams stay focused and aligned with performance. 

Example: A global pet retailer wanted a better way to connect associates with their shared values across stores, corporate offices, a call center and distribution centers. They needed one platform for everyone to engage. With support from ITA Group experts, they launched PlayUp, an energetic campaign that tapped into employees’ passion for pets and encouraged consistent recognition. 

The program brought manager shoutouts, years-of-service rewards, incentives and peer recognition into a centralized platform. It also included a manager dashboard that gave leaders a clear view of store needs and recognition activity. Over five years, managers worked with ITA Group experts to study its impact. 

Analytic reports surfaced a positive ROI. New hires recognized in their first 30 days saw 17% higher 6-month retention, saving the brand $36M. Teams that gave or received more recognition saw higher sales. And 91% of associates received recognition, with over 3 million recognitions issued over five years, indicating high engagement. 

Takeaway: Early recognition and strong manager support shape your organization’s recognition culture. When leaders and employees have the right resources, like clear metrics or recognition, they understand what success looks like and how to contribute.

6 steps to launch a successful employee recognition program 

1. Gather and review employee sentiment

Understand employees’ challenges and needs. What do they want from their managers or organization? What makes them feel supported? 

2. Define your program's purpose and goals

Employee feedback will direct your team’s focus. What problem are you trying to solve with recognition? 

3. Develop your recognition program’s strategy

Use your goals to define what behaviors or achievements should be recognized. Decide how you’ll measure success and track progress. 

4. Get leadership buy-in and advocacy

Show managers why recognition matters. Train leaders on how to give meaningful, consistent recognition. 

5. Build a launch plan with communication touchpoints

New programs generate excitement at launch, but long-term engagement requires consistent communication, training, and reminders for both managers and employees. 

6. Monitor engagement and continue to evolve the program

Regularly review your metrics and refine the program. Look for opportunities to add seasonal campaigns, highlight success stories or introduce new incentives. 

Related: Employee recognition ideas that actually help retain your team members

Recognition best practices that drive retention across industries 

High turnover often signals that employees don’t feel seen or valued. Building a culture of consistent recognition helps celebrate employees’ commitment and strengthens trust between managers and peers. This sense of appreciation supports a more stable, loyal workforce. 

Make recognition accessible for deskless workers 

Deskless employees, such as healthcare professionals or retail associates, won’t engage with a recognition program that doesn’t align with their flow of work. They’re often on a job site with phones put away or with limited access. Organizations need to make recognition easy and accessible through mobile tools, such as ITA Group’s Cooleaf platform. 

Example: A popular fast-casual restaurant adopts a mobile recognition app to enable employees to give and receive recognition on the go. Push notifications make it easy to stay involved, and a single feed keeps all activity in one place. Segmented experiences for employees or managers offer personalized engagement. 

Align recognition to business results 

Integrate recognition into business priorities by rewarding key behaviors that drive performance, customer satisfaction or operational success. 

Example: A tech support call center representative receives recognition from their manager after walking a frustrated customer through a complex connectivity issue. The manager recognizes her with 200 points, which she can redeem through an employee rewards catalog of relevant items like camping gear. The reward is a tangible token of appreciation. It’s now associated with her efforts to improve the customer experience. 

Engage managers 

When managers understand how recognition supports their own goals, like productivity or performance, they’re more likely to champion the program. 

Example: A U.S.–based banking leader uses their recognition platform’s manager dashboard to stay connected to team activity. The dashboard summarizes employee insights, recognition budgets and participation, and sends a weekly digest so managers always know what’s happening. They might see recognition drop around a key sales campaign, so they respond quickly. Using a recognition challenge tied to credit card goals, employees earn recognition for meeting monthly targets or sharing sales tips and product knowledge with peers. This keeps recognition relevant, timely and directly connected to team performance. 

Time to build recognition that retains 

Employee recognition isn't just a one-off shoutout. It’s a key strategy related to overall employee motivation and retention. 

Frequent, meaningful recognition drives more than just performance. It builds employee connection, engages managers and creates a sustainable culture where employees want to remain and grow in their careers. 

Build meaningful recognition with an impactful ROI, download our employee recognition white paper.