How frequent appreciation helps reduce staff turnover

Regular and meaningful recognition plays a crucial role in boosting employee retention and reducing costly turnover rates.

Each year, 34% of workers either change jobs or leave the workforce altogether, according to research from the CIPD. Of those, over a quarter (27.4%) move on to a new employer - meaning up to a third of your team could be headed for the exit.

While pay and flexibility tend to dominate the headlines, there’s a quieter but equally powerful factor driving this churn: a lack of regular appreciation. When employees don’t feel recognised for their contributions, they’ll wonder if their efforts might be better valued elsewhere.

The encouraging part? Recognition is a lever organisations can start pulling right away - and when it’s frequent and meaningful, it’s one of the smartest, most sustainable retention strategies available.

What’s really driving turnover in the UK?

In 2024, nearly 170,000 retail workers lost their jobs due to the collapse of big chains, 42% up from the year before. Healthcare and retail industries are feeling the pinch hardest, with turnover rates tipping the scales between 20.9% in healthcare and 25.2% in retail.

Younger generations - those in their 20s and 30s - are especially keen to keep their options open, chasing career growth and a better work-life balance. Then there’s the post-pandemic curveball: hybrid and remote working have introduced challenges such as “proximity bias,” where remote workers feel overlooked compared with their office-based colleagues.

Taking into consideration the relentless cost-of-living crunch which deeply impacts employee wellbeing, it's no wonder motivation and morale are taking a nosedive.

These challenges might look somewhat unrelated at first, but when they pile up, they become a major reason why people leave. And it’s a pretty expensive one at that. Research shows that replacing an employee can cost a business up to £30,000 each, once you factor in recruitment, training, and lost know-how.

Why appreciation matters now more than ever

When employees feel genuinely valued - usually through consistent appreciation and recognition - they develop a strong sense of belonging. Great Place to Work UK reveals that those who feel this connection are five times more likely to stick around for the long haul.

While appreciation can show up differently across the UK - whether it’s a quick message of thanks for Scotland-based remote workers, or an in-person shout-out to frontline staff in Manchester - the impact is consistent. Recognition helps people feel respected, noticed, and part of something meaningful. And that sense of belonging doesn’t just cut down on turnover - it often leads to better performance, too.

When employees feel that connection and appreciation, they’re more inclined to become advocates for your organisation, boosting morale and building stronger team spirit along the way. In today’s fiercely competitive market - where many are weighing their options - showing your people they matter is not just a nice gesture; it’s sound business sense.

What does “frequent appreciation” actually mean?

“Frequent appreciation” isn’t about handing out long-service awards or saving praise for annual reviews. It’s far more practical and powerful than that.

In practice, it means catching someone’s good work in the moment: a non-generic “thank you” message or a shout-out during a team call. It’s timely, specific, and personal. While formal recognition schemes certainly have their place with structured awards, service milestones, and the like - it’s often the informal, everyday gestures that resonate most.

These small moments show that appreciation isn’t reserved for special occasions and is woven into the culture. And that frequent appreciation is about moments, not milestones. They cultivate an ongoing connection between leaders and teams, and reinforce the behaviours you want to see more of - without needing a special occasion.

Combine these thoughtful day-to-day interactions with structured schemes, and you’ll forge something sturdier than any people policy: a culture where people feel seen, valued and eager to stay.

The evidence is clear: Recognition works

The data really speaks for itself - recognition matters more than ever. A recent People Management study found that 70% of workers want recognition from their organisation’s leadership, yet only 42% say they actually get it regularly. That’s a huge missed opportunity, because people genuinely want to feel noticed and appreciated by those at the top.

When leaders show appreciation, it makes a real difference to how engaged and loyal employees feel.

Gallup’s research backs this up, showing that employees who feel recognised are 45% less likely to have left their organisation two years down the line. That’s a serious boost to retention tied directly to the simple act of appreciation.

Worth noting is that the quality of recognition counts just as much. Gallup also reveals that employees who receive high-quality praise - meaning recognition that’s authentic, equitable, and personalised - are 65% less likely to be actively looking for a new job.

But it’s not just about the numbers. When employees receive regular recognition, they feel valued and supported - with benefits rippling through the whole business. Companies that make recognition a priority enjoy stronger cultures, more internal promotions, fewer absences, and steadier teams. Simply put, appreciating your people is one of the smartest moves any organisation can make.

What’s holding UK businesses back?

In many cases, it’s not a lack of goodwill, but it comes down to a few very common blind spots. There’s the classic British reserve that makes some leaders wary of “too much praise.” Then there’s the uncertainty: managers who want to say thanks but aren’t sure how to do it meaningfully.

And let’s not forget outdated systems that make recognition feel like a formality. For example, infrequent, formal awards ceremonies where employees have to wait months to hear any positive feedback.

The good news? Meaningful recognition doesn’t need an elaborate event. It’s about consistently showing up with sincere appreciation that fits naturally within your team and culture.

Building a culture of appreciation: Where to start

Building a culture of appreciation doesn’t need to be complicated or costly. It starts with a few simple shifts.

First, help your managers get better at spotting great work and calling it out in the moment. It doesn’t need to be elaborate - just clear, sincere, and delivered at the right moment. Then, make peer-to-peer recognition part of how your team works. A quick mention in a Slack or Teams group chat can go a long way.

Use tools that make appreciation visible and easy to share, such as shared recognition newsfeeds, rather than hidden in a private conversation. And connect recognition back to your company values and inclusion goals, so people can see how their everyday work fits into the bigger picture.

Most importantly, remember that this isn’t about grand gestures or big budgets. It’s about showing up consistently and building a habit of appreciation.