Dear Dr. Mimi:

The owner of our organization does not believe in recognizing his employees. He says that the paycheck is recognition enough. Is he correct? We have a huge turnover rate and I can’t help but think that the costs of this turnover are huge as well.
— Unrecognized

Dear Unrecognized:

You are correct. Turnover is costly. Besides the costs of advertising, screening, interviewing and training a new person, there are other hidden costs that are equally expensive. Turnover decreases morale for the people who stay. In addition, people have to make up the work of the missing person. More mistakes are made and productivity suffers. It is unfortunate that your owner does not realize that, yes, money is a motivator, but not the most important one. People will sacrifice pay for perks such as training, recognition, a sense of belonging and a positive working environment. Everyone likes to have contributions and efforts acknowledged. Recognizing and celebrating achievement helps to reinforce the positive behavior, helps keep good people and in the long run cuts costs and builds profit—so he can have a larger paycheck!

— Dr. Mimi