According to a recent study conducted by Advantage Club, providing monetary rewards to employees can significantly reduce attrition rates. Employees who received monetary incentives had an attrition level of just 5 per cent in 2022, compared to an average rate of 16 per cent across all companies covered in the study.

Advantage Club, an employee engagement platform, conducted a study revealing insights into the impact of reward and recognition on attrition in India in 2022. The report analysed rewarding behaviours in over 100 companies that covered one million employees.

As per the report, attrition in employees who are not given any kind of reward stands at 38 per cent. However, attrition in employees who receive monetary rewards comes down to 5 per cent, an 87 per cent reduction. Additionally, attrition in employees who receive non-monetary rewards stood at 11 per cent.

The report highlighted and provided evidence of how a robust R&R strategy with monetary and non-monetary rewards can effectively reduce attrition. The study found that employees were more likely to remain in their current jobs that offered performance-based monetary rewards.

“The study highlights the importance of recognizing and rewarding employee performance, particularly with monetary incentives, to foster a work culture of engagement and loyalty. Organizations can reduce attrition, boost employee morale and productivity by investing in rewards and recognition programs,” said Sourabh Deorah, co-founder and CEO (chief executive officer), Advantage Club.

The study captured and compared the level of attrition in different cohorts of employees. It compared the level of attrition in employees who did not receive any reward with people who received some kind of reward or recognition from their employers.

The study further analysed and compared attrition in employees who receive monetary rewards, non-monetary rewards and a combination of both. The results have presented some insightful data points for HR leaders and professionals.