Employee engagement is no longer the top HR challenge, according to a new Society for Human Resource Management study.

That’s not to say it doesn’t remain a top challenge, but according to the survey of more than 800 HR professionals jointly conducted by employee recognition company Globoforce, employee turnover is the biggest HR-related issue facing organizations.

“A strengthening job market means that more jobs are being filled, and many previously cautious employees may jump back into an active job search,” the report noted. “Companies will need to take steps to ensure they don’t lose valuable employees in the company year.”

Employee engagement came as the second-greatest challenge just ahead of succession planning. Lack of development among employees may actually be driving higher turnover rates, the study noted. “HR leaders are looking for better ways to identify high-potential employees, key influencers, and future leaders within their organizations.”

One of those identifiers may be recognition programs. Although there has not been an  increase in popularity of these programs overall in the last couple of years, there has been an increase in the number of employee recognition programs that are singling out employees for demonstrating organizational values.

These recognition programs were found to have a positive impact on employee engagement, retention, wellness, and employers’ brands. Specifically, 90 percent of respondents reported values-based recognition programs had a positive effect on engagement, and 66 percent reported it is helping their organizations build a stronger brand.

Meanwhile, organizations are still, for the most part, implementing years-of-service programs. Almost 90 percent of organizations that recognize employees for tenure do so to show appreciation. Other common motives behind these programs are to increase employee satisfaction, renew commitment to the organization, and raise engagement levels.

How does your association recognize staff? Let us know in the comments.

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