Employee turnover is expensive. Gallup estimates that replacing leaders costs 200% of their salary, technical employees 80%, and frontline workers 40%—not including losses in morale and expertise.

How can HR teams increase employee loyalty to keep these costs down? A new report suggests that empowerment to save toward a chosen reward is sticky enough to keep employees engaged and on the job.

Proven tools to reduce employee turnover

Released today as an exclusive to HR Executive, a recent whitepaper about users of Salt—the employee rewards platform recognized as a 2024 Top HR Tech Product—found that employees participating in its loyalty program experienced 62% lower turnover rates than non-participants. Dr. David Kryscynski, an associate professor of HR management at Rutgers University, analyzed the research, which spanned six companies and 60,000 employees.

A separate Gallup analysis found that highly engaged companies had lower turnover, less absenteeism and more thriving employees, showing the impact of engagement on performance and loyalty.

Several factors—including a sense of ownership and the ability to save up for a desired reward—contribute to Salt’s effectiveness in building employee loyalty, according to the Salt team. The platform operates by awarding points to employees for hours worked, which can then be redeemed by employees for experiences they might not typically purchase themselves, including stock options, luxury experiences and trending retail items. This approach draws from established loyalty program concepts in the airline and retail sectors, combined with behavioral science principles.

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Source : https://hrexecutive.com/from-airlines-to-offices-how-loyalty-programs-can-reduce-employee-turnover/