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Companies that have a recognition program in place are doing something right. These programs increase employee satisfaction and reduce turnover rate substantially.

However, a study conducted by Bersin by Deloitte found that 87 percent of recognition programs focus on tenure rather than performance.

This type of recognition is a holdover from the days when people stayed with a company for 20 or 30 years. These days, though, most employees stay with an employer for an average of 4.4 years. And that is expected to decrease as more and more millennials enter the workforce.

If companies want to retain good employees, their recognition programs need to change with the times.

When revising tired old recognition programs, implementing peer-to-peer recognition is a smart place to start.

Why? Because the same study mentioned above also found that employees feel “much better when recognized by their peers.”

Top-down recognition programs can come across as political. The employees who are in the trenches may feel that they will never catch the attention of top management. So for them, there is no real incentive to work harder if they don’t think they have a chance be recognized.

However, peer-to-peer recognition programs open up the field for anyone to nominate and recognize anyone else within the company. And when someone receives such an award from one’s peers, it also holds more meaning and carries more weight.

Ready to implement a peer-to-peer recognition program? Here are a few ideas to get you started:

Get input from employees

This is an essential first step. Ask employees what they’d like to see in a recognition program. What kinds of achievements would they like to recognize? What type of awards would they like to receive themselves? You may not be able to do everything they suggest, but it will give you a good idea of what they find motivating and valuable.

Put together a diverse committee

Make sure all levels in your company are represented on the selection committee. It defeats the purpose if employees nominate but the final selection is made by management.

Get creative with awards

First, always make sure that the employee receives a certificate and other award that they can display in their work spaces. These can then be supplemented with other creative, out-of-the-box incentives. For example, maybe the employee gets a special parking place or a month’s worth of java at the local coffee shop or a gift certificate for a well-deserved massage.

As always, the more thought your company puts into recognition, the more appreciated and powerful it will be. And the more happy and productive your employees will become.

As the new year gets underway, many people take a moment for self-reflection.

• Does my career fulfill my professional goals?

• Do I see a future with my employer?

• Will I be happier if I change jobs?

So, it’s no surprise that many job changes occur during the first of the year. Plus, it’s when most companies post job openings. A new year brings a new financial schedule and untapped budgets, which translates into funding for new hires, according to a Forbes article online.  So, if you love your staff, show it. If not, they might look for greener pastures long before summer. Here’s why according to Inc. Magazine and CBS Moneywatch.

The Top 5 Reasons Employees are Leaving Your Company

1. There’s no advancement opportunities

When someone is hired for a position, they generally hope and strive to improve and move into a more senior position within their department or the company as a whole.

If you’re skipping annual reviews and fail to promote from within when a position becomes available, you’re at risk of losing some of your best talent.

Suggestion: Announce open positions within the company to staff a week before making it public. Let them know how much you value their dedication to the company and that they will be given the opportunity to apply first.

2. It’s difficult to balance work and family life.

Some employees turn in a resignation letter because it’s simply too difficult to afford childcare or care for an aging parent while holding down a job.

Although it’s difficult for employers to know about these issues at home, they can take a proactive approach to making their employees’ lives outside the office a bit easier.

Suggestion: Offer company perks such as a discounted rate a local daycare or with an in-home nursing care provider. Many companies negotiate group and corporate rates with businesses. All you have to do is ask!

3. There’s no pay increase in sight

For most employees, the paycheck is what brought them to the door and keeps them at their desk. We all need money to live, but when you see friends and family members getting raises or annual salary adjustments to keep up with inflation from their employers, it can be tough to stay at the same job

Suggestion: Putting a pay raise freeze in effect during tough economic times or when a company is struggling might be a reality. If you simply can’t offer pay raises right now, keep your employees content with other small gestures of gratitude.

An annual monetary bonus just before the holidays or a friendly quarterly contest with the chance to win some cash can keep employees happy.

4. The co-workers don’t get along

Unfortunately some office settings become as catty as the halls of a local high school.

When making new hires, think about the dynamic of the office culture and whether or not possible new employee will fit in. If there’s existing turmoil, take action ASAP to diffuse any future situations. Not surprisingly, the biggest rifts exist between bosses and the people they supervise.

Suggestion: Plan a monthly team-building activity. This can be as simple as a long, catered lunch with a guided exercise at the office, or a full day outing.

The goal for employees is to get to know more about one another, open up about their concerns and learn how to work through their feelings with the guidance of a professional workplace psychologist in a non-clinical setting.

5. You’re never recognized for a job well done

It’s incredibly easy to get wrapped up in weekly goals, which turn into monthly quotas and then quarterly reports. Sometimes as a business owner, you need to step back and celebrate the small steps that it takes to make the business run as a whole. Your employees will appreciate that you’re taking notice of their day-to-day dedication and extra efforts.

Suggestion: Make it a priority to celebrate both big and small accomplishments around the office. Send a congratulations out to the staff by email when a department lands a new account or place an award on the office door of someone who just finished a huge project that laid the groundwork for company success. There’s always something going on worth commending.

Is your employee turnover rate getting a little high? Maybe it’s time to conduct an anonymous staff survey to learn what employees love (and dislike) about their jobs.

In the meantime, plan a simple employee appreciation party on a Friday afternoon, complete with delicious catered snacks and humorous awards, to make the staff feel appreciated.

Paper Direct can help you get started. Browse the company’s online collection of certificates, awards, plaques and trophies to make your employees feel appreciated.