A STUDY ON THE EFFECTIVENESS OF REWARDS AND RECOGNITION SYSTEM IN REDUCING ATTRITION

Abstract

In today's competitive business environment, employee retention has become a key challenge for organizations. High turnover not only increases recruitment and training costs, but also disrupts workflows, impacts productivity, and weakens organizational knowledge. Among various HR strategies, an effective “reward and recognition” (R&R) system plays a key role in increasing employee satisfaction, motivation, and long-term commitment. This study investigates the effectiveness of reward and recognition systems in reducing employee turnover, with a particular focus on how monetary and non-monetary recognition influences employee engagement and organizational loyalty. This study uses an explanatory design drawing based on both primary and secondary data. Primary data were collected through structured questionnaires and interviews conducted among employees from different departments, and secondary data were obtained from corporate human resources reports, industry reports, and academic literature. The data collected were analyzed using percentage analysis and correlation analysis techniques to identify the relationship between employees' perceptions of the R&R system and their intention to remain with the organization.