As the end of the year draws closer, business owners should be thinking about acknowledging their staff for contributing to the company’s success. While there are those who think that a pay cheque should be sufficient thanks, a study by online career site Glassdoor revealed that more than 80% of employees say they feel motivated to work harder when they feel appreciated for their work.

What’s more, 55% of workers say they would leave their current jobs for a company that clearly recognises its employee efforts and contributions, according to a Globoforce Mood Tracker Report. These are particularly important points to consider when aiming to retain top talent going into the New Year.

Appreciation is a fundamental human need. Employees respond to appreciation expressed through recognition of their good work because it confirms that their work is valued. When employees – and their work – are valued, their satisfaction and productivity rises. This ultimately has a direct impact on a company’s bottom line.

An analysis by The Gallup Organisation also found that individuals who receive regular recognition and praise are more productive, more engaging with their colleagues, receive higher loyalty and satisfaction scores from customers, have better safety records and are involved in fewer accidents on the job.

The way in which you recognise your employees requires some thought. While a study by the International Association of Administrative Professionals and OfficeTeam found that contrary to the perceptions of managers who ranked promotions and cash bonuses as the two most effective ways of recognising employee accomplishments, workers said they preferred an in-person thank-you or having a job well done reported to senior management.

Recognising your employees should take place more frequently than just at the end of the year. As one of the top business leaders in the world, Sir Richard Branson, once said, ‘I truly believe that if you take care of your employees, they will take care of your business’.

Kay Vittee is the CEO of Quest Staffing Solutions.