At a recent SHRM event in Ohio, we had the opportunity to talk with HR professionals and leaders from all around the region. While I always enjoyed these conversations, one interaction stuck in my mind. The HR leader was one that wanted to do more to show appreciation to her team. However, the owner of the company generally did not want to spend any money.
“How can I convince my owner that we NEED to spend more money on appreciation and recognition?”
In other words, let’s make the business case for appreciation in business.
The Business Case For Appreciation
Employee retention is particularly important in the manufacturing industry, especially for frontline positions, because it helps with business costs in several ways:
Reduced Hiring and Onboarding Costs
High turnover means the organization needs to repeatedly spend on recruiting, interviewing, and hiring new staff. For frontline manufacturing roles, the costs include advertising, recruitment fees, and staff time dedicated to the hiring process. Retaining employees lowers these direct costs.
Lower Training and Development Expenses
In manufacturing, onboarding and training for frontline roles can be intensive. If employees leave before the 18-month mark, the business must reinvest in training new hires. Keeping employees in place reduces the need for frequent training sessions and allows resources to be focused on more strategic skill development.
Increased Productivity and Efficiency
Employees in frontline roles become more efficient over time as they gain experience and familiarity with processes. Retaining workers beyond the 18-month period means they can operate at higher productivity levels, make fewer errors, and contribute more effectively to meeting production goals. Replacing these experienced employees can cause temporary slowdowns and a dip in productivity.
Productivity improvements come from employees gaining experience and efficiency over time. Let’s examine the potential productivity gains and cost savings:
A. Increased Efficiency
Retained employees typically get better at their jobs over time, producing more units per hour compared to new hires.
Formula: Productivity Gain=(Experienced Worker Output−New Worker Output)×Work Hours per Day\text{Productivity Gain} = (\text{Experienced Worker Output} – \text{New Worker Output}) \times \text{Work Hours per Day}Productivity Gain=(Experienced Worker Output−New Worker Output)×Work Hours per Day
If an experienced worker produces 12 units per hour compared to a new hire’s 9 units per hour, over an 8-hour shift, the experienced worker produces 24 more units per day.
B. Revenue Impact
Formula: Increased Revenue=Productivity Gain×Price Per Unit\text{Increased Revenue} = \text{Productivity Gain} \times \text{Price Per Unit}Increased Revenue=Productivity Gain×Price Per Unit
With a $50 price per unit, this productivity improvement translates to an additional $1,200 in revenue per day from each retained worker.
C. Cost of Errors and Waste
New hires may make more errors, leading to rework or wasted materials. Retained, experienced workers make fewer mistakes.
Formula: Cost Savings from Fewer Errors=(Error Rate for New Hires−Error Rate for Experienced Workers)×Cost of Rework or Waste\text{Cost Savings from Fewer Errors} = (\text{Error Rate for New Hires} – \text{Error Rate for Experienced Workers}) \times \text{Cost of Rework or Waste}Cost Savings from Fewer Errors=(Error Rate for New Hires−Error Rate for Experienced Workers)×Cost of Rework or Waste
If new hires have a 5% error rate, but experienced employees have only a 2% error rate, and the average rework costs $100 per unit, retaining employees saves significant money over time.
How Retention Helps:
By keeping employees past the 18-month mark, their productivity increases, they make fewer errors, and overall output improves—driving higher revenues and lowering costs from mistakes or inefficiencies.
Improved Morale and Team Cohesion
Frequent turnover disrupts team dynamics and can lower the morale of remaining staff, making them less engaged and increasing the risk of further turnover. Stable teams work more efficiently and are more motivated, reducing absenteeism and avoiding the indirect costs of low engagement.
Opportunity for Internal Advancement
Since your frontline roles have a clear pathway for advancement after 18 months, retaining employees allows you to promote internally, which is often less costly than hiring external talent for more senior roles. This internal movement creates a culture of growth and motivates new hires to stay longer.
Reduced Risk of Downtime
Manufacturing lines depend heavily on consistent staffing. High turnover can lead to skill gaps, which increase the risk of costly downtime or quality issues. Retaining employees ensures that production lines continue running smoothly.
When employees leave, you may face temporary gaps in staffing, leading to production slowdowns or complete stoppages. Here’s a step-by-step way to estimate the costs associated with turnover and downtime:
A. Lost Production Output
Formula: Lost Output=Daily Production Output (Units)×Days of Downtime\text{Lost Output} = \text{Daily Production Output (Units)} \times \text{Days of Downtime}Lost Output=Daily Production Output (Units)×Days of Downtime
For example, if a manufacturing line produces 500 units per day and turnover leads to 2 days of downtime, the lost production would be 1,000 units.
B. Revenue Impact
Formula: Lost Revenue=Lost Output×Price Per Unit\text{Lost Revenue} = \text{Lost Output} \times \text{Price Per Unit}Lost Revenue=Lost Output×Price Per Unit
If each unit generates $50 in revenue, losing 1,000 units would result in $50,000 of lost revenue.
C. Downtime Costs
Downtime costs include both the opportunity cost of lost production and the fixed operational costs (e.g., utilities, and equipment leases) that continue even if the line isn’t producing.
Formula: Downtime Costs=(Fixed Daily Operating Costs+Lost Revenue)×Number of Downtime Days\text{Downtime Costs} = \left( \text{Fixed Daily Operating Costs} + \text{Lost Revenue} \right) \times \text{Number of Downtime Days}Downtime Costs=(Fixed Daily Operating Costs+Lost Revenue)×Number of Downtime Days
For instance, if daily operating costs are $10,000, and you have 2 days of downtime, total downtime costs could exceed $70,000 ($50,000 in lost revenue + $20,000 in operating costs).
By retaining trained employees, you reduce the risk of understaffing and avoid these costly interruptions. So there you have it! This is the business case for showing your team appreciation. Not only will it make your organization a better place to work, it will save/make you money in the process!
Want to improve your hiring and retention? Check out our HR Hiring Playbook! Get that here for FREE.
It’s time for Thirsty Thursday…and this time there is a little bit of fire! On Thirsty Thursday, we try a mystery drink from a very cool piece of branded drinkware. We have no idea what is coming, so you get a true (and sometimes inappropriate) reaction to what we try! This time we are trying the mystery drink out of the 16 oz Color Changing Stadium Cups (with straw and lid) from our pals at CPS. Watch the latest episode now!
Why The 16oz Color Changing Stadium Cups with Lid & Straw?
While the feedback on the drink each week can have mixed reviews, this affordable piece of drinkware was FIRE! The Color-Changing cups are always fun. And don’t just think that this is for kids. While the younger generation loves these cups, we think these work great for any outdoor event.
If you are interested in finding out more about the 16 oz Color Changing Stadium Cup (or any of the other drinkware we feature) check out our shop here.
As for the drink…we all gave it “the middle thumb” (whatever that means). Watch the full episode to find out!
We hope you enjoyed this episode of Thirsty Thursday as much as we did. Until next time, stay thirsty!
Each Thirsty Thursday, we feature a cool piece of branded drinkware. To learn more… head to our shop here.
At Hasseman Marketing, we believe that building a great team isn’t just about posting job openings and hoping for the best. Just as marketing plays a critical role in attracting customers, it should also be central to attracting the right talent. If you’re struggling to hire and retain employees, these four creative strategies will help you stand out, find better candidates, and keep your workforce engaged. And if you want to dive into our Hiring Playbook, you can get it here for free now. Watch the video or read more below.
1. Improve Your Company Branding Authentically
Today’s candidates, especially Millennials and Gen Z, care deeply about a company’s culture, values, and purpose. To attract the right people, businesses must develop an authentic brand that resonates with job seekers. This means more than a polished website or social media presence; it’s about living your values internally and showing the world what it’s like to work with you.
Tip:
Use storytelling on platforms like LinkedIn and your career page to showcase your culture. Highlight community involvement, employee stories, or team celebrations to show candidates what makes your company unique.
Authenticity isn’t about being perfect; it’s about being real. When employees experience alignment between the company’s external brand and its internal culture, they become your biggest advocates.
2. Build a Hiring Funnel That Works Like a Sales Funnel
Think about your hiring process the way you’d think about a marketing funnel. Just as you nurture leads through the sales funnel, you need to engage and guide candidates through the hiring funnel—from the moment they first see your job posting to their onboarding experience.
Your hiring funnel could look like this:
Awareness: Job postings and ads introduce candidates to your company.
Interest: Use employee testimonials, videos, and blog posts to spark curiosity.
Consideration: Create opportunities for candidates to learn more (virtual tours, Q&A sessions).
Application: Simplify the process to reduce drop-off.
Onboarding: Treat onboarding as a key part of your retention strategy by offering a great first impression.
Just like in sales, each step in the funnel must be smooth and engaging to reduce friction. A clunky or complicated hiring process will cause talented candidates to drop out.
3. Engage Your Team to Tell Your Company Story (With Branded Merch!)
The best marketers for your company are your current employees. Empower them to share their experiences and love for your business. A great way to get them involved is by offering branded merchandise they’ll be proud to wear and share.
When employees wear your branded apparel or post photos with company swag on social media, they become ambassadors for your business. This organic promotion builds trust with candidates who view your employees’ stories as more genuine than formal marketing efforts.
Ideas for Engaging Employees with Branded Merch:
Offer exclusive branded items as rewards for employee referrals.
Host events or contests that encourage employees to share photos of their work experiences on social media.
Provide onboarding kits with high-quality branded gear to new hires, so they feel part of the team from day one.
Not only does this create excitement, but it also strengthens team morale and attracts candidates who resonate with your culture.
4. Train and Elevate Your Team
Retention isn’t just about finding the right people—it’s about keeping them engaged and helping them grow. Employees who see opportunities for learning and advancement are more likely to stay and thrive in their roles.
Create development programs that focus on both professional and personal growth. Consider leadership training, skill-building workshops, and mentoring programs to support career development. It’s important that employees see a clear path for advancement.
Pro Tip:
Invest in regular feedback loops to help employees feel heard. Performance reviews should go beyond metrics to include discussions about career goals, challenges, and growth opportunities.
When employees know that your company values their development, they become more engaged, productive, and loyal.
Conclusion
Improving hiring and retention isn’t just an HR responsibility—it’s a strategic initiative that requires intentional branding, employee engagement, and thoughtful processes. At Hasseman Marketing, we know that marketing principles don’t just attract customers—they attract great talent too.
By authentically building your brand, creating a sales-like hiring funnel, engaging your employees to tell your story (with branded merch!), and investing in team development, you’ll be well-positioned to create a thriving workforce. These strategies will not only help you attract the right candidates but will also inspire them to stay and grow with your company.
After all, the best businesses don’t just hire employees—they build lasting teams.
If there was ever a piece of business content that gets you ready to slide into the weekend, it’s Thirsty Thursday! On Thirsty Thursday, we try a mystery drink from a very cool piece of branded drinkware. We have no idea what is coming, so you get a true (and sometimes inappropriate) reaction to what we try! This time we discuss the amazing 22 oz Brumate Toddy with Fashion Colors from our pals at Hit Promo. Watch the latest episode now!
Why The 22 oz Brumate Toddy with Fashion Colors?
While the feedback on the drink each week can have mixed reviews, this piece of branded drinkware was universally loved! The Brumate Toddy with Fashion colors features several very cool positives. First, the colors really are fun. As you can see on the video, Jade, Briar and Kirby each have a different color. So you have some cool, “outside of the box” options when it comes to branding. In addition, the lid is sweet. It’s leakproof (as Briar proved in the video) and you can adjust it for right or left-handed drinkers.
As for the drink…well the reviews were mixed. Watch the video to get the full reaction. But in short, Jade does not like beer. It doesn’t matter what brewers put in it to make it “more fall.”
We hope you enjoyed this episode of Thirsty Thursday as much as we did. Until next time, stay thirsty!
Each Thirsty Thursday, we feature a cool piece of branded drinkware. To learn more… head to our shop here.
In today’s fast-paced work environment, where deadlines are tight and expectations are high, it can be easy to overlook the importance of appreciation. However, research consistently shows that recognizing and valuing employees can significantly impact a company’s success. A simple “thank you” or acknowledging a job well done can create a positive ripple effect throughout an organization. When employees feel appreciated, they are more likely to stay, work harder, and even become brand ambassadors for the company.
Employee Retention
One of the most compelling reasons to prioritize appreciation in the workplace is its impact on employee retention. High turnover is costly for businesses. Recruiting, hiring, and training new employees requires time, money, and resources that could be better spent elsewhere. Yet, when employees feel valued, they are far less likely to seek new opportunities. A recent study by the American Psychological Association (APA) found that 93% of employees who reported feeling valued said they are motivated to do their best at work, and 88% reported feeling engaged. Among this group, only 21% plan to look for a new job in the coming year. These statistics suggest that feeling appreciated creates a sense of loyalty and commitment among employees, making them less inclined to leave.
Driving Productivity
Beyond retention, showing appreciation at work also drives productivity and engagement. When employees know their efforts are recognized, they are more motivated to go above and beyond. They are more likely to take ownership of their tasks, collaborate effectively with colleagues, and strive to exceed expectations. This heightened level of engagement leads to higher-quality work, increased innovation, and ultimately, better business outcomes. The same APA study reinforces this idea, as employees who feel valued are significantly more motivated to perform at their best. The simple act of recognizing an employee’s contribution can transform a disengaged team member into a motivated and productive one.
Employees Become Ambassadors
Furthermore, employees who feel appreciated often become enthusiastic advocates for their workplace. They are more likely to speak positively about their company, both inside and outside of work. These employees act as brand ambassadors, promoting the organization to potential clients, customers, and future talent. In an age where company culture and employee experience are crucial to brand reputation, having a workforce of genuine advocates can be a powerful advantage. This kind of organic, positive word-of-mouth can enhance a company’s reputation, attract top talent, and even improve customer loyalty. A satisfied and appreciated employee is a far more credible and effective spokesperson than any paid advertisement or marketing campaign.
Branded Merch Shows Real Appreciation
One effective way to show appreciation and foster this sense of loyalty and brand advocacy is through the use of branded merchandise. Providing employees with high-quality, branded items such as clothing, accessories, or office supplies can serve as a tangible reminder that they are valued members of the team. Branded merchandise not only helps to instill a sense of pride and belonging among employees but also turns them into walking ambassadors for the company. When employees wear or use branded items, they are subtly promoting the company wherever they go—whether it’s at a client meeting, a networking event, or even in their personal lives. This not only boosts employee morale but also increases brand visibility in a meaningful way.
Be Real
However, it’s not just about saying “thank you” or giving away swag. Effective appreciation must be genuine, specific, and consistent. Generic or insincere praise can come across as patronizing, undermining its potential benefits. Managers and leaders should take the time to recognize the unique contributions of each employee and provide personalized feedback. Branded merchandise can be a part of this strategy, but it should be thoughtfully selected and presented as a sincere token of appreciation, rather than just another item. Whether it’s through public recognition in a team meeting, a thoughtful note, or a small token of appreciation like branded merch, the key is to make employees feel seen and valued for their individual efforts.
Showing appreciation in the workplace is not just a “nice-to-have” but a strategic business practice that can lead to lower turnover rates, increased productivity, and stronger brand advocacy. By fostering a culture of gratitude and recognition, supported by thoughtful gestures like branded merchandise, companies can build more engaged, loyal, and motivated teams that drive long-term success. So, the next time you notice an employee doing a great job, take a moment to acknowledge their efforts—whether it’s through words, actions, or a thoughtfully chosen piece of branded gear—you might be surprised at the positive impact it can have.
Want to attract and retain the best team possible? Check out our TARGET Hiring Playbook. You can get that here.
