Retaining employees in 2026: how appreciation reduces your turnover
Lisa Kenter
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TL;DR — In 30 seconds
Employees rarely leave for money alone. Lack of appreciation is a stronger predictor of turnover than salary.
Structured and personal rewarding — on anniversaries, performances and even just a spontaneous thank you — demonstrably reduces turnover.
A choice gift card works better than a standard gift: the recipient chooses for themselves, so the appreciation feels personal.
Via the work-related costs scheme (WKR) you can give a large part tax-free. Calculation: 100 employees × £50 = £5,000 reward value, within your free allowance.
💡 Why Giffy writes this
Giffy helps organisations reward and appreciate employees without the hassle. We see daily what a well-timed, personal reward does for engagement — and share what works here.
Why employees really leave
Salary is rarely at the top when someone resigns. Research into job satisfaction and engagement (among others by Effectory) consistently shows that feeling seen and appreciated is a stronger predictor of retention than reward alone. People stay where their efforts are noticed.
And turnover is expensive. Replacing a departing employee quickly costs several monthly salaries in recruitment, onboarding and lost productivity — quite apart from the knowledge that walks out the door. Appreciation is therefore not a "soft" theme, but a direct business case.
Appreciation as a retention tool
The difference is not in one big gesture per year, but in consistency at the moments that matter:
Onboarding — a warm welcome sets the tone.
Anniversaries and milestones — recognise how long and how well someone contributes.
Performances — reward results and effort shortly after it happens.
Spontaneous — an unexpected thank you often does more than an expected bonus moment.
The common thread: make it personal and make it on time. A reward that comes two months too late misses the effect.
Why freedom of choice makes the difference
A standard gift appeals to one person and not to another. A choice gift card solves that: the recipient chooses for themselves from hundreds of shops, a donation to a charity or prepaid credit. That makes the appreciation personal without you needing to know hundreds of preferences.
With Giffy, you can also brand that card with your own logo, colours and message — and the recipient redeems it on mobile, without an account. The lower the barrier, the stronger the gesture lands.
The WKR makes it affordable
Rewarding does not have to be expensive or fiscally complicated. Within the free allowance of the work-related costs scheme (WKR) you can give a large part tax-free.
Calculation example: if you reward 100 employees with £50 each, you reserve £5,000 in reward value. As long as you stay within your free allowance, that is tax-free. In 2026, that allowance is 2% over the first €400,000 of the total taxable wage bill and 1.18% above that.
🔐 Rewarding without the hassle, with a WKR overview
With Giffy, you set up appreciation campaigns from a single dashboard, send in bulk and keep a real-time overview of what you spend within your free allowance. Request a demo and see how simple structured appreciation can be.
A retention approach that works (in 4 steps)
Map out the moments. Which moments in the employee journey deserve recognition? List them.
Make it personal. Your own branding + freedom of choice for the recipient.
Make it consistent. Automate recurring moments (birthday, work anniversary) through your HRM, for example a connection with Nmbrs.
Keep control. Use a WKR overview so that you stay within your free allowance.
Frequently asked questions
Does rewarding really help against employee turnover?
Yes. Research into engagement shows that appreciation is a stronger predictor of retention than salary alone. Consistent and personal rewarding in particular — at the right moments — contributes to lower turnover.
What is a good retention gift for employees?
A choice gift card works best for most teams, because the recipient chooses for themselves from hundreds of shops or a donation. This makes the appreciation feel personal, regardless of individual preferences.
Is a reward to employees taxed?
Within the free allowance of the work-related costs scheme (WKR), a reward is tax-free. If you exceed the free allowance, an 80% final levy applies to the excess.
How often should you reward employees?
Better consistent and at meaningful moments (anniversary, performance, a spontaneous thank you) than one big gesture per year. Timing and sincerity do more than size.
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About the author
Giffy is the Dutch rewarding platform with which organisations reward and appreciate employees, customers and partners with a digital choice gift card — WKR-friendly, with their own branding and sendable worldwide. Active since 2019 and B Corp certified.
Lisa Kenter is Customer Service Manager at Giffy, the Dutch rewards platform that allows businesses to reward employees, customers and partners with a choice of over 150 brands. As the first point of contact for recipients, she ensures a positive experience with their reward — even when things don't go as expected — and collaborates with companies on how to reward and retain their people even better.
