Why do people quit a company? Is it really more money, better benefits, greater opportunities? Or could it possibly be you? Research shows that while employees can live indefinitely without a corner office, perks, or even assigned parking, the one thing they can't go without for long is recognition. In fact, the Society for Human Resource Management (SHRM) statistics show that 79 percent of people who leave their jobs cite lack of appreciation as one of the key reasons. That's not a few nuts, but 8 out of every 10 people who walk out the door are saying they didn't feel acknowledged by their boss. For leaders, that puts turnover in a whole new light. It makes it personal. Employees aren't always leaving for more money. They often leave in search of a supervisor who recognizes their achievements.

Dr. John Sullivan, a researcher on employee motivation, has tracked the difference in salary between what former employees were paid at their old jobs and what they earned at their new firms. Says John, "The average salary differential was a little more than five percent."

Five percent! With taxes, that's maybe two more trips to Starbucks a month. And for the tall not the grande.

Few people will leave a great workplace for that kind of increase. But people do leave for good managers who provide them with challenges, opportunities and (most importantly) confirmation that they make a difference, supported by recognition and rewards. We love a quote by one of our heroes, Mary Kay Ash, the founder of the cosmetics giant. She said, "There are two things employees want more than sex and money: recognition and praise."

Now, we wouldn't be surprised if you find this a little hard to believe. So did the National Public Radio reporter who interviewed us several years ago. Skeptical about the power of recognition, he decided to put our ideas to the test. He tried a few of the concepts from our books on his office staff and found a great reaction. Then, he asked several of these folks (a very scientific survey) if they would want a job that paid loads and loads of money, or one where they felt appreciated and rewarded.

Every one of the workers surveyed chose an environment of recognition. He had to admit that "managing with carrots works."

The people he spoke to are not alone. According to Dr. Sullivan, companies that do recognition right typically have turnover rates of four percent or less regardless of the industry. Just ask Cynthia Stotlar, president of Creative Business Solutions. She tells of a manager within a hospital plagued by 60 percent turnover company-wide except in the laundry. The manager there reported just five percent turnover, despite the fact that his employees worked a hot, difficult job for just above minimum wage. How did this one supervisor do it? Recognition. He built a "Hall of Fame." Each time an employee went above and beyond, he put up an 8x10 glossy of the employee, along with a paragraph telling what they did to earn the award.

Which just goes to show, it's not the job, it's the leader. A manager who effectively uses recognition can keep an employee happy in the worst job in the world. Conversely, a manager who neglects recognition won't hold a person in a dream job at least, not for very long.

Today's Carrot A Day: Send Recognition Home

We were in Michigan one gray winter day, speaking to a great automotive supply company. At one point, the vice president of HR told us she recognizes the families of employees.

For example, she said, "Recently I had an employee who had to work late for several weeks straight to put in a new software system. It was hard work, and I appreciated his great effort. At the end of the period, on a Friday afternoon, I sent his wife flowers and a note of thanks."

When the employee showed up for work on Monday morning, the VP asked, "So, did your wife get the flowers?" He nodded. "Yep. Now she wants me to work harder for you."

Talk about motivation! Recognizing families, partners and loved ones for their sacrifices is undoubtedly one of the most powerful (and yet untapped) motivational tools we have ever seen.