Employee RetentionToday's business environment is so competitive that companies must do their best to find suitable employees and create a good team and working environment, in order to so that they can remain in business and achieve high profits. Managers spend a lot of time and money finding and attracting responsible, innovative, competent and motivated employees. Furthermore, when the company succeeds in finding such a person, the question arises of how to increase their satisfaction and performance. Reducing staff turnover is a main objective of company management. In order to achieve this goal, managers use various tools. The most common of all is to praise and recognize employees after they have done their job well. Curt Coffman states that "71% of American workers are 'disengaged,'" meaning employees don't care about the organizations they work for. The case described in S. Robbins and T. Judge's book "Organizational Behavior" (Chapter 7 - Motivation) explores the fact that the feeling of lack of appreciation leads to a decrease in employee performance. The case explores the complex issue of how to show recognition and how to reward employees for good performance. Companies fail when they have to say “Thank you” to their employees when they deserve it. Research from various organizations has shown that in reality, bonuses are not enough to increase worker satisfaction. Gifts given insincerely and inappropriately would not please employees and such recognition has no value to them. Eric Lange, working for a trucking company, gives an example of gifts given to his company's vice presidents. He says that although they received expensive gifts – a luxurious Cadillac Seville automobile and a new Rolex wristwatch, they were not distributed appropriately. Not only did they not like these gifts, but they also felt even more undervalued, leading to a decline in their performance. Performance is believed to be a function of three factors: ability, motivation and opportunity to perform. Managers must not only ensure that rewards are based on performance, but also that employees receive feedback and are given interesting and challenging tasks. The final step for managers is to provide an opportunity for performance – a suitable work environment, free from obstacles that constrain employees. If managers complete all three steps, it is very likely that employee performance will increase significantly, according to the formula.