Among companies that have an employee recognition program, 64 percent of companies say their employees are rewarded based on job performance, as opposed to 36 percent of companies that do not have a recognition program, according to the Society for Human Resource Management.
These are just two of the noteworthy statistics from Employee Recognition Survey by Globoforce, a provider of employee recognition solutions, and the Society for Human Resource Management.
Employee engagement remains the top priority among survey respondents, and the study also finds that there is a correlation between recognition programs and engagement and retention levels, which are considered crucial elements in this job market.
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"We're witnessing intense competition for talent that requires new approaches for energizing, engaging, and evaluating a global work force," says Eric Mosley, CEO of Globoforce. "Performance management has long been viewed as the underlying way this is done. Yet, as this latest survey shows, the lack of ongoing feedback continues to be its missing ingredient. By using a social performance management strategy powered by employee recognition, HR leaders can fill that critical gap of feedback. The result is higher levels of employee engagement, satisfaction and productivity."
"The latest SHRM/Globoforce survey shows a growing introspection among HR leaders," says Mark Schmit, SHRM's vice president of research. "They know how critical HR strategies will be in 2012 and well into the future. By taking the next step beyond simply talking about employee engagement and proactively addressing it with tools like employee recognition, HR leaders will have greater success in elevating all key HR metrics."
Ninety-four percent of respondents report that employee engagement is an important or very important work force challenge, but only 42 percent of respondents track employee engagement levels.
Of the respondents that measure engagement, 69 percent say more employees feel rewarded based on job performance, and among the respondents that do not measure engagement, 49 percent say the same. Fifty-six percent of respondents that measure engagement also say more managers acknowledge and appreciate employees as opposed to 46 percent of respondents that do not measure engagement. Another 37 percent of respondents that measure engagement say more employees are satisfied with their levels of recognition while 23 percent of those that do not measure engagement feel the same.
Regarding annual performance reviews, 45 percent of respondents do not think they provide an accurate appraisal for employee's work, 42 percent of respondents say employees are not rewarded based on job performance. Fifty-five percent of respondents with recognition programs believe their managers effectively acknowledge employees while 36 percent of respondents without recognition programs say employees are appropriately.
For respondents that measure the return on investment of their employee recognition programs, more than half say they saw increases in employee productivity at 63 percent, employee engagement at 61 percent, return on profit margin at 58 percent, customer retention at 52 percent, employee retention at 51 percent and return on equity at 50 percent.
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