On average, employers that practice employee recognition are 12 times more likely to see strong business results, according to recent research by Bersin & Associates, a provider of research-based membership programs in human resources.
Even employee engagement, productivity and customer service are approximately 14 percent better at respondents that practice employee recognition, the research finds.
"Nearly 80 percent of organizations unfortunately focus on ad-hoc or tenure-based recognition programs that fail to reinforce consistent messages or make a strategic impact," says Stacia Sherman Garr, principal analyst, performance management at Bersin & Associates and author of the research. "Used correctly, employee recognition is an important talent management tool that can help guide employee performance, maintain increased employee engagement, reduce employee turnover and ultimately drive business performance."
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For the most effective employee recognition programs, Bersin & Associates recommends that employers set the tone for recognition with senior leaders and clear goals. This allows employees to fully understand their goals in relation to team goals, which enhances business performance. Recognition criteria must be clear, and technology can be used for recognition that is more flexible and frequent.
Bersin & Associates recommends that employers practice a multifront recognition strategy. While this includes employee recognition software, it should incorporate other offline elements, such as praise and appreciation, special projects, certificates, trophies, plaques and token rewards that can be converted into other items once enough points are built. Rewards should be of high quality with appropriate financial value.
"We know that rewards and recognition programs have a significant positive impact on business outcomes," says Claudine Cangiano, senior director at North Shore – LIJ Health System. "Clearly, the research by Bersin & Associates will play an important role in helping organizations understand how thoughtfully planned and executed rewards and recognition programs can help drive both employee engagement and business performance."
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