Tie it all together: 87% of employees who reported a strong culture of recognition at their company also reported a high level of inclusion. (Photo: Shutterstock)
Companies that promote diversity, equity, and inclusion (DEI) strategies can find more success with they include that work in their employee recognition efforts, a new study says. The report by Achievers, an employee recognition and engagement company, and Workplace Intelligence, an HR research firm, said that incorporating DEI and recognition will improve success for businesses over a wide range of outcomes, including better financial performance and higher employee engagement.
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The report surveyed 2,000 employees and HR leaders and found that companies that have a culture of employee recognition also tend to have strong DEI programs. "Our study reveals a positive correlation between a company's culture of recognition and their commitment to [DEI]," said Dan Schawbel, managing partner of Workplace Intelligence. "When organizations prioritize and integrate both, they benefit from higher employee engagement, better outcomes tied to both recognition and [DEI], and greater financial success."
A strong link between recognition and DEI
The survey found that the two areas seemed linked: 87% of employees who reported a strong culture of recognition at their company also reported a high level of inclusion; only 43% of employees who said their company had a weak culture of recognition also reported a high level of inclusion.
"To put this into perspective, this means that where there's a strong culture of recognition, employees and HR leaders are more than twice as likely to report that their company demonstrates commitment to [DEI] and employees are more than twice as likely to report that they feel included at their organization," the report said.
This connection was underscored by a similar finding: 81% of employees who said they had been recognized in the past week said their company had a high level of inclusion; only 45% of employees who said they were never recognized by their company reported a high level of inclusion.
Good outcomes seen with DEI and recognition efforts
There also seemed to be a link between good business results and combining recognition with DEI. Companies that include DEI in their employee recognition efforts were more likely to report above-average performance: at companies with the combined approach, 33% of employees and 43% of HR leaders reported that their company outperformed its industry peers over the past three years. At companies that do not integrate DEI with recognition, the survey found that 17% of employees and 23% of HR leaders said that their company outperformed industry peers.
In addition, the survey found that companies that integrated DEI and recognition showed better employee engagement: at those businesses, 55% of employees reported being highly engaged, and 41% of HR leaders at those companies said their workforce was highly engaged. Companies that did not incorporate DEI with recognition had significantly different findings: just 17% of employees said they were highly engaged; none of the HR leaders in this category said their workforce was highly engaged.
The researchers noted that many companies have not taken the step of combining DEI and recognition efforts: 17% of employees and 32% of HR leaders in the study said their company has a recognition program that includes a DEI component. The Achievers and Workplace Intelligence report made the case that employers should make more efforts to combine DEI with recognition programs.
"As we look to what the future holds for recognition and [DEI], these survey results reinforce how critical it is that leaders in both areas work in lockstep as they strive to achieve their respective outcomes for the business," said Natalie Baumgartner, Chief Workforce Scientist, Achievers Workforce Institute. "When recognition supports [DEI], organizations will reap the benefits of a more engaged and productive workforce, where all employees feel that they belong."
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