Recognise This! -Strategic Employee Recognition drives bottom-line business results.
Do you reward employees according to job performance? Are you sure?
My company, Globoforce, published last week the results of its bi-annual survey with SHRM examining the current state of HR leaders’ employee engagement and recognition practices and their impact on performance management.
One finding: 64% of companies that have an employee recognition program say their employees are rewarded according to job performance vs. just 36% of organisations without an employee recognition program.
To me, that shows the dramatic value of a strategic employee recognition program for adding far more data points, from far more sources, for a much more complete picture of employee performance. All of that leads to a much better ability to accurately reward employees for job performance.
The five most critical report findings were:
- Employee engagement tops the list of HR challenges. Employee engagement is the foremost human resources issue for HR leaders, yet only a minority tracks it. Those that do measure engagement see higher levels of workforce satisfaction.
- Performance management remains stuck in neutral. Annual performance reviews continue to under-serve the needs of many HR leaders, opening the door for more feedback-rich technologies.
- Recognition programs fill the feedback and appreciation gap. Employee recognition offers HR leaders a new way to evaluate performance year-round. The result is higher levels of employee engagement and appreciation.
- Recognition programs have an observed positive impact on business results. Employee recognition is building the business case for HR leaders, as a majority of respondents say it improves key HR and business metrics.
- Recognition aligned with core values leads to more effective managers. Values-based recognition programs designed to reinforce desired behaviours continue to be a key component of effective, successful recognition programs. The result is higher levels of employee satisfaction.
The ROI results are particularly telling:
Among organisations that measure the ROI of their employee recognition programs, HR leaders observed increases in key metrics. More than half of survey respondents saw increases in productivity, customer/ employee retention, employee engagement, return on profit margin, and return on equity as a result of their employee recognition program.
Per cent of HR leaders who say they observed an increase in these metrics as a result of their recognition program:
- Employee productivity – 63 per cent
- Employee engagement – 61 per cent
- Return on profit margin – 58 per cent
- Customer retention – 52 per cent
- Employee retention – 51 per cent
- Return on equity – 50 per cent
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