As I’ve said before, when tracked, the ROI on rewards and recognition programs actually appears quite positive. Globoforce came out with a wonderful infographic last week that seemed to illustrate just how well recognition works. I stumbled across it when perusing Derek Irvine’s blog, Recognize This. The infographic is titled, “The Value of Thanking Employees” and is designed using data from several studies done by organizations such as globoforce, Bersin & Associates, and Towers Watson. Some surprising and expected trends suggest what types of rewards and recognition truly motivates employees, and the results of recognition.
Out of six different possible types of recognition, the most likely form to be chosen by employees surveyed, was praise from a manager, at 67%. Attention from leaders, came in second at 63%, and opportunities to lead at third, with 62%. The three least often chose types of recognition were cash (60%,) a raise (52%,) and stock options(35%,) at fourth fifth and sixth. Kind of puts to rest the myth that cash and monetary rewards were the most motivating forms of recognition. This type of information is invaluable when attempting to create, design, or implement a recognition strategy, so take note. You don’t have to have a huge budget to motivate your employees.
One result of recognition that is somewhat expected, is the retention of employees. With 46% more turnover with companies who have ineffective recognition programs, it seems like a wise investment. Companies who invest in recognition, also saw a 14% rise in engagement. Perhaps the most amazing find out of all of this, is that with all the studies out there proving that rewards and recognition help decrease turnover, and increase engagement, and thus, your bottom line, 65% of employees said they receive NO recognition at work. HR pros need to start figuring out ways to institute praise, awards and recognition into their companies culture, or they can expect to have issues with retention and engagement.
With over $41.33 million lost in turnover annually, and three times the annual operating margin for companies who have an engaged workforce, can you afford not to recognize your employees? The Wall Street Journal said it best “Awards, recognition, and praise, may be the single most cost-effective way to maintain a happy, productive workforce.” Whatever program you choose to recognize your employees, just make sure you take the time out to say thanks.