The number one reason most Americans leave their job is that they do not feel appreciated! Did you know that approximately 65% of people say that they do not receive recognition for good work.(1) People want affirmation and to know that they are doing a good job. There have been numerous studies over the years that have proven that one of the top motivators of employee engagement, satisfaction, and loyalty is recognition. Employees in a recognition-focused organization are 5 times more likely to feel valued, 6 times more likely to invest in the company, 7 times more likely to stay, and 11 times more likely to feel completely satisfied.
According to Forbes research, companies that give regular thanks to their employees far outperform those who do not. Nearly 75% of organizations have a recognition program despite the fact that only 58% of employees know about it.(2) The most common type of recognition you will see at companies are tenure-based. What’s interesting is that research shows tenure rewards system has virtually no impact on company performance. Would you work harder and stay another year with your company so you could qualify for a 10-year watch? Probably not.film The Great Wall online streaming
Companies that have updated their recognition programs have seen a 31% lower turnover rate.(3) Now that’s a statistic that gets your attention. Most CEO’s we know would pay whatever it takes to reduce their turnover rates. Let’s look at a few statistics to further drive home the importance of employee recognition programs.
- Organizations with strategic recognition programs in place exhibit 28.6% lower frustration levels than companies without recognition programs. (SHRM/Globoforce Employee Recognition Survey, 2012)
- Organization with the most sophisticated recognition practices are 12 times more likely to have strong business outcomes. (Bersin by Deloitte, The State of Employee Recognition, 2012)
- Praise and commendation from managers was rated top motivator for performance, beating out other noncash and financial incentives, by a majority of workers (67%). (McKinsey Motivating People, Getting Beyond Money, 2009)
- When companies spend 1% or more of payroll on recognition, 85% see a positive impact on engagement. (SHRM/Globoforce Employee Recognition Survey, 2012)
- Recognition is an important psychological need. Employees who know that they will receive recognition for acting on the brand promise will have a strong incentive to do so. (Gallup, 2013 State of the American Workplace).
- Peer-to-Peer is 35.7% more likely to have a positive impact on financial results than manager-only recognition. (SHRM/Globoforce Employee Recognition Survey, 2012)
- 60% of Best-in-Class organizations stated that employee recognition is extremely valuable in driving individual performance. (Aberdeen Group, The power of Employee Recognition, 2013)
Recognition brings higher engagement, positive employee morale, quality work, and employee retention. What does your company’s recognition program look like?
(1) Gallup, Tom Rath and Donald Clifton, How Full is Your Bucket? Positive Strategies for Work and Life, 2001
(2) Bersin by Deloitte, The State of Employee Recognition, 2012
(3) Bersin by Deloitte, The State of Employee Recognition, 2012