The Importance of Incentives and Recognition on Workplace Performance in a Tight Labor Market

Research from TLNT shows some interesting facts about the role of incentives, rewards and recognition in companies today.  Following are some key points from that research: 

• While 93% of organizations are aligning their rewards programs with organizational goals, only a third of them say performance or productivity motivation is a primary goal.

• 71% of organizations say the objective of their programs is to increase employee engagement.

 • 45% of companies see IRR programs as strategic, training managers on how to use them, encouraging and monitoring their usage.

• Non-cash incentives are taking on an ever greater importance. In 1996 24% of organizations reported using non-cash incentives. In 2016, 84% were.

 • The effectiveness of cash-based annual incentive plans is questionable. 42% of companies see them as effective; 36% are undecided.

• 37% of HR professions say that non cash incentives in the form of recognition awards, gift cards, etc. have a greater impact on engagement, while less than a third say that about cash.