The Positive Effects of Properly Designed Employee Recognition Programs

 

Employee recognition awards have become a $46 Billion market.  In the last decade or so, employee research abounds that shows that employee recognition increases productivity, reinforces quality performance, promotes morale and builds positive relationships.  

A recent survey of employees conducted by “A Great Place to Work” found that teams scoring in the top 20% of engagement experience 59% fewer turnovers. 

However according to Gallup’s employee engagement statistics 53% of workers in the US are not engaged and up to 65% of employees haven’t received any form of recognition for good work in the last year.  It simply follows that when people aren’t appreciated for their hard work, they aren’t as inclined to continue to produce. 

Following are some thought-provoking statistics about employee recognition programs:

•  87% of company recognition programs emphasize tenure…

 While memorable recognition milestones such as 5-year, 10-year and 20-year work anniversaries are important, it is far more important to plan recognition efforts for your employees based on their results and behaviors

• Over 91% of HR professionals believe that recognition and rewards make employees more likely to stay.
•  An employee who has been recognized is 63% more likely to stay at his or her current job within the next three to six months

 Plan Your Recognition Efforts Around:

• Recognizing an employee going above and beyond to help a customer
• Providing avenues for peer recognition allowing your employees to acknowledge the efforts of their support teams
• Attract new employees
• Raise average ticket price
• Achieving short term operational goals
• Encourage developing of revenue generating or cost reduction ideas and ways to achieve them
• Drive operational excellence
• Measure training effectiveness
• Reduce order error

More Stats From Recent Surveys

•  A lack of recognition and engagement was contributing to 44% of employees changing jobs 
• Business productivity increases by 31% when employees are happy
• Recognition improves employee engagement productivity and performance by 14
• 92% of workers are more likely to repeat a specific action after receiving recognition for it.
• More than 40% of employed Americans feel that if they were recognized more often, they would put more energy into their work
• Employees mentioned that interesting work (74%) and recognition and rewards (69%) as the top factors that keep them at their current employers
• There are many ways in which you can recognize employees besides just money...in fact, 65% of employees prefer non-cash incentives.

For many years the incentive industry had a very difficult time measuring the effectiveness of employee recognition programs.  With the preponderance of employee research that give us stats as shown above, the benefits of a valued workforce are many and varied.  For one thing, appreciated employees report increased job satisfaction. That satisfaction is itself tied to increased loyalty and lower turnover — and that, of course, leads to higher overall productivity.