Here’s one benefit new research shows your company won’t want to overlook.
Companies that allocate one percent or more of payroll to invest in employee recognition programs tend to benefit in three ways:
- 85% report seeing a positive impact on employee engagement
- 61% report an increase in their employee retention rates, and
- 59% see stronger financial results.
Those were just some of the findings of the Society for Human Resource Management (SHRM)/Globoforce Employee Recognition Survey of 815 HR pros. The survey took place this past August.
Other notable findings from companies with a recognition program in place:
- They’re more likely to find performance reviews accurate — 58% said they’re an accurate appraisal of employees’ work (versus just 44% of companies that don’t have a recognition program)
- They’re more likely to reward employees for on-the-job performance — 66% said they do so (versus 39% of employers without a recognition program), and
- They have nearly twice the number of employees who say they’re satisfied with the level of recognition they receive, compared to companies without a recognition program.
Employers with a “strategic recognition program” (one that ties recognition awards to corporate values):
- exhibit 28.6% lower levels of employee frustration
- are 25.4% more likely to have employees who understand organizational
- make employees feel 21.5% more enabled to achieve organizational objectives.
As a result of implementing a peer-to-peer recognition program:
- 57% say it has increased employee engagement
- 41% report increases in customer satisfaction
- 32% have seen an increase in customer retention, and
- 28% have experienced increased employee retention.