Employee recognition isn’t a fluffy concept. Here are five ways it can actually drive bottom line results.
When done right, a recognition program can unite a workforce around the behaviors and values that drive business forward through positive reinforcement. Talent leaders can make values more than a plaque on the wall by relating them to employees’ day-to-day work through recognition.
During the past decade, tactical approaches to recognition have been transformed into strategic initiatives by tying in elements of performance management and better aligning employees to a company’s core values and corporate goals.
According to a 2012 SHRM/Globoforce survey, 58 percent of HR leaders observed a return on profit margin as a result of their recognition program. This research preceded a separate study from Bersin and Associates, which found that companies that excel at employee recognition are 12 times more likely on average to generate strong business results than their peers.
Here are the top five ways recognition can drive bottom line results:
Engage employees. Employee engagement is frequently cited as one of the top HR challenges by many studies. The 2012 SHRM/Globoforce Employee Recognition Survey found that 37 percent of companies with strategic recognition programs report high percentages (71 percent or better) of workers with high engagement levels compared to only 25 percent of companies without strategic recognition.
Strategic employee recognition provides a foundation for the measurement and analysis of culture, a traditionally difficult-to-quantify commodity of an employer. Start using it to bring about a cultural change that engages employees, reinforces company values and helps meet business goals.
Increase employee retention. Survey results from the Spring 2012 Globoforce Workforce Mood Tracker show that 55 percent of employees would leave their current job for a company that clearly recognized employees for their efforts and contributions.
While salary and benefits fulfill baseline needs, other factors — such as challenging work, trust in leaders and being acknowledged for dedication — fuels a higher level of intrinsic motivation. Identify for employees what is important, and then show appreciation for their contributions to drive their loyalty to the organization.