Impact of Recognition
Successful incentive and recognition programs work best when they create a culture of recognition that permeates the organization at every level. This is most effectively accomplished through the development of a strategy that engenders the belief that each and every employee can make a positive contribution to the success of the organization.
"A company's culture is a direct reflection of their leadership." -Jason Dorsey, Chief Strategy Officer, The Center for Generational Kinetics
90% of companies maintain some type of recognition and reward program. Companies maintain such programs to create a positive work environment, improve employee morale, and motivate high performance. Research suggests that an effective program can realize these goals, resulting in a median return to shareholders that is nearly double that of companies that do not maintain effective recognition and reward programs. That said, to be effective, recognition and reward programs should link with a company's strategic priorities, impact a large number of employees, involve key stakeholders, and administer innovative and personalized rewards to employees through a fast and easy system. - The Corporate Leadership Council (CLC)
Gallup poll 2009 - 80% of surveyed employees responded that praise and recognition motivate them to do a better job at work.
ROI in recognition, incentive and reward.
Companies that make Fortune's “Best Companies to Work For” list have:
- 50% less turnover
- 15-25 percent greater return for investors than the S&P 500 over a three, five, and ten year period
Gallup estimates that disengaged employees cost the US economy about $300 billion a year and that 17 percent or more of employees are “actively” disengaged. Each of these employees cost about $13,000 a year in lost productivity.
