Entrepreneurship

25 Great Statistics on Employee Recognition

In today’s world, where there is constant competition for talents, companies are looking for ways to entice and retain their best employees while improving their growth and productivity. They could offer perks or improve their workplace. Organizations keep on finding new concepts and strategies, however, they failed to notice that the easiest approach is employee recognition.

In the U.S., one in three employees received recognition or appreciation for their excellent work. Regardless of where you work, it can be frustrating if your best efforts are always ignored. Furthermore, employees who are not often recognized will likely quit their job.

Employee recognition is one of the most important factors of engagement and performance. But sad to say, most organizations have missed this greatest opportunity. Workplace recognition can motivate employees. It can make them feel that their work is being appreciated and gives them a sense of accomplishment. Aside from boosting employee engagement, recognition can also improve productivity and commitment to the company. As a result, the organization can obtain higher retention.

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But recognition goes beyond providing motivation and expressing appreciation. In fact, it can also make other employees aware of what success really is. Recognition can even help companies strengthen the culture that they want to implement on their employees.

What Is The Best Way of Recognizing Employees?

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Authentic, honest, and personalized recognition can make employees feel deeply appreciated. Recognizing the best work of employees can be shown simply by giving a thank you card or a personal note. The key is to make it more meaningful and lasting to the employee.

Based on the latest workplace survey from Gallup, employees receive their most memorable recognition from different sources. 28% comes from the employee’s manager, 24% are given by the CEO, 12% originated from the manager’s manager, 10% are from customers and 9% are from their peers. It is also worth mentioning that 17% comes from other individuals.

What do you think is the most remarkable thing about these findings. It is surprising to know that almost one-quarter of these memorable recognitions originated from the CEO. This means that employees will always remember any personal appreciation coming from the CEO. No matter how simple that recognition is, it can result in a positive impression on the part of the employee.

So, what are the type of recognition that employees consider as the most memorable one? The top form of recognition is public recognition, for instance, giving the employee a certificate or an award. This is followed by a private recognition coming from managers, customers, or peers. Next is receiving high ratings from evaluations, followed by promotion or giving additional responsibilities, monetary rewards such as an increase in salary, and finally personal satisfaction.

Why Employee Recognition Is Important?

Employee recognition should not be considered as a trend but a must-have for any organization. If employee retention and engagement are very important to you then you should recognize them for their accomplishments. Having a recognition program can either make your staff stay or leave from your company.

Employee recognition is an important issue that every organization should consider. By showing appreciation to your employees, your financial gains could potentially go up. Employee recognition can result in better productivity, enhanced product development, and excellent customer service. Here are 25  surprising facts about employee recognition:

Is Your Company Offering Employee Recognition Programs?

1. At least 75% of companies are offering recognition programs.

According to “The State of Employee Recognition,” there are 75% of organizations that provide employee recognition programs. However, 58% of employees believe that their companies are not implementing recognition programs.

2. Nearly 60% of Best-in-Class companies appreciate their employees.

Based on the data from “The Power of Employee Recognition,” close to 60% of Best-in-Class companies admitted that employee recognition is very important in motivating employees to perform better.

3. Recognition programs can engage employees.

Companies who are implementing recognition programs are quite efficient when it comes to employee engagement. In fact, according to “The State of Employee Recognition,” their voluntary resignation is 31% lesser than those companies with inefficient recognition programs.

4. 14% of organizations have tools for recognition.

According to “The Power of Employee Recognition,” only 14% of organizations have the essential tools needed for giving recognition and rewards to their employees.

5. Recognition programs are offered during the recruitment process.

At least 14% of organizations reveal that they constantly offer recognition programs during the hiring process. This is based on the data on “Trends in Employee Recognition.”

6. One of the ways to reduce employee turnover is to provide recognition programs.

According to the Globoforce Employee Recognition Survey, organizations that offer vital recognition programs reportedly have a lesser employee turnover rate of 23.4%. This is much lower compared to the retention rates of organizations that do not provide any recognition programs.

7. Most companies use peer-to-peer recognition programs.

Peer-to-peer recognition programs are used in nearly 41% of organizations. In fact, Globoforce Employee Recognition Survey revealed that aside from making employees feel satisfied, it also improved customer satisfaction.

8. There is an increase in the number of companies that offer recognition programs.

In 2013, an entire 67% of Best-in-Class organizations provide recognition programs while only 58% of Best-in-Class organizations offer them in 2012.” This data is from “The Power of Employee Recognition.”

What Are The Benefits of Recognition Programs?

9. The most sophisticated recognition programs can give you effective outcomes.

According to “The State of Employee Recognition,” companies who are practicing the most sophisticated recognition programs are 12 times more likely to obtain powerful business results.

10. Recognition programs can improve employees’ commitment.

If organizations will be able to monitor the efficiency of engagement and recognition programs, then it can help them in improving employees’ commitment to business objectives. At the same time, it can make employees perform better. On the overall, 43% of Best-in-Class organizations can easily obtain metrics on recognition programs, while 18%  do not have any access, according to “The Power of Employee Recognition.”

11. There is an increase in engagement when employees are consistently recognized.

In fact, the “2012 Trends in Global Employee Engagement” revealed that the top qualities that can engage people to work in companies are recognition, career opportunities,  and reputation.

12. Both individual and team recognition can make employees perform better.

“The State of Employee Recognition” reveals that whether it is an individual or a team recognition, organizations observe a 14% improvement in their performance compared to companies that do not have any recognition programs at all.

13. Recognition activities can provide a positive influence on employees.

Organizations that allocate at least 1% or more of payroll for recognition activities have seen an 85% positive influence on employees’ engagement, based on the Globoforce Employee Recognition Survey.

Are Recognition Programs Essential?

14. Most American employees feel that they are not recognized for their work.

This is based on the findings of “How Full Is Your Bucket? Positive Strategies for Work and Life.” Consequently, this is the major reason why most American employees resign from their jobs. The truth is, based on a survey, at least 65%  of workers reveal that they did not get any appreciation for their good work during the previous year.

Employee recognition can create a great impact on organizations, however, some employees feel that their efforts are not appreciated! Furthermore, when these employees will not receive any recognition for their excellent job, then most likely they won’t continue with their efforts. Giving praise to someone will only take a few seconds and it can already make a big difference.

15. Managers think that there is a need for recognition programs

According to “Trends in Employee Recognition,” there is approximately 46% of senior managers who feel that recognition programs are very important. In fact, they view it as a significant investment instead of an expenditure.

16. Employees are more engaged when they are constantly being recognized.

Managers who regularly recognize the performance of their employees will likely improve engagement by roughly 60%. This is because of the significance of employees’ well-being, according to “Turbocharging Employee Engagement: The Power of Recognition From Managers.”

17. Recognition programs can reduce frustrations from employees.

The “Globoforce Employee Recognition Survey” shows that organizations that are implementing strategic recognition programs have likely a lower frustration rate of 28.6% compared to those who do not practice recognition programs in their companies.

18. Most employees favor peer-to-peer recognition programs than manager-only recognition programs.

Peer-to-peer recognition programs for employees are 35.7% more likely to result in a positive influence on the financial compared to the manager-only recognitions, according to the Globoforce Employee Recognition Survey.

This is your chance to appreciate the efforts of your team members. Peer-to-peer employee relationships can contribute to the success of any organization. Most people think that leader-to-employee recognition is the only one that is essential. But the fact is, peer recognition is more rewarding and more powerful too!

Peer recognition can also help in improving employee engagement, productivity, employee retention, and quality of work. All of these factors can result in a positive influence on the organization’s financials.

19. Praises can help in motivating employees.

Most employees will be motivated to perform better if their managers will provide them with praises and commendations. In fact, according to Getting Beyond Money, 67% of workers believe that this is a top motivator compared to financial and noncash incentives.

20. Companies are willing to invest more in recognition programs.

Based on “Trends in Employee Recognition,” organizations that acknowledge the huge significance of recognition, are willing to invest a lot of money on these programs. In fact, they will spend at least 1% of their payroll on recognition exercises.

According to HRM Report, US organizations allocate more than $100 billion on incentive programs each year. It’s great to give bonuses and gift cards, but saying a simple “Thank You” is the best form of recognition that is entirely free. There is no need for you to spend a lot of money just to make your employees feel recognized. Simply say it and save the money for your team-building activity.

Is Recognition A Great Motivator?

21. Business leaders can encourage recognition in employees.

According to “The Business Impact of Talent Intelligence,” when it comes to the workforce data analysis, companies that have given themselves a rating of “excellent” feel that they should give a rating of “satisfactory” to their business leaders. This is in connection with the organization’s hiring and retention process. This is also related to the influence of Human Resources on the implementation of business strategy. It is evident that these organizations can likely beat companies who give themselves a rating of “insufficient.”

22. In the UK, recognition is one of the greatest motivators.

Based on the “2004 European Talent Survey,” one of the top five motivators for workers in the UK is the recognition of their work. This is also the same in Europe.

23. The most sophisticated recognition strategies are the most efficient ones.

Based on some research, companies who are using the most mature employee recognition strategy are 12 times more likely to obtain substantial business outcomes, according to “The Employee Recognition Maturity Model.”

24. Recognition can satisfy any worker.

According to the “2013 State of the American Workplace, ” being recognized for a job well done is such an important thing for anyone. In fact, it is considered as a psychological need. When employees know that the company will give them recognition for accomplishing the goal of the company, it will become their strong motivation.

Millennials should be given immediate recognition for their achievements, according to York College of Pennsylvania. You don’t have to wait for a long time before giving recognition since your employees might forget what they did. When it comes to showing gratitude, you must do it right away. Keep in mind that this can help in boosting their morale.

25. If you want to improve engagement, then you should recognize your employees.

When it comes to improving engagement, leaders could do a lot. In fact, according to a survey, 58% of respondents reveal that giving recognition is a great motivator, based on “A Study of Employee Engagement in the Canadian Workplace 2010.”

It is sad to know that some employees feel that they do not receive any appreciation for their work. Truly, there is no such thing as excessive recognition. If you really want to retain your employees, then you should motivate them through recognition. Even a small appreciation is powerful enough to drive more productivity in the organization.

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James is the co founder of More Than Accountants an Online Accountants. He will be more than happy to help More Than Accountants clients implement any guides or strategies that he has posted to the blog. If you would like to learn more about becoming a More Than Accountants client you can quote online by using our Unlimited Accountancy Services Quoting Tool.

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