One of the most critical determinants of engagement and performance is employee recognition. Unfortunately, the majority of organizations have failed to capitalize on this incredible opportunity.
Recognition in the workplace motivates employees. They feel acknowledged and can experience a sense of success. A crucial benefit of recognizing employees is the increase in productivity and staff loyalty. Due to this, the firms can retain their current customers better.
This article will list 25 such facts highlighting the importance of employee recognition for your firm and organization. Let’s get right into it.
Proven Facts About Employee Recognition
- However, even though just 58% of employees believe their firm has a recognition program, over 75% of organizations have one. (Deloitte)
- Recognition, career advancement, and professional advancement are constantly among the most prominent engagement factors. (Aon Hewitt)
- Leaving a job because you don’t feel appreciated is the number-one reason most Americans quit their positions. Among those who were participants of the survey, 65% stated that they did not receive any public praise for their accomplishments in 2017. (Donald Clifton and Tom Rath)
- Companies with extremely effective recognition programs had a 31% lower voluntary turnover rate than those with weak programs. (Deloitte)
- The percentage of firms that give managers reward and recognition systems is 14%. (Aberdeen Group,2013)
- Employee recognition is valuable in determining individual achievement for 60% of Best-in-Class firms. (Aberdeen Group)
- Using peer-to-peer recognition has led to improvements in customer satisfaction for 41% of organizations who implement it. (SHRM/Globoforce of Employee Recognition)
- Approximately 46% of top managers regard programs that offer accolades as a business investment rather than an expense. (WorldatWork)
- Each year, approximately two-thirds of American employees receive recognition in some way. (WorldatWork)
- Around 14% of the organizations use frequent recognition programs while hiring new employees. (WorldatWork)
- The number of Best-in-Class firms with recognition performance measures is 43%, whereas the number of All Others with metrics is only 18%. (Aberdeen Group)
- According to the Globoforce and SHRM Employee Recognition Survey, 2015: A recognition program yields a 23.4% lower turnover rate for companies than companies that do not use recognition programs.
- According to the Aberdeen Group, employee recognition has the potential to significantly increase workplace productivity. The number of Best-in-Class firms with a formal recognition program in place grew to 67% in 2013, compared to 58% in 2012.
- 60% rise in engagement is associated with significant manager performance in rewarding employee success in these situations where opportunity and well-being are part of the culture. Besides, turbocharging employee engagement is all about recognizing individuals for outstanding work.
- Approximately 28.6% lower levels of frustration are found in organizations that have a strategic recognition program in place. 73% of the participating companies provided recognition awards to employees. (SHRM/Globoforce Employee Recognition Survey, 2012)
- By employing advanced recognition techniques, companies with this level of sophistication are 12 times more likely to see significant business results. The report by Bersin by Deloitte highlights the positive ways companies can increase employee recognition.
- There exists a significant difference between peer-to-peer recognition and manager-only recognition when it comes to the results. Moreover, the former holds a 37.7% stronger position towards recognition than the latter. To make your employees feel appreciated, show your appreciation frequently. (SHRM/Globoforce Employee Recognition Survey, 2012)
- Nearly two-thirds of workers report that praise and compliments from supervisors were their exceptional motivation for performance, compared to other noncash and financial incentives (67 percent) people want to be part of a company they believe in. (McKinsey Motivating People)
- Work recognition was a significant reason for UK applicants wanting to work for a particular company, ranking at the top of the EU’s most sought-after employers. (European Talent Survey)
- In the US, organizations expend around 1% of payroll on recognition initiatives. (Trends in Employee Recognition, WorldatWork, 2011)
- Companies with recognition programs that devote 1% or more of payroll expenditure have discovered that 85% of their workforce experiences significant boosts in engagement. (SHRM/Globoforce Employee Recognition Survey, 2012)
- The average score for employee results in organizations in which people or teams are recognized was about 14% higher than in firms in which they are not. Employee recognition is paramount for increasing productivity, job satisfaction, and retention. (The State of Employee Recognition, Bersin by Deloitte, 2012)
- Recognition is a psychological desire that is vital. Because employees who know that they will be recognized for acting on the brand promise will have a powerful motivation to do so, leaders must provide frequent recognition. (Gallup)
- Our analysis reveals that mature recognition approaches lead to an astounding 12 times greater likelihood of business success (Bersin by Deloitte, The Employee Recognition Maturity Model, 2012)
- A study conducted on employee recognition in the Canadian workplace in 2010 concluded that: On average, 58% of respondents said that leaders could do more to enhance engagement through giving appreciation.
It may be surprising, but these figures illustrate that employee recognition is a vital component in every company’s success. Firms must put employee recognition at the forefront to ensure that people remain employed, but this is also different for different industries.
However, the increasing value of employee recognition can’t be denied, especially during these times of pandemic where people deserve to be appreciated and motivated.
Moreover, you can get help from platforms such as BRAVO. This facility will take away your burden of recognition and will automate the process with all-in-one built-in features.