According to the recent SHRM/Globoforce Employee Recognition Survey, companies with employee recognition programmes experienced a 22 percent lower turnover rate versus organisations without a recognition programme.
In the August 2012 iteration of the SHRM/Globoforce semi-annual survey, responses from 815 HR professionals surveyed show a positive impact of recognition on employee retention, engagement, performance, and satisfaction. Key insights from the survey include:
More than two-fifths (41 percent) of those surveyed cited Succession Planning as one of the top HR challenges, followed by Employee Engagement (40 percent) and Culture Management (30 percent). This finding underscores the need for companies to identify high potential, high performing individuals as part of their talent strategy.
Recognition programmes positively impact performance management
The latest SHRM/Globoforce survey indicates the influence of a recognition programme on performance appraisals and evaluations. Among companies that have a recognition programme in place:
* 58 percent said performance reviews are an accurate appraisal for employees’ work (versus 44 percent of companies without a recognition programme)
* 66 percent said employees are rewarded according to job performance (versus 39 percent without a recognition programme)
* Nearly double the percentage of said employees are satisfied with the level of recognition they receive (compared to companies without a recognition programme)
According to the survey, companies that allocate one percent or more of payroll to recognition observe higher levels of employee engagement and retention and stronger financial results.
Among companies that spend one percent or more in payroll on employee recognition programmes:
* 85 percent have seen a positive impact on employee engagement
* 61 percent have seen an improvement in employee retention rates
* 59 percent have seen stronger financial results
“By simply having a recognition programme, companies experience higher retention rates and a better view into employee performance. It can shake the tree of a company’s talent and uncover hidden leaders,” said Eric Mosley, CEO of Globoforce. “But once it is really amplified — properly funded across the entire organisation — a social recognition programme can truly energise a company and its culture like no other HR programme.”
“The latest SHRM/Globoforce survey shows HR leaders are thinking about how to instil stronger employee performance,” said Mark Schmit, SHRM’s vice president of research. “Employee recognition, as observed by those surveyed, provides quantifiable business results. It is these types of findings that cement recognition as a critical programme for any HR leader.”