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The Value and ROI in Employee Recognition

I came across this joint report by the Human Capital Institute, FORUM for People Performance Management and Measurement, and IRF Incentive Research Foundation, which examines the correlation between employee recognition and improved job performance.

Among the facts highlighted, this one stood out to me. It’s taken from the Tower Perrin Global Workforce Study in 2007-2008, in which 90,000 workers in 18 countries were surveyed.

Organizations with high employee engagement had a 19% increase in operating income and a 28% increase in earnings per share. In contrast, companies with poor employee engagement scores had declining operating incomes and an 11% drop in earnings per share.”

Employee Recognition Works!

Here are some of the other high level findings from the Value and ROI in Employee Recognition Report, published in 2009:

  • Recent studies by Gallup, the Corporate Leadership Council, Towers Perrin and others show that recognition is highly correlated to improved employee engagement with both
    the employee’s work and organization.
  • Increased employee engagement has a dramatic positive effect on improving job performance and capturing business value.
  • Organizations actively seeking to improve employee engagement, including through the use of formal and informal recognition, financially outperform their competitors.
  • Unlike compensation and incentive-based programs, recognition programs potentially can create a positive cycle of ever-increasing employee engagement and motivation, with resulting improvements in job performance related behaviors to optimum levels with a limited investment.”

To download a PDF of the report, Click Here.

Top 5 Recognition Awards

I also, found this 2011 Employee Recognition Trends report by World At Work’s quite interesting.  Based on a survey of over 5,300 members, the types of items most frequently given as recognition awards include:

  1. Certificates and/or plaques
  2. Cash
  3. Gift Certificates
  4. Company logo merchandise
  5. Food

For me, the moral of both reports is to keep recognizing our employees.  It doesn’t take much . . . a word of kindness, a token of appreciation, a certificate, enrollment in a professional development experience . . .  the important thing is that we do it!


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