Recognition programs funded at 1 percent or more of payroll are more likely to be rated highly than underfunded programs or programs with zero budget – such as “e-thanks” – according to the 2018 SHRM/Globoforce Employee Recognition Report.
The report, titled “Designing Work Cultures for the Human Era,” found that HR professionals have several options when it comes total employee rewards. For employee recognition, results are largely dependent on the level of investment on behalf of the company – programs at 1 percent or more of payroll are 86 percent more likely to be rated as good or excellent.
HR leaders at this level of investment are also more likely to agree that their programs are fully aligned with the organization’s people strategy, meaning they’re tied to important business metrics such as retention rate, strength of company values, and employee happiness.
These programs stand in comparison to cost-saving ones such as “e-thanks,” which deliver the “thank you” without monetary reward. In the survey, a majority of “e-thanks” programs were rated as poor or fair – 58 percent.
As the first finding of the report found, recruitment is a top workforce management challenge each year. Workplace culture awards, which rank company culture based on factors like employee reviews and benefits, are a great way to showcase employer brand and improve recruitment efforts – and organizations which invest 1 percent or more of payroll on employee recognition are more than 2 times as likely to receive a workplace award.
Survey respondents were also asked, “How would you say that employees view your organization?” Although most organizations fall into the “good place to work” category regardless of their investment in employee recognition, the chances of reaching “best place to work” status dramatically increase as organizations invest more in employee recognition.
A robust, well-funded employee recognition program that reinforces positive behavior by delivering messages of appreciation in addition to a monetary award is an invaluable tool for HR leaders. Not only does it create happier employees – who refer their peers to the organization – but can help resolve recruitment and retention challenges, reinforce and drive business goals, spur growth and development, and humanize the employee experience at work.
The 2018 SHRM/Globoforce Employee Recognition Report explored what constitutes a human workplace by surveying 738 HR leaders in multiple organizations. To download the full report, click here.