Investment in value-based recognition programs pays off
January 24, 2017
By Kevin Marrs, courtesy of SBAM Approved Partner ASE
According to a recently released survey from the Society for Human Resource Management (SHRM) and Globoforce, a leading provider of social recognition solutions, organizations that dedicate 1% or more of payroll to values-based rewards and recognition are more likely to see greater impacts on retention and financial outcomes.
Specifically, the survey revealed that companies that spend 1% or more of payroll on recognition are nearly three times as likely to rate their programs as excellent.
What are values-based recognition programs? Quite simply, these are recognition initiatives that are aligned with your company’s values. This year’s survey found that 60% of those surveyed offer such programs, up from 50% in 2012. The authors of the study suggest that these programs outperform other programs.
“This increase is a positive development because HR professionals were more likely to rate their organization’s employee recognition efforts highly if the program was tied to organizational values compared with those that were not tied to values,” said Tanya Mulvey, SHRM’s lead researcher on the survey.
The survey found that HR professionals with value-based recognition programs are more likely to report the following benefits:
- 32% more likely to deliver a strong ROI
- 31% more likely to instill and reinforce corporate values
- 31% percentage points more likely to maintain a strong employer brand
Why the focus on retention? The study shows that 46% of those surveyed cite employee retention as their top workforce challenge. The authors of the study suggest that you need look no further than recent labor statistics, which show historically low unemployment and its likely impact on turnover. As the labor market improves and the number of job openings increases, workers will feel more confident about the prospects of finding new employment.
The survey, which contained data from 798 HR professionals employed at organizations with 500 or more employees.
Other Key Highlights:
- 71% of respondents with a values-based recognition program say it positively impacted retention, versus only 54% of those whose recognition programs weren’t values-based.
- Companies that spend 1% or more of payroll on value-based recognition programs are 3.5 times more likely to say their program assisted with attracting new job candidates.
- 90% of those surveyed with value-based recognition perceive a positive impact on employee engagement.
Finding and keeping the best talent (to use a football analogy) is a game of inches, and as the famous Vince Lombardi Jr., suggested, inches make champions. One size fits all or ad hoc recognition programs that go unfunded or unmanaged will likely have little impact on the crucial objectives.