Fast Facts

Why Frequent Recognition Matters

  • 15% of employees say they have been recognized in the last month, yet 78% of employees would work harder if their efforts were better recognized. (Workforce Mood Tracker Survey, Spring 2012)
  • “The powerful thing about recognition is that it reminds people of what matters most. This is a key part of engagement – to redirect employee effort and attention to the top priorities of the organization. Regular recognition throughout the year is a reminder of what you need employees to keep doing.” (Blessing White, Mary Ann Masarech, Employee Engagement Practice Leader)
  • “The most important indicator on employee engagement … was simply ‘making progress in meaningful work.’ If employees could find meaning to the work — even contributing value to the team or the organization — this would make a difference.” (The Progress Principle, by Theresa Amabile and Steven Kramer)

How Employee Recognition Drives Employee Engagement

  • “Employee’s feelings about the Recognition she receives accounts for 56 percent of the variance in her level of engagement… Only 59 percent of employees say their supervisor lets them know when they have done a good job, revealing that many employees do not feel as though their managers acknowledge their accomplishments… When employees feel recognized in the workplace, they are statistically more likely to be Engaged employees, meaning they will work harder and produce a higher quality result… Even the most hard-nosed supervisors should be able to see the value in providing regular and meaningful Recognition since it is indirectly tied to revenue through Engagement.” (Building a Magnetic Culture, by Kevin Sheridan)
  • “Showing appreciation for workers’ efforts can lead to a 20 to 30 per cent increase in engagement.” (Towers Watson, “Saying Thank You Boosts Employee Engagement”)

How Employee Engagement Impacts the Bottom Line

  • In 2012, Aon Hewitt examined the relationship between employee engagement and financial performance using data from 94 global companies representing nearly 9 million employees over the years spanning 2008 to 2012. The analysis uncovered a strong positive correlation between increased employee engagement and sales growth in the years following. Each incremental percentage point of employees who became engaged translated into an additional 0.6 percent growth in sales. (Aon Hewitt, 2013 Trends in Global Employee Engagement)
  • A 15% increase in employee engagement drives a 2% increase in operating margin. (Towers Watson, “Reconnecting with Employees: Quantifying the Value of Engaging Your Workforce”)
  • “In companies in which recognition occurs, the organization’s average score for employee results (an index comprised of employee engagement, performance and productivity) was approximately 14 percent higher than in organizations in which recognition does not occur.” (Bersin by Deloitte, “Employee Recognition Framework: A Guide to Designing Strategic Recognition Programs”)

How Employee Recognition Drives Retention

  • “The cost of losing key employees can equal 30% of salary for entry-level positions to 200% for a highly paid manager.” (Jack Phillips Center for Research)
  • “One major factor in how quickly turnover happens—or doesn’t happen—is recognition. More than half of employees are at risk and 55 percent of workers say they would leave their current jobs for a company that clearly recognizes its employee efforts/contributions. That’s 10 percentage points higher than last Fall. And those employees aren’t kidding. They’ve already done it. In fact, 47 percent of them list lack of recognition or negative company culture as a reason for leaving their last company… The good news is employees with adequate recognition are less likely to abandon the company. Of those who have been recognized in the past three months, only 23 percent are considering a job change. That is versus 51 percent likelihood of jumping ship from those who have never been recognized. The bottom line: recognized employees are far more inclined to stick around.” (Workforce Mood Tracker Survey, Spring 2012)
  • Companies with strategic recognition reported a mean employee turnover rate that is 23.4% lower than retention at companies without any recognition program. (SHRM/Globoforce Employee Recognition Survey, Fall 2012 Report)