“We’re witnessing intense competition for talent that requires new approaches for energizing, engaging, and evaluating a global workforce,” said Eric Mosley, CEO of Globoforce. “Performance management has long been viewed as the underlying way this is done. Yet, as this latest survey shows, the lack of ongoing feedback continues to be its missing ingredient. By using a social performance management strategy powered by employee recognition, HR leaders can fill that critical gap of feedback. The result is higher levels of employee engagement, satisfaction, and productivity.”
We know feedback and recognition to be a basic human need for esteem. It is one of the three psychological needs that are easily adapted to the workforce.
“The latest SHRM/Globoforce survey shows a growing introspection among HR leaders. They know how critical HR strategies will be in 2012 and well into the future,” said Mark Schmit, SHRM’s vice president of research. “By taking the next step beyond simply talking about employee engagement and proactively addressing it with tools like employee recognition, HR leaders will have greater success in elevating all key HR metrics.”
Among the 770 HR leaders who responded to the survey, key insights include:
Employee engagement is the top HR challenge but underutilized
According to the survey, 94 percent of HR leaders say employee engagement is an important or very important workforce challenge they currently face. However, only 42 percent of respondents currently track employee engagement levels, missing an opportunity to address low engagement levels within the organization with targeted, proactive strategies. In fact, among companies that measure engagement (versus those that do not), HR leaders say:
- More employees feel rewarded according to job performance (69 percent vs. 49 percent)
- More managers acknowledge and appreciate employees (56 percent vs. 46 percent)
- More employees are satisfied with their levels of recognition (37 percent vs. 23 percent)
Employee recognition fills the feedback gap for effective employee performance management
The survey finds that 45 percent of HR leaders do not think annual performance reviews are an accurate appraisal for employee’s work while 42 percent do not think employees are rewarded according to their job performance. Examining this by companies with recognition programs versus those without:
- 55 percent of companies with recognition programs say their managers effectively acknowledge employees.
- Conversely, only 36 percent of companies without recognition programs feel employees are effectively acknowledged and appreciated by managers.
Employee recognition delivers ROI against key HR metrics
Among organizations that measure the ROI of their employee recognition programs, HR leaders observed increases in key metrics. More than half of survey respondents saw increases in productivity, customer/employee retention, employee engagement, return on profit margin, and return on equity as a result of their employee recognition program.
Percent of HR leaders who say they observed an increase in these metrics as a result of their recognition program:
- Employee productivity – 63 percent
- Employee engagement – 61 percent
- Return on profit margin – 58 percent
- Customer retention – 52 percent
- Employee retention – 51 percent
- Return on equity – 50 percent
To download the 2012 SHRM/Globoforce Employee Recognition Report, visit: http://go.globoforce.com/SHRM-winter-2012-report_announcement.html
To view a complimentary webinar on how to building a workforce environment where trust and cooperation thrive click here.
To view an upcoming training with resources for employee engagement, consensus development and action planning click here.
* The SHRM/Globoforce Employee Recognition Survey is an employee recognition survey that examines employee engagement, performance management, as well as other key metrics associated with employee recognition. The survey is commissioned by Globoforce and conducted in collaboration with SHRM. There were 770 responses from organizations with 500+ employees, resulting in a margin of error of +/- 3 percent at a 95 percent confidence level. The online survey was conducted by SHRM from December 22, 2011 – January 12, 2012.