2015 Employee Recognition Programs - SHRM Online can help HR professionals make a case to add such...

SHRM Survey Findings: Employee Recognition Programs2015

In collaboration with and commissioned by Globoforce

June 22, 2015

The Society for Human Resource Management (SHRM®

human resource management, has collaborated with Globoforce® on a series of surveys about

employee recognition. Our goal is to elicit trends among HR leaders and practitioners about what

challenges they face and what strategies help them conquer those challenges. This March, we

surveyed over 800 HR professionals in organizations with 500 or more employees and asked them to

share their experiences and practices.

View previous studies from this series:

Employee Recognition Programs, Spring 2013

Employee Recognition Programs, Fall 2012

Employee Recognition Programs, Winter 2012

Employee Recognition Programs, Summer 2011

SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 2

Introduction

http://www.shrm.org/research/surveyfindings/articles/pages/globoforce-employee-recognition-program.aspx

http://www.shrm.org/research/surveyfindings/articles/pages/shrmgloboforcesurvey-employee-recognition-programs-fall2012.aspx

http://www.shrm.org/research/surveyfindings/articles/pages/employeerecognitionprograms,winter2012.aspx

http://www.shrm.org/research/surveyfindings/articles/pages/employeerecognitionprogramssurveyfindings.aspx

Employee retention/turnover (40%) and employee engagement (39%) were cited as the most important organizational challenges currently faced by HR professionals. A successful employee recognition program may have an impact on employee retention, turnover and engagement. It is important to track the effectiveness of employee recognition efforts in these areas.

HR professionals at organizations with values-based recognition programs were more likely to rate their recognition efforts highly. Overall, 80% of respondents indicated their organization had an employee recognition program. Over one-values, and at those organizations, 78% of HR professionals rated their program as excellent or good compared with 41% of respondents at organizations where the program was not tied to organizational values.

HR professionals at organizations with values-based recognition programs were more likely to perceive positive effects from their recognition programs. Many HR professionals agreed that their employee recognition programs resulted in the following outcomes (the level of agreement was higher for organizations with values-based employee recognition programs): had a positive impact on employee engagement (90% values-based vs. 67% nonvalues-based), increased employee happiness (86% vs. 70%), added humanity to the workplace (85% vs. 70%), improved employee relationships (84% vs. 66%), and helped the organization instill and reinforce corporate values in its employees (88% vs. 42%).


Key Findings: Employee Recognition Programs

Who can nominate or recognize employees? At three-quarters of organizations (74%), anyone could nominate or recognize a colleague. Other organizations were most likely to allow supervisors/managers (20%) or senior-level executives (14%) to nominate or recognize employees.

» Large organizations (2,500 or more employees) were more likely than midsize organizations (500 to 2,499 employees) to allow anyone to nominate or recognize employees.

Do organizations use gamification or rely strongly on eThanks for employee recognition? Few organizations used leaderboards, rankings or badges gamification techniques that promote competition by tracking progress or accomplishments (12%) or relied strongly on eThanks an electronic card or automated e-mail without an associated reward (13%).

» Large organizations (2,500 or more employees) were more likely than midsize organizations (500 to 2,499 employees) to rely strongly on eThanks.


Key Findings: Employee Recognition Programs (continued)

Most HR professionals are likely to focus on refining their recognition strategies to ensure they align with their values and to help retain top talent. Organizations that do not currently have employee recognition programs may consider adding them due to a more active hiring environment and the positive effects these programs have on employee engagement and employee happiness.

Sharing the strong positive outcomes of employee recognition programs with organizational leadership can help HR professionals make a case to add such programs, especially because their associated costs appear to be relatively low.

Recognition by senior organizational leaders can be one way to of the level of respect for employees at all levels and improve trust between employees and senior management two factors that SHRM research shows are critical to employee job satisfaction.

As in all areas of HR, demonstrating a return on investment will continue to be a key component of any employee recognition strategy.

HR professionals will need to ensure their employee recognition strategies do not inadvertently have a negative impact on organizational culture. Potential problems are inadequate reward selection, the program is not impactful for employees or an inconsistent experience among employees.


What Do These Findings Mean for the HR Profession?

Most Important Challenges HR Professionals Face in Their Organization


Note: Percentages do not total 100% due to multiple response options. An asterisk (*) indicates this response option was not available in 2013. Only organizations with an employee recognition and service anniversary program were asked this question.

40%

39%

35%

29%

24%

22%

22%

33%

47%

39%

26%

35%

31%

18%

25%

40%

41%

28%

30%

28%

24%

Employee retention/turnover

Employee engagement

Succession planning

Recruitment

Culture management

Performance management

Employee satisfaction

2015 (n = 561)

2013 (n = 704)

2012 (n = 680)

A successful employee recognition

program could help organizations address

many of the top challenges faced by

HR professionals.

Most Important Challenges HR Professionals Face in Their Organization (continued)


Note: Percentages do not total 100% due to multiple response options. An asterisk (*) indicates this response option was not available in 2013. Only organizations with an employee recognition and service anniversary program were asked this question.

14%

12%

11%

9%

9%

7%

4%

18%

19%

10%

10%

4%

21%

21%

12%

11%

5%

Relieving employee frustration

Employee enablement (e.g., providing tools, resources)

Productivity

*Employee happiness

*Employer brand

Revenue per FTE

Other

2015 (n = 561)

2013 (n = 704)

2012 (n = 680)


Employee Recognition Programs

Prevalence of Employee Recognition Programs


Note: n = 823. Percentages may not total 100% due to rounding.

58%

22%

14%

5%

55%

26%

14%

5%

50%

27%

18%

6%

Yes, we have a program that is tied

Yes, we have a program, but it is not

No

No, but we plan to implement one inthe next 12 months

2015 (n = 823)

2013 (n = 797)

2012 (n = 763)

In 2015, 80% of organizations had

an employee recognition program.

Prevalence of Employee Recognition Programs


Note: Only statistically significant differences are shown.

Comparisons by organization staff size

2,500 to 24,999 employees (82%)25,000 or more employees (88%)

> 500 to 2,499 employees (74%)


Organizations with 2,500 or more employees were more likely than organizations with 500 to 2,499 employees to have an employee recognition program.

Recognition Efforts


Note: n = 662. Only respondents whose organizations had an employee recognition program were asked this question. All differences between values-based and nonvalues-based recognition are statistically significant. Percentages may not total100% due to rounding.

14%

54%

27%

5%

18%

60%

20%

1%

3%

38%

45%

14%

Excellent

Good

Fair

Poor

Overall

Values-basedrecognition

Nonvalues-basedrecognition

Perceived Impacts of Employee Recognition Program on the Organization


Note: n = 641- -based and nonvalues-based recognition are statistically significant.

Impact Overall Values-basedNonvalues-

based

Has a positive impact on employee engagement

83% 90% 67%

Increases employee happiness 82% 86% 70%

Adds humanity to the workplace 81% 85% 70%

Improves employee relationships 79% 84% 66%

Helps the organization instill and reinforce corporate values in its employees

75% 88% 42%

Helps the organization retain its employees 61% 68% 41%

Increases employee productivity 56% 65% 33%

Helps maintain a stronger employer brand 55% 66% 28%

Delivers a strong return on investment 48% 57% 23%

Perceived Impacts of Employee Recognition Program on the Organization (continued)


Note: n = 636- -based and nonvalues-based recognition are statistically significant.

Impact Overall Values-basedNonvalues-

based

Has a positive impact on financial results

45% 53% 24%

Provides data that help in culture management 40% 48% 20%

Helps the organization meet safety goals 33% 37% 23%

Helps the organization meet sustainability or cost-control goals

30% 36% 14%

Helps the organization attract new job candidates

25% 30% 9%

Helps meet learning and development goals 25% 31% 11%

Helps the organization meet health and wellness goals

24% 29% 13%

Provides data that help in succession planning 23% 28% 10%

Program on the Organization

SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 14Note: Only statistically significant differences are shown.


Comparisons by organization staff size: Helps maintain a stronger employer brand

25,000 or more employees (68%) > 500 to 2,499 employees (52%)

Organizations with 25,000 or more employees were more likely than organizations with 500 to 2,499 employees to indicate that their employee recognition program helped maintain a stronger employer brand.

Comparisons by organization staff size: Increases employee happiness

500 to 2,499 employees (85%) > 25,000 or more employees (74%)

Organizations with 500 to 2,499 employees were more likely than organizations with 25,000 or more employees to indicate that their employee recognition program increased employee happiness.

Comparisons by organization sector

Comparisons by organization sector: Increases employee productivity

Privately owned for-profit (65%) >Nonprofit (47%)

Government (42%)

Privately owned for-profit organizations were more likely than nonprofit and government organizations to indicate that their employee recognition program increased employee productivity.

Types of Employees Who Can Nominate or Recognize Employees


Note: n = 660. Note: Percentages do not total 100% due to multiple response options. Respondents indicating "Anyone can nominate or recognize a colleague" were excluded from the other response options.

74%

20%

14%

9%

8%

Anyone can nominate orrecognize a colleague

Supervisors/managers

Senior-level executives

Direct supervisor

Human resources

Types of Employees Who Can Nominate or Recognize Employees



Comparisons by organization staff size: Anyone


> 500 to 2,499 employees (65%)


Organizations with 2,500 or more employees were more likely than organizations with 500 to 2,499 employees to allow anyone to nominate or recognize a colleague.

Comparisons by organization staff size: Supervisors/managers

500 to 2,499 employees (27%) >2,500 to 24,999 employees (16%)25,000 or more employees (14%)

Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 or more employees to allow supervisors/managers to nominate or recognize employees.

Comparisons by organization staff size: Human resources

500 to 2,499 employees (10%) > 2,500 to 24,999 employees (3%)

Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 to 24,999 employees to allow human resources to nominate or recognize employees.

Use of Gamification and eThanks for Employee Recognition


n = 660

Yes12%

No88%

Use leaderboards, rankings or badges

Yes13%

No87%

Rely strongly on eThanks(an electronic card or automated

e-mail without an associated reward)

n = 661

Gamification: Adding games or gamelike elements to something to encourage participation.

Leaderboards, rankings and badges track progress and/or accomplishments.

Use of eThanks for Employee Recognition





> 500 to 2,499 employees (6%)


Organizations with 2,500 or more employees were more likely than organizations with 500 to 2,499 employees to rely strongly on eThanks.


Service Anniversary Programs

Most organizations celebrate service anniversary milestones every five years. About one-quarter (28%) celebrate the first-year anniversary, 8% celebrate two years, 12% celebrate three years and 90% celebrate the fifth year of service. Over two-thirds of HR professionals (69%) viewed their service anniversary recognition efforts as excellent or good (22% and 47%, respectively).

Who is part of the service anniversary experience? Nearly three-quarters of organizations (72%) reported that the immediate supervisor/manager was a part of the experience, followed by human resources (62%) and upper-level management (61%). About one-half of respondents said service anniversaries involved the organization itself (54%) for example, the organization may send a form letter to the employee. One-third of organizations (34%) included peer-level colleagues in the service anniversary experience.

What is the primary feature of the service anniversary experience? About one-third of organizations (32%) provided employees with merchandise from a catalog/website. Twenty-one percent had an in-person event or award presentation, and 17% gave out pins, plaques or company logo items. Other awards include letters or certificates, cash bonuses and gift or debit cards.

How much do organizations spend per employee on service anniversary awards? On average, over one-third of organizations (37%) reported spending $50 or less per employee, 31% spent $51 to $200 per employee, and 22% spent more than $200 per employee.


Key Findings: Service Anniversary Programs

What would HR professionals like their service anniversary program to deliver? Eighty-eight percent said they would like the program to make employees feel appreciated/valued. Over two-thirds felt the program should increase employee satisfaction/happiness (73%), renew emotional commitment to the organization (69%), raise employee engagement (68%) and build employee confidence/pride (67%).

How do HR professionals rate the value of their service anniversary program? Seventy-two percent of HR professionals said their program was good or excellent at making employees feel valued. Nearly two-thirds (65%) said it contributed positively to organizational culture. More than one-half felt that organizational leadership (58%) and employees (56%) loved the program.

The top concerns voiced to HR professionals by employees were inadequate reward selection (32%), not impactful for employees (30%), inconsistent experience among employees (25%), too impersonal (20%) and too infrequent (18%).

anniversary program? Most commonly, HR professionals thought the service anniversary could be improved by providing a more inspiring experience to look forward to (35%). About one out of five said the program would be more effective with more participation from senior leaders (22%), better quality award choices (22%) and more participation from managers (21%).


Key Findings: Service Anniversary Programs (continued)

Service Anniversary Years Celebrated


Note: n = 585. Percentages do not total 100% due to multiple response options. Respondents who indicated they did not have an anniversary program were excluded from the analysis.

28%

8%

12%

90%

5%

92%

84%

89%

88%

85%

73%

62%

1 year

2 years

3 years

5 years

7 years

10 years

15 years

20 years

25 years

30 years

40 years

50 years

Anniversary Program


n = 583

22%

47%

26%

5%

Excellent

Good

Fair

Poor

Over two-thirds of HR professionals (69%)

rate service anniversary program positively.

Types of Employees Who Are Part of the Service Anniversary Celebration


Note: n = 580. Percentages do not total 100% due to multiple response options.

72%

62%

61%

54%

34%

The immediate supervisor/manager

Human resources

Upper-level management

The organization (for example, a formletter is sent by mail or e-mail)

Peer-level colleagues

Primary Feature of the Service Anniversary Experience


n = 580

32%

21%

17%

9%

6%

4%

3%

2%

1%

5%

Merchandise from a catalog/website

An in-person event or award presentation

Pins, plaques or company logo items

Letters or certificates

Cash bonuses

Choice of gift cards

Includes stories, congratulations and/orcelebration by peers/colleagues

Debit cards

Integration with internal social network (recognitionprogram social feed, Chatter, Yammer)

Other

Primary Feature of the Service Anniversary Experience




Comparisons by organization staff size: Merchandise from a catalog/website

25,000 or more employees (47%) > 500 to 2,499 employees (26%)

Organizations with 25,000 or more employees were more likely than organizations with 500 to 2,499 employees to have merchandise from a catalogue/website as the primary feature of their service anniversary program.

Comparisons by organization staff size: Cash bonuses

500 to 2,499 employees (10%) > 2,500 to 24,999 employees (3%)

Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 to 24,999 employees to have cash bonuses as the primary feature of their service anniversary program.

Comparisons by organization sector: Merchandise from a catalogue/website

Publicly owned for-profit (45%) > Government (6%)

Comparisons by organization sector

Publicly owned for-profit organizations were more likely than government organizations to have merchandise from a catalog/website as the primary feature of their service anniversary program.

Average Spending on Service Anniversary Awards per Employee


Note: n = 421. Respondents who answered "don't know" were excluded from this analysis.

18%

19%

22%

19%

10%

6%

6%

$25 or less

$26-50

$51-100

$101-200

$201-300

$301-500

More than $500

What HR Professionals Would Like Their Service Anniversary Program to Deliver

SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 28Note: n = 573. Percentages do not total 100% due to multiple response options.

88%

73%

69%

68%

67%

55%

48%

47%

45%

40%

28%

25%

13%

5%

1%

Make employees feel appreciated/valued

Increase employee satisfaction/happiness

Renew emotional commitment of employee to the organization

Raise employee engagement

Build employee confidence/pride

Improve organizational culture/climate

Improve employee relationships

Inspire all employees who participate

Reduce turnover

Increase trust in company leadership

Offer insight into culture

Attract job candidates

Create equity and compliance

Reduce program costs

Other

Service Anniversary Program


Note: n = 507-567. Percentages may not total 100% due to rounding. Respondents who answered "Not applicable" were excluded from this analysis.

21%

16%

16%

15%

12%

10%

8%

7%

51%

49%

40%

43%

41%

41%

33%

37%

24%

29%

35%

34%

35%

36%

42%

39%

4%

6%

8%

8%

12%

13%

18%

16%

Makes employees feel valued

Contributes positively to organizational culture

Employees love the program

Organizational leadership loves the program

Increases employee engagement

Provides satisfactory return on investment

Increases employee retention

Meets identified business goals

Excellent Good Fair Poor

HR Professionals Reporting Negative Feedback From Employees About Service Anniversary Program


Note: n = 522. Percentages do not total 100% due to multiple response options. An asterisk (*) indicates that the response option was developed from open-ended responses.

32%

30%

25%

20%

18%

15%

8%

6%

4%

8%

7%

Inadequate reward selection

Not impactful for employees

Inconsistent experience among employees

Too impersonal

Too infrequent

Not enough impact on business results

Too big an administrative burden

Too manager-dependent

Too expensive

Other

*None

SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 31Note: n = 548. Percentages do not total 100% due to multiple response options.

35%

22%

22%

21%

19%

19%

18%

18%

16%

15%

15%

14%

9%

5%

3%

3%

A more inspiring experience for employees to look forward to

More participation from senior leaders

Better quality award choices

More participation from managers

More participation from colleagues and work friends

A bigger budget allocation

Inclusion of past achievements and successes

Better breadth of award choices

Inclusion of memories and stories

A more emotional, poignant or moving experience

A more lasting, revisitable experience that can be shared with family

A more modern experience (e.g., online, mobile, video)

A lighter administrative burden

More inclusion of pins and logowear

Less reliance on pins and logowear

Other


Demographics

Demographics: Organization Industry



Percentage

Health care and social assistance 24%

Manufacturing 20%

Professional, scientific and technical services 14%

Educational services 11%

Accommodation and food services 8%

Finance and insurance 8%

Government agencies 8%

Retail trade 8%

Transportation and warehousing 6%

Arts, entertainment, and recreation 4%

Information 4%

Demographics: Organization Industry (continued)



Percentage

Administrative and support and waste management and remediation services 3%

Construction 3%

Mining, quarrying, and oil and gas extraction 3%

Repair and maintenance 3%

Utilities 3%

Wholesale trade 2%

Agriculture, forestry, fishing and hunting 1%

Personal and laundry services 1%

Real estate and rental and leasing 1%

Religious, grant-making, civic, professional and similar organizations 1%

Other industry 2%

Demographics: Organization Sector


n = 740

35%

31%

19%

11%

4%

Privately owned for-profit

Publicly owned for-profit

Nonprofit organization

Government agency

Other

Demographics: Organization Staff Size


n = 752

50%

36%

14%

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

Demographics: Region


Note: n = 689. Percentages do not total 100% due to rounding.

39%

21%

20%

19%

South

Midwest

West

Northeast

n = 749

Demographics: Other


U.S.-based operations only 62%

Multinational operations 38%

Single-unit organization: An organization in which the location and the organization are one and the same.

12%

Multi-unit organization: An organization that has more than one location.

88%

Multi-unit headquarters determines HR policies and practices.

46%

Each work location determines HR policies and practices.

2%

A combination of both the work location and the multi-unit headquarters determines HR policies and practices.

52%

Is your organization a single-unit organization or a multi-unit organization?

For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?

Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?

n = 759

n = 673

Corporate (companywide) 62%

Business unit/division 21%

Facility/location 17%

n = 674

What is the HR department/function for which you responded throughout this survey?

39

SHRM Survey Findings: Employee Recognition Programs2015

Response rate = 14%

manager or above and employed at organizations with a staff size of 500 or more employees participated in this survey.

Margin of error +/-3%

Survey fielded January 13-February 4, 2015

In collaboration with and commissioned by Globoforce

Survey Methodology

SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015

• View previous studies from this series:

Employee Recognition Programs, Spring 2013

Employee Recognition Programs, Fall 2012

Employee Recognition Programs, Winter 2012

Employee Recognition Programs, Summer 2011

2015 Job Satisfaction and Engagement Report: Optimizing Organizational Success (You can also purchase a copy of the report at shrmstore.shrm.org)

Recent survey/poll findings: shrm.org/surveys

» Customized Research Services: shrm.org/CustomizedResearch

» Engagement Survey Service: shrm.org/PeopleInSight

» Customized Benchmarking Service: shrm.org/Benchmarks

» Compensation Data Center: shrm.org/SHRMCompensationDataCenter

Follow us on Twitter @SHRM_Research


Additional SHRM Resources

http://www.shrm.org/research/surveyfindings/articles/pages/globoforce-employee-recognition-program.aspx

http://www.shrm.org/research/surveyfindings/articles/pages/shrmgloboforcesurvey-employee-recognition-programs-fall2012.aspx

http://www.shrm.org/research/surveyfindings/articles/pages/employeerecognitionprograms,winter2012.aspx

http://www.shrm.org/research/surveyfindings/articles/pages/employeerecognitionprogramssurveyfindings.aspx

http://www.shrm.org/Research/surveyfindings/pages/job-satisfaction-and-engagement-report-optimizing-organizational-culture-for-success.aspx

http://www.shrmstore.shrm.org/

http://www.shrm.org/surveys

http://www.shrm.org/customizedresearch

http://www.shrm.org/PeopleInSight

http://www.shrm.org/Benchmarks

http://www.shrm.org/Research/shrmcompensationdataservice/pages/default.aspx

http://twitter.com/SHRM_Research

Globoforce is a leading provider of social recognition solutions, helping companies build strong cultures

of engaged employees through the power of thanks. Named one of the Best Workplaces by the Great

Place To Work® Institute, Globoforce is trusted by some of most admired companies in the world to

inspire and energize employees and create best places to work. Our award-winning SaaS technology

and proven methodologies empower HR and business leaders to take a modern, more strategic

approach to recognition programs. What results is measurable business success, qualified by increases

in employee engagement, retention, and productivity. The company is the creator of the HR

conference WorkHuman, designed to help organizations unlock the power of the human workplace.

Globoforce is co-headquartered in Southborough, Massachusetts, and Dublin, Ireland.

Visit: http://www.globoforce.com

Read: http://globoforce.com/globoblog

Twitter @Globoforce

LinkedIn: http://www.linkedin.com/company/globoforce


About Globoforce

http://www.workhuman.com/

http://www.globoforce.com/

http://globoforce.com/globoblog

http://www.twitter.com/globoforce

http://www.linkedin.com/company/globoforce

membership organization devoted to human resource management. Representing more than 275,000

members in over 160 countries, the Society is the leading provider of resources to serve the needs of

HR professionals and advance the professional practice of human resource management. SHRM has

more than 575 affiliated chapters within the United States and subsidiary offices in China, India and

United Arab Emirates. Visit us at shrm.org.


About SHRM

http://www.shrm.org/

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