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Recognition in The Real World
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Business Case Data Shows Employee Recognition Value

Posted By Jess Myers, RPI, Monday, June 5, 2017
Small Doses Archive

There are many recent studies that show the impact of highly-engaged employees to the organization, and the impact recognition has to increasing engagement. You need this data when building your business case for recognition.

Here are a few examples:

Gallup Employee Engagement Study – July 2015

  • “Gallup categorizes workers as ‘engaged’ based on their ratings of key workplace elements that predict important organizational performance outcomes. Engaged employees are involved in, enthusiastic about and committed to their work.”
  • “Employee engagement is directly influenced by their managers’ engagement.”
  • “The percentage of U.S. workers engaged in their job continued to hold steady at 31.9%...but is higher than it was in 2011-13.”

Fortune’s Best Companies to Work For shows over two times better stock returns than the general market.

The Ultimate Guide to Employee Recognition by Achievers

  • Engaged employees perform 20% better and are 87% less likely to leave their organization.
  • Organizations with high engagement rates are 78% more productive and 40% more profitable than those organizations with low levels of engagement.
  • 80% of employees stated recognition is a strong motivator of work performance and 70% stated they would work harder with continuous recognition.

Internal Business Case

Obviously there are numerous studies supporting the value of recognition to the bottom line. Sometimes, it is even more powerful to have a study inside your organization.

If you measure employee engagement, or some other type of assessment that looks at how willing an employee is to spend extra time and effort, if they speak positively about the organization and if they say good things about your organization, you can use that as a beginning point.

Approach:

  • Results-neutral…take an unbiased view of the outcome. Understand the relevance of the engagement measure.
  • “So what?”…identify practical steps to improve business performance through behaviors measured on the survey.
  • Scientific approach…control for as many of the variables that affect both engagement and measures of business performance.
    • To accomplish this, select one business or department;
    • Work with the production and finance teams to gather clean, accurate performance data for the analysis;
    • Keep the data collection confined to one specific region to avoid the culture bias;
    • Ensure the business is big enough to give a large enough snapshot;
    • Assure the metrics used are rigorous and consistent.

Compare locations of the business units that score above a certain score and below a certain score on the employee engagement type assessment by such things as turnover, efficiency, shrink (product loss), return on investment (or other overall financial measure), safety and customer loyalty/satisfaction.


The business data case studies and internal survey samples are included in the course materials in the Certified Recognition Professional program. For more information on CRP certification, please visit http://www.recognition.org/?page=crp_certification. To view a webinar on CRP, click here.

Tags:  CRP  engagement  recognition business case  ROI on recognition strategy 

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