I greatly enjoyed leading a webinar with SHRM analyst Evren Esen yesterday, discussing the results of our 2011 SHRM/Globoforce Employee Recognition Survey Tracker.
Download the webinar to listen in. Just a few interesting points we discussed are below.
The annual performance review ranked third out of four best ways to evaluate employee performance. First place at 42% went to a multi-source (manager, senior leader, peer) ongoing feedback program, including constructive criticism and positive recognition on a regular basis. These findings match what we’re hearing from clients. There is a place for the annual performance review, but something else is needed to provided feedback and praise in a more timely manner. Strategic recognition helps to fill those gaps throughout the rest of the year.
Although 86% of companies track employee engagement in some way, the primary method of tracking it is through exit interviews at 71%, followed by tracking employee retention rates (65%). I found this result shocking, and not just because it’s too late to do anything about employee engagement at the point of the exit interview. Most alarming, just this week Mercer issued a study showing 32% of employees are looking to leave their jobs this year. Even more disturbing, 21% plan to stay, but are completely disengaged. This is very risky as organizations can be filling their ranks with employees who are just coming in every day and going through the motions.
The highest percentage of employees in 10 years, 55%, say recognition by management is “very important” to their overall job satisfaction. Evren explained this as indicative that employees need recognition and acknowledgment that their work is important, valued and recognized.
Though 80% of organizations have some form of employee recognition program, the data suggests these programs could be more effective. Only 56% said employees are rewarded for job performance. Only 46% said managers effectively appreciate employees. Only 31% (startling) say employees are satisfied with level of recognition received.
This lack of program effectiveness isn’t surprising considering Years of Service programs were the most common (58%) with only 37% indicating behavior that aligns with organization values is recognized. While Years of Service is a fine way to acknowledge employee loyalty, it doesn’t move the needle on employee engagement as well as recognition tied to corporate values and the great work employees do. This is similar to using the exit interview for measuring employee engagement. It’s after the fact and doesn’t focus employees on the future. A better, more strategic, and far more effective investment of a recognition budget would be in programs that recognize and reward employee contributions and achievements based on your company values and strategic objectives.
Download the webinar for more on our discussion around the following points. Be sure to listen through the questions at the end through which we dive into these points more deeply.
* Program measurement, tracking and reporting
* The importance of CEO involvement in recognition programs
* Setting an appropriate budget for recognition
* Tracking the ROI of recognition
* The impact of the current economic climate on employee attitudes and expectations for recognition
* Global recognition and rewards