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Employee Recognition• Dramatically Impacts
Profitability• Improves Your Bottom Line
Recognition Leads To Higher O.M. By more than 6% Operating Margin = Sales After Cost Of SalesLast Years Sales $_______ X ____% Increase = $______
Source: Discovery White Paper “Recognition Pays” by O.C. Tanner Company / The Jackson Organization 2005
• Lower Fixed CostsLower Fixed Costs• Higher Gross MarginsHigher Gross Margins• Higher EfficiencyHigher Efficiency• More Pricing FlexibilityMore Pricing Flexibility
Recognition Increases R.O.E. By More Than 3 TimesR.O.E.= Net Income Divided By Net Worth (Equity). This Indicates The Highest-Level
Indicator Of Company SuccessSource: Discovery White Paper “Recognition Pays” by O.C. Tanner Company / The Jackson
Organization 2005
• Increase Your ProfitsIncrease Your Profits
• Increase Your Financial Increase Your Financial LeverageLeverage
Recognition Increases R.O.A. By More Than 6%R.O.A. = A Useful Indicator Of How Profitable A
Company Is Relative To Its Total Assets.Source: Discovery White Paper “Recognition Pays” by O.C. Tanner Company / The Jackson Organization 2005
• Enable You To Use Your Enable You To Use Your Assets More EffectivelyAssets More Effectively
• Generate Higher EarningsGenerate Higher Earnings
• Recognized Employees Are – More Engaged In Their Work– More Focused On Client Satisfaction (Client
Dissatisfaction Is The #1 Reason That Clients Leave)• Care More About The Success Of The Team And
The Companies Success• Employees On Average Leave To Go To Another
Company For Less Than A 5% Raise In Pay, Which Is Less Than 1 Cup Of Starbucks Coffee Per Week.
• The Main Reason They Leave Is Because They Don’t Feel Rewarded.
It’s Easier To Keep an Existing Customer and Increase That Business Than To Look For New Business
60% of Business Comes From Existing Customers
• Most People Find Another Service Provider Because They Feel They’re Not Treated Well.
• They Feel Neglected, Or Abused.
• Unhappy Employees Don’t Treat Their Customers Well.
• If You Treat Your Employees Well, They Will Treat Your Customers Well
Customer Service and Quality of Merchandise Are Directly Related To Employee Satisfaction On The Job.
Source: The Loyalty Connection: Secrets To Customer Retention And Increasing Profits. Bob Thompson March 2005
When Customers Were Asked Why They Left And Found Another Service Provider, 68% When Customers Were Asked Why They Left And Found Another Service Provider, 68% Said The Reason Was Related To Poor Service, Or Being Poorly TreatedSaid The Reason Was Related To Poor Service, Or Being Poorly Treated
Source: The Carrot Principle by Gostick and Elton
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