SHRM Survey Findings : Employee Recognition Programs, Fall 2012

SHRM/Globoforce Survey: Employee Recognition Programs, Fall 2012. ©SHRM 2012

SHRM Survey Findings: Employee Recognition Programs, Fall 2012

In collaboration with and commissioned by Globoforce

November 15, 2012


Twice a year, Globoforce® conducts a survey with the Society for Human Resource Management (SHRM®), the world’s largest association devoted to human resource management. 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 August, we surveyed 6,000 HR professionals in organizations with 500 or more employees and asked them to share their experiences and practices.

This fall 2012 survey uncovers new insights on emerging employee recognition trends and best practices. We looked in particular at these questions:

What are the top issues facing HR management today? Is it important that core values be aligned with recognition? How are emerging practices like peer-to-peer recognition affecting engagement? What is the impact of recognition on “employee enablement”? What are the best practices for spending on a recognition program?

Introduction

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Key Findings

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How many organizations currently have an employee recognition program in place? A majority of organizations (77%) reported that they currently have an employee recognition program in place. One-half (50%) of the organizations that have a program in place also indicated that it is tied to the organization’s values.

What are some of the reasons organizations implement an employee recognition program? Most organizations use employee recognition programs to improve employee morale and to increase employee engagement (79%). Other common reasons are to reinforce their organization’s values (59%) and to reduce employee turnover rates (34%).

What changes have organizations experienced after they have implemented an employee recognition program? Over one-half (51%)of the organizations reported an increase in employee engagement after implementing an employee recognition program. Some organizations also reported an increase in customer satisfaction (35%) and employee productivity (30%).


Key Findings (continued)

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How often do organizations conduct employee performance reviews? Seventy-four percent of the organizations reported they conduct an annual performance review. Only 21% conduct reviews semiannually, and very few (3%) conduct quarterly reviews.

How do organizations describe their performance review process? Most organizations that conduct employee performance reviews (72%) believe they provide constructive feedback to most of the employees in the organization, and nearly one-half (47%) feel their performance reviews offer an accurate reflection of the employees’ contributions.

What are some HR challenges organizations are currently facing? Succession planning has become a common HR challenge (41%) as well as employee engagement (40%) and culture management (30%). Other HR challenges organizations indicate experiencing include recruitment (28%) and performance management challenges(28%).

SHRM/Globoforce Survey: Employee Recognition Programs, Fall 2012. ©SHRM 2012 5

Does your organization have an employee recognition program?

Yes, we have a program that is tied to our company values

Yes, we have a program, but it is not tied to our company values

No

No, but we plan to implement one in the next 12 months

50%

27%

18%

6%

Note: n = 763. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not equal 100% due to rounding.


What are the main objectives of your employee recognition program?

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To improve employee morale

To increase employee engagement

To reinforce company values

To reduce employee turnover

To create a unified global company culture

To identify high and low performers

To identify the most influential employees

Other

79%

79%

59%

34%

24%

16%

12%

9%

Note: n = 555. Percentages do not equal 100% due to multiple responses.


Does your organization’s employee recognition program . . .

have a positive impact on employee engagement? (n = 503)

help the organization instill and reinforce corporate values to its employees? (n =

486)

help the organization retain employees?

have a positive impact on the organization's financial results? (n = 381)

82%

72%

54%

49%

18%

28%

46%

51%

No Yes

(n = 421)

Note: Respondents who answered “don’t know” were excluded from this analysis.


Employee Turnover Rates and Employee Recognition Programs

Organizations with employee recognition programs reported an average employee turnover rate of 14% compared with organizations without an employee recognition program in place (17%). This translates to an average turnover rate that is 22% lower among organizations with employee recognition programs in place. Does your organization have an employee recognition program?

Mean employee

turnover rateYes (n = 339) 14%

No (n = 66) 17%


Note: Respondents who answered “don’t know” or “not applicable” were excluded from this analysis. Percentages may not equal 100% due to rounding.

Increased Remained the same Decreased

Employee engagement (n = 481) 51% 47% 2%

Customer satisfaction (n = 361) 35% 64% 1%

Employee productivity (n = 455) 30% 70% <1%

Profitability (n = 339) 29% 67% 3%

Customer retention (n = 325) 25% 74% 1%

Employee retention (n = 449) 24% 72% 4%

Employee absenteeism (n = 409) 6% 83% 11%

Have the elements below increased, remained the same or decreased at your organization as a result of the implementation of an employee recognition program?


Based on engagement surveys conducted by your organization, what percentage of your employees feel highly engaged in the workplace?

91%-100%

81%-90%

71%-80%

61%-70%

51%-60%

41%-50%

31%-40%

21%-30%

10%-20%

Less than 10%

2%

11%

18%

14%

13%

11%

13%

8%

7%

2%

Note: n = 442. Respondents who answered “don’t know” or “not applicable” were excluded from this analysis.


n = 699

How would you rate your employees’ current frustration level with getting things accomplished at your organization?

2%

21%

47%

24%

6%1 Not at all frustrated2345 Very frustrated


Do you believe employees at your organization . . .

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have a clear understanding of the organizational objectives? (n = 668)

are enabled to help achieve the organizational objectives? (n = 644)

74%

72%

26%

28%

No Yes

Note: Respondents who answered “don’t know” were excluded from this analysis.


On average do you think . . .

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employees at your organization are rewarded according to their job performance? (n = 679)

annual performance reviews at your organization are an accurate appraisal for employees' work? (n = 647)

managers or supervisors at your organization effectively acknowledge and appreciate employees' performance? (n = 655)

employees at your organization are satisfied with the level of recognition they receive for doing a good job at work? (n = 621)

61%

56%

52%

25%

39%

44%

48%

75%

No Yes

Note: Respondents who answered “don’t know” or “not applicable” were excluded from this analysis.


How frequently does your organization conduct employee performance reviews?

Annually

Semiannually

Quarterly

Ongoing

Monthly

74%

21%

3%

2%

<1%

Note: n = 669. Respondents who answered “don’t know” or “not applicable” were excluded from this analysis. Percentages do not equal100% due to rounding.


Which best describes your organization’s performance review process?

Note: n = 669. Percentages do not equal 100% due to multiple response options.

It provides constructive feedback to most employees

It includes feedback from managers only

It is an accurate reflection of employees' contributions

It results in better employee performance

It motivates employees

It includes peer-to-peer feedback

Other

72%

56%

47%

21%

15%

11%

12%


Yes; 91%

No; 9%

Note: n = 658. Respondents who answered “don’t know” were excluded from this analysis.

In your professional opinion, do you believe that the organizational culture is important to your organization’s leadership?


What are the most important HR challenges to your organization?

Succession planningEmployee engagement

Culture managementRecruitment

Performance managementEmployee retention/turnover

Employee satisfactionRelieving employee frustrations

Employee enablementProductivity

Revenue per FTEOther

41%40%

30%

28%28%

25%24%

21%21%

12%11%

5%Note: n = 680. Participants were asked to choose their top three choices. Percentages do not equal 100% due to multiple response options.



Demographics

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Which of the following best describes your primary role within your organization?

Note: n = 678. Percentages do not equal 100% due to rounding.

HR generalist

Compensation/benefits

Employee relations

Strategic planning

Employment/recruitment

Organizational development

Training/development

International HRM

HRIS

Health, safety, security

Communications

Other

56%

8%8%

4%

3%

3%

3%

1%

1%

12%

<1%<1%


Demographics: Organization Staff Size

500 to 2,499

2,500 to 24,999

25,000 or more

48%

39%

13%

Note: n = 618


Demographics: Organization Sector

Publicly owned for-profit

Privately owned for-profit

Nonprofit organization

Government agency

38%

37%

14%

11%

n = 642


Demographics: Organization Industry

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Organization Industry Percentage

Manufacturing 25% Health care and social assistance 14% Professional, scientific and technical services 12% Educational services 10% Government agencies 10% Retail trade 9% Finance and insurance 8% Transportation and warehousing 7% Accommodation and food services 6%Administrative and support and waste management and remediation services 4%

Utilities 4%



Demographics: Organization Industry (continued)

Organization Industry Percentage

Arts, entertainment and recreation 3% Information 3% Repair and maintenance 3% Wholesale trade 3% Construction 2% Mining 2% Real estate and rental and leasing 2% Agriculture, forestry fishing and hunting 1% Personal and laundry services 1% Religious, grantmaking, civic, professional and similar organizations 1% Other 10%



U.S.-based operations only 56%

Multinational operations 44%

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

13%

Multi-unit organization: An organization that has more than one location. 87%

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 = 672 n = 676

n = 311

Corporate (companywide) 55%

Business unit/division 26%

Facility/location 18%

Note: n = 600. Percentages do not equal 100% due to rounding.

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

Demographics: Other



• Response rate = 14%• 815 HR professional respondents from a randomly selected sample of

SHRM’s membership with the title of manager or above and 500 or more employees.

• Margin of error +/-3%

• Survey fielded: August 31, 2012 - September 21, 2012

SHRM Survey Findings: Employee Recognition Programs, Fall 2012

In collaboration with and commissioned by Globoforce

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Survey Methodology


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Globoforce is the world’s leading provider of social recognition solutions, redefining how companies understand, manage, and motivate their employees. Innovative companies around the world use Globoforce’s cloud-based social recognition software to reveal the true performance and influence of every employee and strengthen company culture. With Globoforce, HR and business leaders can take a strategic approach to recognition programs that result in measurable benefits to the bottom line driven by increases in employee engagement, retention, and productivity. Globoforce is co-headquartered in Southborough, Massachusetts, and Dublin, Ireland.

To learn more: Visit: http://www.globoforce.com Read: http://globoforce.com/globoblog Twitter @Globoforce LinkedIn: http://www.linkedin.com/company/globoforce

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About Globoforce

http://www.globoforce.com/

http://globoforce.com/globoblog

http://www.twitter.com/globoforce

http://www.twitter.com/globoforce

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


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The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 260,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China and India.

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About SHRM

Documents

SHRM Survey Findings : Employee Recognition Programs, Fall 2012