SHRM Survey Findings: Employee Recognition Programs

1. SHRM Survey Findings: Employee Recognition Programs In collaboration with and commissioned by Globoforce June 23, 2011

2. About the Society for Human Resource Management The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management with more than 250,000 members worldwide. www.shrm.org SHRM regularly conducts surveys and polls with its members on HR and business topics.

3. About this Research • Survey fielded May 17-27, 2011 • The survey link was emailed to 6000 randomly selected HR professionals from SHRM’s membership database, 745 responded – a response rate of 13%. • The majority of respondents were employed at organizations with a staff size of 500 or more employees (90%) in the for-profit sector (76%).

4. Talent Management • Current workforce challenges • Future HR challenges • Employee engagement

5. The Top Challenges That Organizations Are Currently Facing n = 742

6. HR challenges organizations anticipate facing in the next three to five years: Note: n = 742. Total may not equal 100% due to rounding

7.  Of the following options, which do HR professionals think is the most accurate appraisal of employee performance? 61% of HR respondents indicated that annual performance reviews were an accurate appraisal of employees’ work, however when compared with other types of appraisals, annual performance reviews came in 3rd. Multi-source – positive recognition – on a regular basis – was rated as the MOST accurate appraisal of employee performance.

8. Organizations That Track Employee Engagement Levels n = 742

9. Methods organizations use to track employee engagement levels: Note: n = 637. Includes only organizations that indicated they track employee engagement levels. Total does not equal 100% due to multiple response options .

10. Employee Recognition Programs • How important is recognition to employees? • What types of employee behaviors are recognized? • Measuring effectiveness of programs

11. How important is recognition to employees? Source: 2011 SHRM Employee Job Satisfaction & Engagement Research Report

12. Does your organization have an employee recognition program? n = 698

13. While 80% of organizations have employee recognition programs, the data suggest that these programs could be more effective. Note: Analysis excludes “not sure” response.

14. Top Reasons That Organizations Recognize Employees Note: n = 549. Includes only organizations that have an employee recognition program in place. Total does not equal 100% due to multiple response options.

15. How do organizations track employee recognition programs? Note: n = 423. Analysis excludes “not applicable” responses. Total does not equal 100% due to multiple response options.

16. Is your CEO/president involved in your employee recognition program? Note: n = 552. Total does not equal 100% due to rounding.

17. Does the budget for employee recognition programs come out of the HR budget, the individual department/business unit budget or from both budgets? Note: n = 547. Total does not equal 100% due to rounding.

18. Does your organization track the ROI of your employee recognition program? Note: n = 419. Analysis excludes “not sure” responses.

19. Percentage of organizations that track the ROI of their employee recognition program • Comparisons by organization staff size: • Larger organizations (2,500 employees and more) are more likely to track the ROI of their employee recognition programs compared with smaller organizations (2,499 employees and fewer). • Comparisons by organization sector: • Publicly owned for-profit organizations are more likely to track the ROI of their employee recognition programs compared with privately owned for-profit and nonprofit organizations.

20. Of those organizations that track the ROI of their employee recognition programs, 77% agree that it is challenging to measure the effectiveness of these programs. Note: n = 53. Includes only the respondents who indicated they track the ROI of their employee recognition programs. Survey included a “strongly disagree” response option, but this option was not selected by any respondents.

21. The challenges that organizations experience in tracking the ROI of employee recognition programs: Note: n = 41. Includes only the respondents who indicated they track the ROI of their employee recognition programs. Total does not equal 100% due to multiple response options.

22. Key Take-Aways • The majority of organizations have employee recognition programs in place, however it is important for these programs to be effective and linked meaningfully to an organization’s strategy. Be creative, expand rewards beyond just years of service. Investigate what types of rewards will motivate your employees. • Employee recognition programs are crucial in terms of employee engagement, recruitment and retention which HR professionals indicated as major challenges in the next 3 to 5 years. Businesses must invest in their top performers and reward them in ways that allow them to see the impact of their work on the organization’s goals and objectives. Employees want to see meaning in their work. • HR professionals indicated that frequent (weekly, monthly) multi-source feedback is the most accurate way to gauge employee performance. Encourage recognition by peers as well as different layers of management. • Understand your workforce. Different generations and cultures may be motivated by different things. Create recognition offerings that are adaptable – it is not a once size fits all method.

23. Questions?