SHRM Survey Findings: Employee Recognition Programs, Summer 2011

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

2. Key findings • What are the most important workforce management challenges organizations are currently facing? For more than three-quarters of organizations, different generations of employees (85%) and multiple cultures in the workplace (84%) are important (“important” and “very important”) workforce challenges. • What are the key HR challenges organizations expect to face in the next three to five years? Nearly all organizations indicated that employee engagement, employee retention and employee recruitment are the challenges their organizations will be facing in the future. • How many organizations currently have an employee recognition program? Eight out of 10 organizations currently have an employee recognition program. • What are the most common reasons that organizations recognize employees? The most frequently reported reason was recognizing employees for their years of service (58% of responding organizations reported having this practice). Nearly one-half (48%) indicated that “going above and beyond with an unexpected (not regular) work project” was also commonly recognized, and 43% reported recognizing employees for a “successful performance result related to the organizational financial bottom line.” • Are employee recognition programs challenging to measure? Few organizations (13%) measure the ROI of these programs. Of those that do measure the ROI, the majority of respondents (68%) agree that measuring the effectiveness of their employee recognition programs is challenging and another 9% strongly agree. Less than one-quarter (23%) of respondents disagree that measuring an employee recognition program is challenging.

3. Talent Management

4. Do you think that at your organization: Note: Analysis excludes “not sure” response. Percentages above reflect respondents who answered “yes” to the question.

5. Of the following options, which do you think is the most accurate appraisal of employee performance? n = 726

6. The importance of workforce management challenges that organizations are currently facing: n = 742

7. The importance of workforce management challenges that organizations are currently facing: • Comparisons by organization staff size: • Compared with smaller organizations (2,499 employees or fewer), larger organizations (2,500 or more employees) view global diversity of today’s companies as more a important workforce management challenge. • Comparisons by organization sector: • Government agencies are more likely to view multiple cultures in the workplace as an important workforce management challenge compared with how publicly and privately owned for-profit organizations and nonprofit organizations view this challenge. • Publicly owned for-profit organizations, privately owned for-profit organizations, and government agencies are more likely to view global diversity of today’s companies as an important workforce management challenge compared with nonprofit organizations.

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

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

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

12. The Most Common Reasons 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.

13. 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.

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

15. 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.

16. Which area in HR is responsible for employee recognition at your organization? Note: n = 552. Total does not equal 100% due to rounding.

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

18. 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.

19. The effectiveness of employee recognition programs is challenging to measure 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.

20. Common challenges 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.

21. Demographics

22. Demographics: Organization industry n = 710

23. Demographics: Organization sector n = 730

24. Demographics: Organization staff size n = 730

25. Demographics: Other n = 721 n = 729 n = 623 n = 623

26. SHRM Survey Findings: Employee recognition programsIn collaboration with and commissioned by Globoforce Methodology • Response rate = 13% • Sample composed of 745 randomly selected HR professionals from SHRM’s membership who are employed at organizations with a staff size of 500 or more employees. • Margin of error is +/- 3% • Survey fielded May 17-27, 2011 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research