Nothing emphasizes a job well done better than a reward or recognition. Employers who fail to spotlight big achievements or the extra effort put forth by a team member in an important situation risk losing their best people and can end up eroding company culture. The latest Brandon Hall survey shows the impact of a good rewards and recognition program.
The Brandon Hall Group surveyed 263 companies about their rewards and recognition programs and found that over half of large organizations (10,000+ employees) manage this effort with technology. Not surprisingly, these large employers need help keeping track of what’s happening with rewards and recognition programs. Regardless of size, employers spend about 7% of the talent management budget recognizing and rewarding employees. Nearly 1 in 3 employers also plans to increase the budget this year.
Employers count on technology-based solutions to help them with:
- Improving engagement 78%
- Showing appreciation 77%
- Enhancing culture 70%
The benefits of a centrally managed, technology-based rewards and recognition system start with allowing the company to customize features to meet its needs. Employers also like having a range of awards available, including options for non-monetary recognition. Smaller companies also want manager tools for budget control and social recognition tools.
The bottom line for many employers is having the capability to measure employee engagement (67%). They also want to improve employee retention (38%) and measure the participation rate (28%.) The good news for employers is that these systems work. The survey reveals that nearly half of employers can count on improved team member retention. The increased employee engagement has also led to increased revenue for nearly 33% of businesses. These findings are true whether a company puts an in-house system in place or outsources the program.
If you’re looking for an easy way to improve culture and employee retention, dig into what’s going on with your rewards and recognition program. Focusing on this program and managing the details will help your team members feel more involved and lead to greater profits.