How Much Are You Spending on Your Employee Recognition Program?
Like many managers, you may be faced with the challenge of keeping your best performers. They’re probably getting called by recruiters regularly. And, they’re likely hearing about the great salaries and benefits they could be scoring at one of your competitors’ companies.
To stop this attrition, at least 73% of organizations have an employee appreciation program in place. The results of the 2018 Society of Human Resource Management/GLOBOFORCE Employee Recognition Report reveal that employers have also:
- Rolled out programs to build position relationships and teamwork 75%
- Emphasized a strong culture 75%
- Offered learning and growth opportunities 70%
Values-Based Recognition System
A good recognition program can work wonders for employee engagement and retention. Specifically, company leaders are developing value-based recognition programs (70%). For example, if you decide to recognize your sales manager for a job well done, you might identify the fact that they achieved their sales goal in a professional manner that aligns with your corporate values.
Leaders who have established a recognition system that aligns with corporate goals want to empower their managers to recognize team members (88%). They also realize that this kind of system can help develop the employer brand (64%). A strong employer brand also serves as a retention and recruiting tool. When current employees tell their friends about the good things that are happening at your company, you’ll have access to stronger candidates.
Recognizing employees is one part of this process. The actual reward is another. Employees like choice. So while many rewards programs include cash bonuses, think about personalizing these items. Perhaps you’ve got employees who’d love to win a trip to the Bahamas. Or, maybe there’s an employee who’d like time off every week for a semester to take a class they’re interested in. This kind of personalization makes employees feel like they matter.
The SHRM survey also checked out the level of investment employers committed to their recognition programs. Analysts reported an association between the amount of money spent and the perception of the employer as an outstanding place to work. Specifically, companies that spend at least 1% of their payroll on recognition programs will find a huge return on investment. These companies are consistently rated as the best places to work.