trends in employee recognition - worldatwork.org · create/maintain a positive work environment...

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Trends in Employee RecognitionWorldatWork, with underwriting support from Maritz Motivation, conducted research to identify new and continuing trends in employee recognition, including the recognition of events, behaviors or results that are observed and/or incentivized. For the purposes of this survey, “recognition” is defined as “a gesture to acknowledge, give thanks for or celebrate an event, behavior or result that was observed and/or incentivized.”


Executive Summary• Recognition programs are still overwhelmingly common (and

they’re typically companywide).• There is a slight shift away from both formal and informal

programs to strictly formal programs.• Length-of-service remains the most commonly utilized recognition

program and programs that could lead to higher ROIs (error reduction, safety, waste minimization, etc.) remain relatively rare.

• Nearly all recognition programs measured have been in place for more than five years, meaning there is little movement in this space.

• Organizations tend to measure the success of their recognition programs by usage and employee satisfaction and don’t often use external measures to determine success.

• While most respondents feel that their programs are doing a fairly good job of meeting their goals, there is room for improvement.


The use of recognition has remained relatively flat for the past 15 years, but the type of programs have evolved (as shown on later slides).

84%89% 89% 86% 88% 89% 89% 87%

2002(n=391)

2005(n=614)

2008(n=552)

2011(n=549)

2013(n=469)

2015(n=456)

2017(n=341)

2019(n=445)


Companywide and programs where managers recognize employees are most common.

90% 91%88% 90%

80% 81%88%

74%

58%59%54%

66%61%

65% 67%

58%

3% 4%8% 10%

3% 2% 4%

2005(n=537)

2008(n=501)

2011(n=529)

2013(n=398)

2015(n=405)

2017(n=296)

2019(n=372)

Types of Recognition Programs Companywideprograms

Programswhere managersrecognize individuals

Programs where peers recognizepeers

Department/division/unit/region/team‐specific programsOther

NEW!

NEW!


Most companies rely on a combination of formal and informal recognition to express appreciation, and formal programs are on the rise.

19% 21% 23% 24% 19% 18% 23%

9% 9% 6% 7%7% 5%

7%

71% 69% 72% 69% 75% 76%69%

2005(n=535)

2008(n=505)

2011(n=530)

2013(n=399)

2015(n=404)

2017(n=297)

2019(n=372)

Style of Recognition Programs

Both

Informal: Aspontaneous gestureof appreciation

Formal: A structuredor plannedrecognition program


Most organizations have an informal relationship to recognition, although we are seeing an increase at both the deeply embedded and nonexistent ends of the spectrum.

12%

44%34%

10%13%

44%31%

11%19%

36%28%

17%

Nonexistent Informal Strategic Deeply embedded

2015 (n=365) 2017 (n=272) 2019 (n=317)

Nonexistent (0-1)

Informal (1.1-2)

Strategic (2.1-3)

Deeply embedded(3.1-4)

We have no employee recognition policy, strategy or

philosophy.

Employee recognition may take place on a case-by-case basis,

but the structure is informal.

We have some written programs and policies, but they

are not widely applied.

Some managers use employee recognition to reward, engage

and retain employees, but training and usage are

inconsistent.

Employee recognition is strategic and viewed as an

essential element in achieving organizational success.

Training for managers may occur, and most managers use employee recognition to reward, engage and retain employees.

The importance of employee recognition is part of our organization’s culture.

Managers are trained on employee recognition, and there is universal and regular usage

of programs and practices.


The average organization uses eight separate recognition programs (slide 1 of 3).

27%

27%

28%

33%

34%

46%

55%

62%

72%

1%

1%

5%

4%

3%

4%

3%

4%

6%

4%

2%

68%

68%

69%

63%

63%

49%

39%

33%

25%

Quality

Productivity

Sales/Selling Behaviors

Company Milestones

Customer Service

Retirement

Spot

Above‐and‐Beyond Performance

Length‐of‐Service

Recognition Programs in Place (n=445)

Currently Recognizes Eliminated in Past 12 Months Considering Adding Not Using



17%

18%

19%

20%

24%

24%

25%

25%

26%

1%

1%

1%

4%

4%

6%

4%

5%

5%

4%

6%

5%

78%

77%

74%

74%

70%

70%

70%

68%

69%

Performance Improvement

Employee of the Month/Year

Employee Onboarding

Suggestions/Ideas

Efficiency

Safety

Biometric/Wellness

Major Personal Events

Cost‐Savings





3%

5%

5%

6%

7%

8%

10%

16%

1%

1%

1%

1%

2%

4%

3%

4%

4%

4%

4%

6%

96%

91%

91%

90%

88%

87%

86%

78%

Other

Preventative Maintenance

Inventory Control

Customer Recovery

Waste/Scrap Minimization

Time and Attendance

Error Reduction

Training Completion




Most recognition programs have been in place for several years, with length-of-service and retirement programs as the oldest stalwarts (slide 1 of 2).

7%

6%

10%

8%

8%

17%

6%

2%

9%

10%

8%

4%

3%

39%

37%

33%

35%

34%

19%

28%

30%

22%

19%

21%

8%

8%

54%

57%

57%

57%

58%

64%

66%

68%

70%

71%

71%

87%

89%

Performance Improvement (n=57)

Spot (n=217)

Productivity (n=90)

Customer Service (n=110)

Safety (n=93)

Employee of the Month/Year (n=69)

Above‐and‐Beyond Performance (n=248)

Sales/Selling Behaviors (n=94)

Major Personal Events (n=106)

Time and Attendance (n=31)

Company Milestones (n=120)

Retirement (n=255)

Length‐of‐Service (n=288)

Time Recognition Programs Have Been in Place (n=321)Less than 12 Months 1 to 5 Years More than 5 Years


Most recognition programs have been in place for several years, but biometric/wellness programs, employee onboarding and training completion programs are on the younger side (slide 2 of 2).

13%

24%

17%

19%

10%

7%

8%

58%

38%

35%

33%

38%

39%

38%

29%

38%

48%

49%

52%

54%

54%

Biometric/Wellness (n=90)

Employee Onboarding (n=76)

Training Completion (n=65)

Suggestions/Ideas (n=70)

Cost‐Savings (n=87)

Quality (n=90)

Efficiency (n=79)

Time Recognition Programs Have Been in Place (n=321)Less than 12 Months 1 to 5 Years More than 5 Years


Recognition programs are aimed at a variety of objectives, both in terms of employee experience as well as business results.

4%24%26%26%

33%36%39%

49%52%53%

58%60%

68%69%71%71%

77%78%

OtherSupport a culture of change

Provide line of sight to company goalsEncourage safe practices

Improve employee relationshipsEncourage loyalty

Support becoming/remaining an employer of choiceEnhance the employee experience

Improve organizational cultureEmphasize organizational values

Increase moraleIncrease retention or decrease employee turnover

Motivate high performanceSupport organizational mission/values

Increase employee engagementReinforce desired behaviors

Create/maintain a positive work environmentCreate/maintain a culture of recognition

Recognition Program Objectives (n=156)


Biometric/wellness programs are the recognition programs that reaches the highest proportion of the workforce.

4%

7%

15%

16%

16%

19%

21%

21%

22%

23%

32%

33%

40%

Employee of the Month/Year (n=31)

Retirement (n=81)

Sales/Selling Behaviors (n=32)

Customer Service (n=38)

Safety (n=35)

Employee Onboarding (n=32)

Training Completion (n=31)

Above‐and‐Beyond Performance (n=108)

Spot (n=84)

Length‐of‐Service (n=131)

Company Milestones (n=48)

Major Personal Events (n=46)

Biometric/Wellness (n=32)

Percentage of Employees Recognized in Last 12 Months


Nearly half of organizations have a written strategy behind their recognition programs. Among those with a written strategy, the vast majority align with organizational strategy.

Yes49%No

51%

Written Strategy (n=326)

Yes97%

No3%

Alignment with Organizational Strategy(n=158)


While most respondents feel that their programs are doing a fairly good job of meeting their goals, there is definite room for improvement.

Yes, definitely18%

For the most part48%

Somewhat31%

Not really3%

No, not at all1%

Programs Meeting Goals (n=157)


Employee engagement is the most common measure of success, followed by usage.

5%

8%

10%

12%

12%

12%

23%

24%

37%

45%

65%

Expenses

Net promoter scores

Other, please specify

Revenue

Profit

Productivity

Employee Turnover

Customer surveys

Usage rates and/or participation rates

Number of nominations

Employee engagement/satisfaction surveys

Measurements of Success (n=146)


Human Resources administers the recognition program in half of organizations, with compensation and benefits departments both seeing slight increases.

2% 1% 2% 2%8% 7% 4% 6%

5% 7%4%

7%6% 7%

8%8%

22% 22%22%

25%

55% 54% 59%50%

2013(n=370)

2015(n=375)

2017(n=281)

2019(n=322)

Administration of Recognition Program

Human Resources

Compensation

Each department isresponsible for its ownprogram administrationBenefits

Other

Organizational Development


Recognition programs are often budgeted, and they are generally 0.3% or less of the payroll budget.

3% 5% 6%

42%51% 48%

15%

18%16%8%

7%4%

20%

11%13%

6%3%

5%6%

2015(n=233)

2017(n=150)

2019(n=180)

Percentage of Payroll Budget

Greater than 10.1%

5.0% to 10.0%

3.0% to 4.9%

2.0% to 2.9%

1.0% to 1.9%

0.7% to 0.9%

0.4% to 0.6%

0.1% to 0.3%

0%

68%72%80%79%

32%28%21%21%

2019(n=315)

2017(n=282)

2015(n=375)

2013(n=369)

Budget for Recognition

No

Yes


Most companies centralize budgeting for recognition programs, and budgets are well-utilized.

47%49%44%44%

41%35%40%39%

12%16%16%17%

2019(n=213)

2017(n=189)

2015(n=288)

2013(n=280)

The Recognition Budget Is…

Held in eachdepartment‐specificbudget

Centralized for theentire organization

Some centralizedand somedepartment‐specific

Less than 25%6%

26% to 40%4%

41% to 60%8%

61% to 80%16%More

than 81%65%

Percentage of Recognition Budget Normally Spent/Utilized Annually

(n=192)


Awards are often given directly to the employee by their manager or during a staff meeting.

3%

8%

15%

24%

27%

34%

40%

46%

53%

66%

70%

Other

Not presented (e.g., mailed to recipient at work or home)

Social media network (internal or external)

Company newsletter

Recognition program software/platform

Intranet announcement

Email announcements/notifications

Companywide meeting

Special event (e.g., banquet, luncheon, etc.)

Staff/team meeting

One‐on‐one with manager

Presentation of Recognition Awards (n=317)


The use of email and organization intranet sites are most frequently used to communicate program activities. (n=287)

Intranet Internet Internal social network

External social network Email

Recognition program software

Recognition nomination 33% 4% 5% 3% 43% 27%

Award/item ordering 12% 26% 1% 0% 21% 28%

Recognition presentation 27% 4% 11% 3% 32% 20%

Peer acknowledgement/celebration

24% 2% 11% 2% 28% 25%

Program administration 24% 8% 4% 0% 28% 32%

Program financials, reporting and/or tracking

11% 4% 1% 0% 16% 23%

Program communication 51% 6% 13% 1% 51% 21%

Program training 24% 3% 6% 0% 17% 14%


Employees are given a choice in their recognition rewards at one in five organizations, and another two in five organizations offer the employees a choice under certain circumstances.

Award is chosen/ predetermined by the

organization41%

Employee receives

redeemable recognition currency19%

We offer both predetermined awards and

recognition currency, depending on the type of recognition

41%

Award Type(n=307)


Gift cards are most common, followed by cash. Nearly half of organizations gross up rewards to offset taxes.

10%20%

24%25%

30%31%32%34%36%37%

41%42%44%46%46%47%49%50%

62%

Concierge ServicesDebit Cards/Stored Value Cards

TravelBooks/Music/Videos

Writing & Desk AccessoriesPower & Hand Tools

Food & Beverage GiftsHome Appliances/Furnishings

Fine Gifts & ChinaCameras/Equipment

Luggage/Leather GoodsElectronics

Sporting/Recreational GoodsJewelry

Apparel/AccessoriesTrophies/Plaques/Certificates

Clocks/WatchesCash (not pay for performance or compensation)

Gift Cards

Types of Rewards Given (n=302)

46% of organizations increase the valued amount of the recognition award in order to offset the tax impact (also known as grossing up the award)


Most organizations do not offer training on their recognition programs to their employees or managers, but those that do favor online education.

10% 11%

18%

5% 5%

61%

14%18%

23%

7% 9%

54%

Handbook In‐person trainingsession

Online education Video Other We don't offerformal training for

this group

Formal Recognition Training Programs Offered(n=298)

Employees Managers


Recognition training is infrequent, and not typically updated.

Annually7%

Every Few Years5%

As Needed51%

Never37%

Frequency of Recognition Training Updates

(n=284)

3% 1% 2%

15%

25%

5% 2% 2%

28% 29%

Annually Monthly Weekly As Needed Never

Frequency of Recognition Training(n=445)

Employees Managers


Most respondents say they have a moderate to high degree of support from senior management, who tend to view recognition as an investment.

1 (no support

at all)3%

220%

329%

430%

5 (high level of support)19%

Support from Senior Management

(n=305)

As an investment

52%

As an expense17%

Unsure31%

Senior Management Views of Employee Recognition

Programs(n=310)


About half of organizations feature their recognition programs to attract new employees.

Yes16%

No50%

Sometimes, but not always

34%

Organizations Featuring/Marketing Recognition Programs to Attract New Employees

(n=308)


Most organizations are seeing similar levels of recognition as last year, but one in three are seeing an uptick.

40% 35% 31% 28%37% 34% 33%

8%7%

7%6%

6%4% 5%

52%58% 62% 66%

58% 62% 62%

2005(n=599)

2008(n=561)

2011(n=535)

2013(n=400)

2015(n=406)

2017(n=299)

2019(n=434)

Frequency of Recognition Compared to 12 Months Ago

About thesame as 12months ago

Less than 12months ago

More than 12months ago


A lack of leadership support and perception of cost are the top reasons organizations cite for not having a recognition program.

27%27%24%22%16%

2%

2019 (n=55)2017 (n=39)2015 (n=49)

Reasons for Not Having a Recognition Program

Too costly

No support from seniormanagementToo challenging toadministerDo not know where tostartCompany is not largeenoughNot interested or find novalue


Demographics


Sector (n=361)

Private‐sector, publicly traded 42%

Private‐sector, privately held

35%

Government/Public sector7%

Nonprofit/Not‐for‐profit17%


Organization Size (n=361)

6%11% 9%

18%14% 13%

9%

20%

Fewer than100 employees

100‐499 500‐999 1,000‐2,499 2,500‐4,999 5,000‐9,999 10,000‐19,999 20,000 ormore

employees


Industry(n=361)

13%

5%

6%

8%

8%

9%

12%

13%

Other

Retail trade

Chemical manufacturing (includes pharmaceuticals)

Information (includes publishing, IT technologies, etc.)

Health care and social assistance

Consulting, professional, scientific and technical services

All other manufacturing

Finance and insurance


MethodologyThis report summarizes the results of a February 2019 survey of WorldatWorkmembers that gathered information on new and continuing trends in employee recognition, including recognition of events, behaviors or results that are observed and/or incentivized. For the purposes of this survey, “recognition” is defined as “a gesture to acknowledge, give thanks for or celebrate an event, behavior or result that was observed and/or incentivized.”On Feb. 20, 2019, survey invitations were sent electronically to 5,427 WorldatWorkmembers. The survey closed on March 11, 2019, with 472 responses. The dataset was cleaned, resulting in a final dataset of 445 responses. In order to provide the most accurate data possible, data was cleaned and analyzed using statistical software. Any duplicate records were removed.The demographics of the survey sample and the respondents are similar to the WorldatWork membership as a whole. The typical WorldatWork member works at the managerial level or higher in the headquarters of a large company in North America. The frequencies or response distributions listed in the report show the number of times or percentage of times a value appears in a dataset. Due to rounding, frequencies of data responses provided in this survey may not total exactly 100%.The full text of the questionnaire can be found here. A list of participating organizations can be found here.


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trends in employee recognition - worldatwork.org · create/maintain a positive work environment...

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