research Using Result-Driven Programs to Power Employee Recognition A supplemental report to Trends in Employee Recognition 2013

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1 Using Result-Driven Programs to Power Employee Recognition A supplemental report to Trends in Employee Recognition 2013 research A Report by WorldatWork August 2013

2 About WorldatWork The Total Rewards Association WorldatWork ( is a nonprofit human resources association for professionals and organizations focused on compensation, benefits, work-life effectiveness and total rewards strategies to attract, motivate and retain an engaged and productive workforce. WorldatWork and its affiliates provide comprehensive education, certification, research, advocacy and community, enhancing careers of professionals and, ultimately, achieving better results for the organizations they serve. WorldatWork has more than 65,000 members and subscribers worldwide; 95 percent of Fortune 500 companies employ a WorldatWork member. Founded in 1955, WorldatWork is affiliated with more than 70 local human resources associations and has offices in Scottsdale, Ariz., and Washington, D.C. Contact: WorldatWork Customer Relations N. Northsight Blvd. Scottsdale, Arizona USA Toll free: Fax: CustomerRelations@worldatwork.org WorldatWork Society of Certified Professionals is the certifying body for six prestigious designations: the Certified Compensation Professional (CCP ), Certified Benefits Professional (CBP), Global Remuneration Professional (GRP ), Work-Life Certified Professional (WLCP ), Certified Sales Compensation Professional (CSCP) and Certified Executive Compensation Professional (CECP). The WorldatWork group of registered marks also includes: Alliance for Work-Life Progress or AWLP, workspan and WorldatWork Journal WorldatWork Any laws, regulations or other legal requirements noted in this publication are, to the best of the publisher s knowledge, accurate and current as of this report s publishing date. WorldatWork is providing this information with the understanding that WorldatWork is not engaged, directly or by implication, in rendering legal, accounting or other related professional services. You are urged to consult with an attorney, accountant or other qualified professional concerning your own specific situation and any questions that you may have related to that. No portion of this publication may be reproduced in any form without express written permission from WorldatWork.

3 Using Result Driven Programs to Power Employee Recognition This supplemental research report is intended to provide additional detailed analysis on employee recognition and the impacts of result driven programs. This research is derived from the full survey report, Trends in Employee Recognition The Trends in Employee Recognition 2013 survey summarized a variety of recognition programs currently used in organizations. For the full survey methodology please refer to Trends in Employee Recognition In an effort to better understand recognition program goals, program strategies, budgeting, turnover and program influence on employee satisfaction, motivation and engagement, three specific programs were considered result driven programs and were selected for further analysis. These programs were: Above and beyond performance recognition Peer to peer recognition Recognition programs that motivate specific behavior. The remainder of this report compares findings for organizations with one result driven program and all three result driven programs to the overall aggregate findings. How Does Focused Use of Result Driven Programs Impact Employee Recognition? 23% of organizations surveyed include all three result driven programs in their recognition programs. These organizations consistently tl report that t their goals, which h 80% say they are meeting, are higher h than those that have one result driven program and those that have none. They also are statistically significantly greater in motivating high performance, reinforcing desired behaviors, supporting organizational mission/values and creating a culture of recognition. In today s environment, where there is more expected out of employees and engagement has been a challenge, it would appear that adding a focus to recognition programs around driving business results may be paying off. Using all three of these programs also appears to create a more positive or extremely positive impact on engagement the holy grail and motivation more so than the other two segments (at least one recognition program and overall). These organizations also enjoy a turnover rate of 10% or less at a higher rate (76%) than their counterparts. Perhaps it s also important to note that these organizations recognize their employees on a personal level (presented one on one with a manager and presented at a staff meeting) at a statistically significant rate higher than their counterparts. An additional and important tobservation is in the budgeting for these programs. It is interesting ti to note that these organizations appear to be able to succeed with all three recognition programs without adding more to the budget. With a 2.4% average budget, the same as the organizations with at least one resultdriven recognition program and only.2% higher than those with no result driven programs, it looks like they may be spreading their budget dollars more evenly throughout the range, as noted in the range distribution. The bottom line may be that t adding all three result driven recognition programs may provide more in terms of return on investment than having only one or none. And although more traditional recognition programs are still prevalent and valued by employees, focusing employees on efforts that drive the business and recognizing them for it may be a wise investment for the business and rewarding for the employees. 1

4 Respondents Use of Result Driven Programs 86% of participants with a recognition program have atleast 1 result driven program 23% of participants with a recognition program have all three result driven programs Goals of the Recognition Program Motivate high performance At Least One All Three Overall 80% 90% 72% Create a culture of recognition 78% 89% 73% Create a positive work environment 78% 81% 74% Recognize years of service 76% 70% 77% Reinforce desired behaviors 74% 85% 66% Support organizational mission/values 62% 81% 56% Organizations that say recognition program is meeting goals or objectives 75% 80% 74% Program Strategies At Least One All Three Overall Have a written strategy behind their recognition program 56% 64% 51% Organizations are statistically significantly more likely than the overall participant sample in this specific indicator. 2

5 Attraction, Motivation and Retention Recognition Award Items and Presentations At Least One All Three Overall Presented one on one with a manager 74% 84% 71% Presented at a staff meeting 58% 71% 55% Award certificates or plaques 79% 85% 77% Award cash 66% 73% 61% Award gift certificates 54% 68% 50% Employee Motivation At Least One All Three Overall Engagement positive or extremely positive 69% 73% 64% Motivation positive or extremely positive 64% 68% 58% Satisfaction positive or extremely positive 68% 67% 64% Impact on Retention or Just Retention At Least One All Three Overall Voluntaryturnover turnover rate of 10% or less 73% 76% 69% Organizations are statistically significantly more likely than the overall participant sample in this specific indicator. 3

6 % Budget At Least One All Three Overall Average budget as a percentage of total payroll 2.4% 2.4% 2.2% Budget Range At Least 1 RDP All 3 RDPs Overall 0% 5% 10% 4% 0.01% 0.09% 6% 2% 3% 0.1% 0.4% 21% 20% 17% 0.5% 0.9% 17% 12% 15% 1% 19% 1.9% 27% 17% 28% 2% 2.9% 10% 17% 9% 3% 9% 11% 20% 11% 10% 3% 0% 3% >10% 5% 2% 4% 4