This Week's Herman Trend Alert

Leadership in Normal 2.0

  The Herman Trend Alert

July 4, 2012

The Importance of Employee Recognition

We have good news and bad news. The good news is that employee recognition programs are increasing; the bad news is that over half (55 percent) of the employees responding to a recent survey would leave their jobs for a company that recognized employees for their efforts.

According to the spring 2012 Workforce Mood Tracker from Globoforce, reconfirms the importance of connecting consistent recognition with performance. It also demonstrates marked improvement in employees' opinions of their company’s culture and their own job satisfaction. In fact, the percentage of employees who said they were recognized increased by 13.6 percent, going from 44 percent to 50 percent in a matter of six months. Thankfully, some companies are catching on to the value of recognition.

Not surprising to us, 81 percent of employees said receiving recognition made them more satisfied with their work and/or position in the company. That number is up from 73 percent in fall 2011. Moreover, 54 percent reported being satisfied with the level of recognition they received for doing a good job, up from 48 percent in last fall.

In addition to being more satisfied with the recognition they received, the survey found a high positive correlation between recognition and retention. Of those respondents who have been recognized in the last three months compared to those who have never been recognized in their job, the survey found that 23 percent plan to search for a new job, compared to 51 percent of those who have never been recognized---a significant difference!

On top of that, of the people who have been recognized, 89 percent feel appreciated at their job, compared to 17 percent of those never recognized. In addition, the recognition registers, because a full 90 percent felt their manager effectively acknowledged and appreciated them, compared to 21 percent of those never recognized. And perhaps most telling of all, 67 percent of those recognized love their jobs, compared to 37 percent of those never recognized.

This survey shows what we have long known, that recognition is vital to employee engagement and retention. People want to feel appreciated. Ignore your employees at your own risk.

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