Shrm globoforce employee_recognition_summer_2011

SHRM Survey Findings: Employee
Recognition Programs, Summer 2011
In collaboration with and commissioned by Globoforce

June 23, 2011

Key findings

 What are the most important workforce management challenges organizations are currently facing? For
more than three-quarters of organizations, different generations of employees (85%) and multiple cultures in
the workplace (84%) are important (“important” and “very important”) workforce challenges.

 What are the key HR challenges organizations expect to face in the next three to five years? Nearly all
organizations indicated that employee engagement, employee retention and employee recruitment are the
challenges their organizations will be facing in the future.

 How many organizations currently have an employee recognition program? Eight out of 10 organizations
currently have an employee recognition program.

 What are the most common reasons that organizations recognize employees? The most frequently
reported reason was recognizing employees for their years of service (58% of responding organizations
reported having this practice). Nearly one-half (48%) indicated that “going above and beyond with an
unexpected (not regular) work project” was also commonly recognized, and 43% reported recognizing
employees for a “successful performance result related to the organizational financial bottom line.”

 Are employee recognition programs challenging to measure? Few organizations (13%) measure the ROI of
these programs. Of those that do measure the ROI, the majority of respondents (68%) agree that measuring
the effectiveness of their employee recognition programs is challenging and another 9% strongly agree. Less
than one-quarter (23%) of respondents disagree that measuring an employee recognition program is
challenging.

SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011
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Talent Management

3

Do you think that at your organization:

Percentage

organizational charts are an accurate indicator of your organization’s leaders 71%
and influencers? (n = 491)

annual performance reviews are an accurate appraisal for employees’ work? 61%
(n = 435)

employees are rewarded according to their job performance? 56%
(n = 406)

managers or supervisors effectively acknowledge and appreciate employees? 46%
(n = 331)

employees are satisfied with the level of recognition they receive for doing a 31%
good job at work? (n = 223)

Note: Analysis excludes “not sure” response. Percentages above reflect respondents who answered “yes” to the question.

4

Of the following options, which do you think is the most
accurate appraisal of employee performance?

Multi-source (manager, senior leader, peer, etc.) ongoing feedback
program, including constructive criticism and positive recognition 42%
on a regular basis (e.g., weekly, monthly)

Manager-driven ongoing feedback program, including
constructive criticism and positive recognition on a regular basis 25%
(e.g., weekly, monthly)

Manager-driven annual (or semi-annual) performance review 21%

360° annual (or semi-annual) performance review
(e.g., colleagues and clients provide feedback in addition to direct 10%
manager)

Other 2%
n = 726

5

The importance of workforce management challenges that
organizations are currently facing:

Very Very
Important Unimportant

Multiple cultures in the workforce 35% 49% 15% 1%

Different generations among
34% 51% 13% 1%
employees

Global diversity of today’s companies 24% 38% 29% 9%

Harnessing the power of social
21% 51% 24% 4%
networking technologies
n = 742

6

The importance of workforce management challenges that
organizations are currently facing:

Comparisons by organization staff size:
Compared with smaller organizations (2,499 employees or fewer), larger organizations (2,500 or more employees) view
global diversity of today’s companies as more a important workforce management challenge.

1-99 employees = 21%
2,500-24,999 employees = 27%
100-499 employees = 25%
25,000 and above = 41% Larger organizations > smaller organizations
500-2,499 employees = 15%

Comparisons by organization sector:
Government agencies are more likely to view multiple cultures in the workplace as an important workforce management challenge
compared with how publicly and privately owned for-profit organizations and nonprofit organizations view this challenge.

Publicly owned for-profit = 35%
Government > publicly and privately owned for-profit organizations
Government = 49% Privately owned for-profit = 30%
and nonprofit organizations
Nonprofit = 38%

Publicly owned for-profit organizations, privately owned for-profit organizations, and government agencies are more likely to view
global diversity of today’s companies as an important workforce management challenge compared with nonprofit organizations.

Publicly owned for-profit organizations, privately owned for-profit
Privately owned for-profit = 21% Nonprofit = 10%
organizations, and government agencies > nonprofit organizations
Government = 20%

7

HR challenges organizations anticipate facing in the next three to
five years:

Very Very

Employee engagement 69% 30% 1% 0%

Employee retention 63% 32% 4% 1%

Employee recruitment 53% 43% 3% 0%

Culture management (i.e., managing
51% 45% 4% 0%
your organization’s corporate culture)
Note: n = 742. Total may not equal 100% due to rounding

8

Methods organizations use to track employee engagement
levels:

Employee exit interviews 71%

Employee retention rates 65%

Vendor-administered employee engagement
surveys/analysis
43%

Company-administered employee engagement
surveys/analysis (i.e., the organization conducts its own 40%
survey with employees)

Social media activity by employees (i.e., tracking employee
11%
comments on internal and external company forums)

Other 3%

Note: n = 637. Includes only organizations that indicated they track employee engagement levels. Total does not equal 100% due to multiple response
options .
9

Employee Recognition
Programs

10

Does your organization have an employee recognition program?

No
20%

Yes
80%

n = 698

11

The Most Common Reasons Organizations Recognize Employees

Years of service 58%

Going above and beyond with an unexpected (not regular) work 48%
project

Successful performance results related to the organizational
financial bottom line (e.g., financial gains for 43%
organization, increased sales)

Exemplary behavior that aligns with organizational values 37%

Completion of regular work projects with high-quality results 9%

Completion of regular work projects at a faster than usual pace 2%

Other 3%

Note: n = 549. Includes only organizations that have an employee recognition program in place. Total does not equal 100% due to multiple response
options.
12

How do organizations track employee recognition programs?

By business unit/department 64%

By office location 42%

By employee level/title 34%

Note: n = 423. Analysis excludes “not applicable” responses. Total does not equal 100% due to multiple response options.

13

Is your CEO/president involved in your employee recognition
program?

Yes, the CEO/president champions the
program, but enables his or her team to drive it 46%
without the CEO's input

The CEO/president is aware we have a 29%
program, but does not invest any time in it

Yes, the CEO/president is actively involved in 23%
every aspect

I don’t believe the CEO/president is aware of the 3%
program

Note: n = 552. Total does not equal 100% due to rounding.

14

Does the budget for employee recognition programs come out
of the HR budget, the individual department/business unit
budget or from both budgets?

37%
The HR budget

The individual department/business unit 34%
budget

Both the HR budget and individual 30%
department/business unit budgets


15

Which area in HR is responsible for employee recognition at
your organization?

HR Functional Area Percentage

General HR function 59%

Rewards and recognition 14%

Compensation and benefits 13%

Performance management 4%

Learning and development 3%

Other 8%

16

Does your organization track the ROI of your employee
recognition program?

Yes
13%

No
87%

Note: n = 419. Analysis excludes “not sure” responses.

17

Percentage of organizations that track the ROI of their employee
recognition program

Comparisons by organization staff size:
Larger organizations (2,500 employees and more) are more likely to track the ROI of their employee recognition programs
compared with smaller organizations (2,499 employees and fewer).

1-99 employees = 10%
2,500-24,999 employees = 19%
100-499 employees = 6% Larger organizations > smaller organizations
25,000 and above = 21%
500-2,499 employees = 7%

Comparisons by organization sector:
Publicly owned for-profit organizations are more likely to track the ROI of their employee recognition programs compared
with privately owned for-profit and nonprofit organizations.

Privately owned for-profit = 10% Publicly owned for-profit organization > privately owned for-profit
Nonprofit = 7% organization, nonprofit organization

18

The effectiveness of employee recognition programs is
challenging to measure

Strongly Agree
9%

Disagree
23%
Agree
68%

Note: n = 53. Includes only the respondents who indicated they track the ROI of their employee recognition programs. Survey included a
“strongly disagree” response option, but this option was not selected by any respondents.

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Common challenges organizations experience in tracking the
ROI of employee recognition programs

Percentage

Metrics of success keep changing, making it impossible to consistently report
32%
on ROI
The recognition program cannot be linked with our talent management or
performance management systems, giving us no insight into how recognition 32%
affects key metrics such as performance improvement or retention
The recognition program is not designed to deliver improvement in metrics
22%
that our executive leadership (CEO/CFO/COO/CHRO, etc.) finds valuable
The recognition program only rewards the ultimate results, but does not take
into consideration how those results are achieved (e.g., in line with company 20%
values)
Only segments of employees are eligible to participate in employee
20%
recognition programs (e.g., top performers, select job levels)

Don’t know what metrics we should be measuring to prove ROI 15%
Note: n = 41. Includes only the respondents who indicated they track the ROI of their employee recognition programs. Total does not equal 100%
due to multiple response options.

20

Demographics

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Demographics: Organization industry

Manufacturing 20%
Health care and social assistance 16%
Other services except public 9%
Educational services 8%
Professional, scientific and technical services 8%
Retail trade 7%
Finance and insurance 6%
Public administration 4%
Accommodation and food services (accommodation; food services and drinking places) 4%
Arts, entertainment and recreation 3%
Information 2%
Transportation and warehousing 2%
Construction 2%
Utilities 2%
Wholesale trade 1%
Administrative and support and waste management and remediation services 1%
Management of companies and enterprises 1%
Mining 1%
Real estate and rental and leasing 1%
Religious, grantmaking, civic, professional and similar organizations 1%
Repair and maintenance 1%
Agriculture, forestry, fishing and hunting 0%
Personal and laundry services 0%
Private households 0%
n = 710

22

Demographics: Organization sector

42%

34%

16%

8%

Publicly owned for- Privately owned for- Nonprofit organization Government agency
profit organization profit organization

n = 730

23

Demographics: Organization staff size

41%
37%

12%
7%
3%

1-99 100-499 500-2,499 2,500-24,999 25,000+

n = 730

24

Demographics: Other

Is your organization a single-unit company or a
Does your organization have U.S.-based multi-unit company?
operations (business units) only or does
it operate multinationally? Single-unit company: A company in which
the location and the company are one 16%
U.S.-based operations only 57% and the same
Multinational operations 43% Multi-unit company: A company that has
84%
n = 721 more than one location
n = 729

Are HR policies and practices determined by the
HR department/function for which you multi-unit corporate headquarters, by each work
responded throughout this survey location or both?

Corporate (companywide) 59% Multi-unit headquarters determines HR
44%
policies and practices
Business unit/division 20%
Each work location determines HR policies
Facility/location 21% 2%
and practices
n = 623
A combination of both the work location
and the multi-unit headquarters 54%
determine HR policies and practices
n = 623

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SHRM Survey Findings: Employee recognition programs
In collaboration with and commissioned by Globoforce

Methodology

 Response rate = 13%

 Sample composed of 745 randomly selected HR professionals from
SHRM’s membership who are employed at organizations with a staff
size of 500 or more employees.

 Margin of error is +/- 3%

 Survey fielded May 17-27, 2011

For more poll findings, visit www.shrm.org/surveys
Follow us on Twitter: http://twitter.com/SHRM_Research

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Shrm globoforce employee_recognition_summer_2011

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