Recognition Programs Drive Performance Management

Sixty-four percent of
companies that have an employee recognition
program say their employees are rewarded according to job performance versus
just 36 percent of organizations who do not have a recognition program in
place. These are just two of the noteworthy statistics from the SHRM/Globoforce
Employee Recognition Survey*, announced today by Globoforce® (,
the world’s leading provider of employee
recognition solutions
, and
for Human Resource Management
(SHRM), the world’s largest association devoted to human
resource management. To download the Winter 2012 report, click

SHRM/Globoforce semi-annual survey examines the current state
of HR leaders’ employee
engagement and recognition practices and their impact on performance
. Today’s leaders face increasing competition to hire
skilled workers and retain top talent – a business’s number one asset. The
survey reveals that employee engagement is still the
number one priority among HR professionals. The recent
survey also uncovers a connection between recognition programs and engagement
and retention levels,
all crucial elements amidst an awakening job

witnessing intense competition for talent that requires new approaches for energizing,
engaging, and evaluating a global workforce,” said Eric Mosley, CEO of
Globoforce.  “Performance management has
long been viewed as the underlying way this is done. Yet, as this latest survey
shows, the lack of ongoing feedback continues to be its missing ingredient. By
using a social performance management strategy powered by employee recognition,
HR leaders can fill that critical gap of feedback. The result is higher levels
of employee engagement, satisfaction, and productivity.”

“The latest SHRM/Globoforce survey shows a
growing introspection among HR leaders. They know how critical HR strategies
will be in 2012 and well into the future,” said Mark Schmit, SHRM’s vice
president of research.“By taking the next step beyond simply talking about employee engagement
and proactively addressing it with tools like employee recognition, HR leaders
will have greater success in elevating all key HR metrics.”

the 770 HR leaders who responded to the survey, key insights include:

Employee engagement is the
top HR challenge but underutilized

According to the
survey, 94 percent of HR leaders say employee engagement is an important or
very important workforce challenge they currently face. However, only 42
percent of respondents currently track employee engagement levels, missing an
opportunity to address low engagement levels within the organization with
targeted, proactive strategies. In fact, among companies that measure
engagement (versus those that do not), HR leaders say:

Mo- More
employees feel rewarded according to job performance (69 percent vs. 49

Mo- More
managers acknowledge and appreciate employees (56 percent vs. 46 percent)

Mo- More
employees are satisfied with their levels of recognition (37 percent vs. 23


recognition fills the feedback gap for effective employee performance

The survey finds that 45 percent of HR
leaders do not think annual performance reviews are an accurate appraisal for
employee’s work while 42 percent do not think employees are rewarded according
to their job performance. Examining this by companies with recognition programs
versus those without:

·    – 
percent of companies with recognition programs say their managers effectively
acknowledge employees.

·     – 
only 36 percent of companies without recognition programs feel employees are effectively
acknowledged and appreciated by managers. 

Employee recognition delivers ROI against
key HR metrics

Among organizations
that measure the ROI of their employee recognition programs, HR leaders
observed increases in key metrics. More
than half of survey respondents saw increases
in productivity,
customer/employee retention, employee engagement, return on profit margin, and
return on equity as a result of their employee recognition program.

Percent of HR leaders who say they observed an increase in these metrics
as a result of their recognition program:

Em- Employee
productivity – 63 percent

Em- Employee
engagement – 61 percent

Ret- Return
on profit margin – 58 percent

Cu- Customer
retention – 52 percent

Em- Employee
retention – 51 percent

Ret- Return
on equity – 50 percent


To download the 2012 SHRM/Globoforce
Employee Recognition Report, visit:


view the February 2012 webinar on the SHRM/Globoforce survey findings, visit:

To download the full results
of the survey:,Winter2012.aspx



Survey Methodology

* The SHRM/Globoforce
Employee Recognition Survey is an employee recognition survey that examines
employee engagement, performance management, as well as other key metrics
associated with employee recognition. The survey is commissioned by Globoforce and
conducted in collaboration with SHRM. There were
770 responses from organizations with 500+ employees, resulting in a margin of
error of +/- 3 percent at a 95 percent confidence level. The online survey was
conducted by SHRM from December 22, 2011 – January 12, 2012.




Founded in 1999, Globoforce is the
world’s leading provider of employee recognition solutions. Through its social,
mobile, and global technology, Globoforce helps HR and business leaders elevate
employee engagement, increase employee retention, manage company culture and
discover the power of real-time performance management. Today, employees across
the world are living their company values and achieving peak performance
through the SaaS-based Globoforce platform. A private corporation, Globoforce
is co-headquartered in Southborough, Massachusetts, and Dublin, Ireland.


To learn more:




Twitter @Globoforce





the Society for Human Resource Management

The Society for Human Resource Management (SHRM) is the world’s largest
association devoted to human resource management. Representing more than
250,000 members in more than 140 countries, the Society serves the needs of HR
professionals and advances the interests of the HR profession. Founded in 1948,
SHRM has more than 575 affiliated chapters within the United States and
subsidiary offices in China and India. Visit SHRM Online at and
follow us on Twitter @SHRMPress.

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