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SHRM-Globoforce Survey: Corporate Culture Impacted by Employee Recognition Programs

ALEXANDRIA, Va. and SOUTHBOROUGH, Mass., Nov. 15, 2012 /PRNewswire-USNewswire/ -- Roughly seven in 10 organizations use employee recognition programs to strengthen corporate culture according to a joint survey from Society for Human Resource Management (SHRM) and Globoforce consultancy.

The survey shows that 72 percent of HR professionals say their company or organization's employee recognition program serves to help the business "instill and reinforce corporate values to its employees."

Even more—82 percent—report employee recognition programs have a positive impact on employee engagement. Another 54 percent say recognition programs help the organization retain employees.

Still, when it comes to performance reviews, only 61 percent of HR professionals say employees are rewarded according to their job performance and only 56 percent say annual performance reviews are an accurate appraisal for employees' work. A little more than half—52 percent—of HR professionals say managers and supervisors effectively acknowledge and appreciate employees' performance.

Furthermore, the joint SHRM-Globoforce survey, the second of two to release in 2012, shows that:

  • 50 percent of HR professionals say their company has a recognition program tied to company values;
  • 27 percent of HR professionals say their company's recognition program is not tied to company values; and
  • 18 percent of HR professionals report that their company has no program in place while six percent report plans to implement a recognition program in the next 12 months.

The numbers could explain why the majority of HR professionals (75 percent) say employees are not satisfied with the level of recognition they receive for work well done.

Also notable, only 16 percent of HR professionals say the recognition programs serve "to identify high and low performers." Fewer, 12 percent, say the programs serve "to identify the most influential employees."

"Employee recognition programs are especially powerful when the design allows managers and employees to report successes throughout the year and reward, and recognize individual performance accordingly," said Mark Schmit, vice president of research at SHRM.

"Highly engaged employees can boost a company's profitability," said Eric Mosley, CEO of Globoforce.  "Our research finds that when organizations invest one percent or more of payroll into recognition programs, they experience a positive impact on both employee engagement and financial results."

How engaged are employees? The survey shows that:

  • A little more than one-tenth (11 percent) of HR professionals say 81 percent to 90 percent of employees are highly engaged;
  • Nearly one-fifth (18 percent) of HR professionals say 71 percent to 80 percent of employees are highly engaged;
  • One-seventh (14 percent) of HR professionals say 61 percent to 70 percent of employees are highly engaged;
  • Roughly one-eighth (13 percent) of HR professionals say 51 percent to 60 percent of employees are highly engaged;
  • A little more than one-tenth (11 percent) of HR professionals say 41 percent to 50 percent of employees are highly engaged; and
  • Roughly one-eighth (13 percent) of HR professionals say 31 percent to 40 percent of employees are highly engaged.

SHRM surveyed 815 HR professionals from its membership, employed in organizations the title of manager or above and 500 or more employees.

Follow SHRM Research on Twitter @SHRM_Research.
Follow SHRM news announcements and more on Twitter @SHRMPress.
Follow Globoforce on Twitter @Globoforce.

About 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 260,000 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 www.shrm.org and follow us on Twitter @SHRMPress.

About Globoforce
Globoforce is the world's leading provider of social recognition solutions, redefining how companies understand, manage, and motivate their employees. Innovative companies around the world use Globoforce's cloud-based social recognition software to reveal the true performance and influence of every employee and strengthen company culture.  With Globoforce, HR and business leaders can take a strategic approach to recognition programs that result in measurable benefits to the bottom line driven by increases in employee engagement, retention, and productivity. Globoforce is co-headquartered in Southborough, Massachusetts, and Dublin, Ireland.     

To learn more:

SOURCE Society for Human Resource Management

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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