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Shrm globoforce survey_employee_recognition_winter_2012

  1. 1. SHRM Survey Findings: Employee Recognition Programs, Winter 2012 In collaboration with and commissioned by Globoforce April 12, 2012
  2. 2. Key Findings  What are the important workforce management challenges that organizations are currently facing? Nearly two-thirds of organizations (63%) agree that employee engagement is a “very important” challenge. More than one-half believe that employee retention (57%) and effective performance management (51%) are “very important” challenges. Other workforce management challenges identified as “very important” were employee recruitment (49%) and managing the organization’s corporate culture (45%).  Do organizations track their employee engagement levels? Fewer than half (42%) of organizations track employee engagement levels. Common methods organizations use to track employee engagement are vendor-administered surveys (66%), employee exit interviews (65%) and employee retention rates (60%).  Do organizations that track employee engagement levels differ from organizations that do not? Organizations that track employee engagement levels are more likely to respond “yes” when asked if employees at their organization are rewarded according to their job performance. Organizations that track employee engagement are also more likely to indicate that managers or supervisors at their organizations effectively acknowledge and appreciate employees, and that employees at their organizations are satisfied with the level of recognition they receive for doing a good job at work. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 2
  3. 3. Key Findings (Continued)  Do organizations have employee recognition programs in place? Approximately three-quarters of organizations (76%) have an employee recognition program in place, and another 5% say they plan to implement such program within the next 12 months. More than three-quarters (76%) of organizations with an employee recognition program in place say they “agree” or “strongly agree” their employee recognition program is aligned with their organization’s overall company values.  Do organizations that have an employee recognition program in place differ from organizations that do not? Organizations that track employee recognition are more likely to respond “yes” when asked if employees at their organization are rewarded according to their job performance. Organizations that track employee recognition are also more likely to indicate that managers or supervisors at their organizations effectively acknowledge and appreciate employees, and that employees at their organizations are satisfied with the level of recognition they receive for doing a good job at work.  Do organizations track the return on investment (ROI) of their employee engagement programs? Few organizations (15%) track the ROI of their employee engagement program. Organizations that do track the ROI commonly use employee retention levels (74%), overall financial results (61%) and employee productivity levels (60%). SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 3
  4. 4. Talent Management SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 4
  5. 5. Do you think that at your organization: January June 2012 2011 Organizational charts are an accurate indicator of your organization’s 66% 71% leaders and influencers? (n = 464) (n = 491) Employees are rewarded according to their job performance? 58% 56% (n = 432) (n = 406) Annual performance reviews are an accurate appraisal for employees’ 55% 61% work? (n = 389) (n = 435) Managers or supervisors effectively acknowledge and appreciate 50% 46% employees? (n = 375) (n = 331) Employees are satisfied with the level of recognition they receive for doing 29% 31% a good job at work? (n = 211) (n = 223) Note: Respondents who answered “not sure” were excluded from this analysis. Percentages above reflect respondents who answered “yes” to the question. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 5
  6. 6. The importance of workforce management challenges that organizations are currently facing: Very Very Important Unimportant Important Unimportant Employee engagement 63% 31% 5% 1% (n = 767) Employee retention 57% 34% 7% 2% (n = 768) Effective performance management 51% 44% 4% 1% (n = 765) Employee recruitment 49% 44% 6% 1% (n = 767) Culture management (i.e., managing the organization’s corporate culture) 45% 45% 9% 1% (n = 763) SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 6
  7. 7. The importance of workforce management challenges that organizations are currently facing: (continued) Very Very Important Unimportant Important Unimportant January June January June January June January June 2012 2011 2012 2011 2012 2011 2012 2011 Multiple cultures in the workforce 24% 35% 51% 49% 23% 15% 2% 1% (n = 760) Ability to harnessing the power of social networking technologies 19% 21% 56% 51% 23% 24% 2% 4% (n = 765) Global diversity of today’s company 18% 24% 39% 38% 35% 29% 8% 9% (n = 767) Differing generations among employees 13% 34% 59% 51% 26% 13% 2% 1% (n = 767) Note: These questions were asked in June 2011 (n = 742 for each option) and January 2012. Percentages may not equal 100% due to rounding. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 7
  8. 8. Employee Engagement SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 8
  9. 9. Does your organization track employee engagement levels? No, 58% Yes, 42% n = 765 SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 9
  10. 10. Does your organization track employee engagement levels? Comparison by organization staff size: Larger organizations (2,500 or more employees) are more likely than smaller organizations (2,499 or fewer employees) to track employee engagement levels . Larger organizations Smaller organizations Differences based on organization staff size 1 to 99 employees (39%) 2,500 to 24,999 employees (47%) 100 to 499 employees (33%) Larger organizations > smaller organizations 25,000 or more employees (65%) 500 to 2,499 employees (30%) Comparison by organization sector: Publicly owned for-profit, privately owned for-profit and nonprofit organizations are more likely to track employee engagement levels, compared with government agencies. Organization sector Publicly owned for-profit organizations (49%) Publicly owned for-profit, privately owned for-profit Privately owned for-profit organizations (42%) Government agencies (11%) and nonprofit organizations > government agencies Nonprofit organizations (50%) SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 10
  11. 11. Does your organization track employee engagement levels? Organizations that track employee engagement levels are more likely to respond “yes” to the following questions when compared with organizations that do not track employee engagement levels. Track employee Do not track employee On average… engagement levels engagement levels Do you think employees at your organization are rewarded 69% 49% according to their job performance? Do you think managers or supervisors at your organization 56% 46% effectively acknowledge and appreciate employees? Do you think employees at your organization are satisfied with the level of recognition they receive for doing a good job 37% 23% at work? Note: Percentages above reflect respondents who answered “yes” to the question. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 11
  12. 12. Does your organization track employee engagement levels? Organizations that track employee engagement levels are more likely to say that certain management challenges they are facing are “very important,” compared with organizations that do not track employee engagement levels. Workforce management challenges that organizations Track employee Do not track employee identify as very important: engagement levels engagement levels Employee engagement 72% 57% Effective performance management 56% 47% Culture management (i.e., managing the organization's 50% 42% corporate culture) Global diversity of today's companies 23% 14% Differing generations among employees 17% 11% SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 12
  13. 13. How do you track employee engagement levels at your organization? Vendor-administered employee engagement surveys/analysis 66% Employee exit interviews 65% Employee retention rates 60% Company-administered employee engagement 44% surveys/analysis Social media activity by employees (e.g., tracking 12% employee comments on internal and external forums) Other 6% Note: n = 330. Only respondents whose organizations track employee engagement levels were asked this question. Percentages will not equal 100% due to multiple response options. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 13
  14. 14. Employee Recognition Programs SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 14
  15. 15. Does your organization have an employee recognition program? 5% of organizations plan to implement an employee recognition program within the next 12 months 5% 80% January 2012 (n = 765) June 2011 (n = 698) 76% 18% 20% Yes No Note: Percentages may not equal 100% due to rounding. In June 2011, the option “no, but plan to in the next 12 months” was not available. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 15
  16. 16. Does your organization have an employee recognition program? Organizations that have employee recognition programs are more likely to respond “yes” to the following questions when compared with organizations that do not have employee recognition programs. Do not have an Have an employee Plan to implement a employee recognition program in the next recognition program in place 12 months On average… program in place Do you think employees at your organization are rewarded according to their job 64% 36% 44% performance? Do you think managers or supervisors at your organization effectively acknowledge and 55% 36% 33% appreciate employees? Do you think employees at your organization are satisfied with the level of recognition they 34% 18% 5% receive for doing a good job at work? Note: Percentages above reflect respondents who answered “yes” to the question. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 16
  17. 17. Does your organization have an employee recognition program? Comparison by organization staff size: Larger organizations (25,000 or more employees) are more likely than smaller organizations (2,499 or fewer employees) to have an employee recognition program. Larger organizations Smaller organizations Differences based on organization staff size 1 to 99 employees (72%) 100 to 499 employees (65%) 25,000 or more employees (91%) Larger organizations > smaller organizations 500 to 2,499 employees (73%) 2,500 to 24,999 employees (77%) Comparison by organization sector: Publicly owned for-profit, privately owned for-profit and nonprofit organizations are more likely than government agencies to have an employee recognition program. Organization sector Publicly owned for-profit organizations (81%) Publicly owned for-profit, privately owned for- Privately owned for-profit organizations (75%) Government agencies (63%) profit and nonprofit organizations > government Nonprofit organizations (76%) agencies SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 17
  18. 18. Do you agree that employee recognition at your organization is aligned with your organization’s overall company values? Strongly disagree or disagree, 24% Strongly agree or agree, 76% Note: n = 586. Only respondents whose organization has an employee recognition program in place were asked this question. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 18
  19. 19. Do you agree that employee recognition at your organization is aligned with your organization’s overall company values? Organizations that responded “strongly agree” or “agree” when asked if employee recognition at their organization is aligned with the organization’s overall company values are more likely to respond “yes” to the following questions, compared with organizations that answered “ strongly disagree” or “disagree.” Do you agree that employee recognition at your organization is aligned with your organization’s overall company values? On average… Strongly agree or agree Strongly disagree or disagree Employees at our organization are rewarded 76% 25% according to their job performance Organizational charts in our organization are an 72% 48% accurate indicator of our leaders and influencers Managers or supervisors at our organization 65% 24% effectively acknowledge and appreciate employees Annual performance reviews at our organization are 64% 30% an accurate appraisal for employees' work Employees at our organization are satisfied with the level of recognition they receive for doing a good job 43% 4% at work Note: Percentages above reflect respondents who answered “yes” to the question. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 19
  20. 20. Do you agree that employee recognition at your organization is aligned with your organization’s overall company values? Organizations that responded “strongly agree” or “agree” when asked if employee recognition at their organization is aligned with the organization’s overall company values are more likely say that certain management challenges they are facing are “important,” compared with organizations that responded “strongly disagree” or “disagree.” Do you agree that employee recognition at your organization is aligned with your organization’s overall company values? Workforce management challenges identified Strongly agree or agree Strongly disagree or disagree as “important.” Effective performance management 46% 36% SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 20
  21. 21. Does your organization track the return on investment (ROI) of its employee recognition program? Yes, 15% No, 85% Note: n = 585. Only respondents whose organizations have an employee recognition program in place were asked this question. Respondents who answered “not sure” were excluded from this analysis. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 21
  22. 22. Does your organization track the ROI of its employee recognition program? Organizations that track the ROI of their employee recognition program are more likely to respond “yes” to the following questions when compared with organizations that do not track the ROI of their employee recognition program. Track the ROI Do not track the ROI of the employee of the employee On average… recognition program recognition program Do you think employees at your organization are 90% 59% rewarded according to their job performance? Do you think managers or supervisors at your organization effectively acknowledge and appreciate 76% 51% employees? Do you think employees at your organization are satisfied with the level of recognition they receive 55% 30% for doing a good job at work? Do you think annual performance reviews at your organization are an accurate appraisal of employees' 72% 53% work? Note: Percentages above reflect respondents who answered “yes” to the question. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 22
  23. 23. How long has your organization been tracking the ROI of its employee recognition program? Over 5 years 37% 1 to 2 years 29% 3 to 4 years 25% Less than 1 year 9% Note: n = 89. Only respondents whose organizations track the ROI of their employee recognition program were asked this question. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 23
  24. 24. How does your organization generally track the ROI of its employee recognition programs? Employee retention levels 74% Overall financial results (e.g., return on 61% equity, assets and/or profit margin) Employee productivity levels 60% Employee engagement scores 57% Employee absenteeism 28% Customer retention levels 21% Other 6% Note: n = 94. Only respondents whose organizations track the ROI of their employee recognition program were asked this question. Total does not equal 100% due to multiple response options. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 24
  25. 25. In your opinion, have any of the elements below increased, remained the same or decreased at your organization as a result of the implementation of an employee recognition program? Increased Remained the same Decreased Employee productivity 63% 35% 2% (n = 86) Employee engagement 61% 37% 2% (n = 82) Return on profit margin 58% 40% 2% (n = 60) Customer retention 52% 45% 3% (n = 65) Employee retention 51% 45% 4% (n = 82) Return on equity 50% 48% 2% (n = 56) Return on assets 42% 56% 2% (n = 55) Employee absenteeism 8% 64% 28% (n = 72) Note: Only respondents whose organizations track the ROI of their employee recognition program were asked this question. Respondents who answered “not sure” were excluded from this analysis. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 25
  26. 26. The Use of Gamification SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 26
  27. 27. Do you employ gamification tools in any of your HR programs? Gamification is the use of game design techniques and mechanics to solve problems and engage audiences. Gamification works by making technology more approachable, by encouraging users to demonstrate desired behaviors by showing a path to mastery and autonomy, and by taking advantage of humans' psychological predisposition to engage in gaming. Yes, 7% No, 93% Note: n = 629. Respondents who answered “not sure” were excluded from this analysis. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 27
  28. 28. Demographics SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 28
  29. 29. Demographics: Organization Industry Manufacturing 21% Health care and social assistance 15% Professional, scientific and technical services 11% Educational services 10% Finance and insurance 9% Retail trade 6% Accommodation and food services 5% Public administration 4% Transportation and warehousing 4% Construction 3% Information 3% Utilities 3% Note: n = 755. Total does not equal 100% due to multiple response options. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 29
  30. 30. Demographics: Organization Industry (Continued) Administrative and support and waste management and remediation services 2% Arts, entertainment, and recreation 2% Real estate and rental and leasing 2% Agriculture, forestry, fishing and hunting 1% Management of companies and enterprises 1% Mining 1% Religious, grantmaking, civic, professional and similar organizations 1% Repair and maintenance 1% Wholesale trade 1% Personal and laundry services 0% Other services 10% Note: n = 755. Total does not equal 100% due to multiple response options. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 30
  31. 31. Demographics: Organization Sector Privately owned for-profit organization 36% Publicly owned for-profit organization 34% Nonprofit organization 17% Government agency 9% Other 3% Note: n = 734. Percentages do not total 100% due to rounding. SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 31
  32. 32. Demographics: Organization Staff Size 39% 37% 14% 8% 2% 1 to 99 employees 100 to 499 500 to 2,499 2,500 to 24,999 25,000 or more employees employees employees employees n = 750 SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 32
  33. 33. 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 Single-unit company: A company in which it operate multinationally? the location and the company are one 15% and the same U.S.-based operations only 52% Multinational operations 48% Multi-unit company: A company that has 85% more than one location n = 743 n = 753 Are HR policies and practices determined by the What is HR department/function for multi-unit corporate headquarters, by each work which you responded throughout this location or both? survey? Multi-unit headquarters determines HR 39% Corporate (companywide) 53% policies and practices Each work location determines HR policies Business unit/division 24% 2% and practices Facility/location 23% A combination of both the work location n = 650 and the multi-unit headquarters 59% determine HR policies and practices n = 648 SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 33
  34. 34. SHRM Survey Findings: Employee Recognition Programs In collaboration with and commissioned by Globoforce Methodology: • Response rate = 13% • Sample composed of 770 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 December 22, 2011-January 12, 2012 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research SHRM/Globoforce Survey: Employee Recognition Programs, Winter 2012. ©SHRM 2012 34

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