A new joint study shows employee recognition programs can dramatically improve worker engagement and job performance, as well as positively impact business results. The study, conducted by several organizations, reviewed current incentive programs of major companies like Scotiabank, Delta Airlines and MGM Grand. "Companies often focus on compensation and bonuses as the means to motivate employees," said Beth Schelske, vice president of the ITAGroup, Inc. "But, especially in our recessionary economy, recognition programs are a proven, low-cost method for creating improved productivity in organizations."
The report, titled "The Value and ROI in Employee Recognition," showed that some of the most successful recognition programs are inexpensive but clearly concentrate on specific job performance goals. Additionally, the study identifies the best ways for companies to develop and implement recognition programs. They include: providing a wide variety of recognition rewards; emphasizing recognition of increased quality in performance; and linking reward activities to specific business objectives and cultural values. "Without question, this new research points to the critical importance and measurable impact of employee recognition, especially when it comes to improving the bottom line," said Rodger D. Stotz, chief research officer at the Incentive Research Foundation.
The study was released this week in Chicago at the annual Motivation Show, which focuses on incentive programs. The study was produced by the Human Capital Institute, the Forum for People Performance Management and Measurement and The Incentive Research Foundation.
Article from the Counselor Magazine