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The Bottom Line Impact
of Recognition
THECOSTOFDISENGAGEMENT
WHAT’STHEIMPACTOFTHANKSANDRECOGNITION?
Find out more at accum...
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The Bottom Line Impact of Employee Recognition

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There is plenty of evidence to support the idea that employee engagement has a positive, quantifiable impact on individual and company performance, and that employee recognition is a key driver of engagement. Yet, despite this, there is also evidence to suggest that 2 out of 3 people receive no recognition in a given year.
Thanks and praise fulfill the inherent human need to be appreciated, and with the growing influence of the Millennial generation in the workforce, recognition is no longer simply seen as a factor in motivation – it is an expectation.
When we also consider the quantifiable evidence showing a direct link between an engaged workforce and a company’s financial performance, it makes the case for a structured recognition program even more compelling.

Published in: Business
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The Bottom Line Impact of Employee Recognition

  1. 1. The Bottom Line Impact of Recognition THECOSTOFDISENGAGEMENT WHAT’STHEIMPACTOFTHANKSANDRECOGNITION? Find out more at accumulate.com.au 100minutes 1minute 1minute spent on recognising behaviour == 100 minutes of initiative in return. Yet 2 out of 3 people receive no workplace recognition in a given year. 1in4 disengagedemployees areactivelylooking foranotherjob. 65% ofalllostcustomers canbetracedbacktoa disengagedemployee. $ 42.1billion Theestimatedcostof disengagementtothe Australianeconomyperyear. REVENUE GROWTH Organisationsthatimplementnon-cashrewardand recognitionprogramshaveannualrevenueincreases averaging9.6% vs 3% forallothercompanies. OPERATING INCOME Companieswithhighemployeeengagementhavea 19% increaseinoperatingincomeanda28% increase inearningspershare,vs.an11% dropinearningsper shareforcompanieswithlowengagement. EMPLOYEE ENGAGEMENT Organisationsthatpairbonuseswithemployee recognitionprogramsseean85% morepositive impactonworkerengagement. EMPLOYEE RETENTION Organisationswithahighlyeffectiverecognitionprogram experiencea31% lowervoluntaryturnoverrate. QUALITY AND EFFICIENCY 84% ofhighlyengagedemployeesbelievetheycan positivelyimpactthequalityoftheircompany’s products,levelsofcustomerserviceandcosts associatedwiththeirjoborunit. ADVOCACY 81% of engagedworkersarewillingtoprovidepositive recommendationsoftheiremployer’sproductsand services,comparedto18% of the disengaged. HIGHER PERFORMING 82% ofemployeessaythattherecognitiontheyreceive atworkmotivatesthemtoimprovetheirperformance. REDUCED ABESENTEEISM Engagedemployeestakejust2.69sickdaysperyearon averagevs.6.19fordisengagedemployees. Sources: Madison,Gallup,TowersPerrin,WorldatWork® ,SocietyofHumanResourcesManagement,IncentiveResearchFoundation,HRZone,TemboSocial,CorporateLeadershipCouncil days days $ 42.1BILLION +3% +9.6% +19% +28%--11% +85% 84% 81% —-31% 18% 2.69 6.19 82% Recognition is proven as among the best method of improving work motivation and employee engagement. 61% of Australians exhibit signs of disengagement. for the employee for the business vs

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