1) Recognition has been proven to significantly increase employee performance, engagement, and retention according to a 10-year study of over 200,000 employees. 2) Companies that effectively recognize excellence enjoy returns that are 3 times higher than companies that do not recognize employees. They have higher operating margins, returns on equity, and returns on assets. 3) Even during a period with no pay raises or bonuses, recognizing employees led to a 15% increase in revenue and employee satisfaction at Walt Disney World.

1. accelerated
PERFORMANCE

2. What is the one thing that is proven to
transform "good enough" into "great?
The simple answer:
an accelerator.
Many visionaries have inspired their
employees-bringing them close to reaching
their maximum potential…but not all the way.

3. Scientists have known the secret of
accelerants for decades, adding
them to speed chemical reactions,
achieving results more quickly.
In business, there is no accelerator with more
impact than purpose-based recognition.

4. We set out to conduct one of the most extensive
research projects on workplace productivity.
After 10 years of research
and 200,000 interviews
with managers and their employers,
here's what we found:

5. What is recognition doing for many companies?
Lying idle, waiting to ignite results. It's been overlooked,
misapplied, misunderstood and largely untapped.
79% lack of
appreciation
21% other
REASONS FOR QUITTING
65%of North Americans
report they weren’t
recognized in the
last year

6. It can cost up to
of an employee's annual salary to replace them,
a necessary cost to replace bad employees.
250%
Retaining outstanding
performers is critical,
and the results of the
following retention
efforts have been
underwhelming at best: higher pay
competitive vacation and
holiday benefits
Tuition reimbursement
better employee-selection
methods

7. WHAT IS WORKING?
INCREASE IN RECOGNITION AND PRAISE
Gallup's study of nearly five million
employees reveals that increasing
recognition and praise leads to
lower turnover, higher customer
loyalty and satisfaction scores, and
increases in overall productivity.

8. HealthStream Research showed they do
with a study including 26,000 employees
at all levels in 31 organizations of varying
sizes and profitability.
Strong connections exist between effective
recognition and positive business outcomes.

9. Employee respondents rated their level of
agreement to the question: 'My organization
recognizes excellence.'
Those organizational results were then compared
with these profitability measures:
Return on
Equity
Return on
Assets
Operating
Margin

10. ROE simply put is a measure of how effective your
company is at turning the cash shareholders provide
the company in exchange for shares (equity) into profit.
HealthStream Research found that
companies that effectively recognize
excellence enjoy an ROE more than
three times higher than the return
experienced by firms that don't.

11. ROA is the measure of how effective your company
is at using company assets to generate profit.
Companies that effectively recognize
excellence enjoy an ROA more than
three times higher than the return
experienced by firms that don't.

12. In general, businesses with
higher Operating
Margins tend to have
lower costs and better
gross margins.
Operating Margin shows how much a
company makes from each dollar of sales
before interest and taxes.

13. OPERATING MARGIN
Of all the financial measurements, employee recognition
impacts Operating Margin the most significantly.
Companies in the highest recognition quartile
report an Operating Margin of 6.6% while
those in the lowest quartile report 1%.
highest
recognition
quartile
lowest
recognition
quartile
6.6%1%

14. —Karen Endresen, Ph.D. of HealthStream Research
This study took recognition
results from myth to reality-from
the soft side of business to a
proven business essential.
“
“

15. a startling link between
recognition and profitability.
“ “
THE WALL STREET JOURNAL SAID THE RESEARCH PROVED

16. What appeared to be a formula for
disaster actually led to a 15% increase
in employee job satisfaction as well as
a 15% increase in revenue.
When Dee Hansford was the head of Walt Disney
World's cast recognition department, they
experienced a year of no pay raises or bonuses.
That same year, the theme park saw
a 15% rise in guest attendance and
hired no additional staff.

17. HOW?
Though they did not give
money, they trained their
managers on how to deliver
purposed-based recognition.
CLICK HERE to view more research of great management accelerated.

18. IS THE POWER OF
RECOGNITION JUST A NORTH
AMERICAN PHENOMENON?
To find out we asked Towers Watson, a leading
global human capital consulting firm, to conduct
a worldwide survey. This is what they found:

19. 92%
77%
56%
35%
Opportunity & Well-Being:
Low Favorable Opinion
Opportunity & Well-Being:
High Favorable Opinion
Employee Engagement
Globally N=10,333
Recognition
Weak
Recognition
Strong
Recognition worldwide is just as much an accelerator
as we had found in the United States and Canada.
In fact, from country to country, we found engagement
scores as much as two or three times higher when a
manager offered frequent, specific and timely recognition.

20. Again, notice percentage differences comparing
organizations that had scored high to those who scored low.
No matter where recognition is stronger, the level of
employee engagement significantly spikes.
Communication Goal-Setting Trust
We were also pleased to see recognition
accelerate the Basic Four of Leadership:
Accountability

21. Goal-Setting + Recognition
91%
68%
Goal-Setting:
High Favorable Opinion
70%
40%
Goal-Setting:
Low Favorable Opinion
Recognition
Strong
Recognition
Weak

22. Communication + Recognition
Communication:
High Favorable Opinion
92%
68% 69%
39%
Communication:
Low Favorable Opinion
Recognition
Strong
Recognition
Weak

23. Trust + Recognition
Trust:
High Favorable Opinion
91%
65% 63%
35%
Trust:
Low Favorable Opinion
Recognition
Strong
Recognition
Weak

24. Accountability + Recognition
Accountability:
High Favorable Opinion
91%
70% 65%
38%
Accountability:
Low Favorable Opinion
Recognition
Strong
Recognition
Weak

25. SO YOU'RE PROBABLY WONDERING
"WHERE DO WE START?"
Companies that reap the biggest results
are those that train their managers in
purpose-based recognition.
CLICK HERE for information on recognition training programs.

26. Join Our Community
Get the latest recognition insights and best practices.
DOWNLOAD THE WHITE PAPER:

27. O.C. TANNER AND THE O.C. TANNER INSTITUTE
O. C. Tanner helps the world inspire and appreciate great work.
Through our innovative cloud-based software, tools, awards,
education, and research, we provide thought leadership and strategic
recognition solutions for thousands of clients globally. Designed to
engage talent, increase performance, and drive corporate goals, our
solutions create personalized recognition experiences delivered
through a smart technology platform.
The O.C. Tanner Institute regularly commissions research and provides
a global forum for exchanging ideas about recognition, engagement,
leadership, culture, human values, and sound business principles.