The document discusses how employee recognition impacts business metrics like operating margin, return on equity, and return on assets. It claims that recognition can increase operating margin by over 6%, return on equity by more than 3 times, and return on assets by over 6%. Recognized employees are more engaged, focused on client satisfaction, and care more about business success. This better treatment of employees leads to better treatment of customers, increased customer retention, and higher profits.

2. Employee Recognition Dramatically Impacts Profitability Improves Your Bottom Line

3. Recognition Leads To Higher O.M. By more than 6% Operating Margin = Sales After Cost Of Sales Last Years Sales $_______ X ____% Increase = $______ Source: Discovery White Paper “Recognition Pays” by O.C. Tanner Company / The Jackson Organization 2005

4. Lower Fixed Costs Higher Gross Margins Higher Efficiency More Pricing Flexibility

5. Recognition Increases R.O.E. By More Than 3 Times R.O.E.= Net Income Divided By Net Worth (Equity). This Indicates The Highest-Level Indicator Of Company Success Source: Discovery White Paper “Recognition Pays” by O.C. Tanner Company / The Jackson Organization 2005

6. Increase Your Profits Increase Your Financial Leverage

7. Recognition Increases R.O.A. By More Than 6% R.O.A. = A Useful Indicator Of How Profitable A Company Is Relative To Its Total Assets. Source: Discovery White Paper “Recognition Pays” by O.C. Tanner Company / The Jackson Organization 2005

8. Enable You To Use Your Assets More Effectively Generate Higher Earnings

9. Recognized Employees Are More Engaged In Their Work More Focused On Client Satisfaction (Client Dissatisfaction Is The #1 Reason That Clients Leave) Care More About The Success Of The Team And The Companies Success Employees On Average Leave To Go To Another Company For Less Than A 5% Raise In Pay, Which Is Less Than 1 Cup Of Starbucks Coffee Per Week. The Main Reason They Leave Is Because They Don’t Feel Rewarded.

10. It’s Easier To Keep an Existing Customer and Increase That Business Than To Look For New Business 60% of Business Comes From Existing Customers

11. Most People Find Another Service Provider Because They Feel They’re Not Treated Well. They Feel Neglected, Or Abused. Unhappy Employees Don’t Treat Their Customers Well. If You Treat Your Employees Well, They Will Treat Your Customers Well

12. Customer Service and Quality of Merchandise Are Directly Related To Employee Satisfaction On The Job. Source: The Loyalty Connection: Secrets To Customer Retention And Increasing Profits. Bob Thompson March 2005

13. When Customers Were Asked Why They Left And Found Another Service Provider, 68% Said The Reason Was Related To Poor Service, Or Being Poorly Treated Source: The Carrot Principle by Gostick and Elton