Do You Have an Employee Recognition Program or a Culture of Recognition?

According to the CEO Institute, business leaders identified employee engagement and staff recruitment among their top concerns last year. Acquiring and retaining talent gives organizations the strategic competitive advantage they're looking for in this highly competitive economy.

In this months issues of Talent Management magazine, Derek Irvine, VP of Client Strategy for Globoforce, writes about Globoforce's 2012 Survey of Employee Recognition programs.

The Survey found that companies with a strategic employee recognition program in place, had a 23% lower turn-over rate than companies with no programs. Data also showed that the most successful employee recognition programs were aligned with corporate objectives and were peer-to-peer based. Budget was a factor, but Derek points out, "cash is not the currency of employee recognition, and it generally leads to entitlement rather than motivation."

A strategic employee recognition program can contribute to the positive culture of an organization. It can engage employees, and when employees are enabled to achieve goals they are less likely to leave. The Towers Watson Report calls this the power of threes. Companies successful at engaging, enabling and energizing employees have 3 times higher operating margins that those with low engagement.

Derek sums up, "Giving all employees the empowerment and ability to recognize and reward their colleagues for company values is the difference between a recognition program and a culture of recognition."

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source: Recognition to the Rescue, Derek Irvine, VP of Client Strategy, Globoforce, [Talent Management, May 2013]