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Performance Accelerated
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.
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Performance Accelerated
- 1.
- 2. What is theone 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 knownthe 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 outto 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 recognitiondoing 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 costup 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? INCREASEIN 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 showedthey 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 ratedtheir 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 putis 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 themeasure 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, businesseswith 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 allthe 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 linkbetween recognition and profitability. “ “ THE WALL STREET JOURNAL SAID THE RESEARCH PROVED
- 16. What appeared tobe 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 didnot 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 POWEROF 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: LowFavorable 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 percentagedifferences 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: HighFavorable Opinion 70% 40% Goal-Setting: Low Favorable Opinion Recognition Strong Recognition Weak
- 22. Communication + Recognition Communication: HighFavorable Opinion 92% 68% 69% 39% Communication: Low Favorable Opinion Recognition Strong Recognition Weak
- 23. Trust + Recognition Trust: HighFavorable Opinion 91% 65% 63% 35% Trust: Low Favorable Opinion Recognition Strong Recognition Weak
- 24. Accountability + Recognition Accountability: HighFavorable Opinion 91% 70% 65% 38% Accountability: Low Favorable Opinion Recognition Strong Recognition Weak
- 25. SO YOU'RE PROBABLYWONDERING "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 Getthe latest recognition insights and best practices. DOWNLOAD THE WHITE PAPER:
- 27. O.C. TANNER ANDTHE 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.