During the recent economic downturn, many companies reduced or even eliminated monetary recognition programs. What may have appeared as a harmless reduction actually shook the foundation of their workforces, sending employee engagement scores plummeting.
Today, as these same companies look ahead to who will lead them in 2010 and through the next decade, they are reassessing the significance of employee engagement budgets and standing firm or even adding to them. In fact, a April 2010 survey that we conducted reveals that 92 percent of companies plan to maintain or increase recognition spending in 2010.
According to the survey:
• 46 percent of U.S. business and HR leaders said they had cut recognition budgets during the economic downturn while just 12 percent increased spending on recognition
• Looking forward, 42 percent of organizations that had cut spending during downturn plan to increase spending in 2010 while companies who increased the investment in their current employee recognition programs expressed that they will continue the investment in 2010.
Companies that held steadfast in their employee recognition programs and increased spending (71 percent) saw an uptick in employee engagement, whereas 59 percent that decreased spending saw a dip in employee engagement. Not surprisingly, respondents from organizations that increased spending were far more likely to report increases in employee engagement, performance, and retention than organizations that cut spending.
Interested in the full survey results? Click here to request our white paper.
