I find it interesting that a majority of organizations still have not “bought in” to the idea of recognition in the workplace. There are strategic implications to using recognition programs, whether formal or informal, in an organization, such as: reduced turnover, increased productivity and profitability, creating a positive work environment, elevating customer service, sales and satisfaction, improving retention of top performers, and more!

The National Association for Employee Recognition is an organization that has put skills and education in place specifically for recognition professionals within organizations. Recently, NAER surveyed their members, all corporate buyers, and the results were amazing.

Eighty-one percent of corporate buyers use informal, or on the spot, recognition programs as a part of their recognition strategy. Also, 92% of the senior management are involved in determining the types of formal recognition programs offered within their companies.

However, what I found the most interesting, was the budget that corporate buyers have put in place for their recognition programs in 2007. Seventy-two percent stated that their commitment to recognition programs is increasing. Nineteen percent have committed to spend $250,000-$999,999 on formal recognition programs, with another 14.7% spending $1 million or more in 2007!

Thirteen percent of organizations have stated that they plan on spending more than $125 per employee for their informal recognition in 2007. Almost 14% are planning on spending $25-$49 per employee.

These numbers are staggering! It proves that recognition programs work when organizations maximize every opportunity to positively reinforce employee behavior. By implementing recognition programs, these organizations have seen an increase in their profits and productivity because their employees are satisfied.