Many companies invest millions on employee recognition programs, yet a huge percentage fail to measure the effectiveness of these programs, leaving their CEOs in the dark on how recognition efforts are impacting the organization and its employees. A recent study conducted by recognition strategist and technology provider Globoforce showed that a staggering 42 percent of organizations are not measuring the results of their recognition programs in any way. That fact was mirrored by the Chartered Institute of Personnel and Development’s annual survey, which showed that a full 68 percent of companies are not assessing the impact of rewards programs.

However, companies that learn to effectively measure the outcomes of these programs stand to benefit tremendously, as recognition efforts are increasingly being viewed as a powerful recessionary strategy to boost employee morale and productivity levels. Watson Wyatt’s 2008/2009 WorkUSA Report found that when employees are highly engaged, their companies enjoy 25 percent higher employee productivity, have lower turnover risk and are more likely to attract top talent.

“In today’s business climate, it’s more critical than ever that management gets a transparent view into the outcomes of all major corporate investments, including employee recognition programs,” said Derek Irvine, Head of Global Strategy, Globoforce. “When executed properly, strategic recognition holds the power to increase motivation, enhance engagement levels and drive bottom line results through improved productivity levels. With critical outcomes like this on the line, it serves all companies well to make a thorough assessment of how their programs are functioning and make necessary adjustments to maximize the return they get on this investment. In the end, it will benefit employees and management, and impact company performance.”



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