Trying to get stakeholders on board with an employee recognition program? Already got a strategy in place and wondering if it’s actually worth your investment? Or do you just want to know more about employee recognition and why everyone shouts about it?
We’ve got just the statistics to show just how valuable a good recognition strategy can be.
What is employee recognition, and why is it important?
Just in case you need us to remind you, employee recognition is the process of showing the people who work for you that you see their efforts and appreciate them. Recognition is important on so many levels. It can help improve happiness, wellbeing, motivation, performance and much more – and here are some stats to prove it.
Employee recognition statistics you need to know
We’ve gathered some statistics that are sure to impact how you think about recognising your teams.
Employee recognition statistics around happiness and wellbeing
Who doesn’t enjoy feeling appreciated? Even better, regular employee recognition can boost happiness and reduce the chances of burnout.
- 82% of employees consider recognition an essential part of their happiness at work, according to SurveyMonkey.
- OC Tanner’s research found that employees in companies with good recognition programs are 21% less likely to suffer from burnout.
- According to Deloitte, 25% of employees want recognition for their daily efforts, not just the big wins.
- Recognition can boost happiness, and according to a study from Warwick University, employees who are happier are around 12% more productive.
Employee recognition statistics around retention
When employees feel recognised, they’re more likely to stick around – helping reduce churn and minimise recruitment costs.
- Deloitte found companies with high levels of recognition had a 31% lower turnover rate than those with low recognition.
- According to Glassdoor, 53% of employees say they would stay longer at their company if they felt more appreciation from their boss.
- 46% of employers see the act of gratitude, recognition and appreciation as an important factor in retention, according to Page Personnel.
- Employees who feel less recognised are 131% more likely to lose faith in their management team and company’s core values, found Wildgoose.
Employee recognition statistics around performance
When people know their work is being noticed, they’re more likely to feel motivated to keep doing a good job.
- Employees in a high-recognition environment are 71% more likely to produce great work, found OC Tanner.
- Glassdoor also found that 81% will work harder for an appreciative boss, compared to 38% who put the effort in for a demanding one.
- Harvard Business Review reported that 40% of employees say they’d put more energy into their work if they were recognised more often.
- 82% of employees wish they received more recognition in the workplace, according to Achievers.
- A good recognition program can drive team performance by up to 11%, claims Gartner.
Employee recognition statistics around engagement
Recognition is one of the biggest drivers of employee engagement, which can help drive performance and improve your bottom line.
- According to Forbes, employees are 2.7 times more likely to be highly engaged if they believe management will recognise their efforts.
- 72% of employers rank recognition given to high performers as having a significant impact on their engagement, according to Harvard Business Review.
- According to Gallup, employees are four times as likely to be engaged when recognition hits the mark.
- Gallup also found that only 21% of the world’s employees are engaged at work.
Surprising employee recognition statistics
- Companies that spend 1% or more of payroll on recognition are nearly three times as likely to have their program rated as excellent compared to those that spend less, according to SHRM.
- 32% of employees think that a culture of recognition improves the way their colleagues interact with them, found SurveyMonkey.
- 60% of workers would like to see the good work of their colleagues’ praised more frequently by managers and leaders, reports EBN.
- Peer-to-peer is 35.7% more likely to have a positive impact on financial results than recognition purely from managers, according to People Matters.
How often should an employee be recognised?
It’s hard to recognise an employee too often. However, in the unlikely event that you’re burying someone in compliments and good wishes to such an extent that they can’t even open their inbox, then perhaps it’s time to take a break.
But generally, the more often you’re able to genuinely recognise and appreciate someone’s hard work and skills, the better. Gallup suggests that the ideal frequency of recognition should be at least once every seven days.
That said, there’s also the type and quality of recognition to consider.
The different types of employee recognition
Employee recognition can come in a few different packages, from formal reward structures to regular compliments and praise during monthly check-ins. It could be monetary, focused on personal growth, written or spoken. It could be private or public, between managers and employees or co-workers.
There are some great benefits to introducing peer-to-peer recognition programs and plenty of software solutions to make integrating appreciation easy. For a closer look at the different ways to show appreciation, check out our complete guide to employee recognition.
How effective are employee recognition programs?
A strong employee recognition program can be a very effective way to drive engagement and create a culture of appreciation, partly because it helps you and your team form habits that can improve the employee experience.
Of course, an employee recognition program is only effective if you use it – and if you make sure to engage your employees in a way they want to be engaged. Not sure what that is? Try finding out with an employee engagement survey.
At Mo, we’ve created a recognition platform that works with you, letting you celebrate your employees and their successes in a fun and easy-to-access way. Be the change you want to see and create a better culture for your workplace through regular and heartfelt recognition.
Transform your culture with Mo
- Improve employee engagement scores
- Reduce employee churn
- Build a collaborative culture
Mo is an employee recognition and engagement platform that can help leaders improve collaboration and morale, reduce employee churn and drive change.
Our platform creates a vibrant culture by developing team habits, encouraging people to celebrate success, recognise results and appreciate colleagues.
Your complete toolkit for connecting and motivating teams in the new world of work. Book a demo with our team today!
