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The Role of Employee Recognition

The Role of Employee Recognition
Survey to NAER and WorldatWork Members

October 2001

With the downturn of the economy and tightening of budgets, companies need to be more efficient in performance management, identifying key performers and recognizing and rewarding that talent. In July 2001, WorldatWork and The National Association of Employee Recognition (NAER) completed a joint survey on recognition programs, recognition strategy and how recognition fits with total rewards.

Of the almost 550 respondents, 86% had a recognition program in place. Of those companies with recognition programs, 91% indicate that increasing morale is a main objective of their program, along with retention (70%) and creating a feeling of being part of the company (73%). The majority of the respondents, 65%, felt that they are doing more with their recognition programs today than they were three years ago. The following are additional finding of the survey:

  • The most common formal recognition programs are length of service, 73%, performance at 62% and suggestions following at 37%
  • 38% of those having programs had identified that the Vice President of Human Resources was responsible for the overall program
  • Employee Satisfaction Surveys were the most common tool for measuring the success of the programs by 84% of the companies
  • 45% of the participating companies used turnover as an indicator of the program success
  • 82% of the respondents felt that their companies program was meeting it’s objective
  • A structured or planned recognition program was in place at 91% of the companies
  • Length of service awards are the most common type of formal program offered with 73% responding

1. Does your company currently have recognition programs in place?

 

Yes

86%

No

14%

 

If no, are you considering implementing any recognition programs in the next 12 months?

   

Yes

62%
No
38%

 

2. Is there an overall strategy behind those programs?

Yes

76%

No

24%

 

3. Who is responsible for the overall recognition strategy in your company?

Benefits Manager/Director

2%

CEO

7%

Compensation Manager/Director

7%

HR Generalist

8%

Purchasing Manager/Director

0%

Recognition Manager/Director

3%

VP HR

38%

Other

35%

 

4. Who is responsible for program administration?

Benefits

4%

Compensation

9%

HR

55%

HRIS

0%

Line/Department Managers

12%

Purchasing

0%

Other

20%

 

5. What are your company's objectives for your recognition programs? (check all that apply.)

   

Entitlement

8%

Loyalty

49%

Make employees feel a part of the company

73%

Morale

91%

Retention/Turnover

70%

Other

32%

 

6. What measurements of success do you use in your recognition programs? (check all that apply.)

   

We do not measure success of the program

44%

of all respondents

Employee Satisfaction Surveys

84%

of respondents with measurements

Productivity

33%

of respondents with measurements

ROI (Return on Investment)

16%

of respondents with measurements

Turnover

45%

of respondents with measurements

Other

28%

of respondents with measurements

 

Do you feel your program is meeting its objective?

Yes

82%

No

18%

7. What types of recognition programs are included in your recognition strategy? (check all that apply.)

 

Formal - A structured or planned recognition program (i.e. attendance, performance, safety, years of service, etc.)

91%

Informal - A spontaneous gesture of appreciation (Non-monetary or of small monetary value)

71%

Both

14%

 

8. What types of formal programs are offered? (check all that apply.)

Attendance

19%

Employee of the period

25%

Length of service

73%

Performance

62%

Safety

23%

Sales

21%

Suggestions/ideas

37%

Other, please specify

25%

 

9. What media do you use to communicate your recognition programs? (check all that apply.)

We do not have a communications plan for the recognition program

13%

of all programs

Company newsletter

72%

of those with a communication program

Employee handbook

37%

of those with a communication program

Employee orientation

52%

of those with a communication program

Intranet/Internet

62%

of those with a communication program

Other

37%

of those with a communication program

 

10. What formal training methods do you use to train your managers about the recognition programs? (check all that apply.)

 

We do not have a formal training program

56%

of all programs

Handbook

50%

of those with a training program

In-person training session

81%

of those with a training program

Online education

19%

of those with a training program

Video

4%

of those with a training program

Other

29%

of those with a training program

 

11. How important is it that the recognition programs you offer are accessible to all employees?

 

Not important

1

0%

2

1%

3

2%

4

5%

5

10%

6

24%

Very important

7

57%

 

12. What level of importance does your organization’s senior management team place on your recognition programs?

 

Not important

1

1%

2

2%

3

6%

4

14%

5

23%

6

29%

Very important

7

24%

 

13. What level of importance does your organization’s line managers place on your recognition programs?

 

Not important

1

1%

2

1%

3

6%

4

18%

5

29%

6

27%

Very important

7

18%

 

14. How are recognition awards presented? (check all that apply.)

Company-wide meeting

42%

One-on-one with manager

71%

Special event (banquet, luncheon, etc.)

65%

Staff meeting

60%

Other, please specify

15%

 

15. Are you doing more or less in your recognition programs today than three years ago?

More than 3 years ago

65%

Less than 3 years ago

5%

About the same as 3 years ago

30%

 

16. Please indicate which of the following best describes you:

WorldatWork member (skip to #20)

82%

NAER member

10%

Neither a WorldatWork member or a NAER member

6%

Both a WorldatWork member or a NAER member (skip to #20)

2%

 

17. Please indicate how many employees are in your organization worldwide:

 

NAER Members

WorldatWork Members

All Respondents

Less than 100 employees

2%

8%

7%

100-499

10%

23%

22%

500-999

8%

14%

14%

1,000-2,499

14%

15%

15%

2,500-4,999

16%

10%

11%

5,000-9,999

20%

11%

12%

10,000-19,999

2%

6%

6%

20,000 or more

28%

12%

14%
 

18. Please indicate the level that most closely matches your current level of responsibility:

 
 

NAER Members

WorldatWork Members

All Respondents

Senior Executive/ Director/ Vice President

14%

100%

92%

Manager/ Assistant Director

37%

0%

4%

Supervisor

16%

0%

1%

Senior Analyst/Analyst

20%

0%

2%

Consultant

12%

0%

1%

Educator

2%

0%

0%

Other

0%

 

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