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HOW

PERFORMANCE
RECOGNITION
Impacts Innovation & Employee Engagement
THINK ABOUT THE LAST TIME
S O M E O N E YO U WO R K W I T H TO L D YO U ,

“GREAT JOB!”
HOW D I D I T M A K E YO U F E E L...
FOR MOST O F US,

SINCERE RECOGN ITION CA N B E A

POWERFUL
MOTIVATOR

TO REDOUBLE OUR EFFORTS
AND STRIVE FOR EVEN GREATER...
AND AS A RE S ULT,

I N FAC T,

E MP LOYE E S

STUDIES SHOW

w ho re ce i ve re co g n ition
are m o re l i ke l y to be
h...
WE WIL L LOO K AT T WO DI F F E R E N T
TY PES OF P ERFORM A NC E R E CO GN I T I O N:

1
ONGOING EFFORT:
Th is i s t yp i...
L ET ’ S EX P LO R E
how performance re co g ni ti o n i mp a cts
yo u r employee’s engageme nt, i nnovati o n, and o utp ...
ENGAGEMENT
I N THE L AST FEW YEARS ,

A REC URRI NG FOCUS OF DISCUSSIONS
O F BUS INE SS PERFORMANCE HAS BEEN

INCREASING EMPLOY E E
E M PLOY E E E N GAGE M E N T %
6 0 -70
Wh i l e d ef in it ion s o f e ng ag e m e nt
abou nd , t h e c r u x o f t he i ...
AS A RE S U LT
co mp a nies are investing heavily
in a va rie ty of ways to inc re a se
em ployee e nga gem e nt.
ONE OF THE MOST EFFECTIVE
W AY S T O I N C R E A S E E N G A G E M E N T

is simply to recognize
employees for their
perfo...
RECOG N I T I O N AC R OSS FO U R
COMPONEN TS OF E NGAGE ME N T:

D RI V E & DE T E R MI N AT I O N

89%

PERCENT OF EMPLO...
RECOG N I T I O N AC R OSS FO U R
COMPONEN TS OF E NGAGE ME N T:

COM PA N Y CO N N E C T I O N

81%

PERCENT OF EMPLOYEES...
RECOG N I T I O N AC R OSS FO U R
COMPONEN TS OF E NGAGE ME N T:

WOR K R E L AT I O N S H I P S

78%

PERCENT OF EMPLOYEE...
RECOG N I T I O N AC R OSS FO U R
COMPONEN TS OF E NGAGE ME N T:

P E R S O NAL STA N DI NG

76%

PERCENT OF EMPLOYEES
WHO...
D RIV E &
DE TER M I N AT I O N

CO MPANY
CO N N E C T I O N

WO RK
RE LAT IO NS H IPS

PE RS O NAL
STANDING

W HE N LOO K...
M O R E THA N TWICE AS MANY
E M P LOYE E S A RE HIGHLY ENGAGED
amon g th ose who re ce ive pe rform a nce
recog n ition co...
R ECOG N I T I O N A N D E NGAGE ME N T

78%

PERCENT OF EMPLOYEES
WHO ARE HIGHLY ENGAGED

34%
CO M PANI ES WI TH
ST R O N...
A g ood example of this is se en in
th e relation s hip be tween m a na gers
an d th ose they direc tly oversee.
A MON G THOSE W HO R EC EIV E
ST RO NG P ERFORMAN C E R ECOG N I T I ON

Great job!

A M O N G TH OS E W H O R E C E I V E...
Great job!

FREQUENT
RECOGNITION

IN ADDITION,

82% o f ma na ge rs who re cog n i ze t h ei r em p l oyees ’
pe r fo r m ...
Great job!

INFREQUENT
RECOGNITION

IN CONTRAST,

only 63% o f m a na g er s w h o recog n i ze
pe r fo r m a nce le ss f ...
While it’s certainly possible that
RECOGNITION IS A RESULT OF

GOOD RELATIONSHIPS
(and good managers),
THE OPPOSITE IS CLE...
INCREASED PERFORMANCE
RECOGNITION APPEARS TO BE

ONE OF THE MOST
EFFECTIVE WAYS
to improve relationships between
managers ...
>
I N FAC T,
employees believe eit he r ty p e o f re co g ni ti o n
is much more import ant tha n a c ash b o nus.
E MPLOYEE/ MANAGER R EL AT I ON SHI P S A R E
IM PROVE D BY P ERFOR M A N C E R ECOG N I T I ON

EMPLOYEES CHOICE OF WHICH...
P E RFORM A N C E R E CO GNI T I O N
F UEL S E M P LOY E E I NNOVAT I O N
SO, IF EMPLOYEE ENGAGEMENT

?

increases with strong performance recognition,

HOW DOES THAT AFFECT
EMPLOYEE AND COMPANY
P...
THE FIRST MAJOR EFFECT
THAT RECOGNITION HAS ON PERFORMANCE

DR IVIN G INNOVATI ON
A top p riority for successful
execu tiv...
When asked how many new ideas
EMPLOYEES GENERATED IN THE LAST
MONTH TO IMPROVE THEIR COMPANY’S

PRODUCTS, SERVICES, OR SYS...
T HE RESP O NS E S?
Em pl oyees receiving st ro ng re co g ni ti o n g e ne rate
n e ar ly twice as m any innovat i ve i d...
I N A D DI T I O N ,
Employees will proactively seek new ways to improve efficiency at their
company when they receive str...
While there are many factors that go into an
individual’s or a company’s ability to innovate,

We fou n d th at recognitio...
EMP LOY EE IN N OVAT I ON I S
IM PR OVE D BY P ERFORM A N C E R ECOG N I T I ON

EMPLOYEES CHOICE OF WHICH BENEFIT WOULD
M...
P E RFORM A N C E R E CO GNI T I O N
F UEL S E M P LOY E E O U T P U T
THE SECOND MAJOR EFFECT
THAT RECOGNITION HAS ON PERFORMANCE

WO R K IN G AT MAXI MUM CAPACI TY
In creasin g emp loyees’ wi...
EMP LOYE E & T E A M O U T P U T

P E R C E N T O F E MP LOYEES WORKING
AT 9 0 % C A PAC I TY OR ABOVE

53%
CO M PANI ES W...
E XPECTAT IONS
Employees have a wide variety of expectations
ABOUT THE FREQUENCY AND NATURE

OF RECOGNITION
IDEAL PERFORMANCE RECOGNITION FREQUENCY

MULTIPLE TIMES A WEEK
ONCE A WEEK

9%
11%
19%

MULTIPLE TIMES A MONTH

26%

ONCE ...
HOW IS A MANAGER
supposed to know how often
HE/SHE SHOULD
RECOGNIZE HIS/HER
EMPLOYEES
+
T HE A N SW E R
t hought fully combi ni ng f re q ue nt a nd
informal recognit ion fo r “o ng o i ng e f fo r t ”
wit h ...
O N G O IN G E F FORT,
esp ecially w h en prov ided frequently and
si nce re l y , can be used to recognize little wins
an...
O N THE OTHER HAND,
recog n iz in g employees less frequently but
w i t h mo re fo r mality for a bove a nd beyond
p erfor...
+
RE SE A RC H S H OWS
th at bot h t ypes of recogni ti o n a re i mp o r tant a nd
s h o u ld be used in deliberate a nd ...
Source: Cicero 2013, The Effect of Performance Recognition on Employee Engagement
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How performance recognition impacts innovation and employee engagement

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What is a big company without a solid set of employees? How would Google, Microsoft, or Amazon function if they were run by one man behind a computer? The answer might be, they would function quite well for awhile—after all, that is how most of the biggest companies are started. But what about once they pick up? Once Amazon started shipping packages to millions of people across the world, it might not have worked quite as well with one man in his garage.

At the core, a company’s employees are everything. They are the ones that keep things running, that make the company what it is—whether good or bad. So it is only common decency that you should reward them with the due amount of respect and recognition that they deserve. But it is more than common decency that makes performance recognition a crucial facet of any successful business. As you can see from the slides, there is a lot of research that has proven the effect of proper employee recognition programs on things such as employee engagement, drive, work relationships, and employee retention (to name just a few). For more information, take a glance through the slides and see for yourself—happy employees make for a happy business.

Veröffentlicht in: Business, Technologie
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How performance recognition impacts innovation and employee engagement

  1. HOW PERFORMANCE RECOGNITION Impacts Innovation & Employee Engagement
  2. THINK ABOUT THE LAST TIME S O M E O N E YO U WO R K W I T H TO L D YO U , “GREAT JOB!” HOW D I D I T M A K E YO U F E E L?
  3. FOR MOST O F US, SINCERE RECOGN ITION CA N B E A POWERFUL MOTIVATOR TO REDOUBLE OUR EFFORTS AND STRIVE FOR EVEN GREATER PERFORMANCE IN THE FUTURE W HET H E R I N SPORTS, AMONG OUR FAMILIES, OR AT WORK.
  4. AND AS A RE S ULT, I N FAC T, E MP LOYE E S STUDIES SHOW w ho re ce i ve re co g n ition are m o re l i ke l y to be hi g hl y e ng ag e d. ARE MORE LIKELY TO PERFORM AT THEIR BEST & MO RE LIKE LY TO DE VE LO P INNOVATIVE WAYS TO I MPR OVE THEI R COMPA N Y.
  5. WE WIL L LOO K AT T WO DI F F E R E N T TY PES OF P ERFORM A NC E R E CO GN I T I O N: 1 ONGOING EFFORT: Th is i s t yp i c a l l y in fo r m a l, ca s u a l, and more f re q u e nt re co g n it io n , typ ica l l y d e l i ve re d in t h e fo r m o f a w ri t te n n ote, a n e m a il, o r a since re t h a n k you . 2 A BOV E A N D BE YO N D PE R FO R M A N C E : Thi s ty pe o f re co gni ti o n i s ty pi cal l y mo re fo rmal and ti e d to a mo re si gni f i cant achi eve me nt. It i s f re que ntl y acco mpani e d by anno unce me nt to the te am o r co mpany and/o r an award i te m.
  6. L ET ’ S EX P LO R E how performance re co g ni ti o n i mp a cts yo u r employee’s engageme nt, i nnovati o n, and o utp ut.
  7. ENGAGEMENT
  8. I N THE L AST FEW YEARS , A REC URRI NG FOCUS OF DISCUSSIONS O F BUS INE SS PERFORMANCE HAS BEEN INCREASING EMPLOY E E
  9. E M PLOY E E E N GAGE M E N T % 6 0 -70 Wh i l e d ef in it ion s o f e ng ag e m e nt abou nd , t h e c r u x o f t he i d e a i s s i m p l e - w h en em p loyees are m o re f ul f i l l e d i n th e ir wor k a n d co m m i t te d to t he i r col l eag u es a n d comp any, t hey ( and th e com p a ny) w ill p e rfo rm b e t te r. 49 - 6 0 >25 9.1 - 24.2 AVG. SHA R E HOLD E R ’S R E T U R N % 200 4 Hewi t t A ss ociates, E mp loyee Enga gem e nt at Double -Digit Growth Co mp an ies
  10. AS A RE S U LT co mp a nies are investing heavily in a va rie ty of ways to inc re a se em ployee e nga gem e nt.
  11. ONE OF THE MOST EFFECTIVE W AY S T O I N C R E A S E E N G A G E M E N T is simply to recognize employees for their performance, I N BOT H FO R MAL A N D I N FO RM A L WAYS .
  12. RECOG N I T I O N AC R OSS FO U R COMPONEN TS OF E NGAGE ME N T: D RI V E & DE T E R MI N AT I O N 89% PERCENT OF EMPLOYEES WHO ARE HIGHLY ENGAGED 44% W H EN COMPANI ES FOCUS ON RECOGN I T I ON W HEN CO M PA N I ES D O N ’ T CA R E
  13. RECOG N I T I O N AC R OSS FO U R COMPONEN TS OF E NGAGE ME N T: COM PA N Y CO N N E C T I O N 81% PERCENT OF EMPLOYEES WHO ARE HIGHLY ENGAGED 35% W H EN COMPANI ES FOCUS ON RECOGN I T I ON W HEN CO M PA N I ES D O N ’ T CA R E
  14. RECOG N I T I O N AC R OSS FO U R COMPONEN TS OF E NGAGE ME N T: WOR K R E L AT I O N S H I P S 78% PERCENT OF EMPLOYEES WHO ARE HIGHLY ENGAGED 35% W H EN COMPANI ES FOCUS ON RECOGN I T I ON W HEN CO M PA N I ES D O N ’ T CA R E
  15. RECOG N I T I O N AC R OSS FO U R COMPONEN TS OF E NGAGE ME N T: P E R S O NAL STA N DI NG 76% PERCENT OF EMPLOYEES WHO ARE HIGHLY ENGAGED 28% W H EN COMPANI ES FOCUS ON RECOGN I T I ON W HEN CO M PA N I ES D O N ’ T CA R E
  16. D RIV E & DE TER M I N AT I O N CO MPANY CO N N E C T I O N WO RK RE LAT IO NS H IPS PE RS O NAL STANDING W HE N LOO KI N G AC R OSS THESE FOUR DIMENSIONS, t h e re i s a stark d if feren ce i n the e nga gem e nt levels of t h o s e wh o receive recog n ition with those who do not.
  17. M O R E THA N TWICE AS MANY E M P LOYE E S A RE HIGHLY ENGAGED amon g th ose who re ce ive pe rform a nce recog n ition com pa red to those who do not.
  18. R ECOG N I T I O N A N D E NGAGE ME N T 78% PERCENT OF EMPLOYEES WHO ARE HIGHLY ENGAGED 34% CO M PANI ES WI TH ST R O NG RE COGN I T I ON CO M PA N I ES W I T H W EA K R ECO GN IT IO N
  19. A g ood example of this is se en in th e relation s hip be tween m a na gers an d th ose they direc tly oversee.
  20. A MON G THOSE W HO R EC EIV E ST RO NG P ERFORMAN C E R ECOG N I T I ON Great job! A M O N G TH OS E W H O R E C E I V E W E A K P E R F O R M A N C E R E CO G N I TI O N ... 87% 51% say they h ave a st ro n g re lat io n s h ip wi t h t h e i r d i re ct m a n a g e r s say they have a stro ng re l ati o nshi p wi th the i r di re ct manage rs
  21. Great job! FREQUENT RECOGNITION IN ADDITION, 82% o f ma na ge rs who re cog n i ze t h ei r em p l oyees ’ pe r fo r m a nce m ore t h an o n ce a mo n t h REPORT HAVING GOOD RELATIONSHIPS WITH THEM.
  22. Great job! INFREQUENT RECOGNITION IN CONTRAST, only 63% o f m a na g er s w h o recog n i ze pe r fo r m a nce le ss f req u en t l y REPORT HAVING GOOD RELATIONSHIPS WITH THEM. U NFORT UN ATE LY, 39% O F MANAG E RS RE PO RT T H AT T H E Y INFRE Q U E NT LY RE CO G NIZE T H E IR T E AM ME MB E RS ’ PE RFO RMANCE .
  23. While it’s certainly possible that RECOGNITION IS A RESULT OF GOOD RELATIONSHIPS (and good managers), THE OPPOSITE IS CLEARLY ALSO TRUE
  24. INCREASED PERFORMANCE RECOGNITION APPEARS TO BE ONE OF THE MOST EFFECTIVE WAYS to improve relationships between managers and employees.
  25. > I N FAC T, employees believe eit he r ty p e o f re co g ni ti o n is much more import ant tha n a c ash b o nus.
  26. E MPLOYEE/ MANAGER R EL AT I ON SHI P S A R E IM PROVE D BY P ERFOR M A N C E R ECOG N I T I ON EMPLOYEES CHOICE OF WHICH BENEFIT WOULD MOST IMPROVE THEIR RELATIONSHIP WITH THEIR DIRECT MANAGER. 50% 22% 5% SAL ARY B O NUS 28% A B OV E & B E YO N D R E COG N I T I O N O N GO IN G EF F O R T R ECO G N I T I O N
  27. P E RFORM A N C E R E CO GNI T I O N F UEL S E M P LOY E E I NNOVAT I O N
  28. SO, IF EMPLOYEE ENGAGEMENT ? increases with strong performance recognition, HOW DOES THAT AFFECT EMPLOYEE AND COMPANY PERFORMANCE
  29. THE FIRST MAJOR EFFECT THAT RECOGNITION HAS ON PERFORMANCE DR IVIN G INNOVATI ON A top p riority for successful execu tives everywhere.
  30. When asked how many new ideas EMPLOYEES GENERATED IN THE LAST MONTH TO IMPROVE THEIR COMPANY’S PRODUCTS, SERVICES, OR SYSTEMS THE RESPONSES WERE COMPELLING.
  31. T HE RESP O NS E S? Em pl oyees receiving st ro ng re co g ni ti o n g e ne rate n e ar ly twice as m any innovat i ve i de a s e a c h m o nt h. EMPLOYEES RECEIVING WEAK RECOGNITION EMPLOYEES RECEIVING STRONG RECOGNITION 1.8 NEW IDEAS per month to help improve their company 3 NEW IDEAS per month to help improve their company
  32. I N A D DI T I O N , Employees will proactively seek new ways to improve efficiency at their company when they receive strong performance recognition. EMPLOYEES RECEIVING WEAK RECOGNITION EMPLOYEES RECEIVING STRONG RECOGNITION 54% seek new ways to improve efficiency 87% seek new ways to improve efficiency
  33. While there are many factors that go into an individual’s or a company’s ability to innovate, We fou n d th at recognition c a n be a p owerf u l d river of continua l im prove m e nt.
  34. EMP LOY EE IN N OVAT I ON I S IM PR OVE D BY P ERFORM A N C E R ECOG N I T I ON EMPLOYEES CHOICE OF WHICH BENEFIT WOULD MOST IMPROVE THEIR INNOVATION FOR THE COMPANY. 32% 5% SAL ARY B O NUS 41% 27% A B OV E & B E YO N D R E COG N I T I O N O N GO IN G EF F O R T R ECO G N I T I O N
  35. P E RFORM A N C E R E CO GNI T I O N F UEL S E M P LOY E E O U T P U T
  36. THE SECOND MAJOR EFFECT THAT RECOGNITION HAS ON PERFORMANCE WO R K IN G AT MAXI MUM CAPACI TY In creasin g emp loyees’ willingne ss to work at their be st.
  37. EMP LOYE E & T E A M O U T P U T P E R C E N T O F E MP LOYEES WORKING AT 9 0 % C A PAC I TY OR ABOVE 53% CO M PANI ES WI TH ST R O NG RE COGN I T I ON 40% CO M PA N I ES W I T H W EA K R ECO GN IT IO N
  38. E XPECTAT IONS
  39. Employees have a wide variety of expectations ABOUT THE FREQUENCY AND NATURE OF RECOGNITION
  40. IDEAL PERFORMANCE RECOGNITION FREQUENCY MULTIPLE TIMES A WEEK ONCE A WEEK 9% 11% 19% MULTIPLE TIMES A MONTH 26% ONCE A MONTH 20% ONCE A QUARTER ONCE EVERY 6 MONTHS ONCE A YEAR 7% 9%
  41. HOW IS A MANAGER supposed to know how often HE/SHE SHOULD RECOGNIZE HIS/HER EMPLOYEES
  42. + T HE A N SW E R t hought fully combi ni ng f re q ue nt a nd informal recognit ion fo r “o ng o i ng e f fo r t ” wit h less frequent b ut mo re me ani ng f ul reco g nit ion of “above and b eyo nd p e r fo r mance.”
  43. O N G O IN G E F FORT, esp ecially w h en prov ided frequently and si nce re l y , can be used to recognize little wins an d en cou rag e em ployees to ke ep going.
  44. O N THE OTHER HAND, recog n iz in g employees less frequently but w i t h mo re fo r mality for a bove a nd beyond p erforman ce s ets a pa rt the m ost signific a nt ach ievemen ts i n a unique a nd soc ia l way.
  45. + RE SE A RC H S H OWS th at bot h t ypes of recogni ti o n a re i mp o r tant a nd s h o u ld be used in deliberate a nd co mp l e me ntar y ways.
  46. Source: Cicero 2013, The Effect of Performance Recognition on Employee Engagement

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