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Shrm globoforce employee_recognition_summer_2011
1.
SHRM Survey Findings:
Employee Recognition Programs, Summer 2011 In collaboration with and commissioned by Globoforce June 23, 2011
2.
Key findings ï What
are the most important workforce management challenges organizations are currently facing? For more than three-quarters of organizations, different generations of employees (85%) and multiple cultures in the workplace (84%) are important (âimportantâ and âvery importantâ) workforce challenges. ï What are the key HR challenges organizations expect to face in the next three to five years? Nearly all organizations indicated that employee engagement, employee retention and employee recruitment are the challenges their organizations will be facing in the future. ï How many organizations currently have an employee recognition program? Eight out of 10 organizations currently have an employee recognition program. ï What are the most common reasons that organizations recognize employees? The most frequently reported reason was recognizing employees for their years of service (58% of responding organizations reported having this practice). Nearly one-half (48%) indicated that âgoing above and beyond with an unexpected (not regular) work projectâ was also commonly recognized, and 43% reported recognizing employees for a âsuccessful performance result related to the organizational financial bottom line.â ï Are employee recognition programs challenging to measure? Few organizations (13%) measure the ROI of these programs. Of those that do measure the ROI, the majority of respondents (68%) agree that measuring the effectiveness of their employee recognition programs is challenging and another 9% strongly agree. Less than one-quarter (23%) of respondents disagree that measuring an employee recognition program is challenging. SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 2
3.
Talent Management
SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 3
4.
Do you think
that at your organization: Percentage organizational charts are an accurate indicator of your organizationâs leaders 71% and influencers? (n = 491) annual performance reviews are an accurate appraisal for employeesâ work? 61% (n = 435) employees are rewarded according to their job performance? 56% (n = 406) managers or supervisors effectively acknowledge and appreciate employees? 46% (n = 331) employees are satisfied with the level of recognition they receive for doing a 31% good job at work? (n = 223) Note: Analysis excludes ânot sureâ response. Percentages above reflect respondents who answered âyesâ to the question. SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 4
5.
Of the following
options, which do you think is the most accurate appraisal of employee performance? Multi-source (manager, senior leader, peer, etc.) ongoing feedback program, including constructive criticism and positive recognition 42% on a regular basis (e.g., weekly, monthly) Manager-driven ongoing feedback program, including constructive criticism and positive recognition on a regular basis 25% (e.g., weekly, monthly) Manager-driven annual (or semi-annual) performance review 21% 360° annual (or semi-annual) performance review (e.g., colleagues and clients provide feedback in addition to direct 10% manager) Other 2% n = 726 SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 5
6.
The importance of
workforce management challenges that organizations are currently facing: Very Very Important Unimportant Important Unimportant Multiple cultures in the workforce 35% 49% 15% 1% Different generations among 34% 51% 13% 1% employees Global diversity of todayâs companies 24% 38% 29% 9% Harnessing the power of social 21% 51% 24% 4% networking technologies n = 742 SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 6
7.
The importance of
workforce management challenges that organizations are currently facing: Comparisons by organization staff size: Compared with smaller organizations (2,499 employees or fewer), larger organizations (2,500 or more employees) view global diversity of todayâs companies as more a important workforce management challenge. 1-99 employees = 21% 2,500-24,999 employees = 27% 100-499 employees = 25% 25,000 and above = 41% Larger organizations > smaller organizations 500-2,499 employees = 15% Comparisons by organization sector: Government agencies are more likely to view multiple cultures in the workplace as an important workforce management challenge compared with how publicly and privately owned for-profit organizations and nonprofit organizations view this challenge. Publicly owned for-profit = 35% Government > publicly and privately owned for-profit organizations Government = 49% Privately owned for-profit = 30% and nonprofit organizations Nonprofit = 38% Publicly owned for-profit organizations, privately owned for-profit organizations, and government agencies are more likely to view global diversity of todayâs companies as an important workforce management challenge compared with nonprofit organizations. Publicly owned for-profit = 30% Publicly owned for-profit organizations, privately owned for-profit Privately owned for-profit = 21% Nonprofit = 10% organizations, and government agencies > nonprofit organizations Government = 20% SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 7
8.
HR challenges organizations
anticipate facing in the next three to five years: Very Very Important Unimportant Important Unimportant Employee engagement 69% 30% 1% 0% Employee retention 63% 32% 4% 1% Employee recruitment 53% 43% 3% 0% Culture management (i.e., managing 51% 45% 4% 0% your organizationâs corporate culture) Note: n = 742. Total may not equal 100% due to rounding SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 8
9.
Methods organizations use
to track employee engagement levels: Employee exit interviews 71% Employee retention rates 65% Vendor-administered employee engagement surveys/analysis 43% Company-administered employee engagement surveys/analysis (i.e., the organization conducts its own 40% survey with employees) Social media activity by employees (i.e., tracking employee 11% comments on internal and external company forums) Other 3% Note: n = 637. Includes only organizations that indicated they track employee engagement levels. Total does not equal 100% due to multiple response options . SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 9
10.
Employee Recognition
Programs SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 10
11.
Does your organization
have an employee recognition program? No 20% Yes 80% n = 698 SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 11
12.
The Most Common
Reasons Organizations Recognize Employees Years of service 58% Going above and beyond with an unexpected (not regular) work 48% project Successful performance results related to the organizational financial bottom line (e.g., financial gains for 43% organization, increased sales) Exemplary behavior that aligns with organizational values 37% Completion of regular work projects with high-quality results 9% Completion of regular work projects at a faster than usual pace 2% Other 3% Note: n = 549. Includes only organizations that have an employee recognition program in place. Total does not equal 100% due to multiple response options. SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 12
13.
How do organizations
track employee recognition programs? By business unit/department 64% By office location 42% By employee level/title 34% Note: n = 423. Analysis excludes ânot applicableâ responses. Total does not equal 100% due to multiple response options. SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 13
14.
Is your CEO/president
involved in your employee recognition program? Yes, the CEO/president champions the program, but enables his or her team to drive it 46% without the CEO's input The CEO/president is aware we have a 29% program, but does not invest any time in it Yes, the CEO/president is actively involved in 23% every aspect I donât believe the CEO/president is aware of the 3% program Note: n = 552. Total does not equal 100% due to rounding. SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 14
15.
Does the budget
for employee recognition programs come out of the HR budget, the individual department/business unit budget or from both budgets? 37% The HR budget The individual department/business unit 34% budget Both the HR budget and individual 30% department/business unit budgets Note: n = 547. Total does not equal 100% due to rounding. SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 15
16.
Which area in
HR is responsible for employee recognition at your organization? HR Functional Area Percentage General HR function 59% Rewards and recognition 14% Compensation and benefits 13% Performance management 4% Learning and development 3% Other 8% Note: n = 552. Total does not equal 100% due to rounding. SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 16
17.
Does your organization
track the ROI of your employee recognition program? Yes 13% No 87% Note: n = 419. Analysis excludes ânot sureâ responses. SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 17
18.
Percentage of organizations
that track the ROI of their employee recognition program Comparisons by organization staff size: Larger organizations (2,500 employees and more) are more likely to track the ROI of their employee recognition programs compared with smaller organizations (2,499 employees and fewer). 1-99 employees = 10% 2,500-24,999 employees = 19% 100-499 employees = 6% Larger organizations > smaller organizations 25,000 and above = 21% 500-2,499 employees = 7% Comparisons by organization sector: Publicly owned for-profit organizations are more likely to track the ROI of their employee recognition programs compared with privately owned for-profit and nonprofit organizations. Privately owned for-profit = 10% Publicly owned for-profit organization > privately owned for-profit Publicly owned for-profit = 22% Nonprofit = 7% organization, nonprofit organization SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 18
19.
The effectiveness of
employee recognition programs is challenging to measure Strongly Agree 9% Disagree 23% Agree 68% Note: n = 53. Includes only the respondents who indicated they track the ROI of their employee recognition programs. Survey included a âstrongly disagreeâ response option, but this option was not selected by any respondents. SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 19
20.
Common challenges organizations
experience in tracking the ROI of employee recognition programs Percentage Metrics of success keep changing, making it impossible to consistently report 32% on ROI The recognition program cannot be linked with our talent management or performance management systems, giving us no insight into how recognition 32% affects key metrics such as performance improvement or retention The recognition program is not designed to deliver improvement in metrics 22% that our executive leadership (CEO/CFO/COO/CHRO, etc.) finds valuable The recognition program only rewards the ultimate results, but does not take into consideration how those results are achieved (e.g., in line with company 20% values) Only segments of employees are eligible to participate in employee 20% recognition programs (e.g., top performers, select job levels) Donât know what metrics we should be measuring to prove ROI 15% Note: n = 41. Includes only the respondents who indicated they track the ROI of their employee recognition programs. Total does not equal 100% due to multiple response options. SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 20
21.
Demographics
SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 21
22.
Demographics: Organization industry
Manufacturing 20% Health care and social assistance 16% Other services except public 9% Educational services 8% Professional, scientific and technical services 8% Retail trade 7% Finance and insurance 6% Public administration 4% Accommodation and food services (accommodation; food services and drinking places) 4% Arts, entertainment and recreation 3% Information 2% Transportation and warehousing 2% Construction 2% Utilities 2% Wholesale trade 1% Administrative and support and waste management and remediation services 1% Management of companies and enterprises 1% Mining 1% Real estate and rental and leasing 1% Religious, grantmaking, civic, professional and similar organizations 1% Repair and maintenance 1% Agriculture, forestry, fishing and hunting 0% Personal and laundry services 0% Private households 0% n = 710 SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 22
23.
Demographics: Organization sector
42% 34% 16% 8% Publicly owned for- Privately owned for- Nonprofit organization Government agency profit organization profit organization n = 730 SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 23
24.
Demographics: Organization staff
size 41% 37% 12% 7% 3% 1-99 100-499 500-2,499 2,500-24,999 25,000+ n = 730 SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 24
25.
Demographics: Other
Is your organization a single-unit company or a Does your organization have U.S.-based multi-unit company? operations (business units) only or does it operate multinationally? Single-unit company: A company in which the location and the company are one 16% U.S.-based operations only 57% and the same Multinational operations 43% Multi-unit company: A company that has 84% n = 721 more than one location n = 729 Are HR policies and practices determined by the HR department/function for which you multi-unit corporate headquarters, by each work responded throughout this survey location or both? Corporate (companywide) 59% Multi-unit headquarters determines HR 44% policies and practices Business unit/division 20% Each work location determines HR policies Facility/location 21% 2% and practices n = 623 A combination of both the work location and the multi-unit headquarters 54% determine HR policies and practices n = 623 SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 25
26.
SHRM Survey Findings:
Employee recognition programs In collaboration with and commissioned by Globoforce Methodology ï Response rate = 13% ï Sample composed of 745 randomly selected HR professionals from SHRMâs membership who are employed at organizations with a staff size of 500 or more employees. ï Margin of error is +/- 3% ï Survey fielded May 17-27, 2011 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research SHRM/Globoforce Survey: Employee Recognition Programs, Summer 2011. ©SHRM 2011 26
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