SHRM Survey Finds Values-Based Recognition Boosts Employee Engagement

SHRM Survey Findings: Employee Recognition
Programs—2015
In collaboration with and commissioned by Globoforce
June 22, 2015

The Society for Human Resource Management (SHRM®), the world’s largest association devoted to
human resource management, has collaborated with Globoforce® on a series of surveys about
employee recognition. Our goal is to elicit trends among HR leaders and practitioners about what
challenges they face and what strategies help them conquer those challenges. This March, we
surveyed over 800 HR professionals in organizations with 500 or more employees and asked them to
share their experiences and practices.
View previous studies from this series:
Employee Recognition Programs, Spring 2013
Employee Recognition Programs, Fall 2012
Employee Recognition Programs, Winter 2012
Employee Recognition Programs, Summer 2011
SHRM/Globoforce Employee Recognition Programs—2015 ©SHRM 2015 2
Introduction

• Employee retention/turnover (40%) and employee engagement (39%) were cited as the most
important organizational challenges currently faced by HR professionals. A successful employee
recognition program may have an impact on employee retention, turnover and engagement. It is
important to track the effectiveness of employee recognition efforts in these areas.
• HR professionals at organizations with values-based recognition programs were more likely to
rate their recognition efforts highly. Overall, 80% of respondents indicated their organization had an
employee recognition program. Over one-half (58%) had a program that was tied to their
organization’s values, and at those organizations, 78% of HR professionals rated their program as
excellent or good compared with 41% of respondents at organizations where the program was not tied
to organizational values.
• HR professionals at organizations with values-based recognition programs were more likely to
perceive positive effects from their recognition programs. Many HR professionals agreed that
their employee recognition programs resulted in the following outcomes (the level of agreement was
higher for organizations with values-based employee recognition programs): had a positive impact on
employee engagement (90% values-based vs. 67% nonvalues-based), increased employee
happiness (86% vs. 70%), added humanity to the workplace (85% vs. 70%), improved employee
relationships (84% vs. 66%), and helped the organization instill and reinforce corporate values in its
employees (88% vs. 42%).
Key Findings: Employee Recognition Programs

• Who can nominate or recognize employees? At three-quarters of organizations (74%), anyone
could nominate or recognize a colleague. Other organizations were most likely to allow
supervisors/managers (20%) or senior-level executives (14%) to nominate or recognize employees.
» Large organizations (2,500 or more employees) were more likely than midsize organizations
(500 to 2,499 employees) to allow anyone to nominate or recognize employees.
• Do organizations use gamification or rely strongly on eThanks for employee recognition?
Few organizations used leaderboards, rankings or badges—gamification techniques that promote
competition by tracking progress or accomplishments (12%)—or relied strongly on eThanks—an
electronic card or automated e-mail without an associated reward (13%).
» Large organizations (2,500 or more employees) were more likely than midsize organizations
(500 to 2,499 employees) to rely strongly on eThanks.
Key Findings: Employee Recognition Programs (continued)

• Most HR professionals are likely to focus on refining their recognition strategies to ensure they align
with their values and to help retain top talent. Organizations that do not currently have employee
recognition programs may consider adding them due to a more active hiring environment and the
positive effects these programs have on employee engagement and employee happiness.
• Sharing the strong positive outcomes of employee recognition programs with organizational
leadership can help HR professionals make a case to add such programs, especially because their
associated costs appear to be relatively low.
• Recognition by senior organizational leaders can be one way to strengthen employees’ perceptions
of the level of respect for employees at all levels and improve trust between employees and senior
management—two factors that SHRM research shows are critical to employee job satisfaction.
• As in all areas of HR, demonstrating a return on investment will continue to be a key component of
any employee recognition strategy.
• HR professionals will need to ensure their employee recognition strategies do not inadvertently
have a negative impact on organizational culture. Potential problems are inadequate reward
selection, the program is not impactful for employees or an inconsistent experience among
employees.
What Do These Findings Mean for the HR Profession?

Most Important Challenges HR Professionals Face in Their
Organization
Note: Percentages do not total 100% due to multiple response options. An asterisk (*) indicates this response option was not available in 2013. Only
organizations with an employee recognition and service anniversary program were asked this question.
40%
39%
35%
29%
24%
22%
22%
33%
47%
39%
26%
35%
31%
18%
25%
40%
41%
28%
30%
28%
24%
Employee retention/turnover
Employee engagement
Succession planning
Recruitment
Culture management
Performance management
Employee satisfaction
2015 (n = 561)
2013 (n = 704)
2012 (n = 680)
A successful
employee recognition
program could help
organizations
address many of the
top challenges faced
by HR professionals.

Most Important Challenges HR Professionals Face in Their
Organization (continued)
Note: Percentages do not total 100% due to multiple response options. An asterisk (*) indicates this response option was not available in 2013. Only
organizations with an employee recognition and service anniversary program were asked this question.
14%
12%
11%
9%
9%
7%
4%
18%
19%
10%
10%
4%
21%
21%
12%
11%
5%
Relieving employee frustration
Employee enablement (e.g., providing tools, resources)
Productivity
*Employee happiness
*Employer brand
Revenue per FTE
Other
2015 (n = 561)
2013 (n = 704)
2012 (n = 680)

Employee Recognition Programs

Prevalence of Employee Recognition Programs
Note: n = 823. Percentages may not total 100% due to rounding.
58%
22%
14%
5%
55%
26%
14%
5%
50%
27%
18%
6%
Yes, we have a program that is tied
to our organization’s values
Yes, we have a program, but it is
not tied to our organization’s values
No
No, but we plan to implement one in
the next 12 months
2015 (n = 823)
2013 (n = 797)
2012 (n = 763)
In 2015, 80% of
organizations had
an employee
recognition
program.

Prevalence of Employee Recognition Programs
Note: Only statistically significant differences are shown.
Comparisons by organization staff size
2,500 to 24,999 employees (82%)
25,000 or more employees (88%)
> 500 to 2,499 employees (74%)
• Organizations with 2,500 or more employees were more likely than organizations with 500 to 2,499 employees to
have an employee recognition program.

HR Professionals’ Rating of Organization’s Employee
Recognition Efforts
Note: n = 662. Only respondents whose organizations had an employee recognition program were asked this question. All differences between values-
based and nonvalues-based recognition are statistically significant. Percentages may not total100% due to rounding.
14%
54%
27%
5%
18%
60%
20%
1%
3%
38%
45%
14%
Excellent
Good
Fair
Poor
Overall
Values-based
recognition
Nonvalues-based
recognition

HR Professionals’ Perceived Impacts of Employee
Recognition Program on the Organization
Note: n = 641-645. Responses are the percentage that indicated “Yes” to each option. All differences between values-based and nonvalues-based
recognition are statistically significant.
Impact Overall Values-based
Nonvalues-
based
Has a positive impact on employee
engagement
83% 90% 67%
Increases employee happiness 82% 86% 70%
Adds humanity to the workplace 81% 85% 70%
Improves employee relationships 79% 84% 66%
Helps the organization instill and reinforce
corporate values in its employees
75% 88% 42%
Helps the organization retain its employees 61% 68% 41%
Increases employee productivity 56% 65% 33%
Helps maintain a stronger employer brand 55% 66% 28%
Delivers a strong return on investment 48% 57% 23%

Recognition Program on the Organization (continued)
Note: n = 636-641. Responses are the percentage that indicated “Yes” to each option. All differences between values-based and nonvalues-based
recognition are statistically significant.
Impact Overall Values-based
Nonvalues-
based
Has a positive impact on the organization’s
financial results
45% 53% 24%
Provides data that help in culture management 40% 48% 20%
Helps the organization meet safety goals 33% 37% 23%
Helps the organization meet sustainability or
cost-control goals
30% 36% 14%
Helps the organization attract new job
candidates
25% 30% 9%
Helps meet learning and development goals 25% 31% 11%
Helps the organization meet health and
wellness goals
24% 29% 13%
Provides data that help in succession planning 23% 28% 10%

Recognition Program on the Organization
Comparisons by organization staff size: Helps maintain a stronger employer brand
25,000 or more employees (68%) > 500 to 2,499 employees (52%)
indicate that their employee recognition program helped maintain a stronger employer brand.
Comparisons by organization staff size: Increases employee happiness
500 to 2,499 employees (85%) > 25,000 or more employees (74%)
• Organizations with 500 to 2,499 employees were more likely than organizations with 25,000 or more employees to
indicate that their employee recognition program increased employee happiness.
Comparisons by organization sector
Comparisons by organization sector: Increases employee productivity
Privately owned for-profit (65%) >
Nonprofit (47%)
Government (42%)
• Privately owned for-profit organizations were more likely than nonprofit and government organizations to indicate
that their employee recognition program increased employee productivity.

Types of Employees Who Can Nominate or Recognize
Employees
Note: n = 660. Note: Percentages do not total 100% due to multiple response options. Respondents indicating "Anyone can nominate or recognize a
colleague" were excluded from the other response options.
74%
20%
14%
9%
8%
Anyone can nominate or
recognize a colleague
Supervisors/managers
Senior-level executives
Direct supervisor
Human resources

Types of Employees Who Can Nominate or Recognize
Employees
Comparisons by organization staff size: Anyone
2,500 to 24,999 employees (80%)
> 500 to 2,499 employees (65%)
allow anyone to nominate or recognize a colleague.
Comparisons by organization staff size: Supervisors/managers
500 to 2,499 employees (27%) >
2,500 to 24,999 employees (16%)
• Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 or more employees to
allow supervisors/managers to nominate or recognize employees.
Comparisons by organization staff size: Human resources
500 to 2,499 employees (10%) > 2,500 to 24,999 employees (3%)
• Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 to 24,999 employees to
allow human resources to nominate or recognize employees.

Use of Gamification and eThanks for Employee Recognition
n = 660
Yes
12%
No
88%
Use leaderboards, rankings or badges
Yes
13%
No
87%
Rely strongly on eThanks
(an electronic card or automated
e-mail without an associated reward)
n = 661
Gamification: Adding games or gamelike
elements to something to encourage participation.
Leaderboards, rankings and badges track
progress and/or accomplishments.

Use of eThanks for Employee Recognition
2,500 to 24,999 employees (18%)
> 500 to 2,499 employees (6%)
rely strongly on eThanks.

Service Anniversary Programs

• Most organizations celebrate service anniversary milestones every five years. About one-
quarter (28%) celebrate the first-year anniversary, 8% celebrate two years, 12% celebrate three
years and 90% celebrate the fifth year of service. Over two-thirds of HR professionals (69%) viewed
their service anniversary recognition efforts as excellent or good (22% and 47%, respectively).
• Who is part of the service anniversary experience? Nearly three-quarters of organizations
(72%) reported that the immediate supervisor/manager was a part of the experience, followed by
human resources (62%) and upper-level management (61%). About one-half of respondents said
service anniversaries involved the organization itself (54%)—for example, the organization may
send a form letter to the employee. One-third of organizations (34%) included peer-level colleagues
in the service anniversary experience.
• What is the primary feature of the service anniversary experience? About one-third of
organizations (32%) provided employees with merchandise from a catalog/website. Twenty-one
percent had an in-person event or award presentation, and 17% gave out pins, plaques or company
logo items. Other awards include letters or certificates, cash bonuses and gift or debit cards.
• How much do organizations spend per employee on service anniversary awards? On
average, over one-third of organizations (37%) reported spending $50 or less per employee, 31%
spent $51 to $200 per employee, and 22% spent more than $200 per employee.
Key Findings: Service Anniversary Programs

• What would HR professionals like their service anniversary program to deliver? Eighty-eight
percent said they would like the program to make employees feel appreciated/valued. Over two-
thirds felt the program should increase employee satisfaction/happiness (73%), renew emotional
commitment to the organization (69%), raise employee engagement (68%) and build employee
confidence/pride (67%).
• How do HR professionals rate the value of their service anniversary program? Seventy-two
percent of HR professionals said their program was good or excellent at making employees feel
valued. Nearly two-thirds (65%) said it contributed positively to organizational culture. More than
one-half felt that organizational leadership (58%) and employees (56%) loved the program.
• What are employees’ concerns about the service anniversary program? The top concerns
voiced to HR professionals by employees were inadequate reward selection (32%), not impactful
for employees (30%), inconsistent experience among employees (25%), too impersonal (20%) and
too infrequent (18%).
• What do HR professionals think would improve the effectiveness of their organization’s
service anniversary program? Most commonly, HR professionals thought the service anniversary
could be improved by providing a more inspiring experience to look forward to (35%). About one out
of five said the program would be more effective with more participation from senior leaders (22%),
better quality award choices (22%) and more participation from managers (21%).
Key Findings: Service Anniversary Programs (continued)

Service Anniversary Years Celebrated
Note: n = 585. Percentages do not total 100% due to multiple response options. Respondents who indicated they did not have an anniversary program
were excluded from the analysis.
28%
8%
12%
90%
5%
92%
84%
89%
88%
85%
73%
62%
1 year
2 years
3 years
5 years
7 years
10 years
15 years
20 years
25 years
30 years
40 years
50 years

HR Professionals’ Rating of Organization’s Service
Anniversary Program
n = 583
22%
47%
26%
5%
Excellent
Good
Fair
Poor
Over two-thirds of HR
professionals (69%)
rate their
organization’s service
anniversary program
positively.

Types of Employees Who Are Part of the Service
Anniversary Celebration
Note: n = 580. Percentages do not total 100% due to multiple response options.
72%
62%
61%
54%
34%
The immediate supervisor/manager
Human resources
Upper-level management
The organization (for example, a form
letter is sent by mail or e-mail)
Peer-level colleagues

Primary Feature of the Service Anniversary Experience
n = 580
32%
21%
17%
9%
6%
4%
3%
2%
1%
5%
Merchandise from a catalog/website
An in-person event or award presentation
Pins, plaques or company logo items
Letters or certificates
Cash bonuses
Choice of gift cards
Includes stories, congratulations and/or
celebration by peers/colleagues
Debit cards
Integration with internal social network (recognition
program social feed, Chatter, Yammer)
Other

Primary Feature of the Service Anniversary Experience
Comparisons by organization staff size: Merchandise from a catalog/website
25,000 or more employees (47%) > 500 to 2,499 employees (26%)
have merchandise from a catalogue/website as the primary feature of their service anniversary program.
Comparisons by organization staff size: Cash bonuses
500 to 2,499 employees (10%) > 2,500 to 24,999 employees (3%)
• Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 to 24,999 employees to
have cash bonuses as the primary feature of their service anniversary program.
Comparisons by organization sector: Merchandise from a catalogue/website
Publicly owned for-profit (45%) > Government (6%)
Comparisons by organization sector
• Publicly owned for-profit organizations were more likely than government organizations to have merchandise from a
catalog/website as the primary feature of their service anniversary program.

Average Spending on Service Anniversary Awards per
Employee
Note: n = 421. Respondents who answered "don't know" were excluded from this analysis.
18%
19%
22%
19%
10%
6%
6%
$25 or less
$26-50
$51-100
$101-200
$201-300
$301-500
More than $500

What HR Professionals Would Like Their Service
Anniversary Program to Deliver
88%
73%
69%
68%
67%
55%
48%
47%
45%
40%
28%
25%
13%
5%
1%
Make employees feel appreciated/valued
Increase employee satisfaction/happiness
Renew emotional commitment of employee to the organization
Raise employee engagement
Build employee confidence/pride
Improve organizational culture/climate
Improve employee relationships
Inspire all employees who participate
Reduce turnover
Increase trust in company leadership
Offer insight into culture
Attract job candidates
Create equity and compliance
Reduce program costs
Other

HR Professionals’ Rating of the Value of Their Organization’s
Service Anniversary Program
Note: n = 507-567. Percentages may not total 100% due to rounding. Respondents who answered "Not applicable" were excluded from this analysis.
21%
16%
16%
15%
12%
10%
8%
7%
51%
49%
40%
43%
41%
41%
33%
37%
24%
29%
35%
34%
35%
36%
42%
39%
4%
6%
8%
8%
12%
13%
18%
16%
Makes employees feel valued
Contributes positively to organizational culture
Employees love the program
Organizational leadership loves the program
Increases employee engagement
Provides satisfactory return on investment
Increases employee retention
Meets identified business goals
Excellent Good Fair Poor

HR Professionals Reporting Negative Feedback From
Employees About Service Anniversary Program
Note: n = 522. Percentages do not total 100% due to multiple response options. An asterisk (*) indicates that the response option was developed from
open-ended responses.
32%
30%
25%
20%
18%
15%
8%
6%
4%
8%
7%
Inadequate reward selection
Not impactful for employees
Inconsistent experience among employees
Too impersonal
Too infrequent
Not enough impact on business results
Too big an administrative burden
Too manager-dependent
Too expensive
Other
*None

HR Professionals’ Opinion About What Would Most Improve the
Effectiveness of Organization’s Service Anniversary Program
35%
22%
22%
21%
19%
19%
18%
18%
16%
15%
15%
14%
9%
5%
3%
3%
A more inspiring experience for employees to look forward to
More participation from senior leaders
Better quality award choices
More participation from managers
More participation from colleagues and work friends
A bigger budget allocation
Inclusion of past achievements and successes
Better breadth of award choices
Inclusion of memories and stories
A more emotional, poignant or moving experience
A more lasting, revisitable experience that can be shared with family
A more modern experience (e.g., online, mobile, video)
A lighter administrative burden
More inclusion of pins and logowear
Less reliance on pins and logowear
Other

Demographics

Demographics: Organization Industry
Percentage
Health care and social assistance 24%
Manufacturing 20%
Professional, scientific and technical services 14%
Educational services 11%
Accommodation and food services 8%
Finance and insurance 8%
Government agencies 8%
Retail trade 8%
Transportation and warehousing 6%
Arts, entertainment, and recreation 4%
Information 4%

Demographics: Organization Industry (continued)
Percentage
Administrative and support and waste management and remediation services 3%
Construction 3%
Mining, quarrying, and oil and gas extraction 3%
Repair and maintenance 3%
Utilities 3%
Wholesale trade 2%
Agriculture, forestry, fishing and hunting 1%
Personal and laundry services 1%
Real estate and rental and leasing 1%
Religious, grant-making, civic, professional and similar organizations 1%
Other industry 2%

Demographics: Organization Sector
n = 740
35%
31%
19%
11%
4%
Privately owned for-profit
Publicly owned for-profit
Nonprofit organization
Government agency
Other

Demographics: Organization Staff Size
n = 752
50%
36%
14%
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees

Demographics: Region
Note: n = 689. Percentages do not total 100% due to rounding.
39%
21%
20%
19%
South
Midwest
West
Northeast

n = 749
Demographics: Other
U.S.-based operations only 62%
Multinational operations 38%
Single-unit organization: An organization in
which the location and the organization are
one and the same.
12%
Multi-unit organization: An organization that
has more than one location.
88%
Multi-unit headquarters determines HR
policies and practices.
46%
Each work location determines HR policies
and practices.
2%
A combination of both the work location and
the multi-unit headquarters determines HR
policies and practices.
52%
Is your organization a single-unit organization or a
multi-unit organization?
For multi-unit organizations, are HR policies and practices
determined by the multi-unit headquarters, by each work
location or by both?
Does your organization have U.S.-based
operations (business units) only, or does it
operate multinationally?
n = 759
n = 673
Corporate (companywide) 62%
Business unit/division 21%
Facility/location 17%
n = 674
What is the HR department/function for
which you responded throughout this
survey?

39
SHRM Survey Findings: Employee Recognition
Programs—2015
• Response rate = 14%
• 823 HR professionals from a randomly selected sample of SHRM’s membership with a title of
manager or above and employed at organizations with a staff size of 500 or more employees
participated in this survey.
• Margin of error +/-3%
• Survey fielded January 13-February 4, 2015
In collaboration with and commissioned by Globoforce
Survey Methodology
SHRM/Globoforce Employee Recognition Programs—2015 ©SHRM 2015

• View previous studies from this series:
Employee Recognition Programs, Spring 2013
Employee Recognition Programs, Fall 2012
Employee Recognition Programs, Winter 2012
Employee Recognition Programs, Summer 2011
• 2015 Job Satisfaction and Engagement Report: Optimizing Organizational Success (You can also
purchase a copy of the report at shrmstore.shrm.org)
• Recent survey/poll findings: shrm.org/surveys
• For more information about SHRM’s Research Services:
» Customized Research Services: shrm.org/CustomizedResearch
» Engagement Survey Service: shrm.org/PeopleInSight
» Customized Benchmarking Service: shrm.org/Benchmarks
» Compensation Data Center: shrm.org/SHRMCompensationDataCenter
• Follow us on Twitter @SHRM_Research
Additional SHRM Resources

Globoforce is a leading provider of social recognition solutions, helping companies build strong
cultures of engaged employees through the power of thanks. Named one of the Best Workplaces by
the Great Place To Work® Institute, Globoforce is trusted by some of most admired companies in the
world to inspire and energize employees and create best places to work. Our award-winning SaaS
technology and proven methodologies empower HR and business leaders to take a modern, more
strategic approach to recognition programs. What results is measurable business success, qualified by
increases in employee engagement, retention, and productivity. The company is the creator of the HR
conference WorkHuman, designed to help organizations unlock the power of the human workplace.
Globoforce is co-headquartered in Southborough, Massachusetts, and Dublin, Ireland.
 Visit: http://www.globoforce.com
 Read: http://globoforce.com/globoblog
 Twitter @Globoforce
 LinkedIn: http://www.linkedin.com/company/globoforce
About Globoforce

Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR
membership organization devoted to human resource management. Representing more than 275,000
members in over 160 countries, the Society is the leading provider of resources to serve the needs of
HR professionals and advance the professional practice of human resource management. SHRM has
more than 575 affiliated chapters within the United States and subsidiary offices in China, India and
United Arab Emirates. Visit us at shrm.org.
About SHRM

SHRM Survey Finds Values-Based Recognition Boosts Employee Engagement

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SHRM Survey Finds Values-Based Recognition Boosts Employee Engagement