Facts on Employee Recognition

2014 Trends in Engagement, Incentives, and Recognition

• The U.S. Department of Labor estimates that over 2Million job postings continue to go unfulfilled.
  • Ranks of people out of work remain high, companies have shown unprecedented selectivity by targeting the best employees of their competitors
  • The number of “hiring events” per month can be as high as 4M, even as “net-new” jobs added to payrolls stay stuck in the 200K range
• This confirms that people currently with jobs are actively transitioning from one employer to another. It also suggests that “A-Players” are being poached in an aggressive manner
• In 2015 76% of U.S. jobs will require highly-skilled workers
  • 60% of new jobs will require skills held by only 20% of the population
• The make-up of the workforce is dramatically changing
  • An estimated 10,000 employees will turn 65 today and will continue to do so every day for the next 20 years
  • 76 million working Baby Boomers will need to be replaced with Gen X’ers and other younger workers
  • Certainly new candidates will continue to enter the workforce, but not in the numbers businesses need: There are only 47 million Gen X’ers in the funnel behind them.
    • In other words – the talent pool is set to shrink by some 40%

The Economics of Engagement

• Estimated to cost the US economy as much as 350 billion dollars per year in lost productivity, accidents, theft and turnover
• 2008 study by Gallup, about 54 percent of employees in the United States are not engaged and 17 percent are disengaged.
• Towers Perrin’s Global Workforce Study of almost 100,000 employees in 20 countries found that only 22% of the US workforce is engaged, 66% not engaged and 11% disengaged.
• Research has clearly and consistently proved the direct link between employee engagement, customer satisfaction and revenue growth.”~ Harvard Business Review, 2000

Bersin & Associates Unlocks the Secrets of Effective Employee Recognition

• Research that shows companies with recognition programs highly effective at improving employee engagement have 31 percent lower voluntary turnover than their peers with ineffective recognition programs.
• Research found that in organizations where recognition occurs, employee engagement, productivity and customer service are about 14 percent better than in those where recognition does not occur
• $46 billion market for recognition
• Organizations with the most sophisticated recognition practices are 12 times more likely to have strong business outcomes
  • The Power of Employee Recognition
    • 60% of Best-in-Class organizations stated that employee recognition is extremely valuable in driving individual performance.

• The employee Recognition maturity model: A roadmap to strategic recognition
  • Our research finds that those organizations with the most mature employee recognition approach are 12 times more likely to have strong business results
• Control, opportunity & leadership
  • When asked what leaders could do more of to improve engagement, 58% of respondents replied “Give recognition.”