Stats that Prove Why Investing in an Employee Rewards & Recognition Program is a No-brainer
If you’re looking to get management buy-in for investing in an employee rewards and recognition program, you might be dreading all the research you need to do to dig up some convincing stats to make your case with. The good news is we’ve done the work for you to gather some of the most telling stats and studies on why employee rewards and recognition initiatives work. Dig in!
Stats on how rewards and recognition impact company performance
○ Higher employee engagement levels can increase profitability by a good 22% (Gallup).
○ Companies with high-performing company cultures experienced a 682% increase in revenue compared to only 166% increases in revenue for firms without these cultures (Forbes).
○ Businesses that scored the highest on employee engagement were 21% more profitable than their counterparts (Gallup study).
○ 71% of executives say that employee engagement is critical to their company’s success (FastTrack 360).
○ 90% of HR respondents said that an effective recognition program drives business results. 91% of them agree that it has a positive effect on retention (Reward Gateway)
○ 83% of HR leaders say employee recognition can strengthen organizational values (Globoforce).
Stats on how rewards and recognition impact engagement and productivity
○ 69% of employees stated they would work harder and be more committed if their efforts were more appreciated by their company (Hubspot study).
○ Companies with highly engaged workforces scored 17% higher on productivity (Gallup).
○ Of the 29% of HR professionals whose organizations use peer feedback, 89% reported it having a very positive or somewhat positive impact on their organization (Society of Human Resources Management).
○ 41% of companies that use peer-to-peer recognition have seen positive increases in customer satisfaction (Globoforce).
○ Peers, not money, are the #1 motivator in driving colleagues to work harder (TINYpulse)
Stats on absenteeism, turnover, and loyalty
○ Engaged employees are 59% less likely to leave their roles in the next 12 months (Gallup).
○ Taking the time to ensure employees feel valued can help to reduce turnover rates by as much as 59% (Gallup).
○ Companies with recognition programs that are effective at improving employee engagement have 31% lower voluntary turnover (Quantum).
○ Lack of recognition remains one of the most common reasons why employees leave an organization (Gallup).
○ In the U.S. alone, it is estimated that businesses lose a staggering $1 trillion due to employee turnover (Gallup).
○ Absenteeism costs roughly $3,600 per year for each hourly worker and $2,660 each year for salaried employees (Circadian).
○ Organizations that give regular recognition experience 31% lower voluntary turnover (OfficeVibe).
○ In a study of office workers in the United States and Canada, 28% of millennials reported that feeling appreciated contributes to their loyalty (Staples).
○ 32% of new hires who quit within the first 90 days of their employment cite company culture as their main reason for leaving (Jobvite).
○ The Society for Human Resource Management (SHRM) estimates the average replacement cost of a salaried employee to be six to nine months of their salary. The number only skyrockets as you look to replace higher salaried and specialized employees
○ Research by Gallup found that disengaged employees cost companies $450-$550 billion in lost productivity each year as a result of poor performance and high absenteeism.