TOP 10 EMPLOYEE RECOGNITION AND REWARD STRATEGIES OF TOP-PERFORMING COMPANIES
88% of top-performing organizations utilize employee reward and recognition programs compared with 77% of average organizations, but that’s not all that sets them apart. Take a look at how they view their programs differently.
1
79%
Say their executives believe rewards and recognition are a critical tool in managing company performance versus 54% of average companies.
68%
Believe rewards and recognition influence behavior versus 36% of average companies.
68%
Believe their program reflects who they are as a company versus 38% of average companies.
They’re also more likely to engage an outside partner’s reward and recognition expertise, the benefits of which can pay for the investment itself—and then some.
2
They Have Strong Executive Support
Executives and leaders are driven in large part by results. If gaining leadership advocacy is a challenge, make your case using proof.
3
They Streamline Their Initiatives
42% said they had a single employee reward and recognition program (rather than multiple) for the entire company compared with 16% of average organizations.
A streamlined approach offers clarity, which impacts engagement. According to one Quantum Workplace study, employees who didn’t have a clear understanding of the [opportunities] provided to them were 20 percent less likely to be engaged than employees who did.
3
They Streamline Their Initiatives
42% said they had a single employee reward and recognition program (rather than multiple) for the entire company compared with 16% of average organizations.
A streamlined approach offers clarity, which impacts engagement. According to one Quantum Workplace study, employees who didn’t have a clear understanding of the [opportunities] provided to them were 20 percent less likely to be engaged than employees who did.
4
They Allocate a Higher Ratio of Wages
They allocate 3.6% of payroll to calculate employee R&R budgets versus 2.9% by average companies.
They are also almost twice as likely to calculate the appropriate investment based on the participant’s income and stats (from the bottom up) versus on the prior year’s spending and overall financial performance (from the top down).
The takeaway: Top-performing companies view their programs as investments, not expenses.
4
They Allocate a Higher Ratio of Wages
They allocate 3.6% of payroll to calculate employee R&R budgets versus 2.9% by average companies.
They are also almost twice as likely to calculate the appropriate investment based on the participant’s income and stats (from the bottom up) versus on the prior year’s spending and overall financial performance (from the top down).
The takeaway:
Top-performing companies view their programs as investments, not expenses.
5
They Give Higher-Value Payouts
Top-performing companies feature higher non-cash incentive payouts annually for the average employee.
And, they feature higher values for the top reward an employee can earn.
External research shows organizations that view recognition and incentives as investments, not expenses, will be the most successful.
7
They Put Rewards Within Reach. For Everyone.
56% of top-performing companies design their programs with the goal of ensuring each participant receives a reward or recognition at some point during the program versus rewarding only for “truly exceptional” performance, compared with 36% of average companies.
Though one size doesn’t fit all, it is possible to design a recognition and reward program that motivates the masses.
8
They Prioritize Analytics
A defined measurement plan and insightful analytics should be foundational to every incentive program—they promote strategic, continual refinement en route to goal achievement.
9
They Communicate Strategically
77% of top-performing organizations leverage existing communications (e.g. corporate communications) to reinforce their programs versus 58% of average organizations.
Integrating program details into broader company communications provides big boosts in reach and influence. And it offers clarity, which ultimately drives engagement.
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