SHRM Survey Findings: Employee Recognition Programs, Winter 2012 In collaboration with and commissioned by Globoforc

1. SHRM Survey Findings: Employee Recognition Programs, Winter 2012 In collaboration with and commissioned by Globoforce April 12, 2012

2. Key Findings • What are the important workforce management challenges that organizations are currently facing? Nearly two-thirds of organizations (63%) agree that employee engagement is a “very important” challenge. More than one-half believe that employee retention (57%) and effective performance management (51%) are “very important” challenges. Other workforce management challenges identified as “very important” were employee recruitment (49%) and managing the organization’s corporate culture (45%). • Do organizations track their employee engagement levels? Fewer than half (42%) of organizations track employee engagement levels. Common methods organizations use to track employee engagement are vendor-administered surveys (66%), employee exit interviews (65%) and employee retention rates (60%). • Do organizations that track employee engagement levels differ fromorganizations that do not? Organizations that track employee engagement levels are more likely to respond “yes” when asked if employees at their organization are rewarded according to their job performance. Organizations that track employee engagement are also more likely to indicate that managers or supervisors at their organizations effectively acknowledge and appreciate employees, and that employees at their organizations are satisfied with the level of recognition they receive for doing a good job at work.

3. Key Findings (Continued) • Do organizations have employee recognition programs in place? Approximately three-quarters of organizations (76%) have an employee recognition program in place, and another 5% say they plan to implement such program within the next 12 months. More than three-quarters (76%) of organizations with an employee recognition program in place say they “agree” or “strongly agree” their employee recognition program is aligned with their organization’s overall company values. • Do organizations that have an employee recognition program in place differfrom organizations that do not? Organizations that track employee recognition are more likely to respond “yes” when asked if employees at their organization are rewarded according to their job performance. Organizations that track employee recognition are also more likely to indicate that managers or supervisors at their organizations effectively acknowledge and appreciate employees, and that employees at their organizations are satisfied with the level of recognition they receive for doing a good job at work. • Do organizations track the return on investment (ROI) of their employee engagement programs? Few organizations (15%) track the ROI of their employee engagement program. Organizations that do track the ROI commonly use employee retention levels (74%), overall financial results (61%) and employee productivity levels (60%).

4. Talent Management

5. Do you think that at your organization: Note: Respondents who answered “not sure” were excluded from this analysis. Percentages above reflect respondents who answered “yes” to the question.

6. The importance of workforce management challenges that organizations are currently facing:

7. The importance of workforce management challenges that organizations are currently facing: (continued) Note: These questions were asked in June 2011 (n = 742 for each option) and January 2012. Percentages may not equal 100% due to rounding.

8. Employee Engagement

9. Does your organization track employee engagement levels? n = 765

10. Does your organization track employee engagement levels? Comparison by organization staff size: • Larger organizations (2,500 or more employees) are more likely than smaller organizations (2,499 or fewer employees) to track employee engagement levels . • Publicly owned for-profit, privately owned for-profit and nonprofit organizations are more likely to track employee engagement levels, compared with government agencies. Comparison by organization sector:

11. Does your organization track employee engagement levels? Organizations that track employee engagement levels are more likely to respond “yes” to the following questions when compared with organizations that do not track employee engagement levels. Note: Percentages above reflect respondents who answered “yes” to the question.

12. Does your organization track employee engagement levels? Organizations that track employee engagement levels are more likely to say that certain management challenges they are facing are “very important,” compared with organizations that do not track employee engagement levels.

13. How do you track employee engagement levels at your organization? Note: n = 330. Only respondents whose organizations track employee engagement levels were asked this question. Percentages will not equal 100% due to multiple response options.

14. Employee Recognition Programs

15. Does your organization have an employee recognition program? Note: Percentages may not equal 100% due to rounding. In June 2011, the option “no, but plan to in the next 12 months” was not available.

16. Does your organization have an employee recognition program? Organizations that have employee recognition programs are more likely to respond “yes” to the following questions when compared with organizations that do not have employee recognition programs. Note: Percentages above reflect respondents who answered “yes” to the question.

17. Does your organization have an employee recognition program? Comparison by organization staff size: • Larger organizations (25,000 or more employees) are more likely than smaller organizations (2,499 or fewer employees) to have an employee recognition program. • Publicly owned for-profit, privately owned for-profit and nonprofit organizations are more likely than government agencies to have an employee recognition program. Comparison by organization sector:

18. Do you agree that employee recognition at your organization is aligned with your organization’s overall company values? Note: n = 586. Only respondents whose organization has an employee recognition program in place were asked this question.

19. Do you agree that employee recognition at your organization is aligned with your organization’s overall company values? Organizations that responded “strongly agree” or “agree” when asked if employee recognition at their organization is aligned with the organization’s overall company values are more likely to respond “yes” to the following questions, compared with organizations that answered “ strongly disagree” or “disagree.” Note: Percentages above reflect respondents who answered “yes” to the question.

20. Do you agree that employee recognition at your organization is aligned with your organization’s overall company values? Organizations that responded “strongly agree” or “agree” when asked if employee recognition at their organization is aligned with the organization’s overall company values are more likely say that certain management challenges they are facing are “important,” compared with organizations that responded “strongly disagree” or “disagree.”

21. Does your organization track the return on investment (ROI) of its employee recognition program? Note: n = 585. Only respondents whose organizations have an employee recognition program in place were asked this question. Respondents who answered “not sure” were excluded from this analysis.

22. Does your organization track the ROI of its employee recognition program? Organizations that track the ROI of their employee recognition program are more likely to respond “yes” to the following questions when compared with organizations that do not track the ROI of their employee recognition program. Note: Percentages above reflect respondents who answered “yes” to the question.

23. How long has your organization been tracking the ROI of its employee recognition program? Note: n = 89. Only respondents whose organizations track the ROI of their employee recognition program were asked this question.

24. How does your organization generally track the ROI of its employee recognition programs? Note: n = 94. Only respondents whose organizations track the ROI of their employee recognition program were asked this question. Total does not equal 100% due to multiple response options.

25. In your opinion, have any of the elements below increased, remained the same or decreased at your organization as a result of the implementation of an employee recognition program? Note: Only respondents whose organizations track the ROI of their employee recognition program were asked this question. Respondents who answered “not sure” were excluded from this analysis.

26. The Use of Gamification

27. Do you employ gamification tools in any of your HR programs? Gamificationis the use of game design techniques and mechanics to solve problems and engage audiences. Gamification works by making technology more approachable, by encouraging users to demonstrate desired behaviors by showing a path to mastery and autonomy, and by taking advantage of humans' psychological predisposition to engage in gaming. Note: n = 629. Respondents who answered “not sure” were excluded from this analysis.

28. Demographics

29. Demographics: Organization Industry Note: n = 755. Total does not equal 100% due to multiple response options.

30. Demographics: Organization Industry (Continued) Note: n = 755. Total does not equal 100% due to multiple response options.

31. Demographics: Organization Sector Note: n = 734. Percentages do not total 100% due to rounding.

32. Demographics: Organization Staff Size n = 750

33. Demographics: Other n = 743 n = 753 n = 650 n = 648

34. SHRM Survey Findings: Employee Recognition ProgramsIn collaboration with and commissioned by Globoforce • Response rate = 13% • Sample composed of 770 randomly selected HR professionals from SHRM’s membership who are employed at organizations with a staff size of 500 or more employees. • Margin of error is +/- 3% • Survey fielded December 22, 2011-January 12, 2012 Methodology: • For more poll findings, visit www.shrm.org/surveys • Follow us on Twitter: http://twitter.com/SHRM_Research