Employee recognition programs are a major investment for most companies, yet much of this investment is wasted on recognition that doesn’t work.
A study by Bersin & Associates found that 87% of the $46 billion market for employee recognition programs goes toward ineffective tenure-based recognition.
“What our research found was that tenure-based rewards systems have virtually no impact on organizational performance,” writes lead researcher Josh Bersin in a Forbes column, “New Research Unlocks the Secret of Employee Recognition.”
“Did you stay an extra year at your last job so you could get a 10-year pin? I doubt it,” he writes.
Tenure-focused employee recognition programs were developed more than a century ago in response to pressure from unions, according to Bersin. The spirit of these efforts was in the right place, but now we know better.
The latest science shows employees respond better to on-the-spot, peer-to-peer and results-based recognition. Not only that, but researchers are finally documenting the incredible effect that successful employee recognition programs have on a company’s overall performance.
Do you know what all successful employee recognition programs have in common? Read on to find out.