Overview

With managers overseeing larger and more diverse workforces, and so many people working from home or in far-flung facilities, recognition of employees’ efforts can be difficult and time consuming. Online recognition programs, however, make the job easier. More and more incentive companies offer online recognition tools and strategies that ensure immediate recognition coverage via email and the Internet – with significant savings over traditional programs.

Online recognition programs also offer the ability to change motivational messages and rewards easily and inexpensively, keeping them different and exciting. And they provide a cost-effective way to track the progress of a program, collect data, and analyze it. Thanks to such efficiencies, even small companies can afford a recognition program.

It’s another instance of technological solutions emerging to deal with issues that arise with rapid economic change. With employee turnover costs rising and recruiting, training, and administrative expenses going up along with them, it’s not surprising that companies are looking for creative ways to inspire workers and recognize their efforts.

Research

In a 2005 survey by the National Association for Employee Recognition (NAER) and WorldatWork, a not-for-profit association of compensation, benefits, and human resources professionals, 89 percent of companies surveyed said that they use recognition programs as part of their human resources strategy and 95 percent of those feel that it links directly to their overall goals as an organization. The benefits of recognition reported by companies participating in the survey include: creating a move positive work environment (81 percent); motivating higher performance (75 percent); reinforcing desired behaviors (71 percent); creating a culture of recognition (70 percent); increasing morale (65 percent); supporting organizational mission/values (62 percent); and increasing employee retention (49 percent). The survey also indicates that a growing number of companies are using the internet for program communication, award ordering, award nomination, program administration, and reporting and tracking. In fact, the 2005 Online Incentive Survey, conducted by the Online Incentive Council of the Incentive Marketing Association reports that 66 percent of companies that have used an Internet-based incentive program of any kind implemented online recognition programs.

Why is recognition important? A recent Gallup survey focusing on "quality workplaces", found that recognition and praise was one of the top factors contributing to the success of companies with high levels of employee retention, customer satisfaction, and profitability. According to Gallup, the new knowledge-based worker depends on praise and recognition as the means of defining what is valued by the organization. And a 2005 survey by Robert Half International found that nearly half of all workers expect to change jobs in the next 1-3 years. The survey report suggests that employers who are not using all the tools available to retain employees may soon experience an exodus of top performers and a corresponding rise in turnover costs.

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Research