Globoforce Survey Reveals Large Percentage of Corporate Employee Recognition Programs Do Not Live Up to CEO Expectations
Many HR Professionals Say Recognition Programs Fail to Meet CEO Needs and Do Not Contribute to Company Strategy, Values and Bottom Line, Squandering Valuable Resources
Southborough, MA and Dublin, Ireland (PRWEB) January 28, 2009 -- Globoforce (http://www.globoforce.com/corporate/eng/index.html), a global employee recognition strategist and technology provider, today announced the results of a survey completed by 150 middle- and senior-level human resources, finance and procurement personnel about CEO perceptions of recognition programs as they relate to corporate objectives within their organizations, as well as the human resources reality of these programs. The survey revealed organizations still have a long way to go in aligning recognition programs (http://www.globoforce.com/corporate/eng/what-we-do/) with their company's mission, values, strategic objectives and goals.
Key findings included:
• A clear majority of HR respondents (88 percent) believe their recognition programs need improvement and that their CEO would agree.
• While an encouraging 58 percent of HR leaders believe their CEO would say their recognition programs reinforce the strategy, values and appropriate behaviors of the organization, an alarming 42 percent say their programs offer no strategic benefit to their organizations, indicating a tremendous waste of resources and misappropriated recognition investment that have no effect on employee engagement (http://www.globoforce.com/corporate/eng/about-us/) and motivation.
• Overall, HR leaders (45 percent) feel their programs fall short in driving bottom line results. Why?
• Not only are companies clearly not building their recognition programs to 'CEO code' - a program that is aligned with the organization's strategy, mission, values and behaviors - but also a staggering 38 percent of all organizations surveyed are not measuring their program's results in any way, leaving CEOs in the dark on the effectiveness and true value of their recognition programs.
"As a CEO, it's very concerning for me to see that 42 percent of companies do not think their recognition programs reinforce their organization's strategy, values and employee behaviors," said Eric Mosley, CEO, Globoforce. "In a time when our economy is in crisis (http://www.globoforce.com/corporate/eng/innovation-center/recognition-recession.html) and employee appreciation, motivation and engagement are crucial to boosting employee morale and productivity, as well as bottom-line business results, nearly 50 percent of global business leaders cannot afford to let precious resources and dollars be squandered on hundreds of unchecked, unmeasured and disparate recognition programs, which is exactly what's happening."
Strategically executed recognition programs have the potential to support an organization's financial objectives, save millions of dollars in wasted resources and outdated programs, and improve talent outcomes and reinforce cultural values for a low cost with a high return on investment. By consolidating many disparate and tactical recognition programs on to one centralized platform, business leaders will realize savings to the bottom line through a properly deployed strategic recognition program (http://www.globoforce.com/corporate/eng/what-we-do/how-we-do-it.html) while simultaneously boosting morale, productivity and employee engagement. Especially in the current economic downturn, senior executives need to understand the value of recognizing and motivating employees - to both the company morale and bottom line.
Mosley continued, "To be successful in the 21st century, recognition programs need to be strategic and in line with senior executives' expectations and high-ranking company officers need to buy into the goals and objectives of the program. Our research and experience working with FORTUNE 500 companies tells us that many senior level executives are beginning to sponsor and participate in the strategic employee recognition implementation process, but this latest research shows that much more work needs to be done."
According to a 2007 study by Deloitte/The Economist Intelligence Unit, "Research indicates that while values and cultural attitudes provide a foundation for employee engagement, to drive performance and results, there must be a clear link between executable strategy and behavior. Achieving this link is a top priority, and in most cases the CEO - not HR - appears to be leading the charge."
To build a successful recognition program, HR leaders (http://www.globoforce.com/corporate/eng/what-we-do/personas.html#menuHRs) need a set of best practices to help develop recognition programs that are true human capital strategic initiatives.
• Formulate a clear global strategy (http://www.globoforce.com/corporate/eng/what-we-do/global-capabilities.html) for recognition: Develop a philosophy of recognition that mirrors company strategic objectives and use this as the basis for a manager training program.
• Secure an executive sponsor (http://www.globoforce.com/corporate/eng/what-we-do/personas.html#menuCOs) to communicate regularly with employees: Use the global reach, influence and visibility of an executive to promote the recognition program across the company. Be sure to incorporate multiple media such as posters, videos, e-mail messages, and newsletter articles so all employees are impacted by the communication program.
• Tie recognition to the company values and strategic objectives: By linking all behaviors and actions recognized to a company value demonstrated or strategic objective achieved, employees understand how their daily actions impact the success of the organization as a whole, which gives them purpose and satisfaction in their work. This approach also clearly defines criteria for recognition that apply universally for all employees, everywhere in the world.
• Make the program available to all: By opening a recognition program to all employees via a peer-to-peer recognition model, all employees are encouraged to notice the above-and-beyond efforts of their colleagues and reward them accordingly.
• Offer a global reward of choice: Personally meaningful and, critically, culturally relevant rewards (http://www.globoforce.com/corporate/eng/what-we-do/rewards-selection.html) are the lynchpin of a successful global strategic recognition program. All employees deserve to have a wide range of choice available to them.
Click here (http://www.globoforce.com/corporate/eng/news-and-events/press-releases/kits.html) to view an online press kit containing more information about this survey.
About Globoforce
Founded in 1999 and co-headquartered in Southborough, Massachusetts and Dublin, Ireland, Globoforce is the world's leading provider of global strategic employee recognition solutions for Global 2000 companies. Named a 2008 Inc. 500 company, Globoforce delivers an innovative, easy-to-use, on-demand software solution that engages employees across the globe, transforming the way enterprises motivate their workforce. Globoforce's blue-chip customer base, which includes Avnet, Biogen Idec, Dow Chemical, Global Crossing, Fairmont Hotels & Resorts, Intel, Intuit, Nortel, Procter & Gamble and Thomson Reuters, reflects the importance of recognizing and engaging the workforce in the 21st century. For more information, visit http://www.globoforce.com or visit the Company's blog at http://globoforce.blogspot.com/.
MEDIA CONTACTS:
Tim Rossi
Globoforce
+1 508-229-1543
timothy.rossi (at) globoforce.com
Laura Feng
Tier One PR
+1 978-975-1414
lfeng (at) tieronepr.com
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Contact Information Tim Rossi
Globoforce, Inc.
http://www.globoforce.com
508-229-1543
Laura Feng
Tier One PR
978-975-1414
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