Employee rewards and recognition can have a high impact on the levels of engagement and retention within a workforce. It can be a major distinguishing factor between an engaged team and one that is potentially on the verge of departure.
The way a business approaches employee rewards and recognition program play a pivotal role in shaping the perception of its company culture. This, in turn, also becomes a determinant of how people perceive and connect with their work.
Top employee rewards and recognition statistics to look at
In this blog, we have compiled a list of some very essential employee rewards and recognition statistics that are important for all HR teams to take note of in 2024.
- Employees who firmly believe in the significance of rewards and recognition in the workplace are 3.8 times more inclined to strongly affirm their sense of connection to the company’s culture. Source: Gallup
- Employees who have received rewards and recognition are more likely to exhibit higher productivity. Individuals who regularly receive recognition are five times more likely to feel valued and appreciated, six times more inclined to invest in their work, and seven times more likely to remain with their current employer for at least another year.
- The primary factor leading to employee turnover is a lack of recognition, with 66% of employees stating they would consider leaving their jobs if they do not feel valued. Moreover, employee rewards and recognition are a potential buffer against workplace stresses that might otherwise have adverse effects on employee performance. Source: Forbes
- Employees who experience great rewards and recognition programs in the workplace are 20 times more likely to be engaged compared to those who receive inadequate recognition. Source: Gallup
- Employee rewards and recognition ideas do not necessarily require a substantial financial investment. As many as 65% of employees say they favour non-monetary incentives over monetary ones. A straightforward thank you, or even a personalized note can have a significant impact on making employees feel valued and appreciated. Source: Incentive Research Federation for the Incentive Marketing Association
- Not having a rewards and recognition plan in place can affect or impact entry-level employees and senior leaders as well. A notable 82% of senior leaders express the sentiment that they do not receive adequate recognition, and this demotivates them. Source: Harvard Business Review
- Rewards and recognition for even the smallest of things at the workplace matter greatly to employees. Among those who enjoy positive recognition experiences, 72% say their organization routinely acknowledges performance related to the ‘little things’. Source: Gallup
- Employee rewards and recognition ideas do not necessarily have to involve a huge monetary load for organizations. In fact, even verbal acknowledgment and appreciation are more than enough for some. As many as 85% of employees say it’s fine to receive a simple verbal ‘thank you’ in their day-to-day interactions. Source: Deloitte
- When rewards and recognition in the workplace hit the mark, workers are 56% less likely to be looking out for new job opportunities, 44% more likely to be “thriving” in their life overall and 4x more likely to be engaged. Source: Gallup/Workhuman
- A distinct correlation exists between rewards and recognition programs and employee retention. As many as 55% of employees have expressed intentions to leave their current jobs, with the predominant reason being a perceived lack of recognition from their employer. Interestingly, 69% of these respondents emphasized that improved employee rewards and recognition would be a compelling incentive to prolong their tenure. Sources: Achievers
- Employees experiencing rewards and recognition tend to be more engaged in their work. Organizations boasting high levels of employee engagement also enjoy a 21% boost in profitability. Source: Gallup
- High turnover comes with considerable costs, including recruitment, onboarding, and training expenses. Businesses implementing successful rewards and recognition programs experience a 31% reduction in turnover. Opting for an investment in a recognition program can be a cost-saving measure, reducing the related hassles. Source: Bersin & Associates
- Establishing robust types of rewards and recognition for employees can enable employers to retain over 50% of their workforce. Satisfied employees are less inclined to seek opportunities elsewhere, and timely rewards and recognition serve as tools for retention. Source: Glassdoor
- If a company is grappling with low engagement rates, starting a rewards and recognition program is a straightforward and effective step. That’s what employees feel because when asked what will help improve their engagement, 58% suggested that leaders providing recognition will be a key improvement strategy. Source: Psychometrics
- A study revealed that employees who are content and happy exhibit a 13% increase in productivity compared to their unhappy counterparts. Source: Study by Oxford University’s Saïd Business School
- A substantial 72% of businesses acknowledge that rewards and recognition in the workplace have a positive impact on employee engagement. When asked about the important factors for enhancing employee engagement, nearly three-quarters identified ‘recognition given to high performers’ as their primary preference. Source: Harvard Business Review
- Among highly engaged organizations, 71% actively acknowledge employees for a job well done, while only 41% of less engaged counterparts follow suit. In environments characterized by high engagement, employees are wholeheartedly dedicated to their work, going above and beyond to accomplish company objectives and expressing appreciation for their colleagues’ efforts. Source: Bonusly
- Acknowledgment stands out as one of the most effective positive feedback mechanisms for employee performance. A carefully crafted rewards and recognition program has the potential to catalyze an 11.1% rise in the average performance of employees. Source: Gartner
- According to a survey conducted by SHRM (Society for Human Resource Management), employee rewards and recognition programs significantly contribute to positive outcomes in employee engagement, job satisfaction, and retention rates, all of which have a direct impact on the overall bottom line. Source: SHRM
- The same SHRM survey revealed that companies with rewards and recognition programs consistently report increased levels of productivity and increased customer satisfaction.
- The prospect of receiving an award motivates employees to put in extra effort in completing their assigned tasks well. Organizations with rewards and recognition programs showcase a remarkable 14% higher levels of employee productivity, performance, and engagement compared to those without such programs. Source: Deloitte
- Studies show that by doubling the number of employees recognized each week, companies can achieve a 24% improvement in work quality, a 27% reduction in absenteeism and a 10% decrease in staff shrinkage. These improvements directly contribute to elevated levels of employee engagement and productivity. Source: Gallup
- Employee recognition should extend beyond traditional measures such as occasional gifts or long-service awards. It must be ingrained in the company culture, with objectives aligned closely with company values. Only in such a context can the true impact of rewards and recognition programs on engagement levels be realized. Notably, 52% of employees express that their recognition programs are not adequately aligned with their organizational goals. Source: Deloitte
- An overwhelming 83% of HR leaders say that employee recognition has the power to strengthen organizational values. Needless to say, when employees observe consistent rewards and recognition for specific behaviors, they gain a clear understanding of the company’s expectations. This increases the likelihood of them continuing such behaviors in the future. Source: Globoforce
- Organizations implementing continuous rewards and recognition programs demonstrate nearly 29% lower frustration levels compared to those without such programs. The fulfillment and satisfaction derived from accomplishing a goal are increased when others acknowledge the achievement. Source: SHRM/Globoforce
- Many employers commonly perceive millennials as unpredictable, but research indicates that this group can evolve into an organization’s most valuable asset when appropriately appreciated. In a survey, 79% of millennials expressed that an increase in rewards and recognition would enhance their loyalty to their employer. Source: SHRM
- Rewards and recognition programs should not be linked to the tenure of an employee. Rather it should highlight the value an employee contributes to the workplace. Unfortunately, 87% of employee rewards and recognition programs concentrate on acknowledging tenure alone. Source: Bersin & Associates
- Considering employee preferences is crucial for delivering authentic and impactful recognition. When it comes to types of rewards and recognition for employees, looks like gift cards offer employees the flexibility to choose items they desire. According to a survey, 44% of respondents express a preference for gift cards, while 41% favor a paid trip as a reward. Source: Bonusly
- Peer recognition stands out as a significant rewards and recognition idea, inspiring employees to go above and beyond. When colleagues acknowledge each other’s contributions, it not only strengthens their professional relationships but also creates trust. Source: Tinypulse
- The same study shows that employees want their efforts like extending their working hours to assist a colleague to be recognized in the presence of the team to elevate their motivation.
- When a top-tier leader invests time in expressing appreciation, it leaves a positive impression on employees. Leadership acknowledgment of dedication, effort, or accomplishments can have a profound impact on morale and engagement. Remarkably, 24% of employees highlight that their most memorable recognition experiences came directly from the CEO. Source: Gallup
Rewards and recognition programs are no more just a good-to-have, they are a must-have in every workplace as a business strategy. The above statistics are testimony of why companies should prioritize investment in an employee rewards and recognition program.