A 2012 survey by the Society of Human Resource Management (SHRM) showed that employee engagement is the number one challenge for organizations. It also showed that the standard performance management process is stuck in neutral but recognition programs can fill the feedback and appreciation gap. It also showed that employee recognition programs can have a positive impact on business results and recognition aligned with core values leads to more effective managers.

93% of organizations surveyed cited employee engagement as their number on challenge. However, only 42% actually track their employee engagement. Of the companies that do the measuring more employees are rewarded based on their job performance.

Just about all respondents noted that performance management was either an important or very important challenge for 2012. For many of the respondents they felt that lack of on-going feedback from multiple sources was a big challenge and it is difficult to get good solid feedback overall.

In order to fill the feedback gaps the respondents noted that they were using employee recognition and appreciation program.  They felt when done strategically these programs can round out the employee feedback loop by giving visibility into the true impact and influence of and employee’s performance across the organization.  It was also observed by the organizations using employee recognition that these programs have a positive impact on business results. The misconception is employee recognition programs are just “fluff” or “warm and fuzzy” without any proven return on investment; its far from true!

In the past an organizations core-values were just words on a plaque in the lobby. Today they are finding that aligning company core values and employee core values are a way to instill the culture across the organization. You can find out what values drive a person to come to your place of business by utilizing behaviors and values assessments during your hiring process.  Companies that align their recognition and core values show greater employee satisfaction with how their performance is measured and more managers who are effectively appreciating employees.

While some organizations are still trying to get the right people in the right roles and keep them, others are realizing regardless of industry, a standardized process to attract, reward and recognize employees is the best way to ultimately retain them.

So I ask, how much better could your organization do if you had 63% increased employee productivity, 61% increased employee engagement and a 51% improvement in employee retention? I bet you could possibly beat your competition. Which just might be enough for you to implement an employee recognition program!