performance accelerated

acceleratedPERFORMANCE

What is the one thing that is proven to transform "good enough" into "great?

The simple answer:

an accelerator.

Many visionaries have inspired their employees-bringing them close to reaching their maximum potential…but not all the way.

Scientists have known the secret of accelerants for decades, adding them to speed chemical reactions, achieving results more quickly.

In business, there is no accelerator with more impact than purpose-based recognition.

We set out to conduct one of the most extensive research projects on workplace productivity.

After 10 years of researchand 200,000 interviewswith managers and their employers, here's what we found:

What is recognition doing for many companies?

Lying idle, waiting to ignite results. It's been overlooked, misapplied, misunderstood and largely untapped.

79% lack of appreciation

21% other

REASONS FOR QUITTING

65%of North Americans report they weren’t recognized in the last year

It can cost up toof an employee's annual salary to replace them, a necessary cost to replace bad employees.

250%

Retaining outstanding performers is critical, and the results of the following retention efforts have been underwhelming at best: higher pay

competitive vacation andholiday benefits

Tuition reimbursement

better employee-selectionmethods

WHAT IS WORKING?

INCREASE IN RECOGNITION AND PRAISE

Gallup's study of nearly five million employees reveals that increasing recognition and praise leads to

lower turnover, higher customer loyalty and satisfaction scores, and increases in overall productivity.

HealthStream Research showed they do with a study including 26,000 employees at all levels in 31 organizations of varying sizes and profitability.

Strong connections exist between effective recognition and positive business outcomes.

Employee respondents rated their level of agreement to the question: 'My organization recognizes excellence.'

Those organizational results were then compared with these profitability measures:

Return on Equity

Return on Assets

Operating Margin

ROE simply put is a measure of how effective your company is at turning the cash shareholders provide the company in exchange for shares (equity) into profit.

HealthStream Research found that companies that effectively recognize excellence enjoy an ROE more than three times higher than the return experienced by firms that don't.

ROA is the measure of how effective your company is at using company assets to generate profit.

Companies that effectively recognize excellence enjoy an ROA more than three times higher than the return experienced by firms that don't.

In general, businesses with

higher Operating Margins tend to have lower costs and better gross margins.

Operating Margin shows how much a company makes from each dollar of sales before interest and taxes.

OPERATING MARGIN

Of all the financial measurements, employee recognition impacts Operating Margin the most significantly.

Companies in the highest recognition quartile report an Operating Margin of 6.6% while those in the lowest quartile report 1%.

highest recognition quartile

lowest recognition quartile

6.6%1%

—Karen Endresen, Ph.D. of HealthStream Research

This study took recognition results from myth to reality-from the soft side of business to a proven business essential.

“

“

a startling link between recognition and profitability.

“ “

THE WALL STREET JOURNAL SAID THE RESEARCH PROVED

What appeared to be a formula for disaster actually led to a 15% increase in employee job satisfaction as well as a 15% increase in revenue.

When Dee Hansford was the head of Walt Disney World's cast recognition department, they experienced a year of no pay raises or bonuses.

That same year, the theme park saw a 15% rise in guest attendance and hired no additional staff.

HOW?

Though they did not give money, they trained their managers on how to deliver purposed-based recognition.

CLICK HERE to view more research of great management accelerated.

IS THE POWER OF RECOGNITION JUST A NORTH AMERICAN PHENOMENON?

To find out we asked Towers Watson, a leading global human capital consulting firm, to conduct a worldwide survey. This is what they found:

92%77%

56%35%

Opportunity & Well-Being: Low Favorable Opinion

Opportunity & Well-Being: High Favorable Opinion

Employee Engagement Globally N=10,333

Recognition Weak

Recognition Strong

Recognition worldwide is just as much an accelerator as we had found in the United States and Canada.

In fact, from country to country, we found engagement scores as much as two or three times higher when a manager offered frequent, specific and timely recognition.

Again, notice percentage differences comparing organizations that had scored high to those who scored low. No matter where recognition is stronger, the level of employee engagement significantly spikes.

Communication Goal-Setting Trust

We were also pleased to see recognition accelerate the Basic Four of Leadership:

Accountability

Goal-Setting + Recognition

91%

68%

Goal-Setting: High Favorable Opinion

70%

40%

Goal-Setting: Low Favorable Opinion

Recognition Strong

Recognition Weak

Communication + Recognition

Communication: High Favorable Opinion

92%

68% 69%

39%

Communication: Low Favorable Opinion

Recognition Strong

Recognition Weak

Trust + Recognition

Trust: High Favorable Opinion

91%

65% 63%

35%

Trust: Low Favorable Opinion

Recognition Strong

Recognition Weak

Accountability + Recognition

Accountability: High Favorable Opinion

91%70% 65%

38%

Accountability: Low Favorable Opinion

Recognition Strong

Recognition Weak

SO YOU'RE PROBABLY WONDERING "WHERE DO WE START?"

Companies that reap the biggest results are those that train their managers in purpose-based recognition.

CLICK HERE for information on recognition training programs.

Join Our CommunityGet the latest recognition insights and best practices.

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O.C. TANNER AND THE O.C. TANNER INSTITUTE

O. C. Tanner helps the world inspire and appreciate great work.

Through our innovative cloud-based software, tools, awards,

education, and research, we provide thought leadership and strategic

recognition solutions for thousands of clients globally. Designed to

engage talent, increase performance, and drive corporate goals, our

solutions create personalized recognition experiences delivered

through a smart technology platform.

The O.C. Tanner Institute regularly commissions research and provides

a global forum for exchanging ideas about recognition, engagement,

leadership, culture, human values, and sound business principles.