Successful leaders know they need to balance the needs of employees, customers and shareholders to build a thriving company. Many firms excel at tracking key performance indicators (KPIs) like profits and customer feedback on a weekly or daily basis, but they fall flat when it comes to monitoring employees’ morale — and it shows. New research from Gallup found that 52 percent of American workers are not engaged in their work, while another 18 percent are “actively disengaged.”
Bersin has completed a comprehensive research project on employee recognition (saying "thank you") and the results are really astounding: organizations that give regular thanks to their employees far out perform those that don't.
What their research found was that tenure-based rewards systems have virtually no impact on organizational performance. It turns out that many of these tenure-based rewards programs are really legacy programs from the turn of the century when labor unions forced management to give employees “service awards” and hourly raises for tenure. Most large companies still have these programs today, yet only 58% of employees even know such programs exist. So for the most part they aren’t creating much value.
On other hand, our research did find that modern, re-engineered recognition programs can have a huge impact on business performance.
With all the disgruntled and restless employees out there - a recent study put the percentage of employees who are not fully engaged at 75% - employee engagement is as high a concern as ever. Company leaders do somersaults to maximize the engagement of their employees and, by extension, their bottom lines. [...]
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