Facts on Employee Recognition

by: Nichole Gunn February 19, 2015

2014 Trends in Engagement, Incentives, and Recognition

  • The U.S. Department of Labor estimates that over 2Million job postings continue to go unfulfilled.
    • Ranks of people out of work remain high, companies have shown unprecedented selectivity by targeting the best employees of their competitors
    • The number of “hiring events” per month can be as high as 4M, even as “net-new” jobs added to payrolls stay stuck in the 200K range
  • This confirms that people currently with jobs are actively transitioning from one employer to another. It also suggests that “A-Players” are being poached in an aggressive manner
  •  In 2015 76% of U.S. jobs will require highly-skilled workers
    • 60% of new jobs will require skills held by only 20% of the population
  • The make-up of the workforce is dramatically changing
    • An estimated 10,000 employees will turn 65 today and will continue to do so every day for the next 20 years
    • 76 million working Baby Boomers will need to be replaced with Gen X’ers and other younger workers
    • Certainly new candidates will continue to enter the workforce, but not in the numbers businesses need: There are only 47 million Gen X’ers in the funnel behind them.
      •  In other words - the talent pool is set to shrink by some 40%

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The Economics of Engagement

  •  Estimated to cost the US economy as much as 350 billion dollars per year in lost productivity, accidents, theft and turnover
  •  2008 study by Gallup, about 54 percent of employees in the United States are not engaged and 17 percent are disengaged.
  • Towers Perrin’s Global Workforce Study of almost 100,000 employees in 20 countries found that only 22% of the US workforce is engaged, 66% not engaged and 11% disengaged.
  • Research has clearly and consistently proved the direct link between employee engagement, customer satisfaction and revenue growth.”~ Harvard Business Review, 2000

Bersin & Associates Unlocks the Secrets of Effective Employee Recognition

  • Research that shows companies with recognition programs highly effective at improving employee engagement have 31 percent lower voluntary turnover than their peers with ineffective recognition programs.
  • Research found that in organizations where recognition occurs, employee engagement, productivity and customer service are about 14 percent better than in those where recognition does not occur
  • $46 billion market for recognition
  • Organizations with the most sophisticated recognition practices are 12 times more likely to have strong business outcomes
Let's start hammering out your incentive program today!
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About Nichole Gunn