The fixed cost of Incentive Programs, unlike other sales and marketing strategies, is 20 to 30% of the Program. The remaining 70 to 80% is paid ONLY when the Program's goals are reached. Source: Incentive Research Foundation: 'Why Incentive Programs Endure Recessions,' December 2008.
69 per cent of workers surveyed say that non-monetary forms of recognition provide the best motivation. Source: The Gallup Organisation – Marketing Magazine – May 2007.
Increases Work Performance
Companies with high levels of employee engagement ... improved their operating income by 19.2% ... while companies with low levels of engagement saw their operating income decline by 32.7% over a 12 month period. Source: "FORUM - The Economic Case for People Performance Management and Measurement", December 2007.
Recognition is a Strong Motivator
A survey of over 2,000 workers has found that 80% of employees said that praise and recognition motivates them to do a better job. Source: Gallup August 2006
KPMG’s "People First" Recognition Program has made a big impact – a 3.6% fall in turnover, saving $3 million and $5 million per annum. Source: The Australian Financial Review, ‘Work Space’ - Tuesday, 27 March 2007. Pg 59
The 'Trends in Employee Recognition Survey 2008', reports that over 90 percent of responding organisations are continuing all of their existing Recognition Programs or have increased them in the last 12 months. Source: "The Rise and Fall of Workplace Recognition", Manage Smarter, May 2008.
74% of employees say that being recognised by their managers for doing good work is very or extremely important. Source: Nelson June 2006
Rewarding Employees
Companies that reward their employees for being innovative increase their revenues by 2.5% and their profit margins by 2%. Source: IBM Global Business Consulting CEO Survey December 2006
'Engaged' Employees
Those companies who have both staff and customers engaged… outpace their competition by 26% in gross margin and 85% in sales growth. Source: The Australian Financial Review – Tuesday, 4 December 2007.
Organisations are increasingly noticing the strong link between engaged employees and customer loyalty. By implementing measures that aid in employee retention, employers are finding that a flow-on benefit is that customers are also being retained as a result. Active reward and recognition programs and strong communication channels are seen to be of greater benefit to employees than increases in salary, additional training, and bonuses. Source: Yahoo Finance October 2005
A survey of 1,500 Australian workers revealed that 20% of employees are ‘actively disengaged’ at work with an estimated cost to business of A$31.5 billion. Less than 30 per cent of actively disengaged employees are planning to stay with their current employer over the next 12 months. In contrast, only 18 percent of Australian workers are ‘engaged’ – working with passion and feeling connected to their employer – and delivering high levels of productivity, profitability and customer service. Source, Gallup Organisation April 2005
80 percent of workers are not engaged in their job. Disengagement stifles productivity… it is a cost to business of $33.5 billion a year. Source: "Workers as disengaged as ever", The Australian Financial Review – Tuesday, 10 February 2009. Pg 59.
