Low levels of employee engagement are plaguing companies today and improved rewards and recognition programs are the solution, according to Accelir’s recent Rewards & Recognition: 2014 Trends Report.
Company cuts and cost reductions, technology advances and a rapidly changing global marketplace have led to employees’ job security concerns, elevated stress levels and a lesser sense of company and job loyalty. As a result, HR professionals are challenged with low productivity, negative attitudes, increased absenteeism and reduced employee retention rates in the workplace.
Accelir’s report examines future trends in strategic employee rewards and recognition programs. The company’s summer 2013 survey showed that “less than half of companies have programs that reward workers based on performance indicators.”
However, employers that do have formal programs see tangible benefits, including increased employee productivity and engagement as well as higher organizational and financial performance.
The report points to three major trends:
The Rewards & Recognition: 2014 Trends Report also addresses selection of rewards and recognition program vendors. Companies evaluate sources based on technology, innovation, user experience and cost. Interestingly, analytics is not considered an important feature, though measurement and tracking are critical to gauging success.
The report concludes with key takeaways and recommendations.
First, HR managers who implement strategic, performance-based rewards programs create a competitive advantage for their companies.
Second, senior leaders are starting to realize rewards and recognition programs can benefit both employees and their organizations.
Third, companies rebuilding or growing their programs need to take into consideration the key trends identified in the study: early recognition, a culture of recognition and social media integration. By doing so, companies can increase productivity and return on investment as well as decrease employee turnover.
The full Rewards & Recognition: 2014 Trends Report is available here.