Organizations spend more than $46 billion per year on employee rewards and recognition programs. Traditionally, these programs are managed under the umbrella of "total rewards" within the HR organization; they are also used by functional leaders in sales and customer service to incent high levels of performance in customer facing roles.
When done right, recognition programs send a loud and clear message to employees that they are valued, by giving them a sense of achievement and thanks. Research shows that a well-designed recognition system can have tremendous impact on employee engagement which, in turns, drives results. Gallup's research on employee engagement shows that organizations with highly engaged teams outperform their competitors by 26 percent in gross margin and 85 percent in sales growth.
In this research bulletin, Bersin & Associates discusses some limitations of the traditional approach to Rewards and Recognition - as well as one of the pioneering new solution providers in this marketplace, Achievers (formerly I Love Rewards).