On my travel (Yes, I have been travelling again), I happened to attend an SHRM forum titled “Is Recognition underplayed in a Total Reward System”. This forum was interesting not because it brought to the surface something new, but because it served as a good reminder of things we tend to forget. The speaker supplemented his talk with good examples, facts and experiments leading to interesting discussions.
While I will not put down everything he talked about here, I will mention my favorite moment of the talk. It is when he said this – “It is important that we recognize at least 60% of the employees in an organization.”
This led to quite a stir in the room. 60%?
Here is the model he put forward:
Most organizations do have multiple award systems to try and address this. But do we end up close to the required 60-65% and do we then unconsciously dilute the importance of the award that lies at the bottom of the pyramid?
If we do spend 1.5 – 2% of our payroll on recognition, it is important that we access the effectiveness of the mechanisms in place. Especially if global trends indicate a disturbing 34% attrition due to lack of appreciation.
What do the stats for your organization look like?