38 Percent of Millennials Want This Improved at Work
Recognition is key to secure Millennial talent and improve their performance at work.
This is an excerpt from a recent Inc. Magazine article I was quoted in. The interview took place last year for a previous article, but was included here in a good overview with multiple sources. A link to the article is included at the end.
Eighty-seven percent of company recognition programs (a $46 billion market) are focused on tenure (years of service), according to Bersin by Deloitte, a leading research and advisory firm. Yet tenure based reward systems--a 10 year pin, 20 year gold watch, etc.--have little to no impact on organizational performance.
"It turns out that many of these tenure based rewards programs are really legacy programs from the turn of the century when labor unions forced management to give employees 'service awards' and hourly raises for tenure. Most large companies still have these programs today, yet only 58 percent of employees even know such programs exist. So for the most part they aren't creating much value," says Josh Bersin, the founder and principal at Bersin by Deloitte.
Eighty-three percent of organizations suffer from a deficit in [employee] "recognition" and only 17 percent of employees believe their managers know how to recognize them well, according to Bersin by Deloitte. And according to an employee engagement report done by TinyPulse, 79 percent of all employees are feeling undervalued due largely to a lack of recognition and appreciation.
Benefits of Recognition
Recognition programs done right can have powerful impacts on business performance.
Companies that scored in the top 20 percent for building a 'recognition-rich culture' actually had 31 percent lower voluntary turnover rates and organizations with reward programs in place see a 14 percent improvement in employee engagement and productivity, according to Bersin by Deloitte. According to Glassdoor.com, more than 80 percent of employees said they were motivated to work harder and stay at their jobs longer when they received appreciation for their work.
It's clear that recognition has a significant impact on employee engagement and retention and should be considered as part of any talent management strategy.
Millennials and Recognition
"Millennials are accustomed to attention and praise from their earliest days, and expect regular affirmation in the workplace. They are also prepared to switch jobs earlier and more frequently than previous generations, so employers need to take particular steps to maintain Millennial engagement," said Rodney Mason, GVP of Marketing with Blackhawk Engagement Solutions, an international incentives and engagement company.
Ultimately the purpose of recognition is to reward effort and to encourage greater or continued effort. Elevated effort and performance occurs when employees feel inspired and incentivized to do more. Being recognized in a meaningful and consistent way strengthens Millennials' connection to the organization and encourages them to become high-performing contributors.
Psychology of Recognition