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The ROI of employee recognition
Ready to see recognition in action?
Is employee recognition worth the investment?
Here’s how it impacts organizations’ top HR goals, including retention, productivity, community, and workplace culture.
Retention
Turnover costs organizations time, productivity, and money—and high attrition rates can damage workplace culture.
According to Gallup, 48% of employees are actively seeking or watching for a new job.
Employee recognition is proven to decrease attrition
This multinational energy company reported that when employees receive recognition, the probability of attrition decreases dramatically.
When an employee
receives recognition
Decrease
in odds of
attrition
at least 4 times in 12 months
77%
at least 12 times in 12 months
89%
for 9+ continuous months
95%
Productivity
Productive employees drive value for your business. But over time, a lack of recognition can cause them to feel increasingly unseen and uninspired.
According to Gallup, only 1 in 5 employees feel their work is managed in a motivating way.
Employee recognition directly impacts work quality and innovation
Community
When organizations score high on the community index, the outcomes include increased estimated tenure, higher odds of great work, and more. However:
McKinsey & Associates found that 51% of people quit their jobs because they don’t feel a sense of belonging at work.
Recognition can increase feelings of inclusion and belonging in the workplace
3M's recognition solution (powered by O.C. Tanner) provides consistent, equitable recognition across its global workforce, while still allowing groups to recognize team-specific goals in ways that are meaningful to them.
They’ve seen:
Consistently high recognition scores
221
recognition moments per hour
94%
of employees using the system
Workplace culture
Workplace culture incorporates—and is evident in—every aspect of your business, from your history, values, and mission to your work environment, policies and programs, and overall employee experience.
A few indicators of a healthy workplace culture:
Employee Net
Promoter Score
Companies with great workplace cultures are 4X more likely to have employees that are Promoters.
Employee engagement
Companies with great workplace cultures are 4X more likely to have highly engaged employees.
Revenue
Companies with great workplace cultures are 72% more likely to have increased in revenue in the past year.
Research shows that recognition impacts
key workplace culture metrics
See how giving recognition throughout the employee lifecycle helps Southwest Airlines build an irresistible culture.
All research points come from The O.C. Tanner Institute
On average, O.C. Tanner clients see ROI in 0.45 years with Culture Cloud.
Here are just some of the companies that have seen ROI in <1 year of partnering with O.C. Tanner.
Want to join this list? We’d love to help you build a recognition program that delivers similar ROI results.
