What

are the benefits to the Organization of a Reward and Recognition Program?

Creates Engaged Employees

o High Engagement Work Places Have1
38% Above Average Productivity
27% Higher Profits
5.75% Difference in Operating Margins
Increase Employee Retention
o Employees who feel appreciated in their workplace are less likely to seek
new opportunities.2
What makes up the costs of losing an employee?3
Exit interview
Administrative and paperwork costs
Disbursement of benefits to separating employees
Diminished productivity of remaining personnel
What makes up the costs of replacing an employee?4
Job advertisements
Recruitment activities
Administrative processing
Entrance interviews
Applicant selection
Testing
Travel and moving expenses (in certain situations)
What does turn-over cost an organization?5
As a percentage of salary you are trying to replace, the cost of
losing an employee is:
o Clerical/Administrative: 50-80%
o Professional: 100 125%
o Middle Managers: 125 200%
Improve Talent Management6
o Reward and Recognition Programs help to identify employees who are ready
for growth and to take part in the development of the organization.
o Reward and Recognition Programs help the organization assess how
effectively different arms of the organization are managing their resources.
Creates a culture of appreciation in your organization7

http://go.globoforce.com/rs/globoforce/images/5_Reasons_Web.pdf
Id.
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http://www.cs.ny.gov/successionplanning/workgroups/Retention/employeeretentionreport.pdf
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5
http://go.globoforce.com/rs/globoforce/images/5_Reasons_Web.pdf
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7
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o Formal recognition can turn into more frequent information recognition and
improve employee attitudes and moral.
o The inertia of recognition.