These 5 Statistics Reveal the Real Truth About Employee Recognition

Employee recognition is a very effective method for improving employee motivation, engagement, productivity and job satisfaction. It’s a fact.

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The truth about employee recognition

In a time of war for talent, employees have the power to choose their employer. Losing your top talent to your competitors can be detrimental for your business.

This is why many employers invest a lot of time, money and effort to improve their employee experience. They are doing their best to keep their employees happy and satisfied. For example, most companies these days try to provide fancy perks and benefits, implement an employee wellness program, etc.

But the question is how effective are all of their efforts? What do employees really care about?

Is it really true that a simple act of saying praise to your employees can improve your company’s bottom line by keeping your best employees?

I won’t say a word. The following statistics speak for themselves.

Top 5 employee recognition statistics

Statistic #1: Half of the U.S. employees are unsatisfied with their job

The Conference Board’s latest survey on job satisfaction has found that only 51% of employees feel overall satisfied with their job. This survey gauged approximately 1,500 employed individuals, who together comprise a snapshot of the U.S. workforce.

Statistic #2: Half of the U.S. employees are considering a new job

Half of U.S. employees are watching the job market or actively looking for a job, based on findings from a new Gallup Workforce Panel study. Results are based on a Gallup Panel Web study completed by 13,008 U.S. adults who are demographically representative of the U.S. adult population.

Statistic #3: The main reason why employees leave their jobs is a lack of recognition

The main reasons why employees leave their jobs is that they don’t feel appreciated, according to Gallup’ research.

Statistic #4: Employees aren’t recognized (enough) for their work

According to Gallup’s analysis, only one in three workers in the U.S. strongly agree that they received recognition or praise for doing good work in the past seven days.

Even more, Gallup Poll shows that 65% of employees haven’t received any form of recognition for good work in the last year!

Statistic #5: Employees want praise, not money

According to Officevibe’s recent study, 82% of employees think it’s better to give someone praise than a gift.

In a recent Gallup workplace survey, employees were asked what types of recognition were the most memorable for them. Respondents emphasized 5 methods in particular – and money isn’t the only (or the top) form of recognition employees prefer. Most employees prefer employee recognition in the form of:

  1. Public recognition or acknowledgment via an award or a certificate
  2. Private recognition from a boss, peer or customer
  3. Receiving or obtaining a high level of achievement through evaluations or reviews
  4. Promotion or increase in the scope of work or responsibility to show trust
  5. Monetary awards such as a trip, prize or pay increase

Bonus statistic: High cost of turnover

Total costs associated with a turnover range from 90% to 200% of an employee’s annual salary, according to a report from the Center for American Progress.

Top 5 Workplace Diversity Statistics

Discover the top 5 statistics related to workplace diversity and its benefits!

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What is workplace diversity?

Workplace diversity is a term which refers to a company which employs people of varying characteristics, such as gender, age, religion, race, ethnicity, cultural background, sexual orientation, religion, languages, education, abilities, etc.

The importance of workplace diversity

Workplace diversity has many direct and tangible benefits. Employee diversity and inclusion programs are not just nice-to-have HR initiatives – these programs have a direct impact on the company’s bottom line.

Companies with more diverse workplace are not just seen as a more desirable employer, they also outperform competitors and achieve greater profits.

Top 5 workplace diversity statistics

Here is the list of the top 5 statistics related to different benefits of diversity in the workplace:

Workplace diversity statistic #1

  • Companies with more diverse workplace make more money.
  • Companies that have more diverse management teams have 19% higher revenue.
  • Source: Boston Consulting Group (BCG)

Workplace diversity statistic #2

  • Workplace diversity leads to innovation.
  • Inclusive companies are 1.7 times more likely to be innovation leaders in their market.
  • Source: Josh Bersin research

Workplace diversity statistic #3

Workplace diversity statistic #4

  • Workplace diversity generates higher job acceptance rate.
  • 67% of job seekers said a diverse workforce is important when considering job offers.
    Source: Glassdoor

Workplace diversity statistic #5

  • Companies with diverse workforce outperform its competitors.
  • Racially and ethnically diverse companies outperform industry norms by 35%
  • Source: McKinsey

How can you improve your company’s workplace diversity?

Hopefully, these statistics have prompted you to learn how to build and manage workplace diversity in an effective way in your company too!

Infographic: 7 Key Employee Turnover Statistics

Check out the 7 key employee turnover statistics presented in a cool infographic!

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Struggling with employee turnover?

Are you struggling with high employee turnover?

Or are taking proud in an extremely low turnover rate in 2018?

Maybe you’ve yet to learn how to calculate your company’s employee turnover rate?

Either way, these statistics will help you learn more about employee turnover and provide an important benchmark for evaluating your company’s employee turnover statistics.

7 key employee turnover statistics

Here is the list of the 7 key employee turnover statistics:

Employee turnover statistic #1

  • According to Gallup, 51% of employees are considering a new job.

Employee turnover statistic #2

  • A report from the Center for American Progress found that turnover can cost organizations anywhere from 16% to 213% of the lost employee’s salary.

Employee turnover statistic #3

  • Future Workplace and Kronos study has found that 87% of employers said that improving retention is a critical priority for their organization.

Employee turnover statistic #4

Employee turnover statistic #5

Employee turnover statistic #6

  • MRINetwork has found that 72% of candidates are driven by career advancement opportunities which are the number one reason why people change jobs.

Employee turnover statistic #7

Companies that offer remote work experience 25% lower employee turnover, according to OWL Labs.

Infographic: Employee turnover statistics

Here is the infographic with the top 7 employee turnover statistics:

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Top 6 Employee Onboarding Statistics

These top 6 employee onboarding statistics prove that onboarding matter more than you think!

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Building a case for employee onboarding

You probably already know that a successful employee onboarding program helps to improve retention, engagement, satisfaction, and productivity of your new employees.

However, many HR professionals report having some trouble explaining that to their company leaders.

This is why we compiled the list of the most important onboarding statistics!

Use these statistics to back up your case for onboarding and prove why onboarding new employees matter (more than they think!).

Top 6 employee onboarding statistics

We divided the top 6 employee onboarding statistics into 2 main categories.

The first category proves the importance of a well-structured employee onboarding.

The second category proves the benefits of a successful employee onboarding program.

1. Employee onboarding importance statistics

Without (or with bad) employee onboarding:

  1. Companies lose 25% of all new employees within a year (Source: Allied Workforce Mobility Survey)
  2. Up to 20% of employee turnover happens in the first 45 days (Source: O.C. Tanner)
  3. 32% of global executives rate the onboarding they experienced as poor (Source: Harvard Business Review) and replacing each failed executive can cost a business up to 213% of his or her salary (Source: Center for American Progress).

2. Employee onboarding benefits statistics

With a successful employee onboarding:

  1. 69% of employees are more likely to stay with a company for three years if they experienced great onboarding (Source: Society For Human Resources Management).
  2. Organizations with a standard onboarding process experience 50% greater new-hire productivity (Source: Society For Human Resources Management). 
  3. 54% of companies with onboarding programs reported higher employee engagement (Source: Society For Human Resources Management).

 

8 Most Important Employee Referral Statistics

Here is the list of the 8 most important employee referral statistics you should know!

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What’s all the fuss about employee referral programs?

Employee referral programs have become on of the most popular recruiting strategies for finding qualified candidates.

It has been argued that every company should have an employee referral program.

However, implementing an effective employee referral program is not as easy as posting jobs on job boards.

It takes a significantly greater amount of time and effort.

So is it worth it?

Let’s have a look at the data!

List of the 8 most important employee referral statistics

Here is the list of the 8 most important employee referral statistics:

1. Employee referrals have the highest ROI

  • 82% of employers rated employee referrals above all other sources for generating the best return on investment (ROI). (Source: CareerBuilder)

2. Employee referrals reduce time to hire

  • Referred candidates are 55% faster to hire, compared with employees sourced through career sites. (Source: HR technologist)

3. Employee referrals reduce cost per hire

  • Employee referral programs can save companies $3,000 or more per hire! (Source: Recruiter.com)

4. Employee referrals improve the quality of hire

5. Employee referrals reduce the turnover rate

  • After two years, retention of referred employees is 45% compared to 20% from job boards. (Source: FirstBird)

6. Employee referrals generate more profit

Employees who were hired through referral programs produce 25% more profit for their companies than new hires hired via other sources. (Source: FirstBird)

7. Employee referrals improve offer acceptance rate

Referred candidates are more likely to accept your job offer by a statistically significant 2.6-6.6 percent. (Source: Glassdoor)

8. Employee referrals bonus costs

Does your company have the effective Employee Referral Program?

These statistics build a compelling case for having an employee referral program.

Compared with other recruiting strategies (such as job boards, career sites, etc.), employee referral programs have the highest return on investment (ROI).  

Employee referrals are a great way to improve your time, cost and quality of hire.

If your company still doesn’t have an effective employee referral program, you’re way behind.

But don’t worry, you can get back on track in no time – check out our Guide for setting up an effective employee referral program and start building your own employee referral program today!