Workhuman® and Gallup released their latest report, From “Thank You” to Thriving: A Deeper Look at How Recognition Amplifies Wellbeing, which shows that employee recognition is a critical element of employees’ personal and professional lives and a powerful tool for leaders to revitalize wellbeing. In a large-scale analysis across hundreds of organizations and thousands of teams, Workhuman and Gallup found employees with high wellbeing are more likely to be told they are top performers, feel like their pay is fair, and are less likely to be actively looking for job opportunities. In contrast, those with low wellbeing admit they are less likely to be considered a top performer, less likely to feel their paychecks are fair, and are more likely to be actively searching for another job.
Further analysis of the data reveal how a combination of various levels of wellbeing and strategic recognition can predict employee experiences across all three areas. In fact, the results show great strategic recognition experiences can buffer the toll low wellbeing takes on employees’ performance, perceived fairness of pay and job-searching tendencies. In short, when people are struggling or suffering in their lives, recognition matters even more.
When looking at performance in the United States, employees who have suffering wellbeing are 12 percentage points less likely to be told they’re a top performer, compared to the average employee (42% vs.54%). Despite this, when suffering employees have great strategic recognition experiences, Workhuman and Gallup found they are told they’re a top performer at a rate of 70%. In contrast, employees who are doing well in their lives overall, but have poor recognition experiences, are much less likely to be a top performer than their peers with better recognition experiences. Only 44% of thriving employees with poor recognition experiences have been told they’re a top performer, compared with 74% of thriving employees overall when recognition is not considered.
The Workhuman-Gallup study found only 31% of U.S. employees strongly agree their paycheck is fair. However, workers with high wellbeing feel they’re paid fairly at a significantly higher rate (60%) than those who are struggling or suffering (30%, and 18%, respectively). Employees are more likely to perceive their pay as fair if they experience great strategic recognition no matter their level of wellbeing. The study found the rate of employees who strongly agree their paycheck is fair remains at least 63% for those with great strategic recognition experiences, across all wellbeing levels. Emphasizing the need for recognition, the study found that only 6% of employees who are thriving in their lives overall, but have poor recognition experiences, feel they’re paid fairly.
Turnover is incredibly expensive and prior Workhuman and Gallup research found a culture of recognition can reduce turnover costs at a 10,000-person organization with an already engaged workforce by up to $16.1 million dollars. In this recent study, 50% of employees were actively looking for job opportunities. In addition, 75% of employees with poor wellbeing and recognition experiences were perusing the job market. Despite this, the study discovered how strategic recognition can help curb attrition. When employees have suffering wellbeing, but are experiencing great strategic recognition, only 40% of them are actively looking or watching for job opportunities.
“This analysis clearly demonstrates the connection among strategic recognition, performance and employees’ wellbeing,” said Ed O’Boyle, Gallup global practice leader. “Whether an employee is thriving, struggling or suffering in their wellbeing, recognition improves perceptions of their performance and insulates top performers from leaving.”
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