Workplace Well-being: How to Build Psychologically Healthy Workplaces

8 Employee Recognition:

Lois E. Tetrick and Clifford R. Haimann

George Mason University, Fairfax, VA, USA

Employee recognition is considered to be a major human resource (HR) practice leading to a psychologically healthy work (e.g., Grawitch, Gottschalk, & Munz, 2006). Employee recognition programs are broadly accepted as an organizational practice that leads to enhanced productivity and engagement (e.g., SHRM/Globoforce, 2012). According to a 2008 study conducted by WorldatWork, almost 90% of organizations in the United States have recognition programs in place, and many of those organizations are considering adding new programs. Similarly, surveys conducted by SHRM/Globoforce (2012) reported that the number of organizations with recognition programs increased after experiencing a slight decline between 2010 and 2011.

Despite the widespread use of recognition programs, it is interesting that there is little empirical research documenting the effects of these programs. The WorldatWork (2008) survey reported that only 8% of the organizations participating in the survey indicated that they tracked the return on investment of their employee recognition programs although the organizations did measure the success of their recognition programs through employee opinion surveys (43%), nominations (28%), turnover (26%), and usage (25%). The SHRM/Globoforce (2012) report indicated that 15% of the organizations participating in the survey stated that they tracked the return on investment ...