Workplace Recognition and Incentive Programs

Economics of Employee Engagement 101

Posted on February 21, 2011 by Motivo Staff in Uncategorized

A Towers Perrin study (2008) of 90,000 employees in 18 countries showed that companies with the most engaged employees had a 19% increase in operating income in the previous year compared to a 32% decline among those with the least engaged employees. Gallup called employee engagement “performance optimization management principles” and determined that organizations with these principles outperformed their competitors by 26% in gross margin and 85% in sales growth. Times are troubled, while there are signs of hope, the economy has yet to fully rebound. This is the time that companies should be redoubling its efforts to fully engage employees. It just makes economic sense. Recognition and incentives can help by fostering morale, individual motivation and improving corporate performance. But to properly implement recognition and rewards systems, a basic understanding...

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