Companies invest in Employee Recognition not because it’s a nice thing to do, but because it delivers significant business results.
An effective employee recognition programme will deliver average gains of €10,380 / £8,650 / $11,150 per employee per year – a 28x return on investment.
The 3 steps in this calculation are pretty straightforward-
- By doubling the amount of recognition, a company will gain €10,380 per employee on average per year (Source: Gallup/Workhuman – From Praise to Profits 2023).
- The average investment in Employee Recognition programmes by Amplify clients is €370 per employee per year (which includes all programme frees, rewards and Benefit-In-Kind tax).
- €10,380 ÷ €370 = 28x
But how exactly are the gains achieved? How do the results breakdown? What are the different elements involved? From the hundreds of surveys and studies on the benefits of employee recognition, below is what we in Amplify believe are the most relevant stats that support the 28x ROI:
Employee Retention
30% Reduction in Staff Turnover
- Companies with effective recognition programs have 31% lower voluntary turnover than companies with poor recognition cultures.
Source: Bersin by Deloitte – The State of Employee Recognition 2015.
- 92% of employees at organizations with integrated recognition are 5x more likely to stay for at least three more years.
Source: O.C. Tanner Institute – Global Culture Study 2024.
- 7 – 10 recognition moments per year halve the chances of employees voluntarily leaving. In other words, it doubles employee loyalty to the organisation.
Source: The WorkHuman Analytics & Research Institute – Recognition Blueprint 2019.
Staff Productivity
9% Boost in Productivity
- Doubling employee recognition produces a 9% improvement in productivity.
Source: Gallup/Workhuman – From Praise to Profits 2023.
- Doubling recognition results in a 22% decrease in absenteeism.
Source: Gallup/Workhuman – From Praise to Profits 2023. - Praise & Recognition is the biggest motivator for employees after pay.
Source: Mazars – External Employee Motivation Survey 2017.
Employee Engagement
90% Employee Engagement
- Amplify’s Recognition Hub delivers on average 90%+ employee engagement each year.
Source: Amplify Client Programme Analysis – contact us for details. - Employees recognised twice each quarter feel significantly more appreciated and as a result are significantly more engaged.
Source: The WorkHuman Analytics & Research Institute – Recognition Blueprint 2019. - A five-point increase in employee engagement levels can correlate to a 3% increase in corporate revenue.
Source: Aon – Employee Mindset Study Ireland 2020.
Company Culture
85% Improvement in Work Culture
- Amplify’s Recognition Hub delivers on average an improved work culture for 85% of employees.
Source: Amplify Programme Participant Surveys – contact us for details. - Employees are 5 times as likely to feel connected to their culture when recognition is done effectively.
Source: Gallup/Workhuman – Transforming Workplaces Through Recognition 2022. - Highly integrated recognition increases the odds of a thriving culture by +648%
Source: OC Tanner – Global Culture Report 2023.
