Are You a Top Performer?
In August, the Incentive Research Foundation, IRF, conducted a study of how top performing manufacturing companies differentiated themselves as to how they view and manage their non-cash employee recognition programs. As of 2016, 84% of U.S. businesses utilize non-cash incentives and rewards as a method of retaining and engaging their employees.
If you’re wondering if you qualify as a top performing company, here are the criteria IRF used to classify top performers from average performers:
- More than 5% growth in annual revenue or stock price
- 90% or higher in customer satisfaction or loyalty, or
- Customer acquisition rates higher than 5%
- 90% or higher in employee satisfaction, or
- Loss rate of less than 5% per year among high-performing employees
Overall Findings for Top Performing Manufacturing Firms
According to the IRF study, the following findings demonstrate how top performing companies view their employee recognition programs:
- Executives at top performing manufacturing firms were more than twice as likely to regard their reward and recognition programs as a competitive advantage.
- They were 27% more likely to consider reward and recognition programs to be effective recruitment tools.
- They were 44% more likely to consider reward and recognition programs as critical tools in managing the performance of the company.
Differences in How Top Performers Manage Their Programs
The study also reported significant differences in the ways top performers actively manage their employee recognition programs:
- Top Performers Have More Control: Top performing manufacturing firms are more than twice as likely as average performers to centralize and manage all non-cash rewards activity top down.
- Top Performers Collaborate More:Top performing manufacturing firms are more than twice as likely as average performers to design and manage programs with strong collaboration across multiple departments/divisions.
- Top Performers Consolidate More:Top performing manufacturing firms are significantly more likely (44%) than average performers (17%) to have a single reward and recognition program for the entire company.
- Different Approaches to Reward Reach: Top performing manufacturing firms are three and a half times more likely to structure programs with a wide reach, the goal of each participant receiving recognition or a reward. Average performing manufacturing firms are three and a half times more likely to structure their programs with the goal of recognizing top performers.
- Differences in Reward Type: Awards points is the most used reward type used by top performing manufacturing firms, with 87% of top performers using award points. Average performing manufacturing firms use gift cards and merchandise (both at 69%) at higher rates than top performers.
Benchmarks for Best Practices
The purpose of the study was to identify a clear link between employee recognition best practices and overall indicators of company performance. The study also reported that businesses are increasingly looking to outside partners for expertise on how to most effectively structure their reward and recognition initiatives.
If you’re not yet a top performer or if you are and want to stay that way, we can help. We helped a major organization achieve the 2015 Best Overall Recognition Program Award sponsored by Recognition Professionals International. This award is given each year to the organization that achieves the highest scores in all seven Best Practices Standards in their employee recognition program as identified by RPI.
We could do the same for you! Give us a call.