Employee Recognition Soars as Dow Jones Plummets/Why Recognition Matters

Check out this very interesting result we're seeing as the economy deteriorates but recognition at our clients has increased.

Globoforce published this news today: Employee Recognition Soars as Dow Jones and Consumer Confidence Index Spiral Downward. Funds for bonuses are drying up, but strategic recognition continues strong!

As the release says, our Employee Recognition Index (a measurement of the number of employee awards given at leading FORTUNE 500 companies), employee recognition has been on a steady upward climb that began in the Sept. 7 timeframe – when the government seized Fannie Mae and Freddie Mac – and has continued through the most recent automotive industry collapse and Citigroup crisis that took place the week of Nov. 17.

In fact, during the week of Nov. 17, while panic was spreading and economic indicators were plummeting, there were record levels of peer-to-peer employee awards issued in FORTUNE 500 companies. These companies currently operate global strategic employee recognition programs built and powered by Globoforce and are collectively used by nearly 500,000 employees. It was the highest week ever for peer-to-peer recognition this year.

Why is this happening? Eric Mosley, our CEO, says it best: “While no one can control this highly volatile global economy, many found a way to reach out and support their fellow co-workers within their own smaller worlds. Caring and concerned people turned to their company’s peer-to-peer recognition program as a way to make a connection and appreciate someone around them for their efforts. It’s an example of human nature at its best – recognizing and rewarding the good in others and creating powerful and personally meaningful thank-you moments while the world around them seems to be caving in. In fact, it’s a pattern we’ve seen before: during times of crises and uncertainty, recognition, appreciation and support for friends and colleagues increases dramatically and unlocks something inside us that wants to give and be thankful for each other.”

Interestingly, this also corresponds to an ongoing conversation I am having with Bnet blogger CC Holland.

It all started with a simple comment I made to her post on 10 Ways to Make Office Slacker Pull His Weight. In brief, my point was many people are feeling this way due to the recession, so use positive reinforcement to get what you need instead.

CC liked that comment, so she posted another entry on How to Motivate Your Team in a Rotten Economy. While I appreciated the validation, I needed to reply again through comments to reiterate that Globoforce does not advocate cash-based incentives.

That led to yet another post by CC on What’s the Better Motivator: Cash or Kudos? I’m pleased to say that, as of the time I posted this entry, praise is beating cash by 61% out of 600 votes.

Are you seeing recognition increase in your organization? Tell me here in comments. Do you agree recognition is more important than cash? Comment here and join the conversation on Bnet.

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