According to recent Achievers Workforce Institute (AWI) findings, more than eight in 10 HR leaders (84%) say diversity, equity, and inclusion (DEI) is a high priority for their organization. However, HR leaders are overlooking a key element of DEI – recognition equity.
AWI’s new data found that recognition equity is a key driver of business results and tracking it allows HR leaders to understand who is seen and valued in their organizations.
“Recognition equity is when business leaders and managers recognize employees and coworkers equally for their efforts, regardless of gender, sex, race, religion, etc.,” Hannah Yardley, Chief People and Culture Officer at Achievers, recently shared with HR Daily Advisor. “Offering frequent, meaningful recognition is a very effective tool for driving both retention and productivity but ensuring that recognition equity is incorporated into company standards can prove quite difficult. Business leaders must be aware of actionable ways to better boost recognition equity. The first step? Measuring gaps in recognition to find out who feels valued and recognized in their organizations and who does not.”
Yardley noted that there may be some historically marginalized groups that are still being left behind. Upon researching employee recognition gaps, recent Achievers Workplace Institute (AWI) data unveiled that women are not only 28% less likely to receive at least monthly monetary recognition compared to the overall average, but are also39% more likely than men to say they never receive monetary recognition.
She also highlighted a CNBC survey that revealed 80% of Black executives surveyed, reported that their company has provided more support and attention to employee resource groups since George Floyd was killed in May 2020. However, more than half of the respondents also reported there are still fewer opportunities for Black employees compared to other employees at their organizations.
“This should shed light on the fact that while organizations’ efforts have had a positive impact, there’s still a lot of work to be done to move the needle on DEI initiatives,” Yardley explained. “Celebrating diversity months, such as Black History Month, is a positive effort by organizations to increase inclusivity and awareness, however, business leaders should take the time to reflect and see what more they can do to ensure that all employees are valued, recognized, and feel heard. While no one expects companies to eliminate obstacles faced by historically marginalized groups, it is important to take steps toward progress and push for meaningful change that goes beyond increasing representation.”
So, what’s a great first step? Make sure every segment of your workforce receives meaningful praise regularly, according to Yardley.
“If not, the company’s Black History Month LinkedIn post or discussion group will be seen as a public relations tactic instead of a genuine representation of the organization’s values,” says Yardley.
In this week’s HR Query, Yardley shares insights about how often companies should recognize their employees, how employee recognition impacts employee retention, tips for HR leaders and organizations to manage recognition equity, and more.
What are some ways companies can manage or monitor recognition equity?
HY: Usually, only a few high performers are recognized for their efforts, which hurts company culture and makes other employees feel left out. To combat this and make sure all employees feel celebrated, companies should monitor who gets recognized and how often, specifically looking into marginalized groups.
Unconscious bias can make it hard to tell if your recognition program is as inclusive as you think. Fortunately, your own internal data can help. Consider implementing a program consisting of quarterly recognition metrics and employee surveys that can help you determine if they feel adequately recognized. Some potential questions could include:
- How often do you feel meaningfully recognized?
- Do you feel seen and valued in your role?
- Do you feel like your manager understands you?
Then, to spot any glaring recognition gaps across the company, once data is collected, business and HR leaders should analyze the findings across segmented groups in their employee populations and see which groups are feeling left behind. This recognition data should be used to inform your company’s DEI metrics and initiatives as well.
We recommend using an employee recognition software that can integrate with your company’s human resources information system (HRIS) to keep recognition as equitable as possible. If you see any disparities or unfair recognition patterns, implement specific training and campaigns to make sure people know how to give meaningful recognition that’s personal, specific and impact oriented.
How can employee recognition impact employee retention?
HY: Although inflation may be down, we are not out of uncertain economic times. Companies should be prioritizing talent retention to save money, especially given that 66% of HR leaders report that the labor shortage is worsening.
Creating an employee recognition program is an affordable way to pack the most punch when thinking about employee retention. Making sure that the talent your company already has feels seen and recognized for their work will go a long way in terms of retention and productivity. Recognition boosts employee engagement and productivity, and 64% of employees surveyed even said it would reduce their desire to job hunt. Furthermore, employees who are recognized weekly are three times more likely to say they are engaged, productive, and committed to their job than those never recognized.
Keeping your current employees happy offers a huge return on investment and helps create a strong company culture. So based on these findings, it’s true that something as small as sharing a meaningful “good job” is a real differentiator for employees.
How often should companies recognize their employees?
HY: Companies should recognize their employees as frequently as possible. Based on AWI’s science-backed findings, we recommend that recognition be provided at least monthly. Here’s why:
- Employees recognized monthly are 36% more likely than those recognized quarterly to say they are engaged and productive.
- Employees recognized monthly are 22% more likely than those recognized quarterly to be highly committed to their jobs.
- Recognizing employees monthly creates the ultimate snowball approach: the more often someone is recognized, the more likely they are to recognize others. Therefore, those who are recognized monthly are more likely to recognize others monthly, and on it goes.
However, some employers may struggle with implementing a strategy that ensures recognition is consistent. This is where an employee recognition platform that engages your current team members and encourages them to consistently share heart-felt kudos can help. The program should incentivize your employees by offering both social recognition and tangible rewards on a frequent basis. A points-based rewards system is especially helpful because it gives employees control over the recognition experience by letting them choose the real, tangible rewards they want.
I also recommend appointing a recognition platform ambassador tasked with diving in and giving out recognition frequently to evangelize the platform. This individual can lead by example and encourage moments of recognition that build genuine connections between coworkers, elevate the employee experience, and make your company an organization people want to join.
Why is recognition a key driver for business growth and success?
HY: Our AWI data found that frequent recognition drives business outcomes — 90% of employees admitted that receiving recognition motivates them to work harder, and even an incremental increase in recognition frequency can make a significant difference.
What’s also interesting is that these recognition trends are consistent across all work styles — offline, onsite, hybrid, and remote. This demonstrates that prioritizing recognition will translate across whatever stage your company is in.
We also found that feeling recognized at work would even help outweigh a heavy workload, layoffs, and a salary below expectations. Companies will experience a huge return on investment by putting recognition at the core of any business model. Recognition is a critical protective factor in maintaining high employee retention and productivity.
The post <strong>HR Query: The Value of Recognition Equity</strong> appeared first on HR Daily Advisor.