The Roi of Recognition in Building a More Human Workplace

THE ROI OF RECOGNITION IN BUILDING A MORE HUMAN WORKPLACE

WORKHUMAN RESEARCH INSTITUTE: 2016 SURVEY REPORT ABOUT THE WORKHUMAN RESEARCH INSTITUTE

The WorkHuman Research Institute at Globoforce is dedicated to the understanding and application of global workplace practices that create more engaged, productive, and ultimately more human work cultures. In collaboration with leaders in the human resource industry and global research experts, The WorkHuman Research Institute publishes original research and papers on current trends that affect and influence the employee experience, culture management, and leadership.

ABOUT THE SURVEY

This survey was directed by the WorkHuman Research Institute at Globoforce from November 4-7, 2015. This is the eighth deployment of this United States employee survey since its launch in Spring 2011, but Globoforce’s first to focus on the human workplace. This respondent sampling of the survey was conducted by independent market research firm MarketTools. The final sample of the survey was composed of 828 randomly-selected fully employed persons in the United States (aged 18 or older). The survey had a margin of error of +/- 3.9 percentage points at a 95 percent level of confidence.

ABOUT GLOBOFORCE

Globoforce is a leading provider of social recognition solutions, helping companies build strong cultures of engaged employees through the power of thanks. Named one of the Best Workplaces by the Great Place To Work® Institute, Globoforce is trusted by some of the most admired companies in the world to inspire and energize employees and create best places to work. Our award-winning SaaS technology and proven methodologies empower HR and business leaders to take a modern, more strategic approach to recognition programs. What results is measurable business success, qualified by increases in employee engagement, retention and productivity. The company pioneered the WorkHuman movement, created to galvanize organizations and leaders worldwide to create a more human workplace. This movement culminates annually at the WorkHuman conference, taking place May 9-11, 2016 in Orlando, Florida. Globoforce is co-headquartered in Southborough, Massachusetts, and Dublin, Ireland. INTRODUCTION

In 2015, Globoforce launched the WorkHuman® movement to bring together leaders from companies around the world to share ideas and learn about creating a more human workplace.

SEVERAL KEY ORIENTING QUESTIONS GUIDED THIS MOVEMENT: • What makes a workplace more human? • What is the impact of a more human workplace on worker and company well-being? • How can leaders create a more human workplace?

This report explores these questions by focusing on the elements and drivers of the new human workplace, with a special focus on employee recognition. EXECUTIVE SUMMARY

As companies begin to focus more on building a human workplace, we see employees responding to those efforts with enthusiasm, trust, and optimism. The results show that traditional metrics such as engagement, retention, and employer brand correlate with human workplace practices such as recognition, transparency, and respect for individual needs and growth. Moreover, so do emerging metrics such as happiness, optimism, and attitudes toward change. Companies on the vanguard of creating a more human workplace stand to reap significant rewards in terms of people metrics and ROI. But how can companies know which human workplace practices are most effective in creating that more human workplace culture? Globoforce surveys fully-employed workers in the U.S. to gain insight into attitudes and perspectives on recognition, engagement, and performance. For this survey, we expanded our scope, and asked employees to share with us what they value, how they feel, and how they react to their work cultures. We designed this survey to ask important questions about what practices employers are using to drive cultural change, and how those practices are resonating with employees, and in turn moving the business forward. The result forms a blueprint for what practices will drive employee behavior, attitudes, and business results. Specifically, we found that employee recognition is a foundational element of building a human workplace. While employees are happy at work, we found that more is needed to engage them and produce a sense of well-being, trust, optimism, and confidence that can propel a culture and a company forward. KEY FINDINGS

1 2 3 4 5

When employees Recognition not only Employees’ attitudes Employees trust Recognition and a believe leaders are significantly improves toward change and colleagues most, but human workplace are striving to create engagement, but optimism for the it is trust for leaders drivers of employee a more human also creates a more future correlate with that most well-being workplace, culture human culture. recognition efforts impacts culture. and happiness. metrics improve. and efforts to build a more human workplace. The ROI of Recognition in Building a More Human Workplace // 8 WHEN EMPLOYEESBELIEVE LEADERS ARESTRIVINGTO CREATE AMOREHUMAN WORKPLACE, CULTURE METRICS IMPROVE. FINDING 1 66% 65% Filtered by Q. Do your company leaders care about and actively try tocreateamorehumanworkplace,focusedonemployeewell-being? Filtered byQ. Doyourcompanyleaderscareaboutandactivelytry out someofthestrongestcorrelationswesaw withleaderswhocareaboutahumanworkplace. for challenges. A senseofbelongingandthemotivation toworkhardfortheorganizationandco-workers rounded where employeesfeeloptimisticabouttheirfutureinthecompany andtheabilityofcompany tofindsolutions mattered, andtheirwillingnesstopromoteworkingatthecompany toothers. Buttherearealsostrongeffects Following that,leaderswhocareaboutahumanworkplacecorrelatedwithemployeesfeelingthattheirvoices and thebeliefthatcompany isabestplacetowork. were increasesinthebeliefthatcompany caresaboutemployeesasaperson,passionforsharedcorevalues, question weasked. When theydisagreed,thenumbersfellfarlower thanthebaseline. The biggestdeltaswesaw yes. When theyagreedthatleaderscaredabout ahumanworkplace,theirnumberswentuponnearlyeveryother actively trytocreateamorehumanworkplace,focusedonemployeewell-being? Only63percentofworkers say employees know andunderstandyourefforts. We asked U.S. workers: Doyourcompany leaderscareaboutand Perception matters. While therearemany importantfacetstocreatingahumanworkplace,onekey facetisthat FOCUSED ONEMPLOYEEWELL-BEING. ABOUT ANDACTIVELY TRY TOCREATE AMOREHUMANWORKPLACE, ONLY 63PERCENTOFWORKERSBELIEVECOMPANY LEADERSCARE I amhighlyengaged 55% 51% 48% 43% 41% 34% 31 %

24% 32% THE EFFECTSOFAHUMANWORKPLACE vs.

56% meaning &purpose The workIdohas 64% vs.

90% 78% 81% 83% 84% 89% 89% 90% 91% 93% 93%

The ROI of Recognition in Building a More Human Workplace // 9 The ROI of Recognition in Building a More Human Workplace // 10 Not recognizedinpast6monthsormore human workplace. with information,” theyarealso50percentmore likely toagreethattheirleaderscareaboutcreatinga Transparency hasanevenstrongerimpact. When employees agreedthat“Mycompany isopenandtransparent TRANSPARENCY workplace, isemployeevoice. Another element that strongly affected, and indeed seems toenjoya reciprocal relationshipwithbeliefin ahuman EMPLOYEE VOICESMATTER tocreateamorehumanworkplace,focusedonemployeewell-being? Q. Doyourcompanyleaderscareaboutandactivelytry program was onethatwas tiedtoacompany’s corevalues. But interestinglyenough,eventhepresenceofarecognitionprogramcouldmake thatdifference,provided that tocreateamorehumanworkplace,focusedonemployeewell-being? Q. Doyourcompanyleaderscareaboutandactivelytry than twiceaslikely tobelieveleaderscaredthanthosewhohadneverbeenrecognized: impressions ofahumanworkplace. When employeeswererecognizedwithinthelastsixmonths, they aremore the following practiceareas. Notsurprisingly, recognitionisoneofthestrongestinfluencesonemployees’ Here’s how likely workers aretoagreethattheirleaderscareaboutahumanworkplace,basedoneachof to show thatleaderscare about buildingahumanworkplace? So, ifthesearetheeffectsleaderscaninspirewhentheycareaboutworkplacehumanity, whatcanacompany do Recognition programnottiedtovalues Reco Recognition programtiedtovalues Recognized within3-5months Recognized within1-2months gnized withinthelastmonth matter tocompanyleaders,”theyare 43percent more likelyto When employeesagreed “Ifeellikemyopinions, voiceandideas agree thatthoseleaderscared aboutcreating ahumanworkplace. No RecognitionProgram Never recognized RECOGNITION PROGRAM RECENT RECOGNITION 40% 45% 50% 58% Agree Agree 66%

81% 80%

84% percent morelikely toagreethatleaderscareaboutahuman workplace. significantly impactful. When workers agreedthat“People in my organization treatmewithrespect,” theyare40 and connection. Though itwasn’t thehighestperformingcriteriainhuman workplaceinquiry, itwas still Respect isoneofthekey contributorsonmostbest place toworkindexes and importanttobothwell-being RESPECT of funandplay. Yet itisanextremelystrongcontributortoahumanworkplace. One obvious contributortoculture,andanimportanttopicwithinthe WorkHuman movement, was theelement FUN CULTURE As acounterpointtogratitude,andcomplementrecognition,itshouldcomeasnosurprisethat: FEEL APPRECIATED 37 percentmorelikely toagreethattheirleaderscaredaboutbuildingahumanworkplace. also impactperceptionsofculture. When workers agreedthat“Ifeelgratefulformy workandcolleagues,” theyare on individualwell-beingandrelationshipbuilding, but theseresultsshow that theopportunitytofeelgratefulcan proven—through thework ofDr. Robert EmmonsatUCDavis, amongothers—to have ahostofpositiveimpacts One strongthemefromthe WorkHuman eventin2015was thetopicofgratitudeandgiving. Gratitudehasbeen GRATEFUL is perhapsnosurprisethattheyalsocorrelatestronglywithperceptionsofahumanworkplace. Learning anddevelopmenthave longbeenreportedasinfluentialonemployeeengagementandsatisfaction,soit LEARNING &DEVELOPMENTOPPORTUNITIES When workersagreed and that“Ihavetheopportunitytolearn care aboutahumanworkplace. enjoyable,” theyare 54percent more likelytoagree thatleaders When workersagreed that“Mycompanyculture isfunand building ahumanworkplace. are 47percent more likelytoagree thatleaderscared about When workersagreed “Ifeelappreciated fortheworkIdo,”they leaders cared aboutbuildingahumanworkplace. grow inmyjob,”theyare almost2xmore likelytoagree that

The ROI of Recognition in Building a More Human Workplace // 11 The ROI of Recognition in Building a More Human Workplace // 12 not sure,orthattheyhadnocorevalues. “Meaningless wordsonapage,” or“Other.” 4percentofworkers chose “Other”—mostexplainingthattheywere were invited tosayifcompany values were:“SomethingIbelievepassionatelyin,” “Insincereorunrealistic,” Finally, weasked workers how theyfeltaboutcorevalues, whichspeaks directlytopurposeandalignment. They ALIGNED WITHCOREVALUES Of thosewhosaythey“believepassionately,” theyare 58percent more likelytosaythatleaderscared aboutahuman workplace.

The ROI of Recognition in Building a More Human Workplace // 13 The ROI of Recognition in Building a More Human Workplace // 14 SIGNIFICANTLY IMPROVES RECOGNITION NOTONLY ALSO CREATES AMORE ENGAGEMENT, BUT HUMAN CULTURE. FINDING 2 defined as“Ilove my jobandusuallytrytogo‘above andbeyond’for my company.” Predictably, this varied being—it was withinthescope ofthisstudyalso.47 percentofallrespondentstoldustheyarehighlyengaged, Traditionally wemeasureeffect ofrecognitiononengagement,and—especiallyasengagementisafactorinwell- connection (70percent),happinessathome andlove fortheircompany (69percent). in theirproductivity. This was followed byincreasesinintentto stay(75percent),trust(72emotional for 82percent,and79 percentofworkers saytheywork harderwhenrecognized,with78percentcitingrises satisfied withtheirjobs. Increasedengagement,anotherlong-establishedimpact ofengagement, was anoutcome goal ofrecognition.Italsomade86percentemployees prouderandhappieratwork,85percentmore recognition makes 92percentofemployeesfeelappreciated,sinceformany companies, appreciationisthefirst How doesrecognitionmake employeesfeel? We asked employeesdirectly. Itwas nosurprisetohearthat Q. Doesyourcompanyhaveaprogramforemployeerecognition? Q. When wasthelasttimeyou wererecognizedforyourcontributionsatwork? recognized inmorethana6months. Here isthebaseline. A slightmajority ofworkers have neverbeenrecognized,and33percenthaven’t been indeed, was themerepresenceofarecognitionprogrambasedonvalues. The answer, oneachoftheeightmetricswelooked at,was thatrecentrecognitionwas profoundlyimpactful.So, on otherculturemarkers? we wondered,didrecognitionactuallymake employeesfeel? And whatwouldbetheimpactofrecentrecognition prove recognition’s abilitytoimpactkey metricssuchasengagement, retention,andemployeesatisfaction.How, employed tohelpcreateabetter, morehumanculture. There arecountlessresearchstudiesthatdemonstrateand Recognition isthefoundationof WorkHuman movement, sowewanted toseeexactlyhow itisbeing 21 PERCENTOFWORKERSHAVE NEVERBEENRECOGNIZED. Not recognizedinpast6monthsormore Recognition programnottiedtovalues Recognition programtiedtovalues Reco Recognized within3-5months Recognized within1-2months gnized withinthelastmonth No RecognitionProgram Never recognized RECOGNITION PROGRAM RECENT RECOGNITION 12% 14 % 20% 18% 21% 31 33% % 51%

The ROI of Recognition in Building a More Human Workplace // 15 The ROI of Recognition in Building a More Human Workplace // 16 Q. When wasthelasttimeyou wererecognizedforyourcontributionsatwork? FilteredbyQ. Which statementbelowbestdescribesyou? the lastfewmonthsaremorethantwiceaslikely ashighlyengaged. toidentify considerably whenwebroke thatgroupdown bywhentheywerelastrecognized. Workers whowererecognizedin percent morelikely tobelieve theirworkplaceisopenandtransparent. to saythatworkers intheircompany trustoneanother. They are19 percentmorelikely tosaytheyfitin,and 29 37 percentmorelikely tobelievetheircompany caresaboutthemasaperson. They are28percentmorelikely those whowerenotrecognized. They are35percentmorelikely tosaytheircultureisfunandenjoyable. They are recognized inthepastmonthare34percentmorelikely tobelievetheircompany was abestplacetoworkthan But wecanalsolookatrecognition’s effecton cultureandattitudestoward work. Workers whohave been HOW DOESRECEIVINGRECOGNITIONANDREW Not recognizedinpast6monthsormore Reco Recognized within1-2months Recognized within3-5months gnized withinthelastmonth Never recognized AT WORKMAKEYOUFEEL? HIGHLY ENGAGE 30% D 43% 51% 69% 70% 70% 72% 51% ARDS HighlyEngaged 75% 78% 79% 81% 66% 83% 85% 86% 86% 92% Not recognizedinpast6monthsormor Not recognizedinpast6monthsormor Not recognizedinpast6monthsormor Recognized withinthelastmont Recognized withinthelastmont Recognized withinthelastmont Recognized within1-2months Recognized within1-2months Recognized within1-2months Recognized within3-5months Recognized within3-5months Recognized within3-5months Never recognized Never recognized Never recognized h h h e e e about measaperson: contributions atwork? FilteredbyQ. Mycompanycares Q. When wasthelasttimeyou wererecognizedforyour organization isagreat/bestplacetowork: your contributionsatwork? Filtered byQ. Ibelievemy Q. When wasthelasttimeyouwererecognizedfor belong inmyorganizations: contributions atwork? FilteredbyQ. Ifeelthatfitinand Q. When wasthelasttimeyouwererecognizedforyour BEST PLACETOWORK BELIEVE WEAREA BELIEVE COMP I FITIN CARES Agree 50% Agree 57% 59% 64%

71% ANY Agree 74 82% 82% 85% % 87% 81% 81% 91% 91% 93% My companycultureisfunandenjoyable: for yourcontributionsatwork? FilteredbyQ. Q. When wasthelasttimeyouwererecognized information: My companyisopenandtransparentwith for yourcontributionsatwork? FilteredbyQ. Q. When wasthelasttimeyouwererecognized organization: by Q. Employeestrustoneanotherinmy for yourcontributionsatwork? Filtered Q. When wasthelasttimeyou wererecognized OPEN &TRANSP BELIEVE PEOPLEARE EMPLOYEES TRUST CUL ONE ANOTHER Agree Agree ENJOY TURE ISFUN&

53% 50% ABLE 61% 60% 58% 74 70% ARENT % 74 69% % 79% 84% Agree 88% 82% 83% 86%

The ROI of Recognition in Building a More Human Workplace // 17 The ROI of Recognition in Building a More Human Workplace // 18 RECOGNITION EFFORTS TO FUTURE CORRELATE WITH AND OPTIMISMFORTHE EMPLOYEES’ATTITUDES HUMAN WORKPLACE. TOWARDS CHANGE BUILD AMORE FINDING 3

hostile orresistant) Q. When thingsarechangingsignificantlyatyourcompany, feel?(Excited orhappy, howdoyoumostoften orafraid, confidentorunworried,nervous fearful aboutchange,and11percentreportfeelingoutrighthostility. recognized. Likewise, ofthosewhohadneverbeenrecognized,47 percentarelikely toreportfeelingnervousor excited. That’s versusonly34percentconfidenceand7excitement amongthosewhohadneverbeen were recognizedwithinamonth,55percentreportfeelingconfidentaboutchange,and 14 percentreportfeeling found thatthemorerecentrecognition,positiveaworker’s outlooktoward change.Ofthosewho We sortedworkers bywhentheyhadlastbeenrecognized,andthen looked attheirattitudestoward change. We recognition onattitudestoward change. ease change?Knowing thatpositivereinforcementissuchastrongbehavior modifier, welooked attheimpact of about change. roughly 54percentfeelingpositively(confident,excited) and45percentfeelingnegatively(nervous, hostile) at yourcompany, feel?”Employeesareroughlysplitontheirapproachtochange,with how doyoumostoften We beganbyaskingallrespondentshow theyreacttochange,asking“Whenthingsarechangingsignificantly M&As, newregulations, leadershipchanges, andothersourcesoforganizationaltrauma. including thebenefitsofapositiveattitudeandwhatpracticeshelpcompaniestoweatherchangessuchas help steerculturethroughunsteadywater, wedecidedtolookdeeperintoemployees’attitudestoward change— to ensuresmoothertransitions. Sinceweknow thatmany companieslooktoastrongcultureofrecognition that many companiesaredeeplyconcernedhow employeesreacttothesechanges—andarelookingforways According tothe How dopeoplefeelabout change? CHANGE WITHINTHEIRCOMPANY. 54 PERCENTOFEMPLOYEESFEELPOSITIVELY TOWARDS SIGNIFICANT Are nervousaboutchange Are hostiletowardchange Are excitedaboutchan Not recognizedinpast6monthsormore Reco ALL RESPONDENT Recognized within1-2months Recognized within3-5months Wall StreetJournal gnized withinthelastmonth ARE EXCITEDORHAPPYABOUTCHANGE ge Never recognized RECOGNITION &CHANGE , 2015was arecordyearformergersandacquisitions. Smallwonder, then, 8% 9% 5% 7% 7% 8% 14 S % ARE CONFIDENTORUNWORRIEDABOUTCHAN 36% 54% 34% hostile orresistant) orafraid, unworried, nervous feel? (Excited orhappy, confident or at yourcompany, howdoyoumostoften Q. When thingsarechanging significantly what cancompaniesdoto of ourworkforce,weasked difficult formorethanhalf Knowing thatchangeisso 42% 50% G E 55% 56%

The ROI of Recognition in Building a More Human Workplace // 19 The ROI of Recognition in Building a More Human Workplace // 20 at employeeattitudestoward change,wefoundthatpositiveattitudestoward changecorrelatedwithhigher We wondered what theimpactofattitudetoward changeisonkey metricsforanorganization. When welooked hostile orresistant) Filtered by:Q. When thingsarechangingsignificantlyat yourcompany, feel?(Excited orhappy, howdoyoumostoften orafraid, confidentorunworried,nervous hostile orresistant) Filtered by:Q. When thingsarechangingsignificantlyatyourcompany, feel?(Excited orhappy, howdoyoumostoften orafraid, confidentorunworried,nervous human workplace. survey uncovered, including transparency, caring, voice,andhow leadersperceivedcommitmenttoa What elsecontributestohow wefeelaboutchange?Herearesomeoftheotherhighest-performing practicesour hostile orresistant) Q. When thingsarechangingsignificantlyatyourcompany, feel?(Excited orhappy, howdoyoumostoften orafraid, confidentorunworried,nervous Not recognizedinpast6monthsormore My companycaresaboutmeasaperson My companycaresaboutmeasaperson Leaders careaboutahumanworkplace Leaders careaboutahumanworkplace My companyisopenandtransparent My companyisopenandtransparent Reco Recognized within1-2months Recognized within3-5months gnized withinthelastmonth CONTRIBUTORS TONEGAT CONTRIBUTORS TOPOSITIVEA ARE EXCITEDORHAPPYABOUTCHANGE ARE NERVOUSORAFRAIDOFCHANGE ARE NERVOUSORAFRAIDOFCHANGE Never recognized My voicematters My voicematters RECOGNITION &CHANGE Disagree Disagree Disagree Disagree Disagree Disagree Disagree Disagree TOW TOW 4% 3% 3% 3% 12 11% 11% 11% % ARD CHANGE ARD CHANGE 29% 28% 30 30 28% 26% 33% ARE CONFIDENTORUNWORRIEDABOUTCHAN % % ARE HOSTILEORRESISTANTTOWARDCHANGE ARE HOSTILEORRESISTANTTOWARDCHANGE 48% 48% 47 41 % % 51% 51% IVE A 5% 7% 6% 6% 33% 33% 33% TTITUDE 7% 34% 8% TTITUDE 12% 10% G S E S 15% 11% 14 15% 13% 13% % 52%

53% 53% 53% resistant) Filteredby:Q. I’m motivatedtoworkhardfor my companyandcolleagues: Q. When thingsarechangingsignificantlyatyourcompany, feel?(Excited orhappy, howdoyoumostoften orafraid,hostile confidentorunworried,nervous resistant) Filteredby: Would yourecommendworking atyourorganizationtoafriendorcolleague?: Q. When thingsarechangingsignificantlyatyourcompany, feel?(Excited orhappy, howdoyoumostoften orafraid,hostile confidentorunworried,nervous resistant) Filteredby:Ibelievemyorganizationisagreat/bestplacetowork: Q. When thingsarechanging significantly atyourcompany, feel?(Excited orhappy, howdoyoumost often orafraid,hostile confidentorunworried,nervous resistant) Filteredby: Which statementbelowbestdescribesyou? Q. When thingsarechangingsignificantlyatyourcompany, feel?(Excited orhappy, howdoyoumostoften orafraid,hostile confidentorunworried,nervous others. Italsocorrelatedwithincreasedmotivation anddecreasedstress. engagement, beliefthatthecompany isabestplacetowork,andwillingnessrecommendthecompany to Nervous aboutchange Hostile towardchange Nervous aboutchange Hostile towardchange Nervous aboutchange Hostile towardchange Nervous aboutchange Hostile towardchange Excited aboutchan Excited aboutchan Excited aboutchan Excited aboutchan ge ge ge ge IMP IMP I’M MOTIVATEDTOWORKHARDFORMYCOMPANYANDCOLLEAGUE IMP IMP I WOULDRECOMMENDWORKINGATMYCOMPANYTOAFRIEN ACT ONEMPLOYERBRAN ACT ONIMPRESSIONSOF A GREA I BELIEVEMYORGANIZATIONISABESTPLACETOWO ACT ONENGAGEME ACT ONMOTIV I amhighlyengaged 32% T WORKPLACE HIGHLY ENGAGE Agree 39% Agree D 50% AT 53% 54% Yes ION NT R 63% K D D S 69% 70% 72% 74 % 80% 86% 88% 90% 91% 94%

The ROI of Recognition in Building a More Human Workplace // 21 The ROI of Recognition in Building a More Human Workplace // 22 IS TRUSTFORLEADERSTHAT COLLEAGUES MOST, BUTIT MOST IMPACTS CULTURE. EMPLOYEES TRUST FINDING

4 Q. Ilovemyjob, only a31 percentdifferentialwhentrustforcolleagues was high. jobs. Interestingly, thiswas agreaterimpactthanworkers’ trustforcolleagues, witha39percentdifferential,vs. saying theyloved theirjobs—whileonly43percentofworkers whodistrustedseniorleaders reportloving their their jobs. Workers withhighlevelsoftrustforseniorleadersarethemostlikely tolove theirjobs, with82percent We asked workers iftheytrustedtheircolleagues, bosses, andseniorleaders, andthenasked how theyfeltabout leaders inparticularthatmostimpactedpeople’s attitudestoward thecompany andwork. Interestingly, whiletrustforcolleagueswas higher, ourresultsshowed thatacrosstheboarditwas trustforsenior Q. Itrustmycolleagues, percent hadtrustforbossesandonly65seniorleaders. levels are,findingthatwhile80percentofworkers trusttheircolleagues, trustforleadershiplanguishes—only72 is employeetrustforcolleagues, managers, andsenior leaders. We beganbyaskingrespondentswhatthosetrust Another importantculturequalitythatpsychologists have proven hasasignificantimpactonbusinessoutcomes FOR LEADERSHIPISMOSTLIKELY TOIMPACT ENGAGEMENT. ONLY 65PERCENTOFWORKERSTRUSTSENIORLEADERS,BUT TRUST INTHEORGANIZA I TRUSTMYSENIORLEADERSHI Agree I TRUSTMYCOLLEAGUES , Filteredby:Q. Itrustmycolleagues,Q. Itrust myboss,Q. Itrustmyseniorleaders. Agree , Q. Itrustmyboss, I TRUSTMYBOSS EFFECT OFTRUSTONLOVINGJO T rust C Agree 80% olleagues , Q. Itrustmyseniorleaders, P T rust Boss 72% TION -ALLRESPONDENTS LOVE JO AGREE 75% AGREE 82 AGREE 78 T Agree rust SeniorLeaders B . 65% % % DISAGREE 44 DISAGREE 44 B DISAGREE 43 % % %

The ROI of Recognition in Building a More Human Workplace // 23 The ROI of Recognition in Building a More Human Workplace // 24 I TRUSTMYSENIORLEADERSHI company was abestplacetowork,with89 percentagreeing. report theircompany was abestplacetowork. Those whotrustseniorleadersaremostlikely toagreethattheir colleagues, 78percentreport thattheircompany was abestplacetowork.Ofthosewhotrustbosses, 83percent And, finally, weasked employeesiftheybelievedtheirorganization was abestplacetowork.Ofthosewhotrust Q. Ihaveastrongfutureinmyorganization, and 81percent)tobelievetheyhave astrongfutureintheorganization. organization. We foundwhenemployeesreportedtrustforleadersandbosses, theyaremorelikely (84percent Another aspectofoptimismandself-esteemisanemployee’s beliefthattheyhave astrongfutureintheir Q. Which statementbelowbestdescribesyou? biggest impact. 30 percentdifferenceinengagementlevelswhenit was present,buttrustforseniorleadersmadethe This trendcontinuedwhenwelooked atlevelsofengagement. Trust ingeneralwas likely toproduceroughlya25- I TRUSTMYCOLLEAGUES I TRUSTMYBOSS EFFECT OFTRUSTONENGAGEMENT EFFECT OFTRUSTONOPTIMISM Agree P I amhighlyengaged. , Filteredby:Q. Itrustmycolleagues,Q. Itrustmyboss,Q. Itrustmyseniorleaders. I HAVEASTRONGFUTUREINMYORGANIZATION Filteredby:Q. Itrustmycolleagues,Q. Itrustmyboss,Q. Itrustmyseniorleaders. HIGHLY ENGAGE D

Q. When wasthelasttimeyouwererecognizedforyourcontributionsatwork? Filteredby:Q. Itrustmyboss,Q. Itrustmyseniorleaders. percent (vs. 53percentforthosewithnorecognition). for seniorleadersatarateof82percent(vs. 48percent for thosewithnorecognition)andtrustbossesat86 trust inbossesandseniorleadership.Infact,thosewhohave beenrecognizedwithinthemonthreportedtrust the impactofrecognitionontrustforleaders. Those withmostrecentrecognitionhadsignificantlyincreased human workplaceandabestplacetowork.Buthow cantrustinleadershipbebuilt? Inthenexttableweshow These resultsmake itclearthattrustinbossesandseniorleadersplays anenhancedroleincreatingamore Q. Ibelievemycompanyisabestplacetowork, Not recognizedinpast6monthsormore I TRUSTMYSENIORLEADERSHI Recognized withinthelastmonth I TRUSTMYCOLLEAGUES Recognized within1-2months Recognized within3-5months I TRUSTMYBOSS Never recognized EFFECT OFTRUSTONGREA IMP ACT OFRECOGNITIONONTRUST Agree P , Filteredby:Q. Itrustmycolleagues,Q. Itrustmyboss,Q. Itrustmyseniorleaders. TRUST FORSENIORLEADERS I BELIEVEMYCOMPANYISABESTPLACETOWORK FOR LEADERS 48% 53% TRUST FORBOSS 59% T WORKPLACE 70% 77% 81% 82% 83% 85% 86%

The ROI of Recognition in Building a More Human Workplace // 25 The ROI of Recognition in Building a More Human Workplace // 26 WELL-BEING ANDHAPPINESS. RECOGNITION ANDAMORE HUMAN WORKPLACEARE DRIVERS OFEMPLOYEE FINDING 5

person atwork? Q. Which statementbelowbestdescribesyou?Filteredby:Q. Overall,doyouconsideryourselftobeahappy, positive workers (81percent)sayingtheyarehappyathome. to only65percenthappinessatwork.Lackofengagementalsoimpactedhomelife—withadecreasednumber of Interestingly, amongneutralordisengagedworkers, thathappinessfelloffsignificantly—plummeting32points fact, highlyengagedworkers areincrementallymorelikely tosaytheyarehappieratworkthanhome! Those numbersevenincreasedslightlywhenworkers indicatedthattheyaremostlyorhighlyengagedatwork.In Q. Overall,doyouconsideryourselftobeahappy, positivepersonathome? Q. Overall,doyouconsideryourselftobeahappy, positivepersonatwork? happy athome. When weasked workers iftheywerehappyatwork,91percentagreedare,while92are or buildingacaring, humanworkplace. doesn’t endthere.Employeehappinessisatriskwhencompaniesdonotpayattentiontoemployeeengagement excited toseethatsomany workers reportfeelinghappyatworkandhome.However, thestorycertainly In ourfinalexplorationforthesurvey, welooked atthetopicofemployeehappiness. We weresurprisedand 91 PERCENTOFWORKERSAREHAPPYAT WORK. MOSTLY HIGHLY (NUETRAL ORDISAGREE) Yes NOT ENGAGED Q. Overall,doyouconsider yourselftobeahappy, positive person athome? ENGAGEMENT INFLUENCESHAPPINESS ENGAGED ENGAGED HAPPINESS -ALLRESPONDENT HAPPY AT 91% WORK HAPPY AT HAPPY AT HAPPY AT

65%

WORK 97% 94% WORK WORK HAPPY AT 92% HOME HAPPY AT

81% HAPPY AT HOME HAPPY AT

S 94%

HOME 95% HOME Yes

The ROI of Recognition in Building a More Human Workplace // 27 The ROI of Recognition in Building a More Human Workplace // 28 do youconsideryourselftobeahappy, positivepersonathome? well-being? Filteredby:Q. Overall,doyouconsideryourself tobeahappy, positivepersonatwork? tocreateamorehumanworkplace,focused onemployee Q. Doyourcompanyleaderscareaboutandactivelytry percent atworkand87 percent athome. workplace. When workers don’t believeleaderscareaboutcreatingahumanworkplace,happinessdropsto82 And finally, happiness atworkisaffectedbywhetherornotworkers believeleaderscareaboutcreatingahuman person atwork? Q. Mycompanycaresaboutmeasaperson.Filteredby:Q. Overall,doyouconsideryourselftobeahappy, positive percent likelihood atworkand86percenthome. fluctuates significantly. Foremployeeswhodon’t believethecompany caresaboutthem,happinessdipstoa 79 When weexplorewhetheremployeesbelievetheircompany caresaboutthemasaperson,happinessalso COMP ANY DOESN’TCAREABOUTME LEADERS DON’TCAREABOUT COMP PERCEPTION OFCARINGINFLUENCESHAPPINESS HUMAN WORKPLACEINFLUENCESHAPPINESS LEADERS CAREABOUT Yes ANY CARESABOUTME HUMAN WORKPLACE HUMAN WORKPLACE Q. Overall,doyouconsideryourselftobeahappy, positivepersonathome? HAPPY AT HAPPY AT HAPPY AT HAPPY AT

79% 82%

WORK 96% WORK 96% WORK WORK Yes HAPPY AT HAPPY AT

86% 87% HAPPY AT HAPPY AT HOME HOME

95% 95% Yes HOME HOME Yes Q. Overall, The ROI of Recognition in Building a More Human Workplace // 29 CONCLUSION

In this employee survey, we examined the impact of a human workplace on employee feelings and behavior. We also considered the impact of programs and practices—in particular values-based recognition—on creating a more human workplace. Though much work remains to be done in this important area, it is clear that a human workplace has a strong impact on employee well-being and important metrics such as engagement and intent to stay. We asked workers to share their feelings about human workplace practices. We also asked workers to identify for us how they define a human workplace. We asked, “Tell us, what do you think a more ‘human workplace’ is?” We received answers that ranged from “great teamwork” to “more comfortable,” from “a place where people care more about others than materialistic things,” to “free food and drink,” from “great work-life balance,” to “all are recognized and appreciated.” A few people even expressed cynicism about the ability of companies to be human. But the three elements that we noticed most often are best summed up in these three responses:

• “Respect for people as individuals.”

• “They care about the employees’ well-being.”

• “All are recognized and appreciated.” The findings in this report make it clear that recognition is the strongest foundation for building a human workplace focused on well-being and caring. When organizations focus on frequent, values-based recognition, they make a direct impact on engagement, positivity, motivation, and happiness. The result is a unified, human work culture that gives organizations the competitive edge to be successful in today’s evolving business climate. NEXT STEPS