Financial Institution Proves The Power of Recognition
We helped a major financial institution use ROI modeling to measure the impact of their employee recognition program.
The Challenge
Our financial client wanted to enhance their employee experience by improving their recognition program to better reinforce company values. Though they had a program in place, high turnover rates, inconsistent reward values and a lack of transparency on program spending created an undesirable work environment – and it was costing them.
They knew an unparalleled employee experience was the key to attracting and retaining top employees, but they couldn’t afford for another program to fail. The new employee recognition program would have to make a positive impact on employees – and on revenue.
The Insight
Our experts took a two-step approach to solve for the financial institution’s business challenges. We combined data, behavioral science and industry insights to design and deliver an improved recognition program and then used ROI modeling to measure its financial impact.
To create a unified culture of appreciation, we applied program elements designed to inspire the types of behavior that uphold the organization’s values. We addressed prior inconsistencies, introducing nomination-based and manager discretionary programs and eCards to align all employees to the company’s vision. By incorporating social sharing into their strategy, we increased visibility and transparency to drive program participation. These enhancements reportedly improved their employees’ experience, but we needed to prove it – in numbers.
Our experts created a regression model using recognition, employee and customer satisfaction data to calculate the program’s impact on profitability and revenue. We analyzed the company’s turnover rates to show a relationship between recognition and retention.
Behavioral Science Principles Applied
The Results
Our insights revealed that recognition was the key to retaining employees, boosting revenue and, ultimately, proving ROI. We found that increasing annual spend per employee from $60-$100 to $120 retained between 250 and 600 employees. With these findings in mind, we helped our client imagine new possibilities. How could business improve if every dollar spent on recognition makes money and saves money at the same time?
We delivered a recognition program that increased participation and productivity, enhanced the employee experience and transformed company culture. And, just as important, our program proved to be a profitable investment. By establishing a relationship between recognition, employee behavior and business outcomes, we proved that employee recognition pays off.
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