Saying “thank you” in your company has big generated big return-on-investment (ROI). If you or the head of your company think saying “thank you” often is not worth the time, more trouble than it’s worth or falls on deaf ears, think again.
Formally called “strategic recognition” in Human Resources management lingo, the practice and policy of Thanks goes beyond the intangible in benefits for a company.
Consider the following evidence from experts in the field:
Jeffrey Pfeffer of Stanford University’s Graduate School of Business says offering formal Thanks in a company generates higher ROI than bonuses. In his book, The Human Equation: Building Profits by Putting People First, Pfeffer notes that “Companies that manage people right will outperform companies that don’t by 30% to 40%.”
In fact, a McKinsey study published last year showed a $1,000 payment had a 10 times greater ROI when it was given as recognition than when it was given as a pay increase.
In its recently released WorkUSA study, Watson Wyatt, the global HR services firm, quantifies Thanks in an organization this way. In encouraging firms to build and share a system of equitable rewards, Watson Wyatt says, “organizations need to understand which reward programs are most important to engage their critical employee segments.” Their research shows that organizations that have an effective system of rewards have employees 20 times as likely to be highly engaged and 50 percent more likely to perform well.
It’s up to the HR manager to drive the conversation toward programs that make employees feel valued. It’s also quite prudent now to instill these formal Thanks into an organization. It’s more than just the right thing to do.
Learn More About gThankYou!