OTTAWA, April 20 /CNW/ - Ninety-seven per cent of organizations in a
Conference Board of Canada survey have an employee rewards and
recognition program in place. Yet, fewer than half of the survey
respondents believe their employees are satisfied with the
organization's rewards and recognition practices.
This Conference Board of Canada study, Making it Meaningful: Recognizing and Rewarding Employees in Canadian
Organizations, found that the average annual amount spent on recognition is $175 per
employee. Public sector organizations average $123 in expenditure per
employee; those in the private sector spend $208 on average.
The survey was completed by 166 primarily medium- and large-sized
organizations across Canada. Respondents represent a cross-section of
public and private sector organizations and include all major industry
"Recognition from a manager carries meaning and motivation for
employees, whether or not it is accompanied by a reward," said Karla
Thorpe, Associate Director, Compensation and Industrial Relations.
"Organizations should keep in mind that recognition is personal, in
that what motivates one employee is different from what motivates
"Organizations that take into account the preferences of their employees
will see a greater impact from their investment in rewards and
Responding organizations spend, on average, 0.26 per cent of base pay on
rewards and recognition programs. This level of expenditure indicates
that maximizing the investment should be top of mind for managers of
Rewards and recognition programs can be used to increase employee
engagement and to create a positive work environment. However,
organizations often struggle with how to effectively use their rewards
and recognition program to connect with employees.
The most prevalent type of recognition program among survey respondents
is long-service recognition, with almost all organizations rewarding
employees for their tenure with the organization. The most common types
of reward given to these employees include gifts, pins, and plaques.
Almost half (45 per cent) of recognition spending goes to long-service
Some of the main challenges in managing rewards and recognition programs
Getting employees and managers to actively participate in their
Ensuring employees are being rewarded and recognized fairly and
Making the business case—finding the budget, showing a return on
Administrating and communicating the program.
The full report, Making it Meaningful: Recognizing and Rewarding Employees in Canadian
Organizations, is available to subscribers at www.e-library.ca.
SOURCE CONFERENCE BOARD OF CANADA
For further information:
Brent Dowdall, Media Relations, Tel.: 613- 526-3090 ext. 448