Southborough, Mass., and Dublin, Ireland (Vocus/PRWEB ) January 21, 2009 -- Companies today are faced with the pressing challenge of finding new, cost-effective ways to motivate a workforce that is becoming increasingly fearful, distracted and, most importantly, unproductive. ' Psychological recession' and 'layoff survivor syndrome' are a few of the new buzz words that have entered the vernacular, which describe the state of many employees who have had to say goodbye to co-workers, bonuses, pay raises and benefits - all while taking on more work.
The impact of these dynamics on morale and productivity can be substantial. As reported in a recent article on MSNBC.com, "A flurry of research after the economic downturn of the 1990s found that layoff survivors reported high levels of distrust and lower levels of motivation and engagement. Absenteeism went up, productivity went down."A December 2008 study by Leadership IQ as reported in Workforce Management magazine said the following: "Corporations are mistaken to think that employees who survive layoffs will work harder out of gratitude. In fact, by their own admission, employees say their companies should expect less from them going forward. Moreover, nearly 75 percent of employees who held on to their jobs amid downsizing acknowledge that their individual productivity is declining, while nearly seven in 10 say their company's product or service lines are in decline since the layoffs."
While these facts may seem daunting, there are steps companies can take to lift employees out of this recessionary rut, and the results can have an immediate impact on corporate productivity and morale. A 2007-2008 global workforce study conducted by Towers Perrin showed that companies with high employee engagement show a 19.2 percent increase in operating income while low-engagement companies show a drop of 32.7 percent. With a potential differential operating income on the line, engaging employees is essential for success, particularly when a company is struggling for margins during an ailing economy.
According to recognition strategist Globoforce, strategic recognition is precisely the rescue package HR managers need right now to re-engage disenchanted and disconnected employees, galvanize them around key goals, and put the company on track to greater productivity. "Now more than ever employees are in dire need of a boost to lift their spirits and re-focus them on their jobs," said Derek Irvine, Vice President of Global Strategy, Globoforce. "A simple thank you or a small reward can do wonders to elevate mood, ignite morale and engage employees. When these rewards are tied to company values and goals, it reinforces those important messages and infuses them back into the workforce. Companies that figure this out will not only experience the benefits in the near term, but will be a strong position when the market turns."
Irvine notes that companies can re-align and consolidate existing rewards budgets to accomplish this critical task and most often do it at a significant savings. "Most companies are already investing significantly in an incentive or recognition program, but the majority of the programs are disparate and unfocused and do not deliver the full return on investment possible with strategic recognition. Simply by consolidating these disparate programs into one, companies can realize significant savings on their current investment and achieve tremendous ROI from those dollars. At Globoforce, we have helped numerous clients save more than 50 percent of existing program costs through this approach."
In its newly released executive research brief entitled ' Rescue Employee Productivity from Recession Fears with Strategic Recognition,' Globoforce advises that companies employ the following to put recognition to work within their organization:
About Globoforce
Founded in 1999 and co-headquartered in Southborough, Massachusetts and Dublin, Ireland, Globoforce is the world's leading provider of global strategic employee recognition solutions for Global 2000 companies. Named a 2008 Inc. 500 company, Globoforce delivers an innovative, easy-to-use, on-demand software solution that engages employees across the globe, transforming the way enterprises motivate their workforce. Globoforce's blue-chip customer base, which includes Avnet, Biogen Idec, Dow Chemical, Global Crossing, Fairmont Hotels & Resorts, Intel, Intuit, Nortel, Procter & Gamble and Thomson Reuters, reflects the importance of recognizing and engaging the workforce in the 21st century.