1% of Payroll: The Magic Number For Social Recognition Investment


Finding 3 in the 2016 SHRM/Globoforce Employee Recognition Survey shows that the sweet spot for values-based rewards and recognition investment is 1% or more of payroll. Companies that make this level of investment are nearly three times as likely to rate their program as excellent, compared to companies that invest less than 1% of payroll. The annual pay raise or bonus for example, only gives a lift in employee engagement for about one month.

3 Innovative Compensation Ideas Ready for Prime Time

Compensation Cafe

What if we put a portion of payroll into everyone’s hands to apportion to those they see doing great work in a system with oversight and governance? Even 1% of payroll invested into a peer-to-peer social recognition program in this way empowers all employees to essentially “pay” their colleagues for great work by recognizing them for it in small increments throughout the year. Compensation Philosophy Incentives/Bonuses Pay for Performance Recognition

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Where Have All the Raises Gone?

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Last month The New York Times ran an article bemoaning the loss of pay raises in favor of one-time bonuses and non-monetary rewards. The share of payroll budgets devoted to straight salary increases sank to a low of 1.8 Aon Hewitt did not even start tracking short-term rewards and bonuses — known as variable compensation — until 1988, when they accounted for an average of 3.9 percent of payrolls. Compensation Philosophy Incentives/Bonuses Recognition Total Rewards

The Recognition Science Denier


Below is a clip about the Deniers from Globoforce CEO Eric Mosley’s keynote at WorkHuman 2017. At WorkHuman 2016, a group of 30 Globoforce customers corroborated with the WorkHuman Research Institute and Shawn Achor , WorkHuman speaker and Harvard researcher, to examine the impact of their recognition programs on talent outcomes like turnover and performance. 1% of Payroll: The Magic Number for Social Recognition Investment. Say Goodbye to the Annual Bonus.

Recognition & Inclusion


Traditional forms of recognition come from the top-down , whereby a manager directly offers words of praise, accolades, rewards or bonuses to their employee. This can take on the form of 1:1 feedback loops, yearly or quarterly bonuses, performance reviews, employee of the month or years of service awards and more. Additionally, these one-off spikes don’t provide enough incentive to impact employees’ daily motivation levels significantly. SHRM/Globoforce Survey.

Using Performance Feedback to Calculate Pay?


Awarding higher pay and bonuses to top performers seems like the straightforward way to incentivize and retain great employees. The most popular format being performance based bonuses, which keep base pay manageable and provide incentives for better performance. Traditionally money was seen as the main incentive used to motivate employees. Higher productivity results in higher salaries and bonuses. A joint study by SHRM and Globoforce found: “Peer-to-peer is 35.7%