The document summarizes insights from recognition data collected by O.C. Tanner Institute. It finds that (1) recognition drives innovation when provided frequently, ideally monthly or quarterly, (2) recognition spikes in the last two months of the year but great work is done all year, (3) merchandise awards are increasingly preferred over gift cards, and (4) anniversary recognitions often start at year 5 despite a desire for recognition in earlier years. Social media amplifies the visibility and benefits of recognition by about 6 times. The insights suggest spreading recognition more consistently throughout the year.

1. R E L E VA N T T R E N D S , T O P I C S , A N D I S S U E S F O R YO U R B U S I N E S S . S TAY S M A R T. S TAY C U R R E N T.
octanner.com/institute
AT T H E
O.C. TANNER INSTITUTE
W E A R E CO M M I T T E D TO
RESEARCHING AND SHARING
I N S I G H T S T H AT H E L P
O R G A N I Z AT I O N S I N S P I R E A N D
A P P R E C I AT E G R E AT W O R K .
FROM 2013
O.C. TANNER
INSTITUTE
PRESE NTS:
INSIGHTS
RECOGNITION
THE
As the year comes to a close, we’ve analyzed data
from more than seven million recognition moments,
along with third-party research, to pull relevant,
actionable insights. Here’s what we’ve found:
O.C . TA N N E R I N ST I T U T E I N S I G H TS 2 0 1 3

2. INSIGHT NUMBER 1:
Recognition drives
innovation and great work.
Figure 1: Employee’s choice of which benefit
would most encourage them to proactively
innovate at their company:
Global research conducted by the Cicero Group found
employees who receive strong recognition are 33% more
proactively innovating, generating 2X as many ideas per
month. Companies that provide effective performance
recognition are 2x as likely to be highly innovative. Employees feel that above and beyond performance recognition
does more to encourage them to improve efficiency than an
additional bonus of 5% of their salary.
Consider the combined impact of driving innovation
with effective performance recognition that encourages
effort and rewards results.
27%
Ongoing effort
recognition
32%
5% salary
bonus
41%
Above and beyond
performance recognition
0
10%
20%
30%
40%
50%
60%
Source: 'The Effect of Performance Recognition' the Cicero Group, 2013.
INSIGHT NUMBER 2:
When it comes to great
recognition, how much and
how often matter a lot.
Figure 2: Ideal performance recognition frequency
9%
Two client-initiated research initiatives, one correlating
recognition frequency to quality and productivity, and one
correlating recognition frequency to engagement, had
similar conclusions: the frequency of recognition (monetary
or non-monetary) that correlated most strongly with the
people who demonstrated the highest levels of productivity,
quality, or engagement is between two times per month
and quarterly. Independent research done by the Cicero
Group, correlating recognition to engagement had the
same finding. Those who were most engaged indicated that
the ideal frequency of recognition is between multiple
times per month and quarterly, with monthly representing
the optimal frequency.
Multiple times a week
11%
Once a week
19%
Multiple times a month
26%
Once a month
20%
PEOPLE SHOULD HAVE THE CHANCE TO DO GREAT
7%
WORK EACH MONTH OR AT THE VERY LEAST
QUARTERLY. If recognition is not happening frequently,
question, why not. Managers should identify
opportunities to get team members engaged in doing
great work as often as possible.
Once every six months
9%
0
Once a quarter
Once a year
10%
20%
30%
Source: 'The Effect of Performance Recognition' the Cicero Group, 2013.
O.C . TA N N E R I N ST I T U T E I N S I G H TS 2 0 1 3
40%
50%

3. INSIGHT NUMBER 3:
There is a trend for recognition moments to spike in Q4.
The spike in the 4th quarter 2011 and 4th quarter 2012 is apparent—we anticipate the same activity for 2013.
Figure 3a: Number of items shipped
Figure 3b: Number of recognition moments
2013-4
2013-3
2013-2
2013-1
2012-4
2012-3
2012-1
2011-1
2013-3
2013-2
2011-4
2011-3
Source: O.C. Tanner client data
2012-2
0
2011-4
0
2011-3
200K
2011-2
50K
2013-4
400K
2013-1
100K
2012-4
600K
2012-3
150K
2012-2
800K
2012-1
200K
2011-2
1M
2011-1
250K
Source: O.C. Tanner client data
G R E AT WO R K I S B E I N G D O N E T H R O U G H O U T T H E Y E A R , but rewarded predominantly in the last two months.
While it’s great to have a recognition mindset at year-end what would it mean if people could be more consistently
rewarded? Consider communication initiatives or other pushes you could do to promote appreciation throughout the year.
INSIGHT NUMBER 4:
Although the mix of gift cards vs. merchandise varies
by client, there is a trend towards more merchandise.
80%
70%
60%
50%
MERCH ORDER:
40%
GIFT CARD:
30%
20%
10%
2013-09
2013-07
2013-05
2013-03
2013-01
2012-11
2012-09
2012-07
2012-05
2012-03
2012-01
2011-11
2011-09
2011-07
2011-05
2011-03
2011-01
2010-11
2009-09
0%
Source: O.C. Tanner client data
T H E R E R E M A I N S T R E M E N D O U S VA LU E I N
In performance recognition, for the last two years we have
seen about 60% ratio for merchandise versus 40% for gift
cards. The top three awards selected this year (in order)
have been 1) Headphones; 2) Coffee Products; 3) Luggage.
O.C . TA N N E R I N ST I T U T E I N S I G H TS 2 0 1 3
R E C E I V I N G A N AWA R D versus providing a shopping
experience. The question to ask is not what employees
want but what would make them feel most appreciated.

4. INSIGHT NUMBER 5:
We see anniversary
celebrations predominately
starting at year 5.
Figure 5: Number of clients celebrating anniveraries
at this year level.
1 = 13%
And yet, research from focus groups
conducted by the Cicero Group revealed
a desire for recognition in years 1 and 3.
3 = 8%
W H AT ’ S T H E O P P O R T U N I T Y M I S S E D when you wait
until year 5 to celebrate the impact someone has had on
your team and on the organization? Career celebrations
provide moments to connect managers and team
members and reflect on everything that individual has
accomplished. Consider other opportunities or
triggers—off years, birthdays, etc.—to reinforce how
much you appreciate the great work being done.
5 = 73%
0
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Source: O.C. Tanner client data
INSIGHT NUMBER 6:
The power of social extends the appreciation experience significantly.
Research found that the benefits of recognition were amplified 6 times when integrated with social.
Social media recognition’s
most dramatic effect is to
increase the visibility of
recognition efforts—6x as
many people are aware of
recognition they receive.
Greater awareness leads
to wider, more frequent
sharing of recognition’s
many benefits.
Figure 6: The visibility of recognition
(Number of people who are—or would be—
aware of recognition an employee receives.)
C E L E B R AT E C A R E E R S
50 60
ANTICIPATED
VISIBILIT Y
WITH SOCIAL
MEDIA
RECOG NITION
CO N S I D E R T H E B E N E F I TS of extending the recognition
experience beyond the 15 minutes of a presentation to a
couple of days. How can your system integrate to
include social appreciation?
O.C . TA N N E R I N ST I T U T E I N S I G H TS 2 0 1 3
127
E N CO U R AG E E F F O R T
CU RRENT
VISIBILIT Y
Source: ‘Social Media Recognition’
the Cicero Group, 2013.
R E WA R D R E S U LT S
81
11
CU RRENT
VISIBILIT Y
ANTICIPATED
VISIBILIT Y
WITH SOCIAL
MEDIA
RECOG NITION
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20
CU RRENT
VISIBILIT Y
ANTICIPATED
VISIBILIT Y
WITH SOCIAL
MEDIA
RECOG NITION