Commissioned by O.C. Tanner, The Cicero Group performed a global research study on optimizing employee recognition programs. Their research proves that using cash and an unlimited number of award options decreases the effectiveness of the award program. Instead, providing a limited number of award options that provide employees with a "want" not a "need" will create a memorable reward experience.

1. optimizing
EMPLOYEE RECOGNITION
programs
Is unlimited choice really what employees want?

2. However, recent
research shows this may
not be the case.
Many companies implement solutions to
recognize and reward their employees and
think a huge number or unlimited number
of options are best.

3. THE FINDINGS:
award items are perhaps the most critical element
in helping employees feel appreciated.
too many award choices in a catalog can detract
from the recognition experience.
the ideal number of choices is likely in the range
of 100 to 500 items.
awards create longer lasting feelings of being
appreciated than cash.
The Cicero Group carried out a study to determine which
characteristics of an employee recognition program cause an
employee to feel most appreciated by their employer.

4. But 95% of survey
respondents said the ideal
number of award items to
choose from was 100.
Due to recent advances in production, shipping, and web development,
it is now financially feasible to provide a nearly unlimited number of
award options in recognition programs.
What is the ideal number of award items to choose from?

5. Respondents repeatedly said the following:
Why do a smaller number of award options
make employees feel more appreciated?
Award programs with fewer options focus on items that
fulfill employees "wants" and not just their “needs.”
A selection of more than several hundred award choices
is overwhelming and detracts from the experience.
A more tailored selection of items communicate a greater
degree of effort and interest from the employers.
Fewer items create a more carefree and rewarding
experience in which the employees can indulge and
pamper themselves.

6. cash is unlikely to make an
employee feel appreciated as
effectively as an award item.
There is a strong consumer preference for cash, but
Do award items create a better recognition
experience than their cash equivalent?

7. Click here for more information on rewards and recognition
because it does not provide the lasting effects
from the continued use of an award item.
Using cash on unrewarding
items, such as paying bills or
buying groceries, is detrimental
to a recognition experience

8. Providing the largest number of award
options or cash awards is unlikely to help
employees feel more appreciated.
Instead employers should optimize the
recognition experience by creating a
memorable and rewarding experience.

9. These awards should be unique items the
employee “wants,” and not just “needs” to
provide a sense of luxury and pampering.
Click here for more employee recogntion ideas
Ideally, employees should select
a personal award from a limited
number of award choices.

10. Six focus groups were conducted in Atlanta, New York City, and Los
Angeles. Each focus group included eight participants from a
variety of occupational backgrounds. Participants were segmented
based on their exceptional performance or for their years of service.
INTERVIEW
We conducted a randomized, nationwide
survey of 600 employees. Respondents were
also segmented based on their exceptional
performance or for their years of service.
ABOUT THE RESEARCH

11. Employees were asked to choose which of three programs would
cause them to feel most appreciated by their employer:
(company branded
mementos)
symbolic
awards
(a formal thank you
from the employer)
expressed
appreciation
(brand name
consumer goods)
personal
awards
THANK
YOU
CHOICE-BASED CONJOINT
METHODOLOGY

12. We were able to statistically determine the degree
of preference for each attribute as a whole.
BY HAVING EACH RESPONDENT REPEAT
THIS ACTIVITY FOUR TIMES,

13. O.C. TANNER AND THE O.C. TANNER INSTITUTE
O. C. Tanner helps the world inspire and appreciate great work.
Through our innovative cloud-based software, tools, awards,
education, and research, we provide thought leadership and strategic
recognition solutions for thousands of clients globally. Designed to
engage talent, increase performance, and drive corporate goals, our
solutions create personalized recognition experiences delivered
through a smart technology platform.
The O.C. Tanner Institute regularly commissions research and provides
a global forum for exchanging ideas about recognition, engagement,
leadership, culture, human values, and sound business principles.

14. Get the latest recognition insights and best practices.
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