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Globoforce: Companies Waste Millions on Employee Recognition Programs

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Thu Mar 19 2009

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Southborough, MA and Dublin, Ireland -- March 17, 2009 - Most global companies spend millions of dollars each year on multiple, disconnected recognition programs that simply do not deliver - either to employee satisfaction or to the bottom line. Moreover, these unfocused programs are typically not tracked, so management has no idea how much is being spent and whether or not those dollars actually impact the organization.

A recent survey conducted by recognition strategist Globoforce revealed that nearly 40 percent of HR leaders have no tool at all to measure the performance of their recognition programs, leaving their CEOs completely in the dark. In today's economy in which every dollar must be tracked and measured against delivering a valuable outcome, companies simply cannot afford this type of waste. At the same time, companies cannot pay the exorbitant 'price tag' of not recognizing employees - who are in dire need of motivation - to lift them out of psychological ruts caused by the financial crisis.

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As Michael Kesner of Deloitte put it, "The last thing companies need now is for employees to throw in the towel and say, 'I'm not going to work so hard.'" Companies that figure out how to crack this critical piece of the recessionary code will be among the few with energized and productive workforces that ultimately drive company performance - not only now, but also when the market turns. So how do companies reign in this form of corporate waste and find new, cost-effective ways to reward and re-energize employees?

Globoforce advises global companies to consolidate their costly disparate programs with their buried and widely distributed budgets into one streamlined, global strategic recognition program designed to touch 80+ percent of their workforce. When administrated properly, these programs can enable companies to save a full 50 to 70 percent of their recognition dollars - all of which can be tracked and measured so executives can see the precise value the program delivers.

(Read the entire release on PRWeb.)

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