2015 Employee Recognition Programs - SHRM Online can help HR professionals make a case to add such...
Transcript of 2015 Employee Recognition Programs - SHRM Online can help HR professionals make a case to add such...
SHRM Survey Findings: Employee Recognition Programs2015
In collaboration with and commissioned by Globoforce
June 22, 2015
The Society for Human Resource Management (SHRM®
human resource management, has collaborated with Globoforce® on a series of surveys about
employee recognition. Our goal is to elicit trends among HR leaders and practitioners about what
challenges they face and what strategies help them conquer those challenges. This March, we
surveyed over 800 HR professionals in organizations with 500 or more employees and asked them to
share their experiences and practices.
View previous studies from this series:
Employee Recognition Programs, Spring 2013
Employee Recognition Programs, Fall 2012
Employee Recognition Programs, Winter 2012
Employee Recognition Programs, Summer 2011
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 2
Introduction
Employee retention/turnover (40%) and employee engagement (39%) were cited as the most important organizational challenges currently faced by HR professionals. A successful employee recognition program may have an impact on employee retention, turnover and engagement. It is important to track the effectiveness of employee recognition efforts in these areas.
HR professionals at organizations with values-based recognition programs were more likely to rate their recognition efforts highly. Overall, 80% of respondents indicated their organization had an employee recognition program. Over one-values, and at those organizations, 78% of HR professionals rated their program as excellent or good compared with 41% of respondents at organizations where the program was not tied to organizational values.
HR professionals at organizations with values-based recognition programs were more likely to perceive positive effects from their recognition programs. Many HR professionals agreed that their employee recognition programs resulted in the following outcomes (the level of agreement was higher for organizations with values-based employee recognition programs): had a positive impact on employee engagement (90% values-based vs. 67% nonvalues-based), increased employee happiness (86% vs. 70%), added humanity to the workplace (85% vs. 70%), improved employee relationships (84% vs. 66%), and helped the organization instill and reinforce corporate values in its employees (88% vs. 42%).
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Key Findings: Employee Recognition Programs
Who can nominate or recognize employees? At three-quarters of organizations (74%), anyone could nominate or recognize a colleague. Other organizations were most likely to allow supervisors/managers (20%) or senior-level executives (14%) to nominate or recognize employees.
» Large organizations (2,500 or more employees) were more likely than midsize organizations (500 to 2,499 employees) to allow anyone to nominate or recognize employees.
Do organizations use gamification or rely strongly on eThanks for employee recognition? Few organizations used leaderboards, rankings or badges gamification techniques that promote competition by tracking progress or accomplishments (12%) or relied strongly on eThanks an electronic card or automated e-mail without an associated reward (13%).
» Large organizations (2,500 or more employees) were more likely than midsize organizations (500 to 2,499 employees) to rely strongly on eThanks.
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Key Findings: Employee Recognition Programs (continued)
Most HR professionals are likely to focus on refining their recognition strategies to ensure they align with their values and to help retain top talent. Organizations that do not currently have employee recognition programs may consider adding them due to a more active hiring environment and the positive effects these programs have on employee engagement and employee happiness.
Sharing the strong positive outcomes of employee recognition programs with organizational leadership can help HR professionals make a case to add such programs, especially because their associated costs appear to be relatively low.
Recognition by senior organizational leaders can be one way to of the level of respect for employees at all levels and improve trust between employees and senior management two factors that SHRM research shows are critical to employee job satisfaction.
As in all areas of HR, demonstrating a return on investment will continue to be a key component of any employee recognition strategy.
HR professionals will need to ensure their employee recognition strategies do not inadvertently have a negative impact on organizational culture. Potential problems are inadequate reward selection, the program is not impactful for employees or an inconsistent experience among employees.
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What Do These Findings Mean for the HR Profession?
Most Important Challenges HR Professionals Face in Their Organization
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Note: Percentages do not total 100% due to multiple response options. An asterisk (*) indicates this response option was not available in 2013. Only organizations with an employee recognition and service anniversary program were asked this question.
40%
39%
35%
29%
24%
22%
22%
33%
47%
39%
26%
35%
31%
18%
25%
40%
41%
28%
30%
28%
24%
Employee retention/turnover
Employee engagement
Succession planning
Recruitment
Culture management
Performance management
Employee satisfaction
2015 (n = 561)
2013 (n = 704)
2012 (n = 680)
A successful employee recognition
program could help organizations address
many of the top challenges faced by
HR professionals.
Most Important Challenges HR Professionals Face in Their Organization (continued)
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Note: Percentages do not total 100% due to multiple response options. An asterisk (*) indicates this response option was not available in 2013. Only organizations with an employee recognition and service anniversary program were asked this question.
14%
12%
11%
9%
9%
7%
4%
18%
19%
10%
10%
4%
21%
21%
12%
11%
5%
Relieving employee frustration
Employee enablement (e.g., providing tools, resources)
Productivity
*Employee happiness
*Employer brand
Revenue per FTE
Other
2015 (n = 561)
2013 (n = 704)
2012 (n = 680)
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Employee Recognition Programs
Prevalence of Employee Recognition Programs
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Note: n = 823. Percentages may not total 100% due to rounding.
58%
22%
14%
5%
55%
26%
14%
5%
50%
27%
18%
6%
Yes, we have a program that is tied
Yes, we have a program, but it is not
No
No, but we plan to implement one inthe next 12 months
2015 (n = 823)
2013 (n = 797)
2012 (n = 763)
In 2015, 80% of organizations had
an employee recognition program.
Prevalence of Employee Recognition Programs
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Note: Only statistically significant differences are shown.
Comparisons by organization staff size
2,500 to 24,999 employees (82%)25,000 or more employees (88%)
> 500 to 2,499 employees (74%)
Comparisons by organization staff size
Organizations with 2,500 or more employees were more likely than organizations with 500 to 2,499 employees to have an employee recognition program.
Recognition Efforts
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Note: n = 662. Only respondents whose organizations had an employee recognition program were asked this question. All differences between values-based and nonvalues-based recognition are statistically significant. Percentages may not total100% due to rounding.
14%
54%
27%
5%
18%
60%
20%
1%
3%
38%
45%
14%
Excellent
Good
Fair
Poor
Overall
Values-basedrecognition
Nonvalues-basedrecognition
Perceived Impacts of Employee Recognition Program on the Organization
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Note: n = 641- -based and nonvalues-based recognition are statistically significant.
Impact Overall Values-basedNonvalues-
based
Has a positive impact on employee engagement
83% 90% 67%
Increases employee happiness 82% 86% 70%
Adds humanity to the workplace 81% 85% 70%
Improves employee relationships 79% 84% 66%
Helps the organization instill and reinforce corporate values in its employees
75% 88% 42%
Helps the organization retain its employees 61% 68% 41%
Increases employee productivity 56% 65% 33%
Helps maintain a stronger employer brand 55% 66% 28%
Delivers a strong return on investment 48% 57% 23%
Perceived Impacts of Employee Recognition Program on the Organization (continued)
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 13
Note: n = 636- -based and nonvalues-based recognition are statistically significant.
Impact Overall Values-basedNonvalues-
based
Has a positive impact on financial results
45% 53% 24%
Provides data that help in culture management 40% 48% 20%
Helps the organization meet safety goals 33% 37% 23%
Helps the organization meet sustainability or cost-control goals
30% 36% 14%
Helps the organization attract new job candidates
25% 30% 9%
Helps meet learning and development goals 25% 31% 11%
Helps the organization meet health and wellness goals
24% 29% 13%
Provides data that help in succession planning 23% 28% 10%
Program on the Organization
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 14Note: Only statistically significant differences are shown.
Comparisons by organization staff size
Comparisons by organization staff size: Helps maintain a stronger employer brand
25,000 or more employees (68%) > 500 to 2,499 employees (52%)
Organizations with 25,000 or more employees were more likely than organizations with 500 to 2,499 employees to indicate that their employee recognition program helped maintain a stronger employer brand.
Comparisons by organization staff size: Increases employee happiness
500 to 2,499 employees (85%) > 25,000 or more employees (74%)
Organizations with 500 to 2,499 employees were more likely than organizations with 25,000 or more employees to indicate that their employee recognition program increased employee happiness.
Comparisons by organization sector
Comparisons by organization sector: Increases employee productivity
Privately owned for-profit (65%) >Nonprofit (47%)
Government (42%)
Privately owned for-profit organizations were more likely than nonprofit and government organizations to indicate that their employee recognition program increased employee productivity.
Types of Employees Who Can Nominate or Recognize Employees
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 15
Note: n = 660. Note: Percentages do not total 100% due to multiple response options. Respondents indicating "Anyone can nominate or recognize a colleague" were excluded from the other response options.
74%
20%
14%
9%
8%
Anyone can nominate orrecognize a colleague
Supervisors/managers
Senior-level executives
Direct supervisor
Human resources
Types of Employees Who Can Nominate or Recognize Employees
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 16
Note: Only statistically significant differences are shown.
Comparisons by organization staff size: Anyone
2,500 to 24,999 employees (80%)25,000 or more employees (83%)
> 500 to 2,499 employees (65%)
Comparisons by organization staff size
Organizations with 2,500 or more employees were more likely than organizations with 500 to 2,499 employees to allow anyone to nominate or recognize a colleague.
Comparisons by organization staff size: Supervisors/managers
500 to 2,499 employees (27%) >2,500 to 24,999 employees (16%)25,000 or more employees (14%)
Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 or more employees to allow supervisors/managers to nominate or recognize employees.
Comparisons by organization staff size: Human resources
500 to 2,499 employees (10%) > 2,500 to 24,999 employees (3%)
Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 to 24,999 employees to allow human resources to nominate or recognize employees.
Use of Gamification and eThanks for Employee Recognition
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n = 660
Yes12%
No88%
Use leaderboards, rankings or badges
Yes13%
No87%
Rely strongly on eThanks(an electronic card or automated
e-mail without an associated reward)
n = 661
Gamification: Adding games or gamelike elements to something to encourage participation.
Leaderboards, rankings and badges track progress and/or accomplishments.
Use of eThanks for Employee Recognition
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Note: Only statistically significant differences are shown.
Comparisons by organization staff size
2,500 to 24,999 employees (18%)25,000 or more employees (22%)
> 500 to 2,499 employees (6%)
Comparisons by organization staff size
Organizations with 2,500 or more employees were more likely than organizations with 500 to 2,499 employees to rely strongly on eThanks.
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 19
Service Anniversary Programs
Most organizations celebrate service anniversary milestones every five years. About one-quarter (28%) celebrate the first-year anniversary, 8% celebrate two years, 12% celebrate three years and 90% celebrate the fifth year of service. Over two-thirds of HR professionals (69%) viewed their service anniversary recognition efforts as excellent or good (22% and 47%, respectively).
Who is part of the service anniversary experience? Nearly three-quarters of organizations (72%) reported that the immediate supervisor/manager was a part of the experience, followed by human resources (62%) and upper-level management (61%). About one-half of respondents said service anniversaries involved the organization itself (54%) for example, the organization may send a form letter to the employee. One-third of organizations (34%) included peer-level colleagues in the service anniversary experience.
What is the primary feature of the service anniversary experience? About one-third of organizations (32%) provided employees with merchandise from a catalog/website. Twenty-one percent had an in-person event or award presentation, and 17% gave out pins, plaques or company logo items. Other awards include letters or certificates, cash bonuses and gift or debit cards.
How much do organizations spend per employee on service anniversary awards? On average, over one-third of organizations (37%) reported spending $50 or less per employee, 31% spent $51 to $200 per employee, and 22% spent more than $200 per employee.
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Key Findings: Service Anniversary Programs
What would HR professionals like their service anniversary program to deliver? Eighty-eight percent said they would like the program to make employees feel appreciated/valued. Over two-thirds felt the program should increase employee satisfaction/happiness (73%), renew emotional commitment to the organization (69%), raise employee engagement (68%) and build employee confidence/pride (67%).
How do HR professionals rate the value of their service anniversary program? Seventy-two percent of HR professionals said their program was good or excellent at making employees feel valued. Nearly two-thirds (65%) said it contributed positively to organizational culture. More than one-half felt that organizational leadership (58%) and employees (56%) loved the program.
The top concerns voiced to HR professionals by employees were inadequate reward selection (32%), not impactful for employees (30%), inconsistent experience among employees (25%), too impersonal (20%) and too infrequent (18%).
anniversary program? Most commonly, HR professionals thought the service anniversary could be improved by providing a more inspiring experience to look forward to (35%). About one out of five said the program would be more effective with more participation from senior leaders (22%), better quality award choices (22%) and more participation from managers (21%).
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Key Findings: Service Anniversary Programs (continued)
Service Anniversary Years Celebrated
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Note: n = 585. Percentages do not total 100% due to multiple response options. Respondents who indicated they did not have an anniversary program were excluded from the analysis.
28%
8%
12%
90%
5%
92%
84%
89%
88%
85%
73%
62%
1 year
2 years
3 years
5 years
7 years
10 years
15 years
20 years
25 years
30 years
40 years
50 years
Anniversary Program
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n = 583
22%
47%
26%
5%
Excellent
Good
Fair
Poor
Over two-thirds of HR professionals (69%)
rate service anniversary program positively.
Types of Employees Who Are Part of the Service Anniversary Celebration
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 24
Note: n = 580. Percentages do not total 100% due to multiple response options.
72%
62%
61%
54%
34%
The immediate supervisor/manager
Human resources
Upper-level management
The organization (for example, a formletter is sent by mail or e-mail)
Peer-level colleagues
Primary Feature of the Service Anniversary Experience
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 25
n = 580
32%
21%
17%
9%
6%
4%
3%
2%
1%
5%
Merchandise from a catalog/website
An in-person event or award presentation
Pins, plaques or company logo items
Letters or certificates
Cash bonuses
Choice of gift cards
Includes stories, congratulations and/orcelebration by peers/colleagues
Debit cards
Integration with internal social network (recognitionprogram social feed, Chatter, Yammer)
Other
Primary Feature of the Service Anniversary Experience
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 26
Note: Only statistically significant differences are shown.
Comparisons by organization staff size
Comparisons by organization staff size: Merchandise from a catalog/website
25,000 or more employees (47%) > 500 to 2,499 employees (26%)
Organizations with 25,000 or more employees were more likely than organizations with 500 to 2,499 employees to have merchandise from a catalogue/website as the primary feature of their service anniversary program.
Comparisons by organization staff size: Cash bonuses
500 to 2,499 employees (10%) > 2,500 to 24,999 employees (3%)
Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 to 24,999 employees to have cash bonuses as the primary feature of their service anniversary program.
Comparisons by organization sector: Merchandise from a catalogue/website
Publicly owned for-profit (45%) > Government (6%)
Comparisons by organization sector
Publicly owned for-profit organizations were more likely than government organizations to have merchandise from a catalog/website as the primary feature of their service anniversary program.
Average Spending on Service Anniversary Awards per Employee
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Note: n = 421. Respondents who answered "don't know" were excluded from this analysis.
18%
19%
22%
19%
10%
6%
6%
$25 or less
$26-50
$51-100
$101-200
$201-300
$301-500
More than $500
What HR Professionals Would Like Their Service Anniversary Program to Deliver
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 28Note: n = 573. Percentages do not total 100% due to multiple response options.
88%
73%
69%
68%
67%
55%
48%
47%
45%
40%
28%
25%
13%
5%
1%
Make employees feel appreciated/valued
Increase employee satisfaction/happiness
Renew emotional commitment of employee to the organization
Raise employee engagement
Build employee confidence/pride
Improve organizational culture/climate
Improve employee relationships
Inspire all employees who participate
Reduce turnover
Increase trust in company leadership
Offer insight into culture
Attract job candidates
Create equity and compliance
Reduce program costs
Other
Service Anniversary Program
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Note: n = 507-567. Percentages may not total 100% due to rounding. Respondents who answered "Not applicable" were excluded from this analysis.
21%
16%
16%
15%
12%
10%
8%
7%
51%
49%
40%
43%
41%
41%
33%
37%
24%
29%
35%
34%
35%
36%
42%
39%
4%
6%
8%
8%
12%
13%
18%
16%
Makes employees feel valued
Contributes positively to organizational culture
Employees love the program
Organizational leadership loves the program
Increases employee engagement
Provides satisfactory return on investment
Increases employee retention
Meets identified business goals
Excellent Good Fair Poor
HR Professionals Reporting Negative Feedback From Employees About Service Anniversary Program
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 30
Note: n = 522. Percentages do not total 100% due to multiple response options. An asterisk (*) indicates that the response option was developed from open-ended responses.
32%
30%
25%
20%
18%
15%
8%
6%
4%
8%
7%
Inadequate reward selection
Not impactful for employees
Inconsistent experience among employees
Too impersonal
Too infrequent
Not enough impact on business results
Too big an administrative burden
Too manager-dependent
Too expensive
Other
*None
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 31Note: n = 548. Percentages do not total 100% due to multiple response options.
35%
22%
22%
21%
19%
19%
18%
18%
16%
15%
15%
14%
9%
5%
3%
3%
A more inspiring experience for employees to look forward to
More participation from senior leaders
Better quality award choices
More participation from managers
More participation from colleagues and work friends
A bigger budget allocation
Inclusion of past achievements and successes
Better breadth of award choices
Inclusion of memories and stories
A more emotional, poignant or moving experience
A more lasting, revisitable experience that can be shared with family
A more modern experience (e.g., online, mobile, video)
A lighter administrative burden
More inclusion of pins and logowear
Less reliance on pins and logowear
Other
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 32
Demographics
Demographics: Organization Industry
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Note: n = 736. Percentages do not total 100% due to multiple response options.
Percentage
Health care and social assistance 24%
Manufacturing 20%
Professional, scientific and technical services 14%
Educational services 11%
Accommodation and food services 8%
Finance and insurance 8%
Government agencies 8%
Retail trade 8%
Transportation and warehousing 6%
Arts, entertainment, and recreation 4%
Information 4%
Demographics: Organization Industry (continued)
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Note: n = 736. Percentages do not total 100% due to multiple response options.
Percentage
Administrative and support and waste management and remediation services 3%
Construction 3%
Mining, quarrying, and oil and gas extraction 3%
Repair and maintenance 3%
Utilities 3%
Wholesale trade 2%
Agriculture, forestry, fishing and hunting 1%
Personal and laundry services 1%
Real estate and rental and leasing 1%
Religious, grant-making, civic, professional and similar organizations 1%
Other industry 2%
Demographics: Organization Sector
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n = 740
35%
31%
19%
11%
4%
Privately owned for-profit
Publicly owned for-profit
Nonprofit organization
Government agency
Other
Demographics: Organization Staff Size
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 36
n = 752
50%
36%
14%
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees
Demographics: Region
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Note: n = 689. Percentages do not total 100% due to rounding.
39%
21%
20%
19%
South
Midwest
West
Northeast
n = 749
Demographics: Other
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 38
U.S.-based operations only 62%
Multinational operations 38%
Single-unit organization: An organization in which the location and the organization are one and the same.
12%
Multi-unit organization: An organization that has more than one location.
88%
Multi-unit headquarters determines HR policies and practices.
46%
Each work location determines HR policies and practices.
2%
A combination of both the work location and the multi-unit headquarters determines HR policies and practices.
52%
Is your organization a single-unit organization or a multi-unit organization?
For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?
Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?
n = 759
n = 673
Corporate (companywide) 62%
Business unit/division 21%
Facility/location 17%
n = 674
What is the HR department/function for which you responded throughout this survey?
39
SHRM Survey Findings: Employee Recognition Programs2015
Response rate = 14%
manager or above and employed at organizations with a staff size of 500 or more employees participated in this survey.
Margin of error +/-3%
Survey fielded January 13-February 4, 2015
In collaboration with and commissioned by Globoforce
Survey Methodology
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015
• View previous studies from this series:
Employee Recognition Programs, Spring 2013
Employee Recognition Programs, Fall 2012
Employee Recognition Programs, Winter 2012
Employee Recognition Programs, Summer 2011
2015 Job Satisfaction and Engagement Report: Optimizing Organizational Success (You can also purchase a copy of the report at shrmstore.shrm.org)
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SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 40
Additional SHRM Resources
Globoforce is a leading provider of social recognition solutions, helping companies build strong cultures
of engaged employees through the power of thanks. Named one of the Best Workplaces by the Great
Place To Work® Institute, Globoforce is trusted by some of most admired companies in the world to
inspire and energize employees and create best places to work. Our award-winning SaaS technology
and proven methodologies empower HR and business leaders to take a modern, more strategic
approach to recognition programs. What results is measurable business success, qualified by increases
in employee engagement, retention, and productivity. The company is the creator of the HR
conference WorkHuman, designed to help organizations unlock the power of the human workplace.
Globoforce is co-headquartered in Southborough, Massachusetts, and Dublin, Ireland.
Visit: http://www.globoforce.com
Read: http://globoforce.com/globoblog
Twitter @Globoforce
LinkedIn: http://www.linkedin.com/company/globoforce
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 41
About Globoforce
membership organization devoted to human resource management. Representing more than 275,000
members in over 160 countries, the Society is the leading provider of resources to serve the needs of
HR professionals and advance the professional practice of human resource management. SHRM has
more than 575 affiliated chapters within the United States and subsidiary offices in China, India and
United Arab Emirates. Visit us at shrm.org.
SHRM/Globoforce Employee Recognition Programs 2015 ©SHRM 2015 42
About SHRM