Staff 3x more engaged when D&I connected to recognition effort

Workplaces that integrate diversity and inclusion (D&I) into recognition programmes, report higher levels of inclusion, engagement and financial success, confirmed a new study carried out by HR research and advisory firm Achievers.

At companies where recognition incorporates D&I, staff are three times more engaged. Additionally, 69% of employees say that D&I programmes are effective at making them feel included; compared to just 10% of employees at companies where there’s no integration, revealed the report. Employees and HR leaders also report greater financial success. For example, at companies where D&I is integrated with recognition, 33% of employees and 43% of HR leaders say their company “outperformed” its industry peers over the past three years; compared to just 17% of employees and 23% of HR leaders at companies that do not integrate D&I with recognition.

Approximately, 55% of employees say they’re highly engaged; and 41% of HR leaders say they have a highly engaged workforce at firms where D&I is integrated with recognition. At companies that don’t, just 17% of employees say they’re highly engaged; and 0% of HR leaders say they have a highly engaged workforce. 

BETTER DIVERSITY & INCLUSION OUTCOMES

Companies where D&I is integrated with recognition also report better outcomes for both their recognition programmes and their D&I efforts. Key findings reveal:

• Increased likelihood of achieving D&I goals: At companies where recognition incorporates D&I, 93% of HR leaders say their company is likely to achieve its 2021 diversity goals, compared to 27% of HR leaders at organisations that don’t.
• Greater D&I programme effectiveness: 69% of employees say that D&I initiatives such as ERGs, learning courses, and mentoring programmes are effective at making them feel a sense of inclusion, at companies that integrate D&I with recognition. When D&I is not integrated with recognition, just 10% of employees agree that D&I initiatives give them a sense of inclusion. 
• Higher levels of employee Inclusion: Among employees whose companies integrate D&I with recognition, 89% agree with statements indicating a high level of inclusion. At companies that don’t, that number declines to just half of staff (46%) feeling included. 
• Stronger recognition outcomes: Where D&I is integrated with recognition, 88% of employees say that being recognised makes them more productive, engaged, satisfied, creative and innovative; more likely to stay with their company and refer people to their company; improves their feelings of belonging, inclusion and connection to their team; and boosts their overall wellbeing. However, only 54% of employees agree with these statements at companies that do not connect D&I and recognition.

LOW ADOPTION RATES

“Our study reveals a positive correlation between a company’s culture of recognition and their commitment to diversity and inclusion,” stated Dan Schawbel, Managing Partner of Workplace Intelligence. “When organisations prioritise and integrate both, they benefit from higher employee engagement, better outcomes tied to both recognition and D&I, and greater financial success. The sooner companies incorporate D&I into their recognition practices, the better off their employees and businesses will be.” 

Yet, despite the benefits, the report revealed that few companies incorporate D&I into their recognition programmes. Surprisingly, HR leaders and employees report low a adoption of recognition practices, metrics and goals tied to D&I; with just 17% of employees and 32% of HR leaders saying their company has a recognition programme that includes a D&I component. Additionally, just 37% of HR leaders say their organisation has committed to recognising the achievements of their diverse employees; only 31% are committed to recognising employees who support D&I; and just 17% plan to connect recognition programmes to D&I outcomes. 

“As we look to what the future holds for recognition and D&I, these survey results reinforce how critical it is that leaders in both areas work in lockstep as they strive to achieve their respective outcomes for the business,” commented Dr Natalie Baumgartner, Chief Workforce Scientist of Achievers Workforce Institute. “When recognition supports D&I, organisations will reap the benefits of a more engaged and productive workforce; where all employees feel that they belong.”

Click here for more information about the report. Employers need to work harder to engage and retain staff for business resilience if they want to thrive post Covid-19, reveals another recent study. Click here to read more.