At Companies Where Recognition Incorporates D&I, 3X as Many Employees are Highly Engaged

By HRTech News Desk On May 12, 2021

— At companies where recognition incorporates D&I, 55% of employees are highly engaged, vs. just 17% of employees at companies where there’s no integration.

— At companies where recognition incorporates D&I, 69% of employees say that D&I programs are effective at making them feel a sense of inclusion, vs. just 10% of employees at companies where there’s no integration.

— Despite these benefits, just 17% of employees and 32% of HR leaders say their company’s recognition programs include a D&I component.

Companies that integrate diversity and inclusion priorities and values within their recognition practices are more likely to be successful across a wide range of business outcomes, according to a new study by Achievers. and Workplace Intelligence, an HR research and advisory firm. The study of 2,000 U.S. employees and HR leaders found a strong connection between recognition and D&I, with companies that integrate these two programs benefiting from better financial performance, higher employee engagement, and more successful D&I and recognition efforts. The survey also revealed that despite these benefits, most companies aren’t integrating their recognition programs and their D&I initiatives.

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Where There’s a Strong Culture of Recognition, There’s Also a Strong Commitment to Diversity & Inclusion

Employees and HR leaders were asked about their company’s commitment to D&I, including policies, practices, and accountability. Employees were also asked whether they feel a sense of inclusion and belonging at their organization. In companies where there’s frequent recognition and a strong culture of recognition, there’s a greater commitment to D&I and higher levels of inclusion.

Culture of Recognition and D&I: At companies where there’s a strong culture of recognition, 82% of employees and 89% of HR leaders say their company is committed to D&I and 87% of employees feel included. Where there’s a weak culture of recognition, just 39% of employees and 38% of HR leaders say there’s a commitment to D&I and only 43% of employees feel included.
Frequency of Recognition and D&I: Among employees who were recognized within the past week, 81% agree that their company is committed to D&I and 87% report a high level of inclusion. Among employees who say they are never recognized, just 38% say there is commitment to D&I and only 45% feel included.

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Incorporating D&I into Recognition is Connected to Better Financial Performance and Higher Employee Engagement

Employees and HR leaders were asked whether their company incorporates D&I values and priorities into recognition, for example by recognizing the following: diverse employees and skillsets, welcoming and inclusive behaviors, taking an active part in promoting D&I, and recognizing others who support D&I. In companies where recognition incorporates D&I, employees and HR leaders report greater financial success and higher levels of employee engagement.

The Connection to Workplace Performance: 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. At companies that do not integrate D&I with recognition, just 17% of employees and 23% of HR leaders agree that their company outperformed industry peers.
The Connection to Employee Engagement: At companies where D&I is integrated with recognition, 55% of employees say they’re highly engaged and 41% of HR leaders say they have a highly engaged workforce. At companies that do not incorporate D&I within recognition practices, just 17% of employees say they’re highly engaged and 0% of HR leaders say they have a highly engaged workforce.

Incorporating D&I into Recognition Makes Both Programs More Effective

Companies where D&I is integrated with recognition report better outcomes for both their recognition programs and their D&I efforts.

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. At companies that do not integrate D&I and recognition, just 27% of HR leaders say they are likely to achieve their diversity goals.
Greater D&I Program Effectiveness: At companies where recognition incorporates D&I, 69% of employees say that D&I initiatives such as ERGs, learning courses, and mentoring programs are effective at making them feel a sense of inclusion. Where 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 where recognition does not incorporate D&I, around half that number (46%) feel included.
Stronger Recognition Outcomes: Where D&I is integrated with recognition, 88% of employees say that being recognized 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 well-being. At companies that do not connect D&I and recognition, just 54% of employees agree with these statements.

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Despite the Benefits, Few Companies Incorporate D&I into their Recognition Programs

HR leaders and employees report surprisingly low adoption of recognition practices, metrics and goals tied to D&I.

The Big Picture: Just 17% of employees and 32% of HR leaders say their company has a recognition program that includes a D&I component.
Low Use of Recognition Metrics tied to D&I: Among HR leaders, only 38% say they use employee diversity as a success metric to evaluate their recognition programs, and just 32% measure inclusivity of recognition (e.g., number of diverse employees recognized).
Low Use of Goals Connecting Recognition and D&I: For 2021, just 37% of HR leaders say their organization has committed to recognizing the achievements of their diverse employees, 31% are committed to recognizing employees who support D&I, and only 17% plan to connect recognition programs to D&I outcomes.
Use of Recognition Practices that Incorporate D&I: On average, 67% of employees and 82% of HR leaders agree that their company’s recognition practices incorporate D&I values, priorities, and behaviors.

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Supporting Quotes

“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. When recognition supports D&I, organizations will reap the benefits of a more engaged and productive workforce, where all employees feel that they belong.”

– Dr. Natalie Baumgartner, Chief Workforce Scientist, Achievers Workforce Institute

“Our study reveals a positive correlation between a company’s culture of recognition and their commitment to Diversity & Inclusion. When organizations prioritize 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.”

– Dan Schawbel, Managing Partner of Workplace Intelligence

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