We just completed a year-long research study on the impact of employee recognition. It turns out that “high-recognition culture” companies dramatically outperform their peers in a whole range of business outcomes. These top companies generate 12X greater business outcomes in a variety of measures and have more than 30% lower voluntary turnover.

The employee recognition industry is an old market, focused heavily on rewarding employees for tenure and service. Such programs, while prevalent in more than 70% of companies, drive little actual business value. (How many of you stayed an extra five years at your company to get a pin?)

What these high-performing companies do is different.

First, they build focused recognition programs which collect “thank you’s” and “feedback” from peers, not just managers. Second, they directly tie recognition to business goals and company values, so recognition reinforces strategy. Third, they give employees open and transparent access to the program – so everyone can see who is being recognized and anyone can recognize another.

These new, high-value recognition programs create alignment, enable the “quiet heros” to get the credit they deserve, and create better teamwork and teamwork. And believe it or not, recognition creates positive reactions in both the recipient as well as the giver. (Research shows that saying “Thank you” creates oxytocin, which makes people happier and more productive!)

Our new research includes all the best-practices as well as a research-validated maturity model you can use to review and improve your own employee recognition program.  You can download the maturity model here.

Saying “Thank You” is an important and profound management tool. As Thanksgiving and holidays approach, now is the time to rethink your team’s recognition strategy and create a “high-recognition culture” in your own company.