Clients frequently ask us about the relationship between recognition and performance, often measured as a subjective rating. We’ve done several studies using client data that show a positive correlation – the frequency and total value of recognition both relate positively to higher performance ratings. Still, the question of causality arises:
Does recognition help drive better performance, or do higher performers simply receive more recognition?
To answer this question, we collaborated with a technology organisation based in Ireland with about 2,500 employees globally. Within this organization’s peer-to-peer recognition programme, employees can both give and receive for behaviours that demonstrate a core value, reflect a key strategic initiative or focus on customers. This organization also runs performance reviews on a quarterly cycle, with high performers defined as in the top two of a six-point scale.
We analysed this customer’s data over a 12-month span, giving us a rare longitudinal view into the relationship between recognition and performance. Here are the specific questions we sought to answer:
- Does a person’s current performance solely depend on past performance (suggesting any recognition is because of existing levels of performance)?
- Or does recognition reinforce and encourage behaviour in a way that leads to greater performance above and beyond an individual’s existing performance?
Here's what we found.
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