Employee Recognition• Dramatically Impacts

Profitability• Improves Your Bottom Line

Recognition Leads To Higher O.M. By more than 6% Operating Margin = Sales After Cost Of SalesLast Years Sales $_______ X ____% Increase = $______

Source: Discovery White Paper “Recognition Pays” by O.C. Tanner Company / The Jackson Organization 2005

• Lower Fixed CostsLower Fixed Costs• Higher Gross MarginsHigher Gross Margins• Higher EfficiencyHigher Efficiency• More Pricing FlexibilityMore Pricing Flexibility

Recognition Increases R.O.E. By More Than 3 TimesR.O.E.= Net Income Divided By Net Worth (Equity). This Indicates The Highest-Level

Indicator Of Company SuccessSource: Discovery White Paper “Recognition Pays” by O.C. Tanner Company / The Jackson

Organization 2005

• Increase Your ProfitsIncrease Your Profits

• Increase Your Financial Increase Your Financial LeverageLeverage

Recognition Increases R.O.A. By More Than 6%R.O.A. = A Useful Indicator Of How Profitable A

Company Is Relative To Its Total Assets.Source: Discovery White Paper “Recognition Pays” by O.C. Tanner Company / The Jackson Organization 2005

• Enable You To Use Your Enable You To Use Your Assets More EffectivelyAssets More Effectively

• Generate Higher EarningsGenerate Higher Earnings

• Recognized Employees Are – More Engaged In Their Work– More Focused On Client Satisfaction (Client

Dissatisfaction Is The #1 Reason That Clients Leave)• Care More About The Success Of The Team And

The Companies Success• Employees On Average Leave To Go To Another

Company For Less Than A 5% Raise In Pay, Which Is Less Than 1 Cup Of Starbucks Coffee Per Week.

• The Main Reason They Leave Is Because They Don’t Feel Rewarded.

It’s Easier To Keep an Existing Customer and Increase That Business Than To Look For New Business

60% of Business Comes From Existing Customers

• Most People Find Another Service Provider Because They Feel They’re Not Treated Well.

• They Feel Neglected, Or Abused.

• Unhappy Employees Don’t Treat Their Customers Well.

• If You Treat Your Employees Well, They Will Treat Your Customers Well

Customer Service and Quality of Merchandise Are Directly Related To Employee Satisfaction On The Job.

Source: The Loyalty Connection: Secrets To Customer Retention And Increasing Profits. Bob Thompson March 2005

When Customers Were Asked Why They Left And Found Another Service Provider, 68% When Customers Were Asked Why They Left And Found Another Service Provider, 68% Said The Reason Was Related To Poor Service, Or Being Poorly TreatedSaid The Reason Was Related To Poor Service, Or Being Poorly Treated

Source: The Carrot Principle by Gostick and Elton