Workplace Awards – Valuable or Misleading?

Much like people have resumes, organizations have begun to focus more on their reputation in the marketplace. To define one's reputation, organizations have begun investigating ways to illustrate their values to the public. As such, award programs have become more popular as a means of achieving an organization's desired image to draw in top talent and retain existing staff.

There are many different award programs available today ranging from "Best Places to Work^® to "Fortune's 100 Best Companies to Work For" to "HR Solutions' Best-in-Class^® Employer List" to "Modern Healthcare's 100 Top Hospitals" to the "Malcolm Baldrige National Quality Award." While it may seem like applying for any award would be beneficial press exposure for the company, it is crucial to question the validity of such award programs. It may not be wise to invest time in an award application process that is not a valid representation of its purpose. In those instances, the award could be perceived by the public as false advertising and, ultimately, hurt an organization's reputation.

For example, an award program that advertises its identification of the top 100 organizations in a specific industry, such as healthcare, should have a valid number of applicants to determine a top 100 list. After reviewing last year's award winners in "Modern Healthcare's Top 100 Hospitals" award program, one might notice that about 200 hospitals participated in the award process and 100 organizations were defined winners. If there are over 5,795 registered hospitals according to the American Hospital Association¹, and only 200 participated, it is extremely unlikely that the 100 organizations awarded are a valid representation of the top 100 organizations in healthcare. When using a sample size calculator with a 95% confidence level and a confidence interval of two, at least 1,698 hospitals would need to participate in order for the award program to be considered legitimate.

To select the most statistically valid and meaningful award programs consider the following:

1. Research the number of applicants versus the number of organizations awarded. If the ratio of applicants to winners seems questionable, it may not be a wise award to pursue.


2. Assess the level of press exposure received by previous award winners. By evaluating press exposure, you can prioritize which awards would have the greatest impact on your brand reputation. Thus, you can spend more time on the award applications that will be the most meaningful to your business.


3. Evaluate awards won by competitors. To stay competitive in the marketplace to both new applicants and existing employees, it is important to have a clear understanding of the competition's accolades. You may become privy to new award programs that your organization should consider.


4. Determine the value of receiving the award. How would your organization leverage the recognition? Knowing a clear plan of action should your organization win will be critical to achieving the exposure you desire.

All in all, each award program should be evaluated independently against your organizational goals and objectives. Make sure the marketing messages do not mislead your organization into a time-consuming process that will deliver sub-par results. Following these simple steps should increase the likelihood that valuable time will be spent on the award programs that best align with your organizational values.

¹ AHA Fast Facts on US Hospitals http://www.aha.org/aha/resource-center/Statistics-and-Studies/fast-facts.html