Workplace Recognition and Incentive Programs
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May 3, 2012

Are Your Managers Trained to Engage?

Is the gap between management salaries and the rank and file growing wider? Are there big bonuses for the bosses while everyone else endures pay freezes, furloughs and doing more with less?

This could be disastrous to your future and certainly profitability of any company. There is irrefutable evidence that employee engagement is correlated with productivity, so plummeting engagement is a real threat to the standard of corporate excellence and the need to get more from less.

Many managers, with little sense of ownership, will throw their hands in the air, bemoan their circumstance and blame the company for not providing resources. Others will strive to make the best of the situation by taking internal action. What will you do?

Engaging your workforce for success requires some basic action that every company can and should take.

First, building trust is vital. One course of action is initiating reviews of the organization’s values and soliciting employee opinions. This is highly recommended. It creates a sense of ownership and responsibility as long as employees believe their voices are being heard and will be acted upon.

Second, managers should understand that engagement is fundamentally an emotional response, not a rational one. Perceived unfairness in pay of the executive compared to the staff can be a potent cause of disengagement. The need to feel fairly treated is an innate human given. Others are:

  • the need to feel valued
  • appreciated
  • listened to
  • involved in decision making
  • be trusted and given the opportunity gain knowledge and skills

Company practice too often ignores these needs.

Third, we suggest that many employers are underestimating the huge influence on engagement levels made by line managers. It’s not that other things are unimportant it’s just that they are trumped by a far more important factor – the atmosphere in the workplace. The evidence suggests that around 76% of decisions to engage or disengage are made on the basis of the relationship with an immediate manager. People join organizations, they leave managers.

Yet, fewer than 20% of managers have received any training in engagement skills, how to bring out the best in their people. The old command and control management paradigm is still all too common but is no longer effective in the knowledge economy. It creates disengagement.

The bottom line? There’s an underlying principle for engagement, whether it’s employee engagement, customer engagement or even two people entering a personal relationship – and it is this: engagement correlates with how the relationship makes us feel about ourselves.

Employers whose policies make people feel good about themselves are engaging employees. Managers whose behaviors and attitudes in the workplace make their people feel good about themselves create engaged employees. That’s the long and short of it.

30 Second Motivation Training

April 5, 2012

Everyone is Motivated

A recent McKinsey study found that the best workplace motivators appeal directly to the emotions, with 67 percent listing praise or recognition from an immediate manager as “effective” or “extremely effective.” Non-financial incentives clearly outperform financial incentives.

Compensation and recognition are not synonymous. To be effective rewards must be distinguished from compensation. Cash has no separability as an award. Recognition then must be sincere, timely, relevant and specific to be effective.

Factors such as deadlines, threats, imposed unrealistic goals and external pressure can also have the effect of reducing intrinsic motivation due to the perception of the external locus of causality (Vallerand and Bissonnette 1992). Factors that increase intrinsic motivation – such as choice, acknowledgement of feelings, and opportunities to set own goals – enhance intrinsic motivation due to the greater feeling of autonomy (Deci and Ryan 1985).

Other factors that influence someone’s intrinsic motivation are mastery of their job or skill set along with a sense of purpose. They need to understand the mission and how their work impacts goal attainment. Let’s be clear, you cannot motivate anyone. Motivation is up to the individual. Everyone is motivated to do something. You just have to get them to do your something! What you can do is provide an environment that directs behavior toward the desired outcomes. Sometimes that means using extrinsic triggers to shape those behaviors. Then, over time people will be intrinsically working toward common goals.

A Final Thought

Too often, the term performance is confused with behavior. In human performance improvement (HPI), there is a clear distinction between these terms. A simple way to distinguish them is to view performance as the end result and behavior as a means to that end. Behaviors are thus the actions that can contribute to accomplishments, but they are not in themselves accomplishments. Stated another way, behaviors are what people take with them and accomplishments are what they leave behind.

March 8, 2012

Fostering Recognition

82% of Worlds Most Admired Companies regularly reinforce rewards philosophy in communications with employees vs. 64% of their peers (Hay Group)

Management needs to show employees that their accomplishments are appreciated. “Authentic recognition is so much more than an annual gala or occasional gift card for good behavior. Recognition is social, strategic, and powerful,” Mr. David Zinger of the EEN says.

6 Ways Employee Recognition Pays

  1. Provide Public Validation – Recognition by your peers makes you feel valued, and does so in a significant way. This is because only your peers truly understand the skill, time and effort of the finished project. Although others may appreciate the result, your peers recognize the process, and this recognition is especially validating.
  2. Increase Talent Retention and Productivity – If you believe that your efforts matter, then you’ll be less likely to leave and more likely to make greater contributions. Non-monetary social recognition builds employee engagement, which is proven to increase retention and discretionary effort.
  3. Reinforce Corporate Culture – Peer-to-peer recognition programs build institutional memory, serving as a repository of stories that would otherwise go untold. The act of publicly celebrating these stories helps to shape the culture of the company.
  4. Improve Talent Spotting – When your peers recognize your contributions your successes are seen by the entire company. The sender also benefits by visibly demonstrating managerial skills.
  5. Foster Collaboration – Allowing praise and recognition to be shared out in the open creates a rich gallery of stories that can be searched and browsed by anyone.
  6. Inspire and Energize Employees – It doesn’t take much to say “thank you” for a job well done. Yet the impact of those two words can be astounding, changing the way employees feel about themselves and their work.

94% of Worlds Most Admired Companies feel that their efforts to engage employee have reduced turnover vs. 67% of peers (Hay Group)

While many organizations continue to rely on monetary rewards to motivate employees, we’ve found that non-monetary and peer-to-peer employee recognition not only costs less in the short term but pays off significantly in the long run.

Today’s employee demands: work-life balance; job satisfaction; an environmentally friendly workplace; opportunity for promotion, staff recreation and accommodation to dietary and religious predilections; maternity / paternity leave; daycare; recognition; rewards; ergonomic, designer workspaces with a view and a trip to Jamaica.

So, what are you waiting for? Start a strategic review of your recognition efforts today! It will pay off.

Sources: The Hay Group; David Zinger, the Employee Engagement Network and David Bator of Tembo Social

February 17, 2012

Did You Know…?

March 2nd is Employee Appreciation Day! It provides the opportune time to take a break from the routine of business to say Thank You to your workforce. Without them you have no business so make it count!

Offering recognition to your employees doesn’t have to be a huge effort – in fact, sometimes the simplest methods are the most meaningful. A quick, handwritten note can be just as memorable as a gift. Whatever your means of acknowledgement, following three simple rules can help you leave a lasting impression with your staff:

  1. Be Concrete – Tell them exactly why and for what you are recognizing them. A general Attaboy doesn’t work too well. Be specific.
  2. Sincerity – goes a long way. Don’t say or write anything that seems canned or out of character. Be natural and true to yourself and you will find good reception.
  3. Purpose – let them know their efforts have purpose and how their contributions impact the success of the organization. Everyone wants to know that what they do is important. This is a good time to review the company mission and goals.

Using these simple rules can be very rewarding for your employees and your company. When employees feel valued and appreciated, it can improve overall morale and company success. And that is something you can celebrate every day.

January 31, 2012

Managing Different Generations

Generational values can impact how you manage, but it is only part of the equation. If you are looking to manage a broad group this may be a better technique, but if you run a small office spending time with the individual and determining what they respond well to is a better practice. Of course, even in large organizations, managers have the best opportunity to know and understand their employees. Therefore, it is important that managers are trained on how to coach people. People are mentored and coached, processes are managed. Keep generational influences in mind, but don’t let the stereotype rule your management choices until you know your particular office and staff better.

Individuals have all types of variable opinions, needs, and motivators whether young or old.

Let’s stop categorizing people based on one variable. People are more than their birth date, place of origin, shoe size, and astrological sign.

For more insight read this: Retiring the Generation Gap: How Employees Young and Old Can Find Common Ground by Jennifer J. Deal

Here is a good summary of her points:

1. All generations have similar values; they just express them differently
2. Everyone wants respect; they just don’t define it the same way
3. Trust matters to everyone
4. People want leaders who are credible and trustworthy
5. Organizational politics is a problem–no matter how old (or young) you are
6. No one really likes change
7. Loyalty depends on the context, not on the generation
8. It’s as easy to retain a young person as an older one–if you do the right things.
9. Everyone wants to learn more than just about anything else
10. Almost everyone wants a coach

December 1, 2011

November Newsletter in December! But Timely for Season…Onboarding

I guess it is better late than never! We have a guest blogger today, Kyle Lagunas, an HR Analyst. He is keeping up with important trends and hot topics in the industry. But let’s allow Kyle to speak for himself…

During peak periods – around the holidays, tax season or over the summer – it’s critical that businesses can easily manage the addition of temporary employees and quickly get them up to speed. And from recruiting and training to offboarding, seasonal employees can put your human resources software and processes to the test. Not only do you have to find and hire the right people, you have a very short time to train them and get them connected to your organization. Here, I’ve outlined a few ways to go above and beyond your normal onboarding process to get seasonal employees geared up and ready to go.

5 Tips for Onboarding Strategies

Some people may assume I’m focused on training when I say “onboarding,” but the fact is that the employee experience starts in the recruiting stage. With this in mind, here are a few key strategies to help you throughout every phase of the process:

Tailor your recruiting strategies. Your recruiting efforts should be tailored to meet the specific needs of a seasonal workforce. It’s important to make the details of the opportunity clear from the get-go. Also, be wary of how you communicate potential for further employment, as you don’t want folks making assumptions.

Perform due diligence. Don’t skimp on due diligence in collecting legal papers and monitoring employees’ schedules. “A lot of people short-circuit processes like verifying work eligibility or tracking hours correctly. It should go without saying, but you really need to be sure you’re following the law,” says John Rossheim, a senior contributing writer at Monster.com.

Provide proper training. According to Forbes Woman columnist and onboarding expert Emily Bennington, onboarding should focus on integrating new employees in three areas:

●     Technical Skills: To what depth of expertise do seasonal employees need to be trained to perform their jobs?

●     Company Culture: How thoroughly do seasonal hires need to understand company policies and values?

●     Social Integration: In what ways can you connect seasonal employees to your organization so they feel like they are part of the team?

Know your capacity upfront. Whether you have a general human resources software system or a hodgepodge of spreadsheets and checklists – it’s important to know your capacity. Can your back-office system efficiently handle an increased volume in applicants and new hires?

End Things on a Good Note with Offboarding

Bennington says “there’s definitely an opportunity to establish brand ambassadors.” Offboarding provides a chance to make a lasting positive impression, while gaining insight into the worker’s experience.

Standard off-boarding practices include surveying workers on their experience. Bennington suggests going beyond surveying, and having one-on-one exit interviews with select employees to get more candid responses.

October 20, 2011

Rewards Vs. Recognition

To optimize the results rewards and recognition should go hand-in-hand. Where self starters don’t achieve results because of a reward (they operate from an intrinsic position), others need that extra challenge and stimulus to get moving (motivated). Unfortunately, that is most people.

One can be done without the other because they are two very different things. Rewards are incentives and are given in response to an achievable goal. That is a company says if you do X, you will receive Y. Then it is up to the employee to decide if the work needed to achieve the result is commensurate with the reward and then do it or not. (Risk-Reward Analysis)

Recognition on the other hand is something bestowed on someone after the fact in sincere appreciation for and in praise of contributions that may or may not be above and beyond behavior. The award is not an expectation of or a requirement of the results. It is given at the discretion of the employer. A long time example of this is tenure or service award recognition. Another is when someone goes beyond what is normally expected of them on their own initiative to resolve an issue or help another complete a task. (Discretionary Effort) The point is that they don’t do this expecting reward. That is when recognition for contributions makes sense and can make a huge impact on motivation and engagement.

When employees see and feel that their company notices what they do and shows they value contributions through specific, sincere recognition is the time you begin to have truly engaged employees who are one with the mission of the company.

September 16, 2011

Performance & Profitability

Results matter, because as Towers Watson showed in Driving Business Results through Continuous Engagement, a 2008/2009 WorkUSA Survey Report, consultants have found that:

  • Highly engaged employees are twice as likely to be top performers.
  • Three-quarters of them exceed performance expectations.
  • They miss fewer days of work due to illness.
  • They more readily identify with the organization and its customers.
  • High employee engagement is correlated with high client satisfaction.

Regardless of industry we are all facing some tough economic times.  Now more than ever we need to ensure we are connecting with our employees.  Help them understand the business realities of today, but also share the company’s strategy to respond to the environment and profitability grow.

Three Steps to Engagement

  • Decide what your goals are and the desired outcomes you want from an engagement initiative
  • Clearly communicate the goals and the impact they will have on your company’s mission
  • Sincerely and timely recognize and show appreciation for employees’ achievements and their value

Recent studies from Gallup and others show that employee engagement can have a positive impact on the bottom line.  Companies with engaged workforces report:

  • 87% reduction in employee turnover
  • 57% improvement in discretionary effort
  • 37% less absenteeism
  • 26% increase in productivity.
  • Ultimately this translates into 19% greater shareholder return.

Engagement matters!

August 9, 2011

Cash is Desirable, But Lacks Motivation

A recent survey conducted by Maritz Research reveals that while cash may be the most desired reward, it’s not necessarily the best motivator. Employees who received a non-cash, tangible or experiential reward received more encouragement from their colleagues, family members and friends than those who received cash. Survey participants also supported another long-standing claim: that non-cash rewards are more memorable than cash rewards. These findings are consistent with the “four-drive” model of human behavior, which describes what motivates people to take action. The drives to acquire, bond, create and defend are pivotal in determining human behavior.

Acquire: Stuff, Turf or Praise and even Power. Many people are motivated by this drive above others. This is important to recognition programs because it is the foundation of all incentives, recognition and rewards.

Bond: Making connections within the organization, especially with managers who “know and understand” them as people is important to be able to drive recognition. Peer to Peer recognition also helps strengthens bonds and culture. When managers understand who their employees are they can begin to build trust which supports your culture.

Comprehend: To create or learn and innovate in the pursuit of a greater good. People look for challenges. Recognition should include opportunities for people to recognized for their innovative and forward thinking ideas that support the organizational culture.

Defend: Supports other drives in that it is a drive to defend your turf, status or ideas and knowledge. Recognition and rewards must be perceived as being fair to all involved, not just the top performers. Everyone must have a chance to succeed.

July 14, 2011

What is Employee Recognition & Rewards?

Recognition & Rewards are:

•Any word or deed towards making someone feel appreciated and valued for who they are and recognized for what they do.

•A range of formal and informal practices in the workplace that support organizational values, goals, objectives and priorities through positive reinforcement of desired behaviors and performance.

Why is Employee Recognition & Reward Important?

Employee recognition and reward is an important tool used to…

  • Make employees feel valued
  • Foster pride about being affiliated with the company
  • Improve employee engagement
  • Reinforce linkages between employee performance and organizational goals
  • Improve employee motivation and satisfaction
  • Attract and retain employees
  • Create a supportive work environment
  • Reinforce organizational values
  • Improve overall organizational success
  • Improve client service

WorldatWork

WorldatWork (formerly the American Compensation Association) found that non-cash rewards programs achieved three times the return on investment compared with cash-based programs. A recent Incentive Federation survey found that on average, 79% of respondents found non-cash reward programs to be fairly to extremely effective in motivating participants to achieve sales and marketing goals.

In conclusion, money does not, cannot impact these areas or sustain commitment over the long term. It is too fleeting and its effect lost when lumped in with all compensation when used as a reward. It is not distinctive enough to have lasting value to your company. Cash is not recognition, it is compensation.

A recognition culture is achieved by developing and implementing recognition activities and programs that support the organization’s strategic goals and corporate values. Dr. Bob Nelson