Description
The documentation about Employee Recognition programs adopted at various companies.
Employee Recognition Programs
1
Contents
Contents................................................................................................................ 2 Why recognize?.....................................................................................................3 Who to recognize?................................................................................................. 3 Recognition approaches........................................................................................3 Awards................................................................................................................... 4 Manager’s dilemma...............................................................................................5 Motivating today’s workforce.................................................................................5 Top motivating techniques reported by employees............................................5 Taking time for your employees.........................................................................6 Personalize rewards............................................................................................6 No cost recognition.............................................................................................7 Selling, implementing and communicating the program.......................................7 Employee recognition outsourcing.......................................................................10 How does this impact the bottom line?................................................................10 Live examples......................................................................................................11 Fidelity International ........................................................................................11 NetCarrots India................................................................................................12 The Success Formula...........................................................................................13 References...........................................................................................................14
2
Why recognize?
There are two things that people want more than money at workplace—and those are recognition and praise. Timely recognition and praise helps them keep the motivation to work, high. Also, according to a recent Maritz Research Poll: 1. “Two of the most pressing concerns for all the companies today are reducing employee turnover and becoming an ‘employer of choice’ because they both impact the bottom line.” 2. “The cost of turnover may be as much as one and a half times an employee’s first year salary. In addition, by becoming an employer of choice, a company attracts a more talented, productive pool of workers.” Hence, in today’s world, effective employee recognition programs have become an integral part of the success strategies laid out by companies. And that is why high-performance companies understand the importance of offering awards and incentives that recognize, validate and value outstanding work which keep employees motivated and are effective methods of reinforcing company expectations and goals.
Who to recognize?
This is one of the most important questions in front of present day organizations because generally we observe that almost every organization recognizes its high-performers in one way or the other. But considering the findings of the Maritz research, the recognition programs of organizations would be better if they not only reward and recognise the high-performers but also appreciate employees with following attributes equally: • • • • • Commitment to service Sustained level of productivity Demonstrate a high degree of initiative Exceptional dependability Effective relations with others
Recognition approaches
Recognition approaches may be formal, planned and/or immediate. An organization may determine the recognition approach(s) best supports its mission and goals. 2. Formal Recognition: This approach is characterised by high-profile, organization-wide events that occur at least annually. These events are used to acknowledge achievement of employee’s contributions to the agency or state government. Examples may include: • Most valuable player of the Year 3
• Service recognition award
3. Planned Recognition: This approach is characterized by pre-arranged, more-frequently scheduled ways of acknowledging contributions and accomplishments of individual or team. This approach is less formal and provides more frequent opportunities to recognize employees. Examples may include awards for: • Employee of the month • Attendance • Safety • Customer Service • Productivity • Honouring participation in Employee Suggestion Program • Outstanding achievements 4. Immediate Recognition: This approach provides recognition at any time for demonstrations of behaviours and values of the organization, contributions to the goals and objectives of the organization or work unit and acknowledge individual or team accomplishments. Examples may include: • Teamwork • A special project • A new or modified business practise • Exemplary effort • Employee appreciation
Awards
Awards given for recognition can be of varied types as follows: 1. Monetary awards: Monetary awards are: • • Those paid by any negotiable instrument(cash, cheque, money order, and direct deposit) or Any item that can be readily converted to cash, such as savings bonds or refundable gift certificates.
2. Non-monetary awards: Non-monetary recognition awards include refundable gift certificates, meals, trips, plaques, trophies, certificates, pencils, pens and desk items, cups and mugs, personal items of clothing such as caps, shirts and sweatshirts, and other items such as tools, electronics, radios, sports equipments and timepieces.
3. Recognition leave: Recognition Leave lapses within 12 months from the date it is awarded. However, agencies may extend the 12-month retention period for recognition leave if the agency has been unable to allow the 4
employee to use the leave. An employee shall be paid in a lump sum for his or her recognition leave: • • When the employee leaves state service by resignation, retirement, layoff, termination, or death When the employee is transferred, promoted or demoted from one agency to another
In addition, agencies may pay employees for their recognition leave balances if: • • At the end of the 12-month period, the agency has been unable to allow the employee to use the leave, or The employee moves from one organizational unit to another within the agency.
Manager’s dilemma
Sometimes it seems that all managers feel they are doing is recognition, but employees feel there is none. 85% of today’s workforce feels under appreciated. This is so because managers do not keep in mind the following even if they provide recognition: • • • Recognition must be personalized Recognition must be meaningful Recognition must be special
Other trends affecting managers: • • • • • • • The need for greater employee initiative (self directed) Fewer ways for managers to influence employees Technology in the workplace The speed of business Need to build trust after restructure Employee’s need for meaning (Gen X) The need for low cost options to motivate employees
Motivating today’s workforce
Top motivating techniques reported by employees
• • Career Growth Exciting Work 5
• • • • • •
Meaningful Work Great People Team Participation Flexible working hours Benefits Wages
But in reality, very few managers of most of the organizations can provide or at least promise such motivations. Following figure shows what percentage of employees does not get one or more of the above benefits.
Taking time for your employees
• • • • • Schedule time to make rounds Ask them how it is going Keep them informed Asked their opinions Bring some good news
Personalize rewards
• • You know he likes golf so provide him with an afternoon off to get out on the course You know she’s a movie buff so come up with some movie tickets
6
•
You know it’s a birthday or anniversary so make it “their day”
No cost recognition
• • • • • • • Personal Thanks Thank you notes Email praise Voice mail praise Public praise Pass around trophy Reference in newsletter and the list goes on.
Selling, implementing and communicating the program
a. Selling Management on the Program Rationale for the Program: It is important to explain the link between motivation of employees and results that benefit the organization. A review of the studies that have shown the correlation can be very convincing to senior management teams that are generally quantitatively driven. Using examples of the impact on performance achieved by competitors and other companies that have implemented these types of programs can also be effective selling points. When management/directors see a direct contribution to the bottom line, the program is more likely to sustain their interest in the use of rewards and recognition throughout the organization, as well as their approval for the generous funding of the program. Common Reasons for Resistance: Senior management is most often concerned about the perceived high cost of the program and a minimal impact on performance. A focus on the research can negate these concerns or at least help minimize them. Overcoming the “Nay-Sayers”: The best strategy to “sell” a new reward and recognition program requires a proactive stance and intense advance preparation. Arming yourself with the research on the correlation between the implementation of these types of programs and the significant advances in performance and profitability that they can stimulate is critical to gaining management buy-in for the programs. 7
b. A 10-Step Model for Creating and Implementing New Program 1. Target Your Audience: Think about the organization and the style of its management as well as its culture. Decide early who the program is intended to motivate and outline with as much detail as possible who you are trying to reach and why. Typically, senior-level employees are not included in these types of programs due to their inclusion in management bonus plans. 2. Choose the Goal/Link Program to Company Objectives: Think through why and how this program will benefit your organization. Be clear about the types of performance and behaviours that you are trying to encourage. Remember that the behaviours you reward are likely to be repeated. Get input from the right sources upfront. Talk with management and employees about expectations for the recognition program. Gather examples of performance and behaviours that they would like to see rewarded. Analyze the ideas to develop the guidelines for identifying the performance to be recognized. Touch base with employees and supervisors to confirm that they think the guidelines or measures are reasonable and will be perceived as worthwhile. 3. Build a Budget/Incorporate Funding into Budget Planning: It is critical to establish a pool of money (upfront) with which the company will work for the coming year. Establish methods to distribute the funds to various departments, divisions and/or subsidiaries so that managers feel that the distribution is fair and equitable and so that the money is pre-allocated and available to fund the program once it is announced to employees. 4. Develop Eligibility Guidelines: Clearly define all those who will be eligible for recognition under the program. Do not leave any room for misrepresentation and misunderstanding. Are all employees eligible, just certain categories of exempt or non-exempt employees or just those in certain divisions or subsidiaries? Involve as many employees and supervisors as possible in the design and development of the program to ensure that it will truly meet the needs of the company. 5. Define Performance Measures: Decide on the performance goals that will be measured and clearly define the thresholds needed to trigger an award. Following are examples of the types of performance issues that are frequently established by companies for recognition and reward purposes: meeting goals, productivity, teambuilding, contribution to profitability, cost reduction, sales, attendance, safety and other miscellaneous measures. 6. Identify the Decision Makers: Specify who the decision makers will be in terms of approving rewards. Ideally, it is important to distribute the authority and responsibility for the administration of the program as widely as possible in the organization. Provide both criteria and show examples of the types of workbehaviours that warrant the award. This will make it easier for all to understand how to judge the desired outcomes. It will also ensure timely recognition, which is extremely important in order for the program to be effective. 7. Choose the Awards: Because employees are motivated by different things, it may be most effective to offer a diversity of both cash and non-cash incentives in order to make the program meaningful to all participants. 8
Steer clear of developing and designing a program that assumes that all employees want the same rewards for a job well done, even though there are significant differences in their jobs, work locations and working environments. 8. Communicate the Program: It is critical to provide supervisors and managers with advance information about the program and how it will work, so that they are “in the know” before they start getting questions from employees. An FAQ packet can be an effective way to brief them in advance on the rationale for the program as well as to explain how it will work in practice. Special sessions focused on explaining the new program to this group in advance may also prove to be effective. Once supervisors and managers have been briefed, a “kick-off” communication to all employees explaining the reasons for the program and the potential rewards should come from the senior management of the organization. Depending on the company’s culture, this news may come from company meetings, be posted in the company’s regular newsletter, on the corporate intranet or via letters to employee homes. 9. Present the Awards: It is important to remind managers of the options available to them to recognize and reward employee achievements, so that they feel comfortable in the presentation of the rewards to employees. This can be done through policies and procedures, in supervisory training sessions, in staff meetings and through specific interoffice correspondence. During the presentation of awards to employees, it is important for managers and supervisors to be specific with regard to why the contributions are important, how they benefit the organization and how they reflect positively on the mission of the company. This type of presentation will ensure a continuous link between the behaviour and results that benefit the company. Depending on the personality of the recipient and/or the magnitude of the award, presentations of the award can be made one-on-one with the employee, in a department or team setting or sometimes in a companywide meeting. 10. Continuously Evaluate the Program’s Effectiveness: Be prepared to change and modify the program as circumstances may warrant. Listen to employees and managers so that you can incorporate their suggestions into future improvements to the program. Document the cost savings and productivity gains associated with the program and conduct periodic surveys of employees to ensure that the program retains its effectiveness. Annual audits of the program will help keep it current and on track. c. Communicating and training employee and management A few rare managers are “naturals” when it comes to the elements of recognition and rewards. Most others need to acquire skills related to recognizing employee contributions and giving effective feedback and praise. As a result, all managers should be trained on: • Stressing the importance of the program to employees and explaining how it can impact the company’s bottom line. • Providing employees with an understanding on how they can impact the organization’s goals and drive the business to success. • Discussing the approach for managing and rewarding both individual and team-performance. • Explaining how the program works and how employees can achieve recognition. 9
• •
Learning ways to motivate and inspire others. Learning how to communicate needs, expectations and goals clearly.
Employee recognition outsourcing
Employee recognition outsourcing provides the answer to the companies who know that they need an employee recognition program in place but does not know the “How” part of it. The remarkable thing about it is that with so many innovative programs in the marketplace, there is a cornucopia of offerings to select from. And that is why it is great news for employers and employees, too, because a motivated and rewarded workforce leads to world-class performance. It’s one area in which HR has demonstrated that it can make an impact on business outcomes. Following firms are the global leaders in employee recognition outsourcing:
TOP 10 HRO: EMPLOYEE RECOGNITION OUTSOURCING
2006 RANK
1 2 3 4 5 6 7 8 9 10
COMPANY GloboForce Maritz Inc IncentOne Terryberry Company Anderson Performance Rideau Recognition Solutions Workstream The Tharpe Company Marketing Innovators International Bennett Brothers
How does this impact the bottom line?
Employees who were satisfied with their company’s recognition programs were: 5. Significantly more satisfied with their jobs
10
• Customer Service 6. More likely to remain with the company • Retention 7. More likely to recommend their workplace to others • Recruitment 8. More likely to invest in their company • Productivity 9. Feel more valued as an employee • Engagement
Recognition programs also increase: • • • • Morale Productivity Satisfaction Margin
And decrease: • • • • Stress Absences Turnover Cost
Live examples
Fidelity International
Apart from following all recognition programs Fidelity International also encourages employees to praise their colleagues. This not only creates a friendly environment in the organization but also helps to improve efficiency. Further it reduces delay in work which is directly related to peer to peer recognition. For e.g. If an employee is absent his work would be done by the person who has been praised 11
by him. This is not made mandatory for the employee but the recognition things create a bonding among the two of them that he would do it voluntary. This also leads to high retention since you get attached to the social work group which is prevalent there. Also this program is of zero cost to the organization as you don’t need to spend any money on it. It just requires an innovative approach to thank your colleague. Peer-Peer recognition is explained in detail in below: Peer-peer recognition: For companies looking to ignite their brand “peer to peer” recognition platforms are being utilized with increased frequency. Peer-peer programs effectively translate corporate goals into day-to-day actions the rank and file can relate to. All too often companies publish a mission statement that hails such platitudes as teamwork, integrity, focus on the customer, etc. And while these are all worthwhile aspirations they don’t necessarily register among employees without explanation and reinforcement. So how do companies get their goals off the headquarters entrance way plaque and into the workplace? Leveraging social networking theories (workers are more likely to look upon colleagues for direction than management) they rely upon the observations and/or direct experiences of co-workers to reinforce desired behaviour. The interchange reinforces core values in a context that’s relevant to everyday job experiences. While these awards are highly valued, they have no monetary worth and require no funding or financial control mechanisms. Companies will want, however, to closely audit nominations and post only those that are consistent and connected to the brand’s attributes. Peer-peer programs are especially important tools during times of change. Online postings not only recognize colleagues who went the extra mile to help a coworker or customer, they can also reinforce the value of the new work tool or job procedure. Many firms will actually include links to training and other educational devices that also reinforce a new process thus promoting acceptance and utilization of change. However, this too has its disadvantages. It results in wastage of time as people make social group and try to spend time with them. Also it leads to isolation of some of the employees who are not that social. An individual who doesn’t get such recognition at times feel that he is not wanted in the group and his motivational level may dip. However, the benefits outshine the disadvantages and it has ultimately proved out beneficial to the organization.
NetCarrots India
This Loyalty marketing company believes that the unrelenting competitive pressures and the limited resources available with organizations today, ensure that incentives play a vital role in motivating and ensuring enhanced performance from employees. Their employee incentive program is specifically designed for 12
recognizing and rewarding outstanding performance that helps in motivating people who work sincerely and nurture a culture of excellence. Also, this program is specially geared to provide you with end-to-end employee reward & incentive programs.
Rewards and Recognition building blocks: Understanding the role of R&R in the overall compensation hierarchy is critical for developing a system that is Fair, Objective, Interactive, Easy to Understand and Administer, supporting a direct Performance-Reward Correlation.
Virtuous Cycle: Desired behaviour is appropriately rewarded in a timely fashion with a wide choice of options. This leads to more such positive behaviour.
The Success Formula
13
The best rewards are: • • • • Immediate Contingent on performance Personal Manager initiated
And they also: • • • Recognize the best employees Motivate less productive employees to improve Are the least expensive to use
References
www.netcarrots.net www.voices.umich.edu www.respcare.ucsd.edu www.smarttalent.net/docs www.theblackbookofoutsourcing.com
14
doc_940235628.doc
The documentation about Employee Recognition programs adopted at various companies.
Employee Recognition Programs
1
Contents
Contents................................................................................................................ 2 Why recognize?.....................................................................................................3 Who to recognize?................................................................................................. 3 Recognition approaches........................................................................................3 Awards................................................................................................................... 4 Manager’s dilemma...............................................................................................5 Motivating today’s workforce.................................................................................5 Top motivating techniques reported by employees............................................5 Taking time for your employees.........................................................................6 Personalize rewards............................................................................................6 No cost recognition.............................................................................................7 Selling, implementing and communicating the program.......................................7 Employee recognition outsourcing.......................................................................10 How does this impact the bottom line?................................................................10 Live examples......................................................................................................11 Fidelity International ........................................................................................11 NetCarrots India................................................................................................12 The Success Formula...........................................................................................13 References...........................................................................................................14
2
Why recognize?
There are two things that people want more than money at workplace—and those are recognition and praise. Timely recognition and praise helps them keep the motivation to work, high. Also, according to a recent Maritz Research Poll: 1. “Two of the most pressing concerns for all the companies today are reducing employee turnover and becoming an ‘employer of choice’ because they both impact the bottom line.” 2. “The cost of turnover may be as much as one and a half times an employee’s first year salary. In addition, by becoming an employer of choice, a company attracts a more talented, productive pool of workers.” Hence, in today’s world, effective employee recognition programs have become an integral part of the success strategies laid out by companies. And that is why high-performance companies understand the importance of offering awards and incentives that recognize, validate and value outstanding work which keep employees motivated and are effective methods of reinforcing company expectations and goals.
Who to recognize?
This is one of the most important questions in front of present day organizations because generally we observe that almost every organization recognizes its high-performers in one way or the other. But considering the findings of the Maritz research, the recognition programs of organizations would be better if they not only reward and recognise the high-performers but also appreciate employees with following attributes equally: • • • • • Commitment to service Sustained level of productivity Demonstrate a high degree of initiative Exceptional dependability Effective relations with others
Recognition approaches
Recognition approaches may be formal, planned and/or immediate. An organization may determine the recognition approach(s) best supports its mission and goals. 2. Formal Recognition: This approach is characterised by high-profile, organization-wide events that occur at least annually. These events are used to acknowledge achievement of employee’s contributions to the agency or state government. Examples may include: • Most valuable player of the Year 3
• Service recognition award
3. Planned Recognition: This approach is characterized by pre-arranged, more-frequently scheduled ways of acknowledging contributions and accomplishments of individual or team. This approach is less formal and provides more frequent opportunities to recognize employees. Examples may include awards for: • Employee of the month • Attendance • Safety • Customer Service • Productivity • Honouring participation in Employee Suggestion Program • Outstanding achievements 4. Immediate Recognition: This approach provides recognition at any time for demonstrations of behaviours and values of the organization, contributions to the goals and objectives of the organization or work unit and acknowledge individual or team accomplishments. Examples may include: • Teamwork • A special project • A new or modified business practise • Exemplary effort • Employee appreciation
Awards
Awards given for recognition can be of varied types as follows: 1. Monetary awards: Monetary awards are: • • Those paid by any negotiable instrument(cash, cheque, money order, and direct deposit) or Any item that can be readily converted to cash, such as savings bonds or refundable gift certificates.
2. Non-monetary awards: Non-monetary recognition awards include refundable gift certificates, meals, trips, plaques, trophies, certificates, pencils, pens and desk items, cups and mugs, personal items of clothing such as caps, shirts and sweatshirts, and other items such as tools, electronics, radios, sports equipments and timepieces.
3. Recognition leave: Recognition Leave lapses within 12 months from the date it is awarded. However, agencies may extend the 12-month retention period for recognition leave if the agency has been unable to allow the 4
employee to use the leave. An employee shall be paid in a lump sum for his or her recognition leave: • • When the employee leaves state service by resignation, retirement, layoff, termination, or death When the employee is transferred, promoted or demoted from one agency to another
In addition, agencies may pay employees for their recognition leave balances if: • • At the end of the 12-month period, the agency has been unable to allow the employee to use the leave, or The employee moves from one organizational unit to another within the agency.
Manager’s dilemma
Sometimes it seems that all managers feel they are doing is recognition, but employees feel there is none. 85% of today’s workforce feels under appreciated. This is so because managers do not keep in mind the following even if they provide recognition: • • • Recognition must be personalized Recognition must be meaningful Recognition must be special
Other trends affecting managers: • • • • • • • The need for greater employee initiative (self directed) Fewer ways for managers to influence employees Technology in the workplace The speed of business Need to build trust after restructure Employee’s need for meaning (Gen X) The need for low cost options to motivate employees
Motivating today’s workforce
Top motivating techniques reported by employees
• • Career Growth Exciting Work 5
• • • • • •
Meaningful Work Great People Team Participation Flexible working hours Benefits Wages
But in reality, very few managers of most of the organizations can provide or at least promise such motivations. Following figure shows what percentage of employees does not get one or more of the above benefits.
Taking time for your employees
• • • • • Schedule time to make rounds Ask them how it is going Keep them informed Asked their opinions Bring some good news
Personalize rewards
• • You know he likes golf so provide him with an afternoon off to get out on the course You know she’s a movie buff so come up with some movie tickets
6
•
You know it’s a birthday or anniversary so make it “their day”
No cost recognition
• • • • • • • Personal Thanks Thank you notes Email praise Voice mail praise Public praise Pass around trophy Reference in newsletter and the list goes on.
Selling, implementing and communicating the program
a. Selling Management on the Program Rationale for the Program: It is important to explain the link between motivation of employees and results that benefit the organization. A review of the studies that have shown the correlation can be very convincing to senior management teams that are generally quantitatively driven. Using examples of the impact on performance achieved by competitors and other companies that have implemented these types of programs can also be effective selling points. When management/directors see a direct contribution to the bottom line, the program is more likely to sustain their interest in the use of rewards and recognition throughout the organization, as well as their approval for the generous funding of the program. Common Reasons for Resistance: Senior management is most often concerned about the perceived high cost of the program and a minimal impact on performance. A focus on the research can negate these concerns or at least help minimize them. Overcoming the “Nay-Sayers”: The best strategy to “sell” a new reward and recognition program requires a proactive stance and intense advance preparation. Arming yourself with the research on the correlation between the implementation of these types of programs and the significant advances in performance and profitability that they can stimulate is critical to gaining management buy-in for the programs. 7
b. A 10-Step Model for Creating and Implementing New Program 1. Target Your Audience: Think about the organization and the style of its management as well as its culture. Decide early who the program is intended to motivate and outline with as much detail as possible who you are trying to reach and why. Typically, senior-level employees are not included in these types of programs due to their inclusion in management bonus plans. 2. Choose the Goal/Link Program to Company Objectives: Think through why and how this program will benefit your organization. Be clear about the types of performance and behaviours that you are trying to encourage. Remember that the behaviours you reward are likely to be repeated. Get input from the right sources upfront. Talk with management and employees about expectations for the recognition program. Gather examples of performance and behaviours that they would like to see rewarded. Analyze the ideas to develop the guidelines for identifying the performance to be recognized. Touch base with employees and supervisors to confirm that they think the guidelines or measures are reasonable and will be perceived as worthwhile. 3. Build a Budget/Incorporate Funding into Budget Planning: It is critical to establish a pool of money (upfront) with which the company will work for the coming year. Establish methods to distribute the funds to various departments, divisions and/or subsidiaries so that managers feel that the distribution is fair and equitable and so that the money is pre-allocated and available to fund the program once it is announced to employees. 4. Develop Eligibility Guidelines: Clearly define all those who will be eligible for recognition under the program. Do not leave any room for misrepresentation and misunderstanding. Are all employees eligible, just certain categories of exempt or non-exempt employees or just those in certain divisions or subsidiaries? Involve as many employees and supervisors as possible in the design and development of the program to ensure that it will truly meet the needs of the company. 5. Define Performance Measures: Decide on the performance goals that will be measured and clearly define the thresholds needed to trigger an award. Following are examples of the types of performance issues that are frequently established by companies for recognition and reward purposes: meeting goals, productivity, teambuilding, contribution to profitability, cost reduction, sales, attendance, safety and other miscellaneous measures. 6. Identify the Decision Makers: Specify who the decision makers will be in terms of approving rewards. Ideally, it is important to distribute the authority and responsibility for the administration of the program as widely as possible in the organization. Provide both criteria and show examples of the types of workbehaviours that warrant the award. This will make it easier for all to understand how to judge the desired outcomes. It will also ensure timely recognition, which is extremely important in order for the program to be effective. 7. Choose the Awards: Because employees are motivated by different things, it may be most effective to offer a diversity of both cash and non-cash incentives in order to make the program meaningful to all participants. 8
Steer clear of developing and designing a program that assumes that all employees want the same rewards for a job well done, even though there are significant differences in their jobs, work locations and working environments. 8. Communicate the Program: It is critical to provide supervisors and managers with advance information about the program and how it will work, so that they are “in the know” before they start getting questions from employees. An FAQ packet can be an effective way to brief them in advance on the rationale for the program as well as to explain how it will work in practice. Special sessions focused on explaining the new program to this group in advance may also prove to be effective. Once supervisors and managers have been briefed, a “kick-off” communication to all employees explaining the reasons for the program and the potential rewards should come from the senior management of the organization. Depending on the company’s culture, this news may come from company meetings, be posted in the company’s regular newsletter, on the corporate intranet or via letters to employee homes. 9. Present the Awards: It is important to remind managers of the options available to them to recognize and reward employee achievements, so that they feel comfortable in the presentation of the rewards to employees. This can be done through policies and procedures, in supervisory training sessions, in staff meetings and through specific interoffice correspondence. During the presentation of awards to employees, it is important for managers and supervisors to be specific with regard to why the contributions are important, how they benefit the organization and how they reflect positively on the mission of the company. This type of presentation will ensure a continuous link between the behaviour and results that benefit the company. Depending on the personality of the recipient and/or the magnitude of the award, presentations of the award can be made one-on-one with the employee, in a department or team setting or sometimes in a companywide meeting. 10. Continuously Evaluate the Program’s Effectiveness: Be prepared to change and modify the program as circumstances may warrant. Listen to employees and managers so that you can incorporate their suggestions into future improvements to the program. Document the cost savings and productivity gains associated with the program and conduct periodic surveys of employees to ensure that the program retains its effectiveness. Annual audits of the program will help keep it current and on track. c. Communicating and training employee and management A few rare managers are “naturals” when it comes to the elements of recognition and rewards. Most others need to acquire skills related to recognizing employee contributions and giving effective feedback and praise. As a result, all managers should be trained on: • Stressing the importance of the program to employees and explaining how it can impact the company’s bottom line. • Providing employees with an understanding on how they can impact the organization’s goals and drive the business to success. • Discussing the approach for managing and rewarding both individual and team-performance. • Explaining how the program works and how employees can achieve recognition. 9
• •
Learning ways to motivate and inspire others. Learning how to communicate needs, expectations and goals clearly.
Employee recognition outsourcing
Employee recognition outsourcing provides the answer to the companies who know that they need an employee recognition program in place but does not know the “How” part of it. The remarkable thing about it is that with so many innovative programs in the marketplace, there is a cornucopia of offerings to select from. And that is why it is great news for employers and employees, too, because a motivated and rewarded workforce leads to world-class performance. It’s one area in which HR has demonstrated that it can make an impact on business outcomes. Following firms are the global leaders in employee recognition outsourcing:
TOP 10 HRO: EMPLOYEE RECOGNITION OUTSOURCING
2006 RANK
1 2 3 4 5 6 7 8 9 10
COMPANY GloboForce Maritz Inc IncentOne Terryberry Company Anderson Performance Rideau Recognition Solutions Workstream The Tharpe Company Marketing Innovators International Bennett Brothers
How does this impact the bottom line?
Employees who were satisfied with their company’s recognition programs were: 5. Significantly more satisfied with their jobs
10
• Customer Service 6. More likely to remain with the company • Retention 7. More likely to recommend their workplace to others • Recruitment 8. More likely to invest in their company • Productivity 9. Feel more valued as an employee • Engagement
Recognition programs also increase: • • • • Morale Productivity Satisfaction Margin
And decrease: • • • • Stress Absences Turnover Cost
Live examples
Fidelity International
Apart from following all recognition programs Fidelity International also encourages employees to praise their colleagues. This not only creates a friendly environment in the organization but also helps to improve efficiency. Further it reduces delay in work which is directly related to peer to peer recognition. For e.g. If an employee is absent his work would be done by the person who has been praised 11
by him. This is not made mandatory for the employee but the recognition things create a bonding among the two of them that he would do it voluntary. This also leads to high retention since you get attached to the social work group which is prevalent there. Also this program is of zero cost to the organization as you don’t need to spend any money on it. It just requires an innovative approach to thank your colleague. Peer-Peer recognition is explained in detail in below: Peer-peer recognition: For companies looking to ignite their brand “peer to peer” recognition platforms are being utilized with increased frequency. Peer-peer programs effectively translate corporate goals into day-to-day actions the rank and file can relate to. All too often companies publish a mission statement that hails such platitudes as teamwork, integrity, focus on the customer, etc. And while these are all worthwhile aspirations they don’t necessarily register among employees without explanation and reinforcement. So how do companies get their goals off the headquarters entrance way plaque and into the workplace? Leveraging social networking theories (workers are more likely to look upon colleagues for direction than management) they rely upon the observations and/or direct experiences of co-workers to reinforce desired behaviour. The interchange reinforces core values in a context that’s relevant to everyday job experiences. While these awards are highly valued, they have no monetary worth and require no funding or financial control mechanisms. Companies will want, however, to closely audit nominations and post only those that are consistent and connected to the brand’s attributes. Peer-peer programs are especially important tools during times of change. Online postings not only recognize colleagues who went the extra mile to help a coworker or customer, they can also reinforce the value of the new work tool or job procedure. Many firms will actually include links to training and other educational devices that also reinforce a new process thus promoting acceptance and utilization of change. However, this too has its disadvantages. It results in wastage of time as people make social group and try to spend time with them. Also it leads to isolation of some of the employees who are not that social. An individual who doesn’t get such recognition at times feel that he is not wanted in the group and his motivational level may dip. However, the benefits outshine the disadvantages and it has ultimately proved out beneficial to the organization.
NetCarrots India
This Loyalty marketing company believes that the unrelenting competitive pressures and the limited resources available with organizations today, ensure that incentives play a vital role in motivating and ensuring enhanced performance from employees. Their employee incentive program is specifically designed for 12
recognizing and rewarding outstanding performance that helps in motivating people who work sincerely and nurture a culture of excellence. Also, this program is specially geared to provide you with end-to-end employee reward & incentive programs.
Rewards and Recognition building blocks: Understanding the role of R&R in the overall compensation hierarchy is critical for developing a system that is Fair, Objective, Interactive, Easy to Understand and Administer, supporting a direct Performance-Reward Correlation.
Virtuous Cycle: Desired behaviour is appropriately rewarded in a timely fashion with a wide choice of options. This leads to more such positive behaviour.
The Success Formula
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The best rewards are: • • • • Immediate Contingent on performance Personal Manager initiated
And they also: • • • Recognize the best employees Motivate less productive employees to improve Are the least expensive to use
References
www.netcarrots.net www.voices.umich.edu www.respcare.ucsd.edu www.smarttalent.net/docs www.theblackbookofoutsourcing.com
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