Four Essential Qualities Of Great Teams

By Adrian Gostick and Chester Elton, 11.12.10 - Forbes.com

As revealed by decades of research.

They can happen in the middle of the day, night, or even during a traffic jam, the "aha" or "light bulb" moments in our lives--those thoughts of clear brilliance where the proverbial light bulb appears over our head.
What does a light bulb moment have to do with teamwork?

Charles Batcheldor was a machinist. John Kruesi was a clockmaker. Ludwig Boehm was a glassblower. Francis Upton was a mathematician. Together, they shared a light bulb moment with the inventor Thomas Edison. After all, the commercially viable incandescent light bulb was the product of an entire team, not the single inventor we were taught in fifth grade. In fact, our research about teamwork shows that there are no great leaders without great teams.

For the past few decades we have buried ourselves in research into the drivers of human performance. Growing out of that research, our latest book, The Orange Revolution, includes the results of a 350,000-person study that measured the characteristics of extremely productive teams. We found a lot of what we had theorized there in the data. Just like that night in Menlo Park when Edison and his team knew their bulb would light but had no idea how long it would stay lit, we were staring at the glimmer of our own light bulb moments.

Please click on the link below to continue reading about the four essential qualities that might change the way you lead or participate on your work teams.
http://www.forbes.com/2010/11/12/teams-essential-qualities-leadership-managing-engagement.html

The Carrot Principle, World-Renowned Recognition Training Seminar!

COMING SOON TO THE DC METRO AREA, EARLY 2011!

Corporate America’s most valuable training program, once exclusively offered only to select organizations and managers, will soon be offering limited seating to the public.

The Carrot Principle Training Seminar teaches managers how to engage employees and accelerate performance through purposed recognition.

Participants will learn:
• The science behind recognition’s impact in an organization (based on the New York Times bestselling book The Carrot Principle and its 10-year, 200,000-person research study).

• Why aligning recognition with your organization’s core values, goals or strategies can immediately engage employees—initiating immediate results.

• How recognition done right can accelerate performance, increase productivity and impact your bottom-line in a down economy.

• How and when to most effectively recognize employees, along with countless low-and no-cost ideas to help you personalize recognition efforts to your team or organization.

• How to form an action plan and implement a recognition strategy today.

All registered participants receive the A Carrot a Day Recognition toolkit, a copy of the New York Times bestselling book The Carrot Principle, educational videos, stationary, and more!
All this for only $199*.

Dates and location will be confirmed in the New Year, so stay tuned for more details.

To reserve a seat, or for more information please contact our office at baltimore@octanner.com or call 410-661-5668 (ask for Ellen or Natalie).

Note to managers: Lack of employee recognition damaging to company performance

Suppose someone asked you the following questions: Do managers in your company do a good job of recognizing employee contributions?

What would you say? Let’s hope you answered positively. But for a majority, getting a pat on the back may be a rare thing.

Based on a large study of employees at U.S. organizations over a decade, Adrian Gostick and Chester Elton, who write books and conduct training programs on the power of recognition and team-building, reported some disheartening statistics:

• 79 percent of employees who quit their jobs cite a lack of appreciation as a key reason for leaving.
• 65 percent of North Americans report they didn’t receive recognition at all in the previous year.

The lack of recognition is not only demoralizing to employees, but it can hurt company performance. When employees know their strengths and potential will be praised and recognized, they are more likely to produce value. Recognizing their efforts is not about making sure everyone gets a trophy. It’s really about taking the time to thank people for the contributions they give to making the company a better place.

So what’s a manager to do?
First, examine what is currently being done to recognize employees at the firm. Get feedback from employees on what’s working and what’s not.

Second, design a recognition system that is performance-based. Make sure the system is aligned with the culture you want in your firm and the company’s values and business objectives.

Third, train other managers in providing recognition.
This training might incorporate some of Gostick and Elton’s recommended recognition strategies, including:

• Day-to-day recognition: The most frequent, specific and least costly, this could include pats on the back, handwritten notes, team lunches, on-the-spot award certificates and thank-you gifts.

• Above-and-beyond recognition: More formal recognition for significant accomplishments such as the achievement of sales goals, exceptional customer service, etc. Generally, they suggest awarding these to employees about every two years.

• Career recognition: Formal programs to recognize people for loyalty or cumulative contributions, such as years of service. You could start with a welcome award — thanking them for joining the firm, followed by recognition at their one-, three- and five-year milestones.

• Celebration events: Consist of celebrations for successful completion of a team project, achievement of record results, new product launches, etc.

Courtesy of NJ.com, 11/1/2010: -- Joyce E.A. Russell, Special to The Washington Post

For more recognition ideas contact your local appreciateologists at the Baltimore Office. Email us at baltimore@octanner.com or call us at 410-661-5668.

See what people are saying about The Orange Revolution!

Check out these links published in BusinessWeek and Fast Company magazines, to find out what people are saying about our new book 'The Orange Revolution'. http://www.businessweek.com/managing/content/sep2010/ca20100924_731486.htm
http://www.fastcompany.com/article/how-a-team-at-apple-made-the-ipod-dream-a-reality

And don't forget, our 'Orange Revolution' unveiling is scheduled for October 27th at 8:30am, at the Turf Valley Resort in Ellicott City.
Seats are limited so please contact our office if you'd like to join us to find out how you can create high performance teams!

Email: Baltimore@octanner.com or call 410-661-5668.

JOIN US for the ORANGE REVOLUTION!

The authors of the New York Times mega best seller The Carrot Principle and The O.C. Tanner Company are at it again. This time revealing data from a new 350,000 employee study that proves there are no great leaders without great teams!

When: October 27, 2010

Registration and Breakfast: 8:30am

Presentation: 9:00am - 11:00am

What you'll learn:

1. Get insights from many of the world's most respected teams on how to cultivate breakthrough teamwork.
2. Understand how effective teamwork engages employees, accelerates performance and can transform an entire organization.
3. Get ideas on how HR and leadership can start "organgifying" teams immediately.

Reserve your complimentary seat today!
Contact Ellen Sparks at Ellen.Sparks@octanner.com or Natalie Limneos at Natalie.Limneos@octanner.com.

SEATS ARE LIMITED for this event and will be assigned on a first come first served basis! We look forward to seeing you there!

You Do All The Giving, We Do All The Work...

With Thanks® Holiday, you get to spread the good cheer, and O.C. Tanner gets to do the administrative work.

Just how it should be.

Thanks® Holiday comes already branded with the thanks® gift passes and redemption site landing page, plus access codes to hundreds of name brand gifts for your employees to choose from.

Every detail is taken care of for you:

· Gift access codes come in $35, $70, or $125 values for gift passes, or you get the flexibility for other values when using printable certificates or ecards
· Hundreds of gifts, from electronics to home to garden to food to sports have already been sourced and are available for easy redemption.
· One consistent solution across all employees, departments, and divisions, no matter how big the order
· No outsourcing or shopping
· No inventory to manage
· No gift card fees
· Tracking and reporting redemption is automated
· Shipping, handling, and tax are included

· All gifts are protected by a five-year warranty (the best in the industry)

Contact your Baltimore Team for more information about how to spread the Holiday Cheer this year.

Email us at Baltimore@octanner.com or call 410-661-5668.

Making Recognition A Priority

Employee Recognition Rocks - Kick Employee Recognition Up a Notch
By Susan M. Heathfield, About.com Guide

Employee recognition is limited in most organizations. Employees complain about the lack of recognition regularly. Managers ask, “Why should I recognize or thank him? He’s just doing his job.” And, life at work is busy, busy, busy. These factors combine to create work places that fail to provide recognition for employees.
Managers who prioritize employee recognition understand the power of recognition. They know that employee recognition is not just a nice thing to do for people. Employee recognition is a communication tool that reinforces and rewards the most important outcomes people create for your business.
When you recognize people effectively, you reinforce, with your chosen means of recognition, the actions and behaviors you most want to see people repeat. An effective employee recognition system is simple, immediate, and powerfully reinforcing. Employees feel cared about and appreciated. It may seem simplistic, but people who feel recognized and cared about produce more and better work.

Employee Survey Pinpoints Recognition
In a client employee satisfaction survey, the question about whether the company cared about the welfare and happiness of its employees drew divergent views. Some people agreed; others disagreed.
So, the Culture and Communications team put out a second survey asking what would make the employees feel as if the company cared about them. We developed several answers employees could check and supplied room for their comments and additional thoughts.
Fifty-five percent of the respondents said that praise and attention from their supervisor would make them feel as if the company cared about them and their well-being. As you might also expect, money, benefits, and events such as company lunches ranked high, too. But recognition from the supervisor ranked above all other choices.
I have sponsored similar surveys in different organizations. The findings are always similar. Employees want to know that they have done a good job – and that you noticed. Employees want to be thanked and appreciated.
A leader of employees makes other people feel important and appreciated. The leader excels at creating opportunities to provide rewards, recognition and thanks to his or her staff. A leader creates a work environment in which people feel important and appreciated.
_______________________

How is the current climate at your organization? Do employees feel appreciated? When was the last time an employee satisfaction survey was conducted? What were the results and what actions were taken? Do all employees have the opportunity to be recognized?

SAVE THE DATE....October 27, 2010!

The Orange Revolution is coming to the Baltimore/Washington Metro area!

Stay tuned for more details about this special research unveiling and learn how you can engage and motivate your team to achieve world-class results.

Create a great team with tips from a groundbreaking study

Using a 200,000-person study on employee engagement, authors Adrian Gostick and Chester Elton wrote the New York Times mega-bestseller The Carrot Principle. Their research revealed there are three principles that the best managers follow when recognizing and appreciating their employees:
1. Make it frequent.
The research showed that employees in the best workplaces receive some form of recognition every seven days. This includes verbal praise, emails of thanks, handwritten notes, and so on.
2. Make it specific.
Praise must be specific to what matters most in your organization. General praise can actually backfire, since it implies that you haven’t noticed an employee’s unique contribution.
3. Make it timely.
Day-to-day recognition should be timely to the action, showing that you are paying attention. When employees go above and beyond, they expect your thanks—or quite simply, they might not go above and beyond again.

For even more insights into leadership, contact us to download a complimentary copy of the first chapter of Elton and Gostick’s latest book, The Orange Revolution (coming September 2010). The book features the findings from a 350,000-person study showing the characteristics of the world’s best teams.

Wow! I was so impressed with the new training that is based on the new book Carrot Revolution, that I had to post a clip of the training! Check it out!

Chester Elton sent this to us.
'In the short four days it has been on You Tube we have already had 400 views! Give it a look and see what you think. http://www.youtube.com/watch?v=flVSMKw71L0

There will be several more videos that we will shoot and use in the training, this is just one and we think brings a new dimension to this training with real clients and real people.'

Avoid losing your "A" players to the competition - get to know your best employees again.

In visiting with clients, one subject continues to come up in conversation - as the economy starts to recover - how will we retain our best talent?

Staring Down Defection
Forty percent of professionals say the ebbing of the recession has made them more inclined to look for a new job—and the younger the worker, the greater the chances they’ll be on the move, according to a new survey.
The survey could alert companies that they need to make efforts to retain their best employees. Although jobs remain scarce, those in high-level positions are the best employees at each business and could find work at other companies with little trouble, said Katie Essman, branch manager of Robert Half International’s Denver Tech Center office.
The staffing company, which is based in Menlo Park, California, had an independent research firm survey more than 1,400 North American professionals.
“It’s a scary number, for sure,” Essman said. “As an employer, you hate to think you could lose 40 percent of your workforce. You never ever want to lose your ‘A’ players to the competition.”
According to the survey, 45 percent of Generation Y professionals—ages 21 to 31—said the recession has influenced them to look for other jobs. The number drops to 40 percent for Gen Xers (32 to 45) and 35 percent for baby boomers (45 to 64).
One big reason so many people seek to move on is that they feel they sacrificed wages and 401(k) contributions to help companies during the leanest of times in 2008 and 2009, and neither category has been restored, Essman said. And while baby boomers view corporate advancement as climbing the ladder at one company, Gen Y workers see it as moving from company to company for higher pay and bigger positions, she said.
Members of all three age groups said working for a stable company and having job security are two of the most important things they seek in a work environment. Those scored much higher than having a short commute or working for a socially responsible company; the latter was a bigger concern when jobs were flush, but it sinks on priority lists during tougher times, Essman said.
Gen Xers are more likely than the other two groups to enhance their skill sets and build tenure with their companies in the aftermath of the recession, according to the survey results. And a greater percentage of baby boomers—54 percent—said they plan to work past the traditional retirement age than the other age groups, the results showed.
Essman advised that with more job opportunities opening up, employers should sit down with their top workers and essentially re-recruit them. Even if pay raises aren’t yet feasible, they should offer them rewards such as praise, opportunities for career development, or schedule flexibility to allow them a greater balance between work and personal lives, she said.
“Get to know your best employees again,” Essman said. “I think we as managers spend most of our time with underperforming employees rather than our top employees.”
However, the baby boomers’ likelihood of staying for more years could limit the number of jobs for which younger employees might compete, whether at their present companies or at others, Essman said.
“Many employees, particularly Gen Y professionals, are biding their time in their current employment situations and plan to make a move when they feel the economy is on firmer footing,” Brett Good, a California-based district president for Robert Half, said in a news release. “Now is the time for employers to take action and outline career paths within their company for strong performers.”
by Ed Sealover Jul 26 2010 Portfolio.com

"I don't have the time!"

What did your mother always tell you? You make time to do the things you want to do. If it is important, you will find the time to do it. If you want to inspire someone and show real appreciation, you will find the time. (And, when you think about it, how much time do you need to write a thank-you note or say “thanks!” Not much!)

Give Meaning. Reap Results

New research from U-Penn’s Wharton School finds that employees who know their work has a meaningful, positive impact on others are not just happier, but vastly more productive, too.

According to the study, whether it’s face-to-face contact with customers, or connecting with colleagues from other departments, when individuals understand the difference their job makes to clients or to their organization it increases employee effort 20% and in some instances 100%.

Taking time to publicly share appreciation and relating an employee’s actions to the mission of the company can have the same effect. Take a moment this month to share the impact each of your valuable employees has on your organization.

Call your Baltimore Team for ideas for your recognition solutions: 410-661-5668 or email Baltimore@octanner.com.

Appreciation and Your Bottom Line

Appreciation changes everything.
Engagement. Performance. Turnover. The Bottom Line.
And we can help you measure it.

Join us for a free and informative webinar on measurement. This session will help you learn who uses recognition in your organization, how employees feel, and the business success it generates.

Recognition Impact: Ways to Measure the Value of Your Recognition Solutions
Gary Beckstrand – O.C. Tanner Vice President, Research and Assessment Services

Thursday, June 10 2010
10:00 am EDT

Register here.

For more information about this event, or for assistance with all your recognition needs please contact your Baltimore Appreciateologists at 410-661-5668 or email Baltimore@octanner.com.

Raising Engagement - Cut through the hot air about engagement to find factors that motivate your employees

By Adrienne Fox - HR Magazine

A vast majority of employees say they are disengaged or not engaged, creating an unproductive—or, worse, toxic—work environment.

The August 2009 Gallup Employee Engagement Index reported that only 33 percent of workers are engaged in their jobs, 49 percent are not engaged, and 18 percent are actively disengaged. The Gallup Organization defines the categories as follows:

Engaged employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward.

Non-engaged employees have essentially “checked out.” They sleepwalk through workdays. They put in time but don’t approach their work with energy or passion.

Actively disengaged employees aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, these workers undermine what engaged co-workers accomplish.

Gallup researchers, who base the Employee Engagement Index on a survey of nearly 42,000 randomly selected adults, estimate that disengaged workers cost U.S. businesses as much as $350 billion a year.

While troubling, these figures could also be viewed as an opportunity to re-engage a large percentage of disengaged workers—and reap financial benefits. Other research shows that companies with highly engaged employees perform better: Gallup’s 2009 analysis of 199 surveys found that business units scoring in the top half on employee engagement double their odds of delivering high performance compared to those in the bottom half. Those at the 99th percentile are nearly five times more likely to deliver high performance than those at the 1st percentile.

In a subsequent study in January of this year, Gallup researchers found that companies in the top 10 percent on employee engagement bested their competition by 72 percent in earnings per share during 2007-08. For companies that scored beneath the top quartile, earnings fell 9.4 percent below their competition.

And in a September 2009 study of 50 multinational companies, the London office of Towers Perrin, now Towers Watson, documented the impact of engagement on financial performance. The report found that during a span of 12 months, companies with high levels of engagement outperformed those with less-engaged employees in operating income, net income growth rate and earnings per share growth rate.

“Our research shows that the connection between employee engagement and business performance is [a stronger] indicator than any other measure of employee attitude and business performance,” explains Julie Gebauer, managing director at Towers Watson in New York. It “makes a difference in terms of dollars and cents.”

Reports such as these have piqued the interest of executives seeking to move the needle of engagement in their favor. HR professionals are now bombarded with a multitude of sales pitches for survey tools, models, books and technology—all promising to deliver improved employee engagement.

What is your company doing to improve employee engagement? Are your executives on board? Contact your Baltimore Team for asisstance with all your appreciation needs.
410-661-5668 or email Baltimore@octanner.com.

The Carrot Principle Training Seminar - 6/3/2010

Corporate America’s most valuable training program is now offering open enrollment with limited seating!

The Carrot Principle Training Seminar teaches Managers how to engage employees and accelerate performance through purposed recognition.

Greater Washington DC Metro Area

Date: Thursday, June 3rd
Time: 9 am - noon
Location: Capital One Headquarters, 1680 Capital One Drive, McLean, VA 22102

PARTICIPANTS WILL LEARN

• The science behind recognition's impact in an organization (based on the New York Times bestselling book The Carrot Principle and it's 10-year, 200,000 person study)
• Why aligning recognition with your organization's core values, goals or strategies can immediately engage employees - initiating immediate results.
• How recognition done right can accelerate performance, increase productivity and impact you bottom-line in a down economy.
• How and when to most effectively recognize employees, along with countless low- and no-cost ideas to help you personalize recognition efforts to your team or organization.
• How to form an action plan and implement a recognition strategy today.

All registered participants receive the A Carrot a Day Recognition toolkit, a copy of the New York Times bestselling book The Carrot Principle, educational videos, stationary, and more!
All this for only $199!

* plus taxes and shipping

REGISTER NOW! Call our office at 410-661-5668 or email Ellen.Sparks@octanner.com

"The use of this seal is not an endorsement by the HR Certification Institute of the quality of the program. It means that this program has met the HR Certification Institute’s criteria to be pre-approved for recertification credit."

Save the date - June 3, 2010: Carrots are coming!

By Natalie Limneos
O.C. Tanner - Baltimore Office

I just got back from a week at our Home Office in Salt Lake City. Not only was I wowed by the picturesque scenery and fresh mountain air, I was overwhelmed by the whole O.C. Tanner experience. I consider myself well and truly a Carrot Convert.

I've only been with the company since July 2009 so this was my first trip out to our home office and my first experience with Carrot Training.

Now I know my testimonial may come across as biased to some, after all I am an employee, but make no mistake, I suddenly experienced an 'AHA Moment' as I witnessed a glimpse of The Carrot Principle Training Seminar hosted by the wonderful Andrea Gappmayer.

The training resonated deeply with me which is why I felt compelled to write something on a personal level. I feel that so many employers don't actually realize how important appreciation is.

Before joining O.C. Tanner I was with my last employer for 7 years. Leaving was possibly one of the hardest things for me to do, but I honestly felt that I had no choice, as I felt so unappreciated.

In this economical climate it is exactly the same for employees everywhere!
There have been cutbacks, and people are working harder without the incentive of that once annual bonus or pay rise. Employees are shouldering extra responsibilities, many of which are not what they signed up for and are anything less than pleasant. This is where, just like in my case, morale hits rock bottom and good people end up moving on.

This is exactly why recognition is so vital for all companies, regardless of their size. The Carrot Principle Training Seminar teaches employers just that. It demonstrates the effectiveness of employee recognition and how appreciation has such a positive effect on company growth and productivity.

I highly recommend this seminar to any employer, no matter the size of the company. This training just puts companies back on the right track. It teaches employers the value of their people, how to keep them engaged, and ultimately how to grow, especially in these troubled times.

We are very excited to announce that The Carrot Principle Training Seminar is coming to the DC area. Don't miss this opportunity to participate ‘in America’s most valuable training program’.

The Carrot Principle Training Seminar
Date: Thursday, 3rd June 2010
Address: Capital One, 1680 Capital One Drive, McLean, VA 22102-3407

More details will be posted soon, but please feel free to call our office for more information - 410-661-5668. We look forward to seeing you there!

Don't forget to appreciate!

Are you giving your employees what they want?

Employees are craving effective job recognition now more than ever. The Corporate Leadership Council reports that employees’ desire for job recognition has increased 15 percent over the past several months, yet only 11 percent of employees agree managers differentiate recognition accurately.

Give employees what they want. To appreciate in a big way, recognition should be …

Timely - Everyone enjoys a little instant gratification. Reward today’s great work, today. Not tomorrow.
Frequent - Show your appreciation for a job well done consistently and often.
Specific - Highlight a specific instance or accomplishment. Tying recognition to an individual project makes a lasting impression on team members.

Let us help you inventory and evaluate the effectiveness of recognition programs in your organization. We’ve helped our clients design solutions that make the most of their investment by redesigning or reallocating resources to be more effective.
Contact your local appreciatelogists for all your recognition needs. Call 410-661-5668 or email Baltimore@octanner.com.

Thank you for your help in making The Inspiration Award a success...

After 48 nominations, more than 1 million votes cast, and 52 million people who visited our sites, read the articles and watched clips online (not to mention, the tear or two shed), 6 recipients have been announced.

Congratulations to the following Olympians and Paralympians who will be honoring their mentors with The O.C. Tanner Inspiration Award:

Nick Baumgartner, Snowboard Olympian
Curtis Tomasevicz, Bobsled Olympian
Noelle Pikus-Pace, Skeleton Olympian
Stephani Victor, Alpine-Skiing Paralympian
James Joseph, Wheelchair Curling Paralympian
Alana Nichols, Alpine Skiing Paralympian

Be inspired by their stories on the Olympics and Paralympics pages, or read and watch some online highlights of this year’s campaign:

• KSL News Footage of Athlete Olympic & Inspiration Ring presentation
• Deseret News Photo of Athlete Ring presentation
• Christian Science Monitor article on The Inspiration Award
• USA Today online article on The O.C. Tanner Inspiration Award
• US Olympic Committee Press Release about The O.C. Tanner Inspiration Award
• KSL News Video on O.C. Tanner’s Vancouver Athlete and Staff Rings

Thanks to each of you for your participation and support.

March Webinar Update - Improving Staff Engagement: A practical toolkit....

Thank you to all of you who attended our recent webinar on March 18, 2010: Engagement Done Right: What You Can Learn from Leading Healthcare Organizations.

Our next webinar is scheduled for May. Updates and information will be posted on this site as we know more; but feel free to contact our office closer to the time if you have any questions - Baltimore@octanner.com.

If you were unable to attend the March webinar, here is the link for a recording of the session: https://octannerevents.webex.com/octannerevents/lsr.php?AT=pb&SP=EC&rID=2107187&rKey=a18eeaf1d61e989f .
Also, as promised to attendees, here is the link to the white paper 'Improving Staff Engagement: A practical toolkit': http://www.octanner.com/public/pdf/whitePapers/OCT-NHS-Engagement-Briefing-11-09.pdf.

This recording and white paper provide an inside look at some of today's most successful appreciation practices.
To find out more on how to engage your staff, and for help with all your recognition needs, please contact your Baltimore 'appreciateology' team. We're happy to help you with all your recognition solutions - Baltimore@octanner.com. Remember to appreciate!

Cutbacks: Don't Neglect the Survivors

How to keep the delicate ties that bind employees to their companies from snapping.
By Bill Conaty – BusinessWeek

Restructurings, consolidation, salary freezes, a shifting health-care cost burden, furloughs, 401(k) match eliminations...this list, as you know, goes on and on. Did your company cancel this year's Christmas party?

These are common responses to our changing corporate landscape. And they can be necessary. Businesses that don't step up and react to reality are unlikely to survive over the long term.
My concern is that, cumulatively, these negative actions are tugging at and fraying the delicate bonds of loyalty that tie employees to their employers. I believe it will be the companies that manage to deftly balance the necessary tough competitive actions with genuine compassion for their employees that will win big in the future.

People have long memories. What they don't have right now are a whole lot of career options. And they will judge their employer by how equitably they feel they were treated during the down market. So how exactly do you steer your company through this in a way that won't drive your people into the arms of the first headhunter who calls? (Trust me, they will start dialing again.) Just as vital: How to take the tough steps while energizing your workforce instead of paralyzing them?

As counter intuitive as it may sound, consider going deeper than you might on staff reductions, rather than nibbling around the edges hoping for a quick market turnaround. Some companies believe in "share the pain" scenarios, where everyone gets to sacrifice equally at the corporate altar. I'm not a fan of such strategies unless they address a short-term crisis in which a company expects to be reducing forces and hiring within the same year. In my view, these practices ensure that 100% of your workforce is demoralized, vs. the 10% to 20% whom you really can't afford in the current climate.

When you're ready to make those cuts, deal compassionately with the casualties, financially and emotionally, to provide them as soft a landing as possible. Career transition centers, training opportunities, and a sincere interest in helping those who are moving on become more marketable will genuinely help.

Many companies don't need to be told that. Instead, managers often spend a disproportionate amount of time managing the layoff process and not enough attention on the surviving talent. Those survivors need to be recognized and rewarded. Yes, they'll pay close attention to how humanely layoffs are carried out, but they're also aware that their own workload and stress level has just been stepped up. You want this group to play offense, not to fret over when the next shoe will drop or feel that they're being overburdened.

With financial rewards temporarily off the screen, an astonishingly powerful form of recognition is a genuine pat on the back, along with words along these lines: "I think you're doing a great job under tough circumstances, and you're an essential part of my team." It doesn't take long to say or cost a penny, but how many of us have ever heard those words?

There's a strong tendency for executives in tight spots to simply clam up, fearing they don't have the answers people want to hear. To avoid appearing inadequate, they'll issue the occasional all-employee e-mail or canned Web cast. But you'll find that you don't need to have all the answers. You'll discover that the rumor mill has painted the most pessimistic picture imaginable, and you will quickly be able to dispel numerous falsehoods and present a clearer and more optimistic view. These times call for a personal touch. Employees who get to see and hear their leaders are far more likely to buy into a future beyond the crisis.

Now back to the subject of holiday parties: It's a mistake to legislate fun out of the workplace. You need to continue to celebrate, especially in tough times. Employees shouldn't feel that it's wrong to appear to be having fun at the risk of their superiors thinking they're not serious enough. We need to dial down how we celebrate, yes, but it's not natural to have to continuously wear a deadly serious game face. Life's too short to have to feel that way, let alone act that way.
As the clouds blow away, I'll be placing my bets on companies that are the most open, ethically compliant, and compassionate with their people. They'll be the ones that succeed in retaining—and therefore attracting—world-class talent.

Bill Conaty is a former senior vice-president for human resources at General Electric and is co-authoring a book with Ram Charan tentatively titled The Talent Masters.

Contact your Baltimore 'appreciatologists' for assistance with all your recognition needs: baltimore@octanner.com.

And the award goes to....

O.C. Tanner is pleased to congratulate the first ever recipients of the O.C. Tanner Inspiration Award....

Noelle Pikus-Pace who nominated her husband Janson. Nick Baumgartner and his much-loved mother Mary. Curt Tomasevicz and the ENTIRE town of Shelby, NE. (Yes, all 690 of them!) Congratulations to this year's recipients. We appreciate their contributions to their communities, friend and family - they inspire us all.

Thanks to everyone that voted for your favorite inspirational stories from our Olympic athletes.
There were 37 nominations overall and almost 900, 000 votes. To find out more about the winners check out O.C. Tanner's Appreciation Facebook page:
http://www.facebook.com/octanner.appreciation?v=app_273183691422

To learn more about O.C. Tanner and how Appreciation really does change everything please call your Baltimore Team. We're here to help you with all your recognition needs - 410-661-5668.

In Praise of Praise - How can you build your workplace morale – and inspire the best from your employees?

This is a great article from Susan Adams at Forbes Magazine. Here she focuses the power of employee appreciation and mentions our very own award winning Carrot Culture Gurus, Chester Elton and Adrian Gostick.
For all your employee recognition needs please contact the Baltimore Appreciateologists at baltimore@octanner.com, or call 410-661-5668. We look forward to helping you with your recognition solutions….

Expressing appreciation can be an extremely effective way to motivate employees, yet few bosses do it. The first time a boss thanked me for my work, I felt startled and a little confused. What? Had I heard that right? She's thanking me for doing the job I'm paid to do? Who expresses gratitude in the rude, no-nonsense world of journalism?

I'd spent the first phase of my career reporting to one of the toughest bosses in New York magazines, the brilliant but explosive Steven Brill, who ran The American Lawyer the old fashioned way, with excruciatingly high standards and frequent expletives. Then in the early '90s I found myself working under Robert MacNeil, at PBS' MacNeil/Lehrer NewsHour. An exceedingly decorous man, MacNeil even thanked the janitors, setting an office tone where managers expressed appreciation at the end of each day. Once I got over my initial surprise, I realized I very much liked it when my senior producer thanked my team and me for giving the program our all.

Although appreciation and praise, especially when expressed specifically, inevitably make employees feel more loyal and more engaged, all too few bosses practice the art of gratitude, says Chester Elton, a motivation consultant. A recent study found that between 75% and 80% of American workers said they got little or no recognition from their managers in the last year. Together with a co-author, Adrian Gostick, Elton has written four books on using recognition and praise to boost results, most recently The Carrot Principle: How the Best Managers Use Recognition to Engage Their People, Retain Talent, and Accelerate Performance.

In that book, Elton and Gostick include the results of a survey they commissioned of 200,000 American workers that demonstrates a link between bosses who recognize employees with praise, along with other signs of appreciation like holiday parties and handwritten notes, and a company's financial performance. The survey shows return on equity three times higher for companies that engage in employee appreciation. Their workers are more creative and more dedicated to the business's success, and they have a stronger bond to their company and its goals, according to the research.

For the last decade Elton has been working at Carrot Culture, the leadership and training division of a Salt Lake City company called O.C. Tanner, which started 84 years ago as a maker of employee recognition lapel pins. Now O.C. Tanner produces all sorts of employee recognition products and services for companies, including awards, trophies and gift passes. As a Carrot Culture speaker, Elton charges $20,000 per appearance.

He insists that appreciation works, especially during these recessionary times when companies have cut monetary bonuses and awards. Though it costs a company nothing, verbal praise can be as effective as a cash award, he says. Hard Rock Café, the restaurant chain, did a study on the effect of managers welcoming their shifts, thanking employees for coming in and making a few inquiries about their personal lives and families. Just a minute a day of verbal appreciation reduced employee turnover by 3%, Elton says.

Source, Susan Adams, http://www.forbes.com/

Engagement Done Right: What You Can Learn from Leading Health Care Organizations

SAVE THE DATE!

Join us on March 18, to learn how your employees can increase productivity, generate profits and significantly improve customer care and satisfaction.

Complimentary Webinar hosted by Michelle M. Smith, CPIM, CRP
March 18, 2010, 10:00 am EST (8:00 am MST)
Register for your free session here.

We will discuss:
· Where to focus resources to maximize engagement in a recovering economy
· Easy to implement, low and no cost solutions to achieve specific business results
· How to optimize your recognition spending with helpful tips and how-tos

Engagement Done Right: What You Can Learn from Leading Health care Organizations
Michelle Smith from O.C. Tanner will help you examine your recognition initiatives and determine how to maximize impact and spending, as she shares best-practice research and health care industry case studies. Named as one of the Ten Best and Brightest Women in the Incentive Industry, Michelle has worked in every facet of recognition and incentives, both domestically and internationally. As an international speaker and performance improvement consultant, she has published and presented more than 400 articles and lectures on optimization of performance improvement initiatives.

Remember to register for the session here.
We encourage you to join us. Don’t miss this opportunity to increase your recognition initiatives without increasing your budget.

The Corporate VP of Station Casinos talks Recognition!

Bestselling author and motivational speaker, Chester Elton, recently met with Valerie Murzl, Corporate VP of Station Casinos in Nevada. Valerie talks about her people and the need for more recognition in the workplace. She also provides some great advice. To listen to the podcast of this interview please click on the following link ....http://chesterelton.com/images/uploads/podcasts/10/Chester_Elton-Station_Casinos.mp3

Chester has been featured in the Wall Street Journal, Washington Post, Fast Company magazine and the New York Times and has been featured on CNN, ABC “Money Matters,” MSNBC, National Public Radio and 60 Minutes. A sought-after speaker and recognition consultant, Chester is Senior Vice President of the Carrot Culture division with the O.C. Tanner Recognition Company.

Source: Chester Elton Podcast, January 16th, 2010 and http://www.chesterelton.com/.

The O.C. Tanner Inspiration Award - Winter Olympics 2010

At O.C. Tanner we believe strongly that every Olympian deserves to go home with gold. That’s why we have been the proud supplier of the U.S. Olympic Team rings since 2000. We were also honored to create the gold, silver and bronze medals for the 2002 Winter Olympic Games.

This year we’re extending appreciation to those individuals who have inspired the Olympic athletes on their journey. New in 2010, The O.C. Tanner Inspiration Award will honor those frequently left behind the scenes. Those who ignited the spark. Encouraged the dream. Awakened the quest for Olympic glory. It may be an athlete’s parent, neighbor, teacher. A teammate, a brother, a friend.

It will honor those who will never receive an Olympic medal of their own. But instead made it possible for someone else.

Athletes have already begun submitting their nominations for the person that most inspired and motivated them. Read their stories here and cast your ballot for the story that moves you most. Check for new stories each day until Friday, February 12.
Then … Become a fan here.
Vote for your favorite story. Invite others to vote.

Three honorees will receive The Inspiration Award, a 14K gold commemorative ring bearing the laurel crown from the ancient Olympic games, designed by O.C. Tanner.

When we see people who push the limits to succeed, to excel, to go above and beyond we feel compelled to appreciate that performance; no matter if it happens in a cubicle or on a ski slope, on the assembly line or on a balance beam.

Thanks for your enthusiastic support of this exciting new campaign.

Don’t forget to contact the Baltimore Appreciateology Team for all your recognition needs. Email us at Baltimore@octanner.com or call 410-661-5668.

Enjoy the Games. Appreciate the dream.

OC Tanner Supplies Olympics Rings for 2010

O.C. Tanner is excited to be the proud supplier of the U.S. Olympic Team rings for athletes and staff this year – continuing with the tradition since 2000....

"SALT LAKE CITY -- Utah jeweler O.C. Tanner unveiled the Vancouver 2010 Olympic athlete rings Saturday.
The jeweler will give each athlete and staff member of Team USA one of the mementos to help them remember their Olympic experience. The rings feature the Olympic Rings on the top, each athlete's sport on one side and the athlete's name and the 2010 Winter Olympics logo on the opposite side.
In celebration of the Olympic Games, O.C. Tanner jewelry stores in Park City and Salt Lake City will have Salt Lake City 2002 Olympic medals and selected athlete rings from the past 10 years on display. Visitors to the stores can view the displays during the Vancouver Olympic Games.

The 2010 Olympic Winter Games begin Feb. 12.
O.C. Tanner has been supplying the U.S. Olympic Team rings since 2000. The company is based out of Salt Lake City."

Source, KSL - http://www.ksl.com/?nid=294&sid=9524331 , January 30th, 2010

The Invisible Employee - Second Edition

The Invisible Employee—2nd Edition—by authors Adrian Gostick and Chester Elton, is now available!
The critically acclaimed book is an invaluable read providing great business advice and practical guidance for managers. This book shows managers how to get involved and lead their people from obscurity to achievement, reaping the rewards across their entire organization.
For more information visit www.carrotbooks.com or contact your Baltimore Appreciatology team at 410-661-5668.

Reviews.....
"A gem of a book . . . finding that workers who are recognized are more productive, have fewer on-the-job accidents, and translate their satisfaction into customer satisfaction."—Financial Post.

"There is magic in this book. Whether you are looking for a few good tips to keep a good thing going or need to recapture the very essence of a productive workplace, The Invisible Employee provides valuable lessons nestled among the pages of a clever and compelling story."—Stephen C. Lundin, bestselling coauthor of Fish!

"Gostick and Elton's simple-to-understand and teachable approach of setting and supporting core values and recognizing and celebrating those behaviors can be a very effective management technique for creating a committed and engaged workforce of 'visible employees.' This is a culture no organization can afford to be without."—Michael R. Losey, President, World Federation of Personnel Management Associations.

"The basic principles detailed in The Invisible Employee are simple yet profound: (1) setting a guiding vision, (2) seeing employees supporting that vision, and (3) praising and celebrating that behavior. Engaging our entire staff by using these principles helps Friendly's provide great memories for our guests."—John L. Cutter, CEO and President, Friendly's Ice Cream Corporation.

"The Invisible Employee is a very inventive and original book. Combining facts that will surprise you and a fable that will fascinate you, Gostick and Elton have crafted a book that educates and entertains. The Invisible Employee is a wonderful read with a powerful message, and I highly recommend it to leaders at all levels."—Jim Kouzes, coauthor of The Leadership Challenge.

Why does engagement matter?

Despite the downturn, employees remain engaged but there are important signals managers shouldn’t miss. Here are some suggestions to help managers keep employees energized amid ongoing uncertainty.

Despite the turbulence in the U.S. economy over the past two years, Gallup has found that employee engagement has remained relatively stable. But there are subtle changes going on that managers need to keep an eye on to help their workgroups -- and their companies -- remain competitive.

Worker engagement is an emotional response, so one might expect employees to become less engaged as the recession deepened. Surprisingly, they haven't.

The current U.S. recession began in December 2007, according to the National Bureau of Economic Research. During the heart of the recession -- throughout 2008 and 2009 -- Gallup surveyed American workers on a wide range of measures, including its Q12 survey -- 12 items that measure employee engagement. Employee engagement is the psychological and emotional attachment people feel for their workplaces. It's based on the fulfillment of basic human needs in the workplace, and the more people feel those needs are met, the more engaged they are.

Why does engagement matter? Because there's also a clear link between engagement and profitability, which makes engagement a more urgent issue now than it has been in prosperous times. Worker engagement is an emotional response, so one might expect employees to become less engaged as the recession deepened. Surprisingly, they haven't: Gallup has found that there have been only slight changes in overall engagement, but there have been significant changes on specific elements of engagement.

Ups and downs less traumatic for the engaged
In general, Gallup's tracking of the U.S. general public's daily mood throughout 2008 and 2009 shows that there have been "significant changes in average mood by month as we've tracked it throughout the year," says James K. Harter, Gallup's chief scientist of workplace management and wellbeing. (See "Gallup Daily: U.S. Mood" in the "See Also" area on this page.)
This same tracking indicates that several key wellbeing variables have been affected: There have been increases in worry and stress. The amount of time people spend socializing has decreased. And obesity is on the rise. But "the ups and downs have been less traumatic for people who are engaged in their work," says Harter.

Gallup has tracked the engagement levels of the U.S. working population for the past decade. Its most recent employee engagement research shows that 28% of American workers are engaged, 54% are not engaged, and 18% are actively disengaged. Throughout the decade, the percentage of engaged employees ranged from 26% to 30%, while the percentage of actively disengaged employees ranged from 15% to 20%.

In addition, from July 2008 to March 2009 -- during the heart of the recession -- Gallup tracked a large sample of employees and found only slight (1%) changes in overall engagement. In July 2008, 31% of employees were engaged, 51% were not engaged, and 17% were actively disengaged. In March 2009, these percentages had changed very minimally: 30% were engaged, 52% were not engaged, and 18% were actively disengaged.

Why did these engagement levels remain so stable despite the dire economic conditions? "This likely has to do with the fact that engagement is based on very local, everyday, worker experiences," Harter says. "Therefore, engagement can serve as an anchor during troubled times."

What managers can do?
Although overall engagement levels seem to be stable, there were significant changes at the individual Q12 item level that managers would be wise to monitor in their own workgroups. Managers who focus on just a few items -- such as making expectations clear, providing frequent feedback and recognition, encouraging development, and helping workers connect their efforts with the mission and purpose of their company -- can enjoy a big payoff not just for their team but for the organization as a whole.

Knowing what's expected
"The element that dropped the most during the recession was 'I know what is expected of me at work,'" Harter says. "I think that speaks to the reality that as the economy has changed, workers have role clarity issues. Layoffs are happening, organizations are restructuring, and workers' roles are changing. People are uncertain about the future." To counter this, managers need to work particularly hard at clarifying expectations with their employees.
The majority of people just want their managers to realize that they're here, that they're making a difference, and that they're working really hard.

Opportunity to do what I do best
Over time, many employees can do more of what they do best because they continue to refine and optimize their role. In a down economy, when companies are struggling to do more with less, employees may have to pick up the slack for colleagues who have been laid off or who have had job changes. As a result, they might be taking on new tasks and responsibilities they are uncomfortable with or aren't as good at.

To help workers find opportunities to do what they do best, managers can focus on their employees' strengths and work to understand the barriers that get between employees and performance -- and try to remove those barriers. "During a down economy, it isn't difficult to notice what is going wrong," Harter says. "It is more challenging, and useful, to think about and leverage individual strengths to get done what needs to get done."

A connection to the mission of the company
During turbulent economic times, people might feel less connected to the mission of their company, especially if they think their job is threatened. "When changes are happening, it's either a threat or an opportunity," Harter says. "When people around you are losing their jobs, employees are more likely to see it as a threat, and they revert to basic survival needs." And when employees are in survival mode, it's more difficult for them to connect to the broader purpose of the company.

For managers, the key to helping employees overcome this is to get them to understand how they are part of the organization's future. Managers should conscientiously and assertively help employees see how what they're doing is part of something bigger -- and how it connects to the future of the organization. That produces substantial benefits for the organization's performance "because it helps workers focus on thinking about how the organization can get better in the future, rather than getting into a 'hunkering-down' mode," Harter says. "Even though the economy is down, there are opportunities for the company to grow."

Talking about progress
During a challenging time, some managers can also feel threatened or that their job may be at risk, and they might not communicate with employees as well as they should. "But people want to be part of the future, and progress discussions help them see how they can contribute to that future," Harter says. "Managers can help employees by continually communicating how they are progressing and showing them how their work benefits the organization."

Opportunities to learn and grow
Many companies have reduced their budgets for training and education, so managers have less discretionary income to allocate to employee training programs. But learning and growing isn't just about buying training -- it's about helping employees continue to grow in their jobs, and there are many ways to do that outside the training budget. "Providing employees with meaningful opportunities to learn and grow starts with getting to know each person one on one, thinking about their strengths, and thinking about the ways they learn best," Harter says.

Recognition and praise
One item did go up significantly from July 2008 to March 2009: More employees agreed with the statement "In the last seven days, I have received recognition or praise for doing good work." Why was there significant positive change on this item? It could be that managers are leveraging the non-monetary means they have to motivate their workforces during a down economy. If a company's financial situation precludes things like development training or job role changes, managers can still perform a crucial function: recognizing and praising employees for hard work and quality productivity.

"Many companies can't recognize people for their work with financial rewards right now," says Denise McLain, a Gallup principal. "And truthfully, financial rewards are important to some people, but the majority of people just want their managers to realize that they're here, that they're making a difference, and that they're working really hard."

In a healthy economy, engagement makes good companies better. During challenging times, engagement might be what helps keep companies solvent. As the economy begins to improve -- and it will -- organizations with strong engagement will be poised to grow, and engagement may well play a role in that recovery.

Source: Jennifer Robison is a Senior Editor for the Gallup Management Journal.

12 Questions to Measure Employee Engagement

Do your opinions seem to count? Does the mission/purpose of your company make you feel your job is important? Have you had opportunities at work to learn and grow?

Five years ago, The Gallup Organization began creating a feedback system for employers that would identify and measure elements of worker engagement most tied to the bottom line--things such as sales growth, productivity and customer loyalty.

After hundreds of focus groups and thousands of interviews with employees in a variety of industries, Gallup came up with the Q12, a 12-question survey that identifies strong feelings of employee engagement. Results from the survey show a strong correlation between high scores and superior job performance. Here are those 12 questions...

1. Do you know what is expected of you at work?
2. Do you have the materials and equipment you need to do your work right?
3. At work, do you have the opportunity to do what you do best every day?
4. In the last seven days, have you received recognition or praise for doing good work?
5. Does your supervisor, or someone at work, seem to care about you as a person?
6. Is there someone at work who encourages your development?
7. At work, do your opinions seem to count?
8. Does the mission/purpose of your company make you feel your job is important?
9. Are your associates (fellow employees) committed to doing quality work?
10. Do you have a best friend at work?
11. In the last six months, has someone at work talked to you about your progress?
12. In the last year, have you had opportunities at work to learn and grow?

Article from Workforce Management Online. Copyright 1992-1999 The Gallup Organization, Princeton, NJ. All rights reserved. Gallup and Q12 are registered trademarks of The Gallup Organization.

Five Tips for Effective Employee Recognition

How to Reward, Recognize, Award, and Thank People Successfully
By Susan M. Heathfield, About.com Guide

Employee recognition is not just a nice thing to do for people. Employee recognition is a communication tool that reinforces and rewards the most important outcomes people create for your business. When you recognize people effectively, you reinforce, with your chosen means of recognition, the actions and behaviors you most want to see people repeat. An effective employee recognition system is simple, immediate, and powerfully reinforcing.

When you consider employee recognition processes, you need to develop recognition that is equally powerful for both the organization and the employee. You must address five important issues if you want the recognition you offer to be viewed as motivating and rewarding by your employees and important for the success of your organization.

The Five Most Important Tips for Effective Recognition
You need to establish criteria for what performance or contribution constitutes rewardable behavior or actions.
· All employees must be eligible for the recognition.
· The recognition must supply the employer and employee with specific information about what behaviors or actions are being rewarded and recognized.
· Anyone who then performs at the level or standard stated in the criteria receives the reward.
· The recognition should occur as close to the performance of the actions as possible, so the recognition reinforces behavior the employer wants to encourage.
· You don't want to design a process in which managers "select" the people to receive recognition. This type of process will be viewed forever as "favoritism" or talked about as "it's your turn to get recognized this month." This is why processes that single out an individual, such as "Employee of the Month," are rarely effective.

A Working Example of Successful Recognition
A client company established criteria for rewarding employees. Criteria included such activities as contributing to company success serving a customer without being asked to help by a supervisor. Each employee, who meets the stated criteria, receives a thank you note, hand-written by the supervisor. The note spells out exactly why the employee is receiving the recognition.

The note includes the opportunity for the employee to "draw" a gift from a box. Gifts range from fast food restaurant gift certificates and candy to a gold dollar and substantial cash rewards. The employee draws the reward, so no supervisory interference is perceived. A duplicate of the thank you note goes into a periodic drawing for even more substantial reward and recognition opportunities.

More Tips About Recognition and Performance Management
· If you attach recognition to "real" accomplishments and goal achievement as negotiated in a performance development planning meeting, you need to make sure the recognition meets the above stated requirements. Supervisors must also apply the criteria consistently, so some organizational oversight may be necessary.The challenge of individually negotiated goals is to make certain their accomplishment is viewed as similarly difficult by the organization for the process to be a success.

· People also like recognition that is random and that provides an element of surprise. If you thank a manufacturing group every time they make customer deliveries on time with a lunch, gradually the lunch becomes a "given" or an entitlement and is no longer rewarding.In another organization, the CEO traditionally bought lunch for all employees every Friday. Soon, he had employees coming to him asking to be reimbursed for lunch if they ate lunch outside of the company on a Friday. His goal of team building turned into a "given" or an entitlement and he was disappointed with the results.

· There is always room for employee reward and recognition activities that generally build positive morale in the work environment. The Pall Corporation, in Ann Arbor, MI, has had a "smile team" that meets to schedule random, fun employee recognition events. They have decorated shop windows, with a prize to the best, for a holiday.They sponsor ice cream socials, picnics, the "boss" cooks day, and so on, to create a rewarding environment at work. Another company holds an annual costume wearing and judging along with a lunch potluck every Halloween.

Rewards and recognition that help both the employer and the employee get what they need from work are a win-win situation. Make this the year you plan a recognition process that will "wow" your staff and "wow" you with its positive outcomes. Avoid the employee recognition traps that:
· single out a few employees who are mysteriously selected for the recognition,
· sap the morale of the many who failed to understand the criteria enough to compete and win, and
· sought votes or other personalized, subjective criteria to determine winners.

Employee Engagement: Define It, Measure It and Put It to Work in Your Organizations

Research by APQC, one of the leading proponents of process and performance improvement, has yielded key insights into what engagement is, how it can be measured and how it can be integrated into organizational culture.
By Rachele Williams.
Employee engagement is to HR what customer loyalty is to marketing and sales. It is that often elusive frame of mind that goes beyond satisfaction and ensures the long-term and productive tenure of the faithful employee with the employer.

This article describes how leading organizations define employee engagement, how they collect and measure and put into play relevant information and how they ensure senior leadership is held accountable for making employee engagement a part of the organizational culture.

Defining employee engagement
In order to make the most of such key talent processes as recruiting, training and development and retention, organizations should be tuned in to the “voice of the employee” and ensure that valued employees are engaged with the organization.

A manager of organizational effectiveness and employee engagement at a Fortune 100 company put it this way: “The typical organization today views talent management as three building blocks: attract, develop and retain. These are solid building blocks. The challenge is that these blocks won’t stick together unless there is mortar. And that mortar is employee engagement. A robust, world-class talent management process has to put the mortar between those three key building blocks.”

To avoid platitudes, every organization should define employee engagement to ensure that the information it is gathering from the workforce on can be put into practice. For example, one organization researched by APQC for its newest collaborative research project, “Rewarding, Engaging, and Retaining Key Talent,” defines employee engagement as commitment, work ethic and loyalty.

Another organization defines employee engagement as a combination of perceptions—including satisfaction, commitment, pride, loyalty, sense of personal responsibility and willingness to be an advocate for the organization—that have an impact on behavior.

And a third defines engagement centrally as “an individual sense of purpose and focused energy, evident to others in their display of personal initiative, effort and persistence, that is directed toward organizational goals.”

Each organization in the study is clear about what it means to be an engaged employee. That definition is reinforced through standard processes and practices for collecting employee engagement information.

Why employee engagement is important?
Both qualitative anecdotes and quantitative research indicate that organizations realize positive outcomes from employee engagement.

For example, a best-practice organization candidate for APQC’s “Rewarding, Engaging, and Retaining Key Talent” study found that high levels of employee engagement have been correlated with high levels of quality, productivity and attendance. Another has correlated higher levels of employee engagement with higher levels of new product innovation. And a third has observed some very positive business outcomes, in large part because of its focus on employee engagement over the past four years, including a reduction in team member turnover of 19 percent, a reduction in workers’ compensation claims of 27 percent, an increase in net revenue of 22 percent, and an increase in earnings before interest, taxes, depreciation and amortization of 43 percent.

Quantitative research reinforces the relationship among customers, employees and the bottom line. For example, the classic 1994 Harvard Business Review article “Putting the Service Profit Chain to Work” establishes relationships among profitability, customer loyalty, employee satisfaction and productivity. A 2003 article from Journal of Applied Psychology—“Which Comes First: Employee Attitudes or Organizational Financial and Market Performance?”—found consistent and significant positive relationships over time between overall job satisfaction and financial and market performance (as well as reciprocal relationships).

Measuring employee engagement
Employee attitude or climate surveys are two tools for gathering feedback and enhancing workplace communication. APQC’s Open Standards Research shows that workforce climate surveys primarily take the form of an annual census, which means that all employees are surveyed once a year. (About half of survey participants conduct employee satisfaction/engagement surveys at least once per year.) The results are then communicated to senior leaders and the top managers responsible for such key employee areas as talent management, compensation and benefits for action and process improvement.

APQC’s qualitative research also sheds light on how best-practice organizations monitor the voice of the employee and take action. For example, one organization calculates an employee engagement index, based on a subset of employee survey items measuring the engagement of respondents:

• Satisfaction: Employees are asked, “Considering everything, how would you rate your overall satisfaction with the company at the present time?”
• Advocacy: Employees are asked whether they “would recommend the company as a great place to work.”
• Retention: Employees are asked to respond yes or no to the statement “I rarely think about looking for a job with a new company.”
• Pride: Employees are asked to respond yes or no to the statement “I am proud to work for the company.”

At another organization in APQC’s collaborative research, employee engagement is measured two times per year through a formal survey. First, the organization administers a formal employee engagement survey to all employees worldwide. This information is analyzed, and action plans are developed and implemented based on results. Participation is voluntary; in 2008, roughly 92 percent participated in the survey. Then about halfway through the year the organization conducts a random poll to assess how well it is doing with the action plans generated from the annual survey results.

Sustaining a commitment to employee engagement
The final steps in the engagement process are ensuring that the information can be acted upon, that senior leadership is held accountable for the results, and that a focus on employee engagement is instilled in organizational culture.

Employee satisfaction and engagement research should be important elements in HR and organizational strategic planning processes. Of the organizations participating in APQC’s Open Standards Research, 77 percent indicate that employee feedback and surveys are key aspects of the organizational HR planning process (Figure 1, N=75). Because employees are important customers—indeed, the ultimate customers—of HR plans, policies and strategies, their opinions can help organizations gauge the success of particular initiatives, determine strategic priorities and pinpoint needed improvements.

Which of the following are inputs into your HR planning process?
Organizational long-term objectives 83%
Organization mission statement 80
Senior management directive 79
Employee feedback/surveys 77
Internal and external analysis 75
Corporate and unit strategies 72
HR customer satisfaction surveys 52
Other 5

Organizations must also reinforce how seriously they take employee engagement. According to APQC’s Open Standards Research, employee satisfaction and the growth of key staff members are the most common employee- or HR-related metrics factored into leadership compensation (Figure 2, N=156). Employee satisfaction is typically gauged via employee satisfaction, engagement, climate or culture surveys. Staff development is typically measured by the number of promotions and developmental opportunities completed.

Which of the following people/HR metrics are built into the compensation plan for the leadership team at your business entity?

Employee satisfaction (climate/culture survey) 40%
Growth of key staff (promotions, developmental opportunities provided) 40
No people metrics built into compensation plans for leadership 32
Attrition/retention of key staff 28
Staff training completed in comparison to learning goals 21
Number of available positions filled internally 19
Diversity 15
Other 9

Here are some examples from APQC’s collaborative research of how leading organizations act on this information:
• The organization feeds results of the employee engagement survey into action plans and process-improvement initiatives. Through data analysis, it compares each group’s employee engagement index against the organization overall and against the benchmarks.
• In another example, each business unit develops action plans based on results of the previous year’s engagement survey and the follow-up pulse survey. The organization also requires that all managers with direct reports have performance objectives related to engagement.
• A third organization directs information from the customer and employee surveys to the appropriate process owners for action and improvement. This information is used as one factor in computing bonuses for senior leadership and is communicated to managers for process-improvement purposes. Results are also used for group training purposes when necessary. The organization also convenes a cultural council for every operating location to review information from the employee and customer surveys and discuss other employee issues and concerns, such as turnover and career paths. The cultural council comprises employees who meet on a monthly basis as part of the council and discuss improvement opportunities. Actions and feedback suggested by the councils then are communicated at the district and the division level.

The final consideration is making employee engagement part of an organization’s culture. One way to do this is by integrating employee engagement into other key talent initiatives and activities. For example, one organization integrates employee engagement into such activities as learning and development, Six Sigma, succession management and nonfinancial recognition:

• In learning and development: One e-learning module focuses specifically on the “fundamentals of employee engagement.”
• In Six Sigma: The company has been able to calculate estimated improvements in business outcomes based on improvements in the employee engagement scores using Six Sigma processes.
• In succession management: Successors are ultimately selected based not only on their performance and potential, but also on their engagement, leadership and values, as measured by the employee opinion survey.
• In nonfinancial recognition: The company grants an annual “Chairman’s Recognition for Engagement” award to deserving employees each year.

In this manner, employee engagement is integrated throughout different aspects of talent management and is instilled as a key part of organizational culture.

Take Action Against Low Morale

If you’re feeling that morale is running a little low around the office this New Year, you’re not alone.
Almost 25 percent of U.S. employers say morale among workers at their companies is low, according to a survey released by CareerBuilder. "Low morale levels are an unfortunate side effect of this recession," says Jason Ferrara, vice president for the company. Employees reported:

• Having trouble staying motivated at work in the last year

• Not feeling loyal to their employer

• High stress levels and increased work levels in the last 6 months

To give employees a much needed boost Ferrara suggests taking measures to help address negative workplace sentiment and motivate employees. Whether you step-up communication, offer more employee recognition programs, or provide flexible work opportunities—the time to act and engage your employees is now.