Building a rewards & recognition program: One size does not fit all

Remember the baseball movie epic Field of Dreams? In it, Kevin Costner’s character, Iowa farmer Ray Kinsella, hears a voice saying, “If you build it, he will come” with the accompanying vision of a baseball diamond. Heeding the call, he plows under his cornfield in favor of the turf and “he,” Shoeless Joe Jackson, and later “they,” others from the 1919 Chicago Black Sox, do come.
Hoping that life imitates art, many HR managers and leaders hypothesize that a recognition program is as easy as 1, 2, 3: sign up with a gift vendor, put your company logo on the standard web template and begin dispensing points, gifts or other awards. That works…if your only goal is marking 1, 2 & 3 from the to-do list. In reality, once it’s built, not too many come, not too much is accomplished and sooner or later senior management starts asking, “So why are we doing recognition again?” Effectual, strategic employee recognition, like other lasting and essential objectives, is not quite that straightforward.
Having seen companies go through this for over two decades, my first piece of advice: don’t pre-suppose that you or your vendor know what solutions are best for your organization without first doing your homework. In addition, don’t let your unique circumstances be pressed into a standardized program. Your focus needs to be on working with your vendor and stakeholders to design an employee recognition solution that produces the maximum impact within your unique business environment and truly effects staff morale. But how do you do this?
A good way to start is by working through a solution design process. Do a thorough assessment of your current recognition state by reviewing relevant employee survey data, conducting focus groups and executive interviews. Next, conduct a facilitated design session where you bring all your key stakeholders together. Find a seasoned facilitator/design consultant either internally or externally who will work with you to answer a few questions like:
What are our objectives and key success factors?
What recognition program criteria will reinforce our desired objectives and goals?
What guidelines should we consider to ensure consistency and fairness across our organization?
What award currencies–cash, gift cards, points, merchandise–and what value should we use in our programs? What are the pros and cons of each?
What should be the approval process for each program, i.e. peer-to-peer vs. manager to employee, or team recognition?
How do we communicate to and train our managers and leaders so they understand the what, why and how of recognition?
How do we measure our return-on-recognition-investment (RORI)?

A key deliverable from the design session is a recognition blueprint. A good blueprint includes plans for:
Alignment and impact – Your recognition reflects your organization and aligns with your goals, objectives, mission, vision, and values.
Leadership development and training – Train your managers. Companies who invest in training deliver on average return on equity three times higher than those who don’t.
Communications – Keep recognition top of mind and bolster what’s most important at your company. With effective communications your recognition takes off; without, it pancakes.
Measurement and assessment – Focus on metrics to drive RORI and validate to your key stakeholders that strategic employee recognition is good business and can improve your bottom line. A Towers Watson study on global recognition showed that a 15% improvement in your employee engagement scores can lead to a 2% improvement in operating margin.
Awards – What award currency works best for you? How often should your people be recognized (frequency) and what percentage of your employee population should be recognized (reach)? How much should you plan to spend on awards in Year 1, 2, 3 and so on?
Ongoing impact management – After implementation and launch, you need to ensure that your solution continues to meet the ongoing goals and purposes of your strategy. Continually review and fine-tune to meet your changing needs.
Technology – Technology is important and an assumed component of any recognition program–dashboards to track activity and results in real-time, social appreciation tools to extend the reach for the recipient and great fulfillment systems. Technology will be most effective as it supports the key strategies outlined above.
Whether you develop a recognition program internally or work with a vendor, look for a stable software platform that is customized to your brand, is easy to use, and has recognition tools and reporting to assist your users, managers and administrators in their unique recognition roles.
Build your employee recognition solution the right way and they will come. You can drive sustained, positive culture change and lasting business impact.

Chris Vyse – O.C. Tanner
www.octanner.com/blog

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.

The Art of the Thank-You Note

During the holidays, Geoffrey Parker, branding consultant for Parker Pen Co. and great-grandson of its founder, George S. Parker, is careful not to overlook what he calls a "critical" aspect of the gift-giving season: thank-you notes.
"It's common courtesy," he says. "If someone does something for me, I need to acknowledge that." Mr. Parker sometimes thanks a gift-giver or party host with a phone call, email or text message. But he believes that these modes are "insufficient" and always follows up with a handwritten message. "As these modern electronic devices become more common and overused, they become cheap," he says.
Mr. Parker usually sends his thank-you notes on four-by-six-inch cards with his name and address printed across the top. He favors heavier paper and cards with printed words that are raised, noting that people often subconsciously run their fingers over the printed portion of stationery when they receive a note. "People are establishing impressions based on a lot of subtle things," he says.
When writing a card, Mr. Parker eschews everyday ballpoint pens. "I feel fountain pens allow me to be more expressive," he says. He likes using a pen with a broad nib, saying that the fatter script and signature "doesn't look as if it's something that's been mass-produced." He uses ink in a different color from the printed message on the card, usually favoring a striking bright royal blue for his black-printed stationery.
Before he writes his note, he sometimes practices writing a line several times to see how it looks on paper. "People are writing less and less these days ... a lot of people have forgotten how to write," he says. "You don't want something to be difficult to read, misunderstood or simply not understood."
He typically begins the note with a line "harking back to the last time I saw or communicated with them" and then goes on to ask about an associate or family member. "By doing this, you establish a sort of conversation, more than a blunt 'Thanks for the necktie,'" he says. While he tries to keep his message brief, he makes sure it is always more than one or two lines.
Finally, he signs off informally with his first name. "Do not use your business signature for a personal note," he says. "It can seem too formal, and a personal note should not be done in any sort of mechanical or perfunctory way." His rule of thumb: "The thought behind the thank-you should be equal to or greater than the thought that went into the gift."
From the Wall Street journal, Dec 24, 2009

Incentive Magazine’s 2009 Platinum Partner Awards

More than 40,000 buyers of recognition and incentive programs voted O.C. Tanner as the standard of excellence in the incentive industry and made us the winner of Incentive Magazine’s 2009 Platinum Partner Awards’ Corporate Gift Services category--for the fifth year in a row. Your business and support have helped us succeed.

Your ideas and desire to appreciate great work in the best ways possible push us to elevate recognition practices and drive improved results for you. As our partner, this prestigious award reflects your success and hard work as well. Many thanks to all of you!

Engage Employee Heart-Power - Not Just Brain-Power

We've heard that some companies believe there are more important ways to drive engagement than appreciation. Did you know that the number one driver of engagement is "opportunity and well-being"? But how do you add that? The right question might be.. what creates a sense of "opportunity and well-being"? The answer is appreciation..

Here's an interesting article from Harvard Business dated November 11, 2009 that speaks to engaging hearts through leadership.

On any given Sunday in the NFL, the heart power of the players is at least as important as the brain power of the game plan. On any given workday, the same can be said for businesses. But companies lack confidence when it comes to creating heart power in employees. They're not sure how to do it well. So they concentrate brain power on the game plan of translating top-line dollars into bottom-line profit.

Creating heart power starts with management's style of running the company — how much of the time executives spend leading and how much time managing. Managing has to do with matters of the brain; leading has to do with matters of the heart.

Leading is about making sure, first of all, that the company is engaged in changing people's lives for the better. When that's the case, employees' awareness that they have a lot to do with the company's work lights their fire from within. That inner flame causes them to bring their imagination and creativity to the enterprise. They feel it's "their" company, and they take ownership of the customers.

Most companies do change people's lives for the better, if only in the sense that they pay a good wage, provide opportunities for creativity and betterment, and help workers save for retirement and put their kids through school — in addition to benefiting the community in myriad ways. Other companies, such as the one I work for, go much further. For example, to provide people with a good education, the founders bought a bankrupt college years ago, got it into shape, and donated it to the state — it's now known as Ball State University. A business that is engaged in improving lives is the kind of company people want to sell for.

Another word about heart and leadership: A lot of big companies tell new employees to bring their brains and their effort to work but leave their emotional baggage at home. In essence, they tell them to cut their hearts out and leave them on the doorstep to be reclaimed when they get home. "We have enough problems of our own; we don't need your personal problems here" is an example of a style where the "managing" function dominates.

Other companies, generally small businesses that excel in the "leading" functions, hire the whole person, heart and soul, mind and brain. When problems occur in the home, a company support group forms to help get the employee through the trauma. That generates dedication and loyalty, which rub off on customers. And because the employee's life is changing for the better, he or she makes sure the company's corporate life changes for the better as well. Companies neglect employee heart power at their peril.

Clif Reichard is a sales consultant for Ball Corporation, which he has served for 36 years in capacities including vice president of sales. He is in his 55th year selling rigid packaging substrates. This post is one in an occasional series.

Employee Engagement Rooted in Managers' Leadership Skills

To drive higher levels of employee engagement, companies should work on improving the leadership skills of frontline managers, says a new report from Aberdeen Group. "Employee engagement is something world-class organizations need to be effective at in today's competitive environment," says Mollie Lombardi, an Analyst at Aberdeen. "Learning programs provide individuals and managers with the skills and tools to align goals and priorities, and give a strong foundation which organizations can build on in order to achieve success."

According to Beyond Satisfaction: Engaging Employees to Retain Customers, more than half of best-in-class organizations provide training and tools to managers to help them better engage employees, and nearly all of the rest (45%) are planning to extend this type of training in the future. The report also found that two programs – onboarding and development plans agreed to by manager and employee – are critical to building high levels of engagement. Onboarding ensures that employees are aligned with the organizational mission and priorities from their earliest days, and development plans ensure that employees and managers remain in alignment when it comes to their role in achieving organizational success.

"This study is important because it highlights the need to develop strong leadership skills at all levels in the organization, not just in the corner office," notes John Ambrose, Senior Vice President of Strategy, Corporate Development and Emerging Business at SkillSoft, which conducted the research along with Aberdeen Group. "The challenge comes in finding ways to deliver leadership training that are cost-effective and scalable."