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

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!

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!

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

A review of THE CARROT PRINCIPLE in Financial Executive Magazine

The Carrot Principle: How the Best Managers Use Recognition to Engage Their People, Retain Talent and Accelerate Performance; revised edition. By Adrian Gostick and Chester Elton.

In this, their second look at the use of corporate carrots--the first edition was a big 2007 seller--authors Gostick and Elton offer further evidence that praise and recognition belong in every manager's toolkit. In fact, they write, in the long-standing recession, "the Carrot philosophy has never been more relevant."

Indeed, finding ways to recognize people and honor their work doesn't require new resources, just new ways of thinking. Recognition isn't simply the softer side of leadership, they write, but a "secret ingredient that great leaders add to their companies for [a] direct impact on profits."

Organizations that more effectively recognize and reOward excellence, according to a 10-year study of more than 200,000 employees cited in the book, had triple the return on equity as companies that did the worst at recognition. And of employees reporting the highest morale, more than 94 said their managers were good at recognition.

These numbers stand in sharp contrast to others evincing the general sorry state of recognition efforts. Almost two-thirds of North American workers cited in the study said they had no recognition at all in the past year, and 79 percent of top performers who left their companies said "lack of appreciation" was a key reason.

The authors do a superb job of sketching out how and why recognition programs work, citing companies like Quest Diagnostics, KPMG, WaltDisney Co., Avis Budget Group and DHL. As they write, "Smart companies have realized that workers are being asked to do more than ever, and find work less fulfilling. Recognition that builds motivation is essential to keeping them and to getting the most from them."

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.

Employees Report Low Morale & Motivation

Nearly one-quarter of employers rate their employee morale as low, 40% of workers say they have had difficulty staying motivated at work in the last year and 24% say they do not feel loyal to their employer, according to a CareerBuilder survey of employers and workers. “Low morale levels are an unfortunate side effect of this recession,” said Jason Ferrara, vice president of corporate marketing for CareerBuilder. “As a result, employers are taking measures to help address negative workplace sentiment and motivate their employees. Whether it’s through stepping up communication, offering more employee recognition programs or providing flexible work opportunities, organizations are doing what they can to proactively manage low morale.”

Companies Plan to Increase Focus on Employee Engagement in Reward Programs

57% of companies plan to increase their focus on employee engagement in measuring their reward programs during the next two to three years, according to a recent study by WorldatWork and the Hay Group. In addition, 64% will also increase their future focus on the motivational value of reward programs.
The "Reward Next Practices Survey" queried approximately 763 organizations in 66 countries from a cross section of industries to determine the reward practices of global organizations during the next two to three years. According to the study, current reward program performance metrics are more heavily weighted toward financial performance than employee engagement, with companies reporting a current focus of 71% on using financial performance measurements and 40% on employee engagement. Other performance standards, such as customer satisfaction, innovation, talent management and employee engagement are all at less than 40% of current focus by organizations. Of all of these metrics, organizations report a more intense future focus (57%) on employee engagement performance.