When & How To Start A Reward & Recognition Program
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This presentation shares the in and outs of why a reward and recognition program is important to a company. Includes stats on why it's important and how it helps your employee retention.
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When & How To Start A Reward & Recognition Program
- 1. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program
- 2. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Ben Peterson Co-founder and CEO BambooHR Jason Corsello VP of Corporate Development & Strategy Cornerstone OnDemand
- 3. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program HR can be more strategic by focusing on reward and recognition.
- 4. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Reward and recognition is a proven engagement tool. “Seventy-eight percent of employees would work harder if they were better recognized.” —Globoforce
- 5. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Reward and recognition retains top talent. “Nearly half of employees said they would leave their employer for a company that recognized employees for their contributions.” —Globoforce
- 6. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program When using reward and recognition, your business will see measurable results. “Organizations that give regular thanks to their employees far outperform those that don’t .” —Josh Bersin
- 7. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program It’s clear reward and recognition helps in so many areas. Yet we aren’t doing it. “Only 12 percent of employees say they often receive appreciation for great performance.” —Towers Watson
- 8. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program So why aren’t we doing it? • Time • Uncertainty • Priority
- 9. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Instead of focusing on who to reward and recognize, learn how to identify what to reward and recognize.
- 10. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Reward based on behaviors and actions—not titles and departments.
- 11. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program • Telecommuting has increased 80 percent recently and continues to grow. • Make sure you’re extending your workplace culture to everyone, not just those physically in the office. • Link the way remote employees’ achievements align with the broader, overarching company goals. Don’t forget about your remote workforce
- 12. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Rock Stars Most Improved Departmental Wins Be Creative!
- 13. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program When to Recognize v. When to Reward “To win in the marketplace, you must first win in the workplace.” —Doug Conant, Campbell Soup
- 14. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program • Intangible • Relational • Experienced Recognition • Tangible • Transactional • Consumed Reward
- 15. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Don’t wait and do it often. “Most employees want some type of recognition every 7 days!” —Towers Watson
- 16. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Know Your People.
- 17. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Don’t lump recognition in with criticism. Make sure to designate a separate time to recognize and to point out what could be improved.
- 18. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Make reward and recognition a habit. Make it part of your culture.
- 19. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program How to get started…
- 20. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Successful leaders use praise effectively. “We all need people who will give us feedback. That’s how we improve.” —Bill Gates
- 21. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Be collaborative: Nominations Anonymous Feedback Invite Ideas for Recipients and Prizes
- 22. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Recognition means nothing if employees do not feel like it is honest and deserved. Show employees it is. Most Importantly: • Be Genuine • Be Transparent • Be Fair
- 23. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program It’s up to leadership to make feedback a cultural value in the organization.
- 24. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program BOTHbeingnominatedanddoingthe nominatingbringfeelingsof EMPOWERMENT.
- 25. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Peer-to-peer recognition = a true illustration of the social environment “Researchclearlyshowsthattop-downrecognitionisnotwhatmakes companiesthrivetoday—it’srecognitionbyyourpeers,thepeopleyou workwitheveryday.” —Josh Bersin
- 26. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Don’t wait until you have a full-fledged recognition & reward program running.
- 27. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Reward on a small or mid-sized budget: • Align spiffs and bonuses with performance. • Provide additional training or career development. • Company lunches, gifts cards, food. • Tickets: movies, concerts, plays, games. • Chairs, headsets, extra monitor, laptop, new phone.
- 28. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Reward a remote or scattered workforce: • Give team-building experiences. • Provide faster equipment or efficient tools. • Send swag—with the company values. • Provide a company social forum for communication. • Allow employees to reward each other. • Share, involve, communicate.
- 29. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program “We are what we repeatedly do. Excellence, therefore, is not an act, but a habit.” —Aristotle
- 30. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Follow BambooHR and Cornerstone on social media: bamboohr.com/blog | cornerstoneondemand.com/blog Thank you!
- 31. bamboohr.com cornerstoneondemand.com When and How to Start a Reward & Recognition Program Questions? BambooHR Receive a free job posting on our ATS. We will contact everyone within the next few days to set this up. Purchase Cornerstone Growth Edition before June 30, 2015 and receive up to $1,000 discount with the mention of this webinar. Cornerstone OnDemand
Editor's Notes
- Welcome, everybody.
- Thanks for spending your valuable time with us today. First, I want to welcome you here. We love talking about ways you can reward & recognize your employees. You care about it too, which says a lot about you. You want to find the best ways to make your people happy at work and help engage them. First I want to introduce us. I’m . . . Ben Peterson, founder and CEO of BambooHR (www.bamboohr.com), the leading online HR software for small and medium-sized businesses. Clients include industry leaders such as, Disqus, Squarespace, FreshBooks and Fitbit. I’m a columnist for Inc. magazine and is a regular LinkedIn and TLNT contributor, focusing on business and HR topics. I’ve also been featured in Forbes, Entrepreneur and Time. I love doing webinars and exploring ways we can all be better leaders and help our employees succeed. This is Jason Corsello, VP of Corporate Development & Strategy at Cornerstone OnDemand.
- SPEAKER NOTES: In HR, we’re responsible for a ton of things. And in small companies, sometimes we feel like we’re just trying to keep our head above water. There are so many things we have to get done—paychecks, benefits, compliance. But most of us want to be strategic. In HR, that’s where you can add the most value to your company. That’s where you’ve got to be. That’s why you let HR software take care of the more operational parts of your job, then you can start focusing on more strategic HR. “If you only behave transactionally, you’ll only be seen as transactional. If you want to be seen as strategic, then you’ve gotta be strategic.” Transition: One great way to be more strategic in your role, is to focusing on reward and recognition.
- First, let’s talk about why you should spend your valuable time on reward and recognition. We’re going to cover three huge reasons. First, engaged employees are the most productive employees. You have to care whether your people are engaged. Reward and recognition is a proven engagement tool. 78 percent says they would work harder if they were better recognized. Also, Staffing company Robert Half International recently reported that the No. 1 reason employees give for leaving companies is a lack of praise and recognition. (http://www.qualitydigest.com/aug/nelson.html) Transition: What’s more, engaged employees are much less likely to leave. STAT SOURCE: http://www.globoforce.com/resources/research-reports/mood-tracker-spring-2012-the-growing-influence-of-employee-recognition/
- SPEAKER NOTES: Reward+Recognition=Retention A 2013 SHRM survey found that the top challenge facing HR over the next ten years was retaining and rewarding the best employees. And other studies had similar findings: 28 percent of companies listed retention as their number one concern in 2009. By 2013, it doubled to almost 60 percent. These statistics aren’t surprising considering most employees don’t feel that they’re being recognized often enough. Would you stick around at a job where your contributions weren’t appreciated? We all want to feel valued. And rewards and recognition can help employees feel that way. Recently, BambooHR did a study to find out which things were annoying and ultimately deal-breakers for employees. We discovered just how important recognition is: 82 percent of employees find it annoying when they’re not recognized for their accomplishments If your employees feel annoyed, chances are they won’t be around long. If you want to keep your people, it’s time to sit down and deliberately and thoughtfully plan your strategy around reward recognition. SOURCE: http://www.globoforce.com/news/press-releases-archive/globoforce-reveals-2011-workforce-mood-tracker-survey-results/ ALSO: A Bersin study showed: “Companies that scored in the top 20% for building a “recognition-rich culture” actually had 31% lower voluntary turnover rates!” (SOURCE: http://www.forbes.com/sites/joshbersin/2012/06/13/new-research-unlocks-the-secret-of-employee-recognition/)
- SPEAKER NOTES: When financial data was compared in a Global Workforce study,companies with higher employee engagement had a 19 percent increase in operating income and a 28 percent increase in earnings per share over a 12-month period. In contrast, companies with poor employee engagement scores had declining operating incomes and an 11 percent drop in earnings per share over the same time period. So you can either bump up 20 percent by engaging employees or drop by 10 percent if you don’t. From a real dollar standpoint, it’s clear.
- SPEAKER NOTES: So you see that employees want to be recognized for their hard work . . . and even rewarded for it! We never outgrow wanting to be recognized and praised for great work. Recognition and rewards confirm to us that our work is valued. It validates that we’re doing things that others respect us for doing. And when employees feel valued, they are happier at their jobs and they are more productive, which motivates them to keep doing—and improving upon—that good work. Let’s get real here: You need to motivate your employees to get the very most out of them. Motivated and engaged employees are very closely related. It’s a no-brainer. We should be recognizing and rewarding their employees, but it makes you wonder why we’re not doing more of it. Don’t we all want our people to be more productive? SOURCE: http://www.ragan.com/Main/Articles/Infographic_Only_12_percent_of_people_receive_freq_45993.aspx
- SPEAKER NOTES: There are always reasons why we’re not doing things we know we should. Here are probably some that we’ve all said from time to time: Not enough time: Will we ever have enough time? It seems like we’re always so busy putting out fires. Even if we have started automating a lot of our transactional HR functions, we’re always busy. Sometimes it seems hard to sit down and actually start a reward & recognition program. Aren’t sure how to do it: Well, that’s why you’re here today, right? We’re going to dig into the details of the foundations of setting up a reward & recognition program at your company. Afraid of doing it wrong: Yes, believe it or not there are ways that you can do r&r wrong. (1) Waiting: You can miss a great opportunity to motivate your people right away if you think you’ll just do that at the yearly performance review. (2) Giving one-size-fits-all recognition: Do you know how each person likes to receive recognition. Some people don’t want to be applauded in front of everyone else. (3) Not knowing the details: make sure you know how the person was involved and call him out on the things he actually helped with. (4) Calling it a team win when you should single out or vice versa. (5) Not being genuine: Your people can tell when it’s not sincere. Make sure to make it real and show them that their contribution was truly valued. Not a priority. Some days it won’t be a priority. Some days you’ve got compliance or open-enrollment and R&R may have to wait for your attention. But if you set it up as a living, thriving thing to everyone at your company, others will keep it going on when you’re putting out other fires. Don’t forget that people want recognition often. As often as every 7 days! Don’t know where to start. There are things you can do today to get started simply. We’ll talk about them a little later in the webinar…. TRANSITION: We are missing out on an opportunity to engage and motivated our people. So let’s get started. First we’re going to talk about who you should be rewarding to get the most value out of it.
- CSOD SLIDE: Focusing on the ‘who’ often leads people to overlook why you’re actually doing this in the first place. MVP or MOP – great, but WHY are they the most valuable? WHAT about their work was the most outstanding?
- CSOD SLIDE: Behaviors lead to results. Results are what’s important. Sales guy with the biggest number, Marketing dept with a splashy new campaign, product team with a new release – all should be rewarded when appropriate, but not the only things to look for. Those are the easy ones. How about Friendly, timely, helpful customer service team – led to outstanding reputation on service – led to higher retention. Behavior – to results. Procurement team thinking strategically about new technology, weighing pros and cons on what to implement, ultimately choosing a new technology that decreased wasted time and increased productivity across the organization. Results.
- CSOD SLIDE: 3rd bullet most important – not just for remote employees. Drawing a clear link between the behaviors and results that are rewarded with the broader goals of the company reinforces the actions and culture most desired.
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- SPEAKER NOTES: When we need to decide when to recognize versus when to reward, we’re really needing to talk about intrinsic v. extrinsic Rewards. You’ll find that recognition gives employees a more intrinsic value while rewards (those that cost you a lot more) give extrinsic. When asked, most people will say they prefer extrinsic rewards, according to a study done by the Journal of Economic Psychology. While offering bonuses or gift cards will cost your company, they may not always be what gives you the best return on your investment. However, intrinsic rewards can be more effective motivators of performance and will keep your employees engaged. They will help your employees want to take on more responsibility and will give them a feeling of accomplishment. And what’s more, this costs your company very little—if anything at all (as you saw above). After all, it’s not hard to get a return on your investment when it’s something as simple and free as saying “thank you.” Or acknowledging an employee in a team meeting. Or giving a stretch goal that aligns with the employee’s career goals. It may not seem like much—or cost you anything at all—but it’s this type of appreciation that encourages engagement and long-term growth and retention. EXTRINSIC REWARDS: There are times when it makes a lot of sense to offer extrinsic rewards. For example, how well do you know your employees? Do you know each of them well enough to know how they prefer to be rewarded. Some of them really do respond better to monetary rewards. In that case, you need to consider when it should be used. Also, in the case of sales teams and commissions or bonuses based on measurable business achievements, this can be the best direction to head. The fact of the matter is you need to consider case-by-case if you should be recognizing intrinsically or rewarding extrinsically. Case in point: You don’t have to always reward. 74 percent of US companies use non-cash incentives, like simple “thank-you’s, flexibility, gift cards or travel. —Incentive Federation
- I got this information form Roy Saunderson, Recognition Management Institute
- SPEAKER NOTES: Recognize or give a simple reward right when you notice a behavior you’d love to see again. Why shouldn’t you wait? When you notice an action or behavior worthy of recognition, you need to stop and acknowledge it right away. You don’t want to miss an opportunity to motivate your people now, and immediate recognition gives employees instant feedback. The more time that passes between the performance and the recognition, the lower the impact of that recognition. Why should you do it often? Did you know that most employees want some sort of recognition every 7 days? That means you need to be finding ways—even if they’re small and unique—to recognize your great employees often to reassure them they’re headed in the right direction and to keep heading there. It doesn’t mean you have to keep a calendar. It just means, when you notice something, mention it. Don’t wait. Don’t look for something huge. Just make it sincere and mean something to employees. You’ve lost a huge opportunity to give positive feedback immediately if you want until a formal performance review to do it. You know how people hate performance reviews. It’s probably because you’re not even doing it then—and only focusing on the “places to improve” instead of the great things your employees have done.
- SPEAKER NOTES: Don’t only recognize employees for something they did well and then add on a pile of criticism. If you lump together the good and the bad, your employees will feel that you don’t really value the good performance and all the focus will be on what they need to do better. And really, all they’ll hear is the BUT YOU SHOULD DO THIS BETTER IN THE FUTURE. Make sure you set aside a separate time (and definitely less public place) to tackle what can still be improved to guide in the right direction.
- SPEAKER NOTES: You’ve got to do it so often it becomes a habit. And not just to the managers or leaders—to everyone. Your culture is a product of what you focus on. If you want to make appreciating each other and recognition part of your culture, you can. In fact, reward & recognition play into those values that create your culture. If you observe employees appreciating each other for helping out or just for doing great work—and then reward that behavior—it will ripple through your company. In fact, it will become a habit from the repetition of doing it over and over. People who are recognized will see the value in it—especially from their own experience—and will then try to pass that along to other employees. Add a value (in black and white, or officially) to your company values that incorporates recognition or appreciation. Before you know it, your culture will incorporate it and employees and leaders will just do it out of habit. Peer-to-peer recognition is super valuable, which is why it’s so powerful to include any type of recognition as a part of your culture.
- CSOD Slide
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- CSOD Slide Ben, here’s where you can get into a conversation with Jason: SPEAKER NOTES: When thinking about getting your leaders involved in R&R, you can use this data to convince them this IS important. HERE IS A STRATEGIC IDEA YOU CAN PITCH. WE'RE ARMING YOU WITH THIS INFORMATION, NOW GO WE ARE GOING TO ARM YOU WITH THE INFORMATION TO HAVE A STRATEGIC CONVERSATION WITH YOUR BOSS. We did a similar webinar a while back and while we were discussing all the great reasons why we should be doing reward & recognition, we had a lot of people express interest. We had so many questions flowing in about how to put it into effect. What we noticed more than anything is that HR wants to know how to get their managers onboard so they’ll understand it’s important and actually do it. I thought this would be a great time to answer some of the questions that came in from last time that focus on how to get others onboard. · How can I get higher-ups at my company to adopt ideas for R&R? First off, show them this deck. There are a ton of reasons why it’s important for employee engagement, retention and business results if you do it. Your people care about this and if you focus on it, they’ll be happier at their jobs and that will ultimately help your company be more successful. I can’t stress enough that you won’t have to remind managers to do it when recognition becomes a part of the culture. Create a company value that includes recognition--not just for managers to recognize employees--but even for employees to be recognizing each other when they notice great work or when a coworker helps out another coworker. This is the best way to implement it so you don’t have to nag managers to do it. · How can I get my boss to allow time (longer lunches, extra time off) as a reward? We’re all busy. We all have a ton to do, but if we think we can’t function without letting our employees have a break or some time off, then we have bigger problems than we realize. I’ve learned that when you give people time away, they come back more energized and more productive than when they left. That’s why your people SHOULD be getting time away. To me, time away is a great way to reward employees. Maybe start off small by asking for an extra hour at lunch. Then show how your employees are becoming even more productive because of it. · In my company, we’re cutting costs but I’d like to use R&R to keep morale up. Are there free ways to recognize and reward on a non-existent budget? I hate to give it away, but we’ve got a huge list coming up on ways you can recognize and reward without spending a penny. One simple way is to just make sure you’re thanking your people--thank them for specific things and make it public, so everyone else sees who is being recognized and for what. You may be surprised how much power a simple “thank you” (for a specific behavior or action) can have. Other ideas include dress-down days or telling the story of a great behavior in a company meeting or other public forum. · How can I get managers to use rewards employees actually want? One of the most important things about reward & recognition is that it’s got to be tailored to the individuals. You can’t give one-size-fits-all recognition. People are different. One person might love to be recognized and applauded in the weekly meeting, while another person will hate it. The trick is knowing all of your people well enough to know if a quiet email thanking them for their great work will be best or shouting it out to everyone with a bullhorn. We have a client out of Australia, RedBalloon, who uses BambooHR software to record how each of their employees likes to be rewarded. For example, they have customized a tab in our software that is called “Favorites,” where employees say what their favorite things are--like candy bars or favorite restaurants. When it comes time to reward an employee, the manager or HR only needs to check out their “favorites” and it’s easy to customize the reward for that person. That’s one simple (but thoughtful) way to tailor rewards to every individual.
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- SPEAKER NOTES: So you may feel overwhelmed right now. This is a lot of information and you want to create a program that’s going to add value for years to come. But you don’t have to get a huge program up and running before you can get started. The beauty part of reward & recognition is that it’s more about your mindset. There are simple things you can do today to get started without having to spend months creating a huge program. Here are some practical ideas on ways you can start working on your program for different sizes of budgets and types of employees: A lot of these ideas seem like great ideas, for the future, but what about today? Now that you’re feeling inspired to do something, you want to get started. So what can you actually do today. Right now. To get things going. But then tomorrow, you’ve got to go another step farther. Don’t forget to work on setting up a program that’s going to continue to make your people more productive and your workplace more positive. Thank an employee for something specific. Then ask your managers to do the same. Define which behaviors merit rewards and which merit recognition based on your company, its budget and culture. Create a survey to learn how employees like to be recognized. Plan the work. Work the plan. Envision the results and keep your eye on the prize. A lot of these ideas seem like great ideas, for the future, but what about today? Now that you’re feeling inspired to do something, you want to get started. So what can you actually do today. Right now. To get things going. But then tomorrow, you’ve got to go another step farther. Don’t forget to work on setting up a program that’s going to continue to make your people more productive and your workplace more positive. Thank an employee for something specific. Then ask your managers to do the same. Define which behaviors merit rewards and which merit recognition based on your company, its budget and culture. Create a survey to learn how employees like to be recognized. Plan the work. Work the plan. Envision the results and keep your eye on the prize. A lot of these ideas seem like great ideas, for the future, but what about today? Now that you’re feeling inspired to do something, you want to get started. So what can you actually do today. Right now. To get things going. But then tomorrow, you’ve got to go another step farther. Don’t forget to work on setting up a program that’s going to continue to make your people more productive and your workplace more positive. Thank an employee for something specific. Then ask your managers to do the same. Define which behaviors merit rewards and which merit recognition based on your company, its budget and culture. Create a survey to learn how employees like to be recognized. Plan the work. Work the plan. Envision the results and keep your eye on the prize.
- Since we deleted the No Budget slide, here is what was on it: As we talked about briefly before, you don’t have a budget for reward and recognition. There are many ways to recognize employees that don’t have to cost you anything at all! Remember, these free intrinsic rewards are the real motivators of performance and will keep your employees engaged. They will help your employees want to take on more responsibility and will give them a feeling of accomplishment. And what’s more, this costs your company nothing at all. And really this is just the beginning. Get creative. Think of all the ways people can feel special and rewarded. What about a special parking spot you rotate when people need a reward? Or I think of the “Golden Banana Reward” -- For example, Hewlett-Packard has adopted a Golden Banana Award. It came about when a company engineer burst into his manager's office to announce he'd just found the solution to a problem the group had been struggling with for many weeks. His manager handed the employee a banana from his lunch (the only thing he had within reach to reward) with the words: "Well done! Congratulations!" At first, the employee was puzzled, but over time the Golden Banana Award became one of the most prestigious honors bestowed on an inventive employee. Here is a list of free ways to recognize your employees: Say thank you. Say thank you. Remove a dreaded task. Have a dress-down day. Give long lunch or extra time off. Offer stretch goal or growth opportunity. Give a title promotion or responsibilities. Have top manager thank employee. Offer work flexibility. Sometimes, however, when you do have a budget to reward employees, it can go far. Really, it’s like getting a return on your investment as people become more engaged and motivated. You see, when people are rewarded in the right way for the right things it makes them want to do those things again—and do even more—to receive more praise and get rewarded again. So the real question is: Where can you get the best ROI? Just make sure you’re using that precious budget—whatever the size—on high-impact rewards. What’s important is that you’re motivating and engaging your people with the reward you choose. STORY: When you realize someone is super committed and doing great work, what better buy-in can you get than offering stock options or giving equity? That will reconfirm their commitment to your company.
- With flexible workplaces on the rise, you may find yourself managing a team of people who could be working from just about anywhere in the world. In fact, according to studies, telecommuting has increased 80 percent recently and continues to grow. Since your people aren’t necessarily sitting in an office where you rally them together or see their faces every day, it’s important to focus on uniting your workforce by extending your company’s culture outside the walls of the office. But that’s not so easy to do. You see, as much as those remote workers want to be part of something meaningful, they’re not around other team members to build upon their passion and aren’t there for the fun, culture-building stuff you do at the office. Yet they still want to feel a part of the team. So how can you make sure everyone—no matter where they’re working—is feeling the passion a great culture provides?
- Keep your eye on the prize: Don’t do it just to say you have a reward & recognition program because you think you should. Think about what you’re really going to do and how it’s truly going to help your people and your company. Are you bought in?