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Employee Reward And Recognition


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Recognizing and Rewarding your Employees is more critical than ever to your company during an economic downturn. Here are some thoughts and best practices on the subject

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Employee Reward And Recognition

  1. 1. Maximizing Employee Performance In A Recessionary Economy
  2. 2. Why is employee recognition more important than ever in 2009 ? <ul><li>The obvious need to contain expenses and manage down costs in a recessionary economy </li></ul><ul><li>To free up working capital by accelerating receivables, reducing outlays </li></ul><ul><li>Minimizing costs associated with employee turnover </li></ul><ul><li>Compacting the learning curve for new hires or redeployment of current human assets </li></ul><ul><li>To drive efficiencies in every available sector of the organization </li></ul>
  3. 3. <ul><li>A Successful Employee Involvement System: </li></ul><ul><li>Is linked to business strategy, vision and quality </li></ul><ul><li>Focuses on employee input and peer recognition </li></ul><ul><li>Uses multi-layered programs within a system </li></ul><ul><li>Recognizes individuals and teams </li></ul><ul><li>Links rewards to performance </li></ul><ul><li>Uses tangible rewards </li></ul><ul><li>Utilizes an intensive communications strategy </li></ul><ul><li>Includes measurement and accountability </li></ul>Overview of Best Practices
  4. 4. Organizational, Financial Issues <ul><li>Common Business Priorities </li></ul><ul><li>Consolidation </li></ul><ul><li>Alignment </li></ul><ul><li>Retention / Recruitment </li></ul><ul><li>Safety </li></ul><ul><li>Employee Satisfaction </li></ul><ul><li>Length of Service </li></ul>
  5. 5. Going from good to great performance high-performance recognition frequency number recognized recognizes results <ul><li>annual </li></ul><ul><li>goal achievement </li></ul><ul><li>corp. to associate </li></ul><ul><li>drives goal attainment </li></ul>recognizes performance <ul><li>monthly </li></ul><ul><li>discretionary </li></ul><ul><li>manager to associate </li></ul><ul><li>awards accomplishments </li></ul>recognizes behaviors <ul><li>weekly </li></ul><ul><li>peer-to-peer </li></ul><ul><li>360° recognition </li></ul><ul><li>reinforce core values </li></ul>
  6. 6. Integrated Performance Platform Business Goals Department and/or Corporate Goals Training & Certification Retention Peer Recognition Referral Collections Attendance Customer Satisfaction Collaborative Design Process Integrated IT Platform Tangible Awards/Common Media Executive Dashboard
  7. 7. BI’s approach <ul><li>Focus on behaviors that will create change </li></ul><ul><li>Manager to Peer recognition </li></ul><ul><li>Peer to peer recognition </li></ul><ul><li>Team based objectives </li></ul><ul><li>Results align with corporate objectives </li></ul>
  8. 8. What you can expect – result measures <ul><li>Employee engagement </li></ul><ul><li>Manager, Peer involvement </li></ul><ul><li>Improvement in employee satisfaction </li></ul><ul><li>Effective management of multiple initiatives </li></ul><ul><li>Measurable Results </li></ul><ul><li>Increased learning, comprehension, awareness, activity, and/or other critical performance metrics </li></ul>
  9. 9. Operational measures <ul><li>Measures that focus on team/program function </li></ul><ul><ul><li>TCSI </li></ul></ul><ul><ul><li>How is BI performing </li></ul></ul><ul><ul><li>Merchandise fill rates </li></ul></ul><ul><ul><li>Web site availability </li></ul></ul><ul><ul><li>CSR availability </li></ul></ul>
  10. 10. <ul><li>Measures that focus on program performance and success </li></ul><ul><ul><li>Enrolled Participants </li></ul></ul><ul><ul><li>Number of Active Participants </li></ul></ul><ul><ul><li>Activity Levels </li></ul></ul><ul><ul><li>Awards Issues </li></ul></ul><ul><ul><li>Survey or Quiz Data </li></ul></ul><ul><ul><li>Peer to Peer Nominations </li></ul></ul><ul><ul><li>Manager to Peer Recognition </li></ul></ul><ul><ul><li>Budget Utilization </li></ul></ul><ul><ul><li>Referral Volume </li></ul></ul>Impact Measures
  11. 11. Results Measures <ul><li>Measures that focus on business issues (leading to ROI-type analysis) </li></ul><ul><ul><li>Return on expense </li></ul></ul><ul><ul><li>Cost-savings </li></ul></ul><ul><ul><li>Associate Turnover </li></ul></ul><ul><ul><li>Retention % </li></ul></ul><ul><ul><li>Financial Performance </li></ul></ul>
  12. 12. Investment Benchmarks <ul><li>NAER/WorldatWork Member companies </li></ul><ul><li>3.8% of payroll </li></ul><ul><li>Baldrige Winning Companies </li></ul><ul><li>$250-$700 per person, per year </li></ul><ul><li>Current BI programs </li></ul><ul><li>$200 - $400 per employee, per year </li></ul>
  13. 13. <ul><li>Employee Recognition Programs: </li></ul><ul><ul><li>Reinforce local and corporate activities that lead to accomplishment of strategic objectives </li></ul></ul><ul><ul><li>Offer flexibility to focus on specific metrics and current initiatives </li></ul></ul><ul><ul><li>Reward results, not behaviors </li></ul></ul><ul><ul><li>Build a culture of positive reinforcement and culture of recognition </li></ul></ul><ul><ul><ul><li>Recognize periodic, ongoing performance of all employees </li></ul></ul></ul><ul><ul><ul><li>Improve employee satisfaction, retention </li></ul></ul></ul><ul><ul><ul><li>Improve customer and brand loyalty </li></ul></ul></ul>Summary
  14. 14. Recent Gallup Poll <ul><li>2 out of 3 people received no workplace recognition in a given year </li></ul><ul><li>99 out of 100 people want a more positive environment at work </li></ul><ul><li>9 out of 10 people say they are more productive when around positive people </li></ul>
  15. 15. Recent Gallup Poll <ul><li>Employees receiving recognition and praise within previous seven days... </li></ul><ul><li>Show increased productivity </li></ul><ul><li>Get higher scores from customers </li></ul><ul><li>Have better safety records </li></ul><ul><li>Net: These employees are more engaged! </li></ul>
  16. 16. Gallup Research <ul><li>Regular recognition and praise leads to: </li></ul><ul><ul><li>Lower turnover </li></ul></ul><ul><ul><li>Increased engagement among colleagues </li></ul></ul><ul><ul><li>Better safety records and fewer accidents on </li></ul></ul><ul><ul><li>the job </li></ul></ul><ul><ul><li>Higher loyalty and satisfaction scores from </li></ul></ul><ul><ul><li>customers </li></ul></ul><ul><ul><li>An increase in overall productivity </li></ul></ul>
  17. 17. Towers Perrin Study – August 2005 <ul><li>A major new study of employees worldwide offers disturbing news: just 14% of people are fully engaged on the job and willing to go the extra mile for their companies. </li></ul><ul><ul><li>Largest single study of workforce worldwide </li></ul></ul><ul><ul><li>Conducted by Towers Perrin’s HR Services business </li></ul></ul><ul><ul><li>Surveyed 85,000 people working for large and midsize companies </li></ul></ul><ul><ul><li>Included employees in 16 countries; on four continents </li></ul></ul>
  18. 18. Towers Perrin Study <ul><li>Towers Perrin research shows that companies with fewer engaged workers are far less likely to deliver on their growth agendas or achieve the kind of performance that shareholders demand.” </li></ul>
  19. 19. Towers Perrin Study <ul><li>Highlights </li></ul><ul><li>Vast majority of people surveyed are moderately engaged at best </li></ul><ul><li>Twenty-five percent are actively disengaged </li></ul><ul><li>Study shows - highly engaged workers believe they can and do contribute more directly to business results than less engaged </li></ul><ul><li>Highly engaged employee beliefs… </li></ul><ul><ul><li>84%: can positively impact quality of their company’s products (31%) </li></ul></ul><ul><ul><li>72%: can positively affect customer service (27%) </li></ul></ul><ul><ul><li>68%: can positively impact costs in their job or unit (19%) </li></ul></ul><ul><ul><li>*(___) reflects percent of disengaged with same belief </li></ul></ul>
  20. 20. NAER & WorldAtWork Study <ul><li>Survey sent electronically to </li></ul><ul><ul><li>2708 WorldAtWork & 599 NAER Members </li></ul></ul><ul><ul><li>614 responses (19%) </li></ul></ul><ul><ul><li>At a 95% confidence interval, margin of error is +/- 4% </li></ul></ul><ul><li>Highlights </li></ul><ul><ul><li>92% indicate there is more recognition today than 12 months ago </li></ul></ul><ul><ul><li>89% of respondents have recognition programs </li></ul></ul><ul><ul><li>48% are considering adding programs within 12 months </li></ul></ul><ul><ul><li>60% have written program strategy </li></ul></ul><ul><ul><li>81% use to create a positive work environment </li></ul></ul><ul><ul><li>69% allocate 3.8% of payroll for recognition </li></ul></ul><ul><ul><li>52% have both corporate-wide and division/dept. specific </li></ul></ul><ul><ul><li>71% have both informal and formal recognition programs </li></ul></ul><ul><ul><li>55% of Sr. Management view recognition as an investment </li></ul></ul><ul><ul><li>45% use employee satisfaction surveys to gauge success </li></ul></ul>
  21. 21. Conclusions <ul><li>US Department of Labor </li></ul><ul><li>Number One reason people leave their jobs is that they don’t feel appreciated </li></ul><ul><li>Gallup </li></ul><ul><li>If you satisfy their deep wants – employees become more cognitively and emotionally engaged and will perform better. </li></ul><ul><li>And…this is so across national and corporate cultures, in all occupations, regardless of rates of pay, because the underlying needs are universal . </li></ul>
  22. 22. What To Do? <ul><li>Contact [email_address] to schedule an introductory meeting with an expert in driving positive cultural and behavioral change </li></ul><ul><li>A poor economy is no reason to accept lackluster organizational results. There are many cost-effective tools to deliver bottom-line results for your company </li></ul>
  23. 23. Visit