companies launch recognition programs and they don’t exactly light up the sky
and shine, as they should.
For a variety of
reasons you might not have gotten the engagement and traction you thought you
would when you designed and developed your organization’s recognition program.
You thought you got everyone’s input and their buy in, and
foundational things can stop recognition program engagement whether it’s access
to technology, the nature of the work of most employees, or simply a
lack of respect thinking employee recognition is unimportant.
But let’s look
at what needs to be in place to engage your managers and employees with your
employee recognition programs.
I have traveled around the world
and presented or consulted with managers and leaders from 14 countries across a
variety of industries on the subject of giving meaningful and effective
Yet, in all these situations there
was a common problem experienced by many of these managers and leaders.
Many of them were uncomfortable
with giving recognition to peers or employees.
I have heard a long litany of
reasons for their apparent discomfort. Perhaps by examining the different
reasons people give for their discomfort we can learn what we can do to rectify
these situations and become more comfortable in recognizing those we work with.
Do any of you remember the Sesame Street TV show and the song People in Your Neighborhood? Perhaps I’m dating myself.
The lyrics of the song started with:
“Oh, who are the people in your neighborhood?… and concluded with…The people that you meet each day.”
Bob McGrath, one of the few human actors on the show among the many puppet characters, sang the song with one of the puppets and then they would identify the different people that helped make their Sesame Street neighborhood. Various puppets appeared representing the postman, firefighter, grocery store owner, barber, and doctor, etc.
Many times I am asked how to get senior leaders involved with recognizing and appreciating their employees. Or how to engage them in accessing their online recognition programs to acknowledge or nominate staff.
Sometimes I feel if the leaders don’t “get it” about the importance of recognizing employees, maybe those who manage recognition at the organization should let the natural consequences take their course.
The real recognition leaders in your organization are most often the people that you meet each day in your “neighborhood” at work.
Two magazines arrived on my desk within weeks of one another and both highlighted “feedback” on their cover articles. Then I received an email inviting me to attend an online presentation about moving from feedback to action. Looks like the topic of feedback was on my radar.
Some of us have a hard time giving feedback and even receiving feedback.
“Can I give you some feedback?”
Do you cringe at that question? Or do you look forward to discussions following that question? You and I can react so differently depending on the source of the feedback, your current work and life status, and what exactly you are being critiqued about.
I heard Dr. Brad Shuck speak at Recognition Professionals Conference this past week in Atlanta, Georgia.
Brad’s presentation was about Driving Real Engagement Through Recognition: Applying the Core Principles of Behavioral Economics to Strategy Implementation. It’s a long mouthful of a presentation title but he had some great and valid principles we can all apply to what we do with employee recognition.
What do you need to do now to prepare for giving recognition better tomorrow?
We need greater accountability for the success of our incentive programs. Planning to calculate the ROI of incentive programs from the start will help us focus on results. Following the Top 10 Ways to Measure the ROI of Incentive Programs will be a handy checklist to ensure the success and ROI of your incentive programs.
1. Identify the problem you want incentivized.Assess the current performance problem to determine the needs, conduct a gap analysis, and look for potential improvements you think could be incentivized. Too many accidents, not enough sales, losing too many people, or not reaching performance targets.
2. What are the costs of the problem?Analyze the direct and indirect costs currently associated with the identified performance problem or need. Like: What are salary and operational costs for a retail store? What are turnover costs? What is the number of lost-time days due to accidents?
3. Determine the achievable objectives.Propose one or two key measurable objectives to be targeted by incentives. Example: percentage of reduced voluntary turnover; increased quarterly productivity indicators at retail stores; percentage of sales performance numbers; or, reduced number of annual accidents per year.
4. Figure out the best measures to use.Identify the specific behavioral measures you will use to determine the right program success measures. When you define the performance well enough you will know the behaviors you want more or less of. You’ll then know if the behaviors occur or not and how to measure them.
5. Calculate the costs of incentives.Project the overall costs associated with conducting an incentive plan to improve the performance problem. Determine the value of incentives, the frequency or number of behaviors required for an incentive, the time period of the incentive plan, and multiply to determine total costs.
6. Keep tabs on budget spend.Monitor the costs associated with producing the improved performance results along with implementing the incentive plan. ROI is about return on investment of monies spent, which includes administration costs, monitoring, data collecting, and analysis.
7. Gather the data you need.Collect baseline data of target performance results from the period before the incentive plan began as well as during the implementation period (e.g. year before versus current year). Do as much as you can before the incentive plan so you can deal more with data following implementation.
8. Create a before and after analysis.Analyze and calculate the costs of the targeted performance problem before and after the incentive plan. Here you monetizing as much of the data as you can. Make friends with the folks in finance to help you put a dollar figure on as many data points as is possible.
9. Consider reasons for the success, or not.Give a general interpretation of the results observed of performance outcomes achieved while using incentives. This is putting the human observation and deductive reasoning as to whether things worked or not. Your hypothesis can then be validated by the data collected.
10. Work out the ROI.Calculate the actual return on investment. The math is easy: It’s the estimated dollar amount of the impact made by the incentive plan minus the combination of the annual incentive payout costs plus administration costs, then divide the previous total by the impact dollar amount, and finally multiplied by 100. Previously published in Incentive Magazine
How are your career milestone or service award programs doing these days?
It seems the majority of organizations have tenure or long service award programs. According to WorldatWork’s 2017 Trends in Employee Recognition, length of service recognition remains the top ranked recognition program with 85 percent of organizations.
Historically, and especially within the public sector, career milestone years were only acknowledged when an employee reached 25 years or longer. Today, most progressive organizations commence with at least 5 years and then celebrate every 5-year increment thereafter.
But when you look at the US Bureau of Labor Statistics the average tenure for salaried employees is 4.2 years. That average drops to 2.8 years for the mobile 25 to 34 year old employees.
There will always be horror stories around recognition programs if you don’t start off on the right foot.
And the irony of it all is the challenges most often come with the misnomer of calling these problematic programs “recognition programs”. Problems with errant programs usually lies when using rewards, be they tangible merchandise, cash, or near cash rewards.
So, get recognition programs right so there is equity and fairness with non-monetary and intangible recognition and tangible and monetary rewards accompanying these recognition programs.
There is also a need for authenticity and inclusiveness with the expressions of recognition given to people through your programs, whether this is by text, spoken word, or video. Recognition must be genuine and sincere in both intent and how it is communicated to a person. We should give regard to all employees who contribute day in and day out and not focus solely on the rising stars whose performance always exceeds the standards of most employees.
Recognition is for everyone.
You must make sure you get your recognition programs right.