How do cutting out reward and recognition programs undercut your company? For the answer, just look at this study from the Incentive Marketing Association.
In its white paper “The Time for Employee Recognition and Reward Programs Is Now,” the group says rewards and recognition provide the kind of engagement that create success for companies during tough times.
According to the report: “Creating and maintaining a climate of employee appreciation can make the difference – and it doesn’t always need a large budget. In fact, it can be one of the most effective moves an employer can take. Companies of all sizes need to make a conscious commitment to keep their recognition if they want to keep their employees engaged and productive.”
Some key findings from the report:
- Companies with recognition and reward programs outperform competitors.
- Recognition and reward programs are ROI compatible.
- Customer satisfaction, loyalty and profitability are tied to recognition.
Another interesting survey that’s from a collaboration between the International Association of Administrative Professionals and OfficeTeam, the admin staffing division of global giant Robert Half International, shows the power of a pat on the back. While supervisors surveyed rated job promotions and cash as the two most valued forms of recognition to administrative professionals, support staff favored a simple thank-you and having their accomplishments passed on to senior management. That’s “Thank You Power” in action. It’s free or inexpensive, it’s meaningful and it’s powerful.
Also, two out of three (66%) administrative employees said they would probably leave their jobs if they did not feel appreciated by their manager, while seven out of 10 (70%) admitted the company’s recognition program would factor into their decision to accept a job with a potential employer.
“While financial rewards should not be overlooked, the research shows there are other ways to effectively recognize someone’s commitment and dedication,” says Robert Hosking, executive director of OfficeTeam. “Administrative professionals are working harder than ever, but their accomplishments usually occur behind the scenes. Therefore, praise from supervisors or a colleague that is specific, immediate and genuine can go a long way toward keeping these employees motivated and loyal.”
gThankYou® Certificates of Gratitude™, when given for employee recognition and rewards, are a way savvy companies say “Thank You” to employees. gThankYou, LLC is based in Madison, Wisconsin. The company is best known for its Ham Gift Certificates, Turkey Gift Certificates and Grocery Gift Cards.
WorldatWork is a leading human resources professional association with more than 30,000 members worldwide. WaW sees itself as the “Total Rewards Association”, and draws the the premier companies and practitioners in this realm to its annual Total Rewards Conference, held recently in Seattle.
One of the really fascinating presentations in Seattle earlier this month in Seattle revealed the results of a new study on reward programs by Hay Group and WorldatWork. The study: “Reward Next Practices: The future of reward programs” finds that in the next two to three years 57% of firms plan to increase focus on employee engagement in measuring reward programs. Also, 64 percent will increase focus on the “motivational value of reward programs” in the future.
Here’s what Tom McMullen, U.S. Reward Practice Leader for Hay Group says about these results: “The global downturn has prompted organizations worldwide to shift to an increased focus on how to engage and motivate employees. However, during times when budgets are tight, maintaining an engaged workforce is more difficult than ever. When times are tough, employers are looking for ways to improve engagement – and it’s essential they remember the motivational power of intangible rewards, the role of the line manager in establishing a great work climate and the importance of communicating effectively with employees.”
The study has stirred up commentary from HR bloggers, some of whom question how to go about measuring effective engagement and rewards. In Compensation Force, Ann Bares calls study findings “an interesting piece of news” calling for “some element of balance in our reward metrics – financial versus non-financial, lag versus lead.”
In his Strategic HCM Blog, John Ingham says it’s essential to be clear about intended outcomes first when measuring a reward program.
How are rewards currently measured? The study of 763 diverse companies in 66 countries found that reward program performance metrics weigh heavy on financial performance (71%) using employee engagement (40%) to a lesser extent. In the future, more companies report they plan to focus more on engagement.
Other key findings:
- Almost half, 44 percent, plan to increase their future focus on using reward to reinforce a culture of creativity and innovation.
- Two thirds, 67 percent, will focus more on improving the ability of line managers to effectively manage the overall pay-for-performance relationship with employees, and on the role of line managers in communicating total rewards to employees.
- Key components of the reward programs of the future will include leveraging important non-financial rewards including career and development opportunities, improving work climate and non-financial recognition.
gThankYou® Certificates of Gratitude™, when given as employee gifts, are a way savvy Human Resource Executives help their company’s say “Thank You” to colleagues. gThankYou, LLC is based in Madison, Wisconsin. The company is best known for its Ham Gift Certificates, Turkey Gift Certificates and Grocery Gift Cards.
How do you go about measuring the impact of your company’s Thank You program? Finding that 42 percent of companies that spend millions on these programs don’t know how well they work, the folks at Globoforce have put some thought behind it.
In its recently released white paper, “Measuring Recognition: (How to Build the Business Case for Strategic Recognition in a Recession,” Globoforce advises businesses take these steps to measure the success of “strategic recognition” programs”:
- Decide how you’ll measure success before the program launches. Effective metrics should be based on factors including costs versus outcomes, gains in productivity and performance, and company values and strategic objectives. Stay away from simply counting the number of rewards given, which measures just that.
- Next, set up a performance baseline for recognition. This gauges how the program impacts employee morale, productivity and performance against former and future Thank You programs.
- Use employee surveys and the program itself to measure results regularly and consistently. This ensures that the program remains on target.
- Look for trends in analyzing results. This analysis can uncover valuable information about who is using the program best, and who isn’t.
- Share meaningful results with employees, managers and executives. Tailor the message to each audience, reporting relevant information to each group.
Engagement today is critical. Measuring the success of Thank You programs aimed at engagement just makes sense. Explains Globoforce’s Head of Global Strategy Derek Irvine, “When executed properly, strategic recognition holds the power to increase motivation, enhance engagement levels and drive bottom line results through improved productivity levels. With critical outcomes like this on the line, it serves all companies well to make a thorough assessment of how their programs are functioning and make necessary adjustments to maximize the return they get on this investment. In the end, it will benefit employees and management, and impact company performance.”
That’s powerful stuff, when done well.
gThankYou® Certificates of Gratitude™, when given as employee gifts, are a way savvy Human Resource Executives help their company’s say “Thank You” to colleagues. gThankYou, LLC is based in Madison, Wisconsin. The company is best known for its Ham Gift Certificates, Turkey Gift Certificates and Grocery Gift Cards.
Saying “thank you” in your company has big generated big return-on-investment (ROI). If you or the head of your company think saying “thank you” often is not worth the time, more trouble than it’s worth or falls on deaf ears, think again.
Formally called “strategic recognition” in Human Resources management lingo, the practice and policy of Thanks goes beyond the intangible in benefits for a company.
Consider the following evidence from experts in the field:
Jeffrey Pfeffer of Stanford University’s Graduate School of Business says offering formal Thanks in a company generates higher ROI than bonuses. In his book, The Human Equation: Building Profits by Putting People First, Pfeffer notes that “Companies that manage people right will outperform companies that don’t by 30% to 40%.”
In fact, a McKinsey study published last year showed a $1,000 payment had a 10 times greater ROI when it was given as recognition than when it was given as a pay increase.
In its recently released WorkUSA study, Watson Wyatt, the global HR services firm, quantifies Thanks in an organization this way. In encouraging firms to build and share a system of equitable rewards, Watson Wyatt says, “organizations need to understand which reward programs are most important to engage their critical employee segments.” Their research shows that organizations that have an effective system of rewards have employees 20 times as likely to be highly engaged and 50 percent more likely to perform well.
It’s up to the HR manager to drive the conversation toward programs that make employees feel valued. It’s also quite prudent now to instill these formal Thanks into an organization. It’s more than just the right thing to do.
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Our Ham Gift Certificates are a customer favorite here at gThankYou. Office Depot is just completing a nationwide promotion, giving our Ham Certificates to tens of thousands of customers. gThankYou! to Office Depot.
As you might imagine, the gThankYou Team always has its eyes open for interesting articles about ham. Of course, like everyone else, we buy more ham from Oscar Mayer and Hormel than anywhere else. But we love, wonderful artisan hams like those found in Italy and Spain.
Yesterday’s New York Times had an excellent article about American artisan ham makers, “Bringing Flavor Back to the Ham“, that ham-lovers everywhere will find interesting.
Enjoy!
gThankYou Certificates of Gratitude, when given as employee gifts is a way savvy Human Resource Executives help their company’s say “Thank You” to colleagues. gThankYou, LLC is based in Madison, Wisconsin. The company is best known for its Ham Gift Certificates, Turkey Gift Certificates and Grocery Gift Cards.
