PowerPoint Presentation

Employee RecognitionThat Works!Successful MotivationMary Anne ShewBusiness Vitality LLCRBA HR Exec Forum 4/1/2014

2Happy employees = productive employeesYour Dream

3Self-motivation versus external naggingYour Dream

4Creativity unleashedYour Dream

5Budget pressuresProblem

6Deadline pressuresProblem

7Raises / bonuses / promotions in short supplyProblem

8Solution: Think Differently

9The MotivationMatch-Up

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The MotivationMatch-Up

11Mary Anne Shew2nd Career: 1999-todayWeb Site Design/Development

3rd Career: 2005-todayInternet Consulting &Business Coaching

1st Career: IT (Software)

Understand Six Motivators

Organize Rewards

Match with Employees12

What well coverPreface: Set Context

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Context is everything

14Employee turnover costs(See Employee Turnover Cost Handout)What could your company do with an extra $54,000+ every year?For 75-person company, 10% annual turnover of $30K-salary employees costs $54,000 per year, not including cost of productivity losses.

15Employee turnover costsOut-of-PocketHidden / UnmeasuredLost training that will have to be repeatedImpact of no one doing that job for 1+ months: Customer satisfaction, etc.Recruiting costsManager focused on new hire versus existing staff, projectsCandidate costs: Travel, meals, hotelTeam has to pick up the slack until replacement hiredNew hire onboarding costs: Relocation, trainingTime it takes for new employee to fully ramp up

(See Employee Turnover Cost Handout)

16Recognizing and valuingRecognitionValuingAcknowledge good work, appreciate effortsAppreciate worth of someone; hold in high esteemTied to what we do, not who we areAcknowledge not just for tasks but for intrinsic worthFor successfully completing a projectLetting someone know youre glad theyre on the team, and it wouldnt be as good without themEvent-driven (singular experience)Environment-driven (sustained)Shows up as driver of employee engagement 30% of the timeShows up as driver of employee engagement 85% of the time

Its a difference in experience

17Recognizing and valuingI receive recognition when I do good work.Across industries and countries: Average score is 55% favorableFor top 10% of companies: 66%But rest of their scores in 80-90% rangeSo even they dont do as well as they could in recognition

I feel valued as an employee of this company.When asked, average score is 41% favorable, 32% unfavorable

18Recognizing and valuingTo recognize employeesTo make them feel valuedIdentify outstanding customer serviceActively solicit peoples thoughtsLook at team performanceRecognize real contributionsTrain supervisors for appropriate day-to-day recognitionAllow open discussionEncourage initiative, risk-takingShow respect: No bullying, yelling, trivializing, patronizing, deceivingEnsure job performance and pay are linkedLet people have input to the decisions that affect themBe transparent and fairDiscuss expectations and responsibilityBuild culture of celebration over competitionExplain why they are important to success of company

R&R is part of a system19EEngagedEnabledEnergizedAttachment to the company and willingness to give discretionary effortA local work environment that supports productivity and performanceIndividuals physical, interpersonal, and emotional well-being at workWell-functioning equipmentNecessary supplies on handEffective work processesClear direction from supervisorsClear prioritiesEffective teamsRespectful colleaguesExpectations balanced against pressuresAttitude towards immediate managerSenior leadershipWork/life balanceGoals and ObjectivesCompany image

20R&R is part of a systemWhat are you rewarding?If focus is on vital behaviors that have intrinsic satisfaction, andSocial support is in place for vital behaviors, THEN external rewards work well.EEngagedEnabledEnergized

21R&R is part of a systemVital behavior is the key concept A high-leverage behavior that makes the difference What does a person do that gets the desired outcome?Reward a vital behavior, and the outcome will take care of itself

22Examples of Vital BehaviorWeight loss: Lost 30 lbs and kept it off for 6+ yearsExercised on home equipmentAte breakfastWeighed themselves daily

23Examples of Vital BehaviorEpidemic: Eliminated infectious worm spread through drinking waterStrained all drinking waterKept infected people away from water sourceEntire village took responsibility for compliance

24Whos On Your Front Lines?SupervisorsandManagers

25What are their vital behaviors?(See Handout Pages 2-3)

26LeadershipManagementSupervisionEmotional IQCommunicationGoal SettingTime ManagementConflict ManagementResearchManufacturingEngineeringProductionProduct/ServiceMarketingSalesFinanceAccountingIT

How prepared are they for their jobs?Job: Managing peoplePromotedtime

They started career hereJob: Doing the workNow need to do these

Build it starting from the top down

If senior management doesnt exhibit R&R vital behavior themselves, first-line managers wont believe its an important part of their own job either

27Culture of recognition

28Individualsregardless of rank, title, expertise, or tenurefreely and readily recognize one anothers contributionsThoughtful, timely, personalKeep it fresh and meaningfulAvoid rote recognition that has no real purpose or thought behind itCulture of recognition

29(See Handout Page 5)Culture of recognitionTRUST is a key foundation for effective rewards and recognitionFour components of trust: Sincerity, Reliability, Competence, CaringIf Caring (a.k.a. valuing) is missing, R&R efforts will likely not pay off as you hope, even if other 3 components are in place

Part 130

An internal process that makes a person move toward a goalCant be directly observedCan only infer from behaviorInternal: Survival, pleasure, achievementExternal: Money, award, connection to others31Part 1What is motivation?

Three internally-focusedMaterial possessions

Self-improvement

Sense of mission32Part 1Six Universal Motivators(See Handout Page 4)

Three externally-focusedPersonal relationships

Sense of belonging

Status and recognition33Part 1Six Universal Motivators(See Handout Page 4)

Everyone is motivated to some level by all six motivators, some more strongly than others.

Placing too much importance on any one motivator will cause that person to over-focus on that motivation.

These motivators can be measured by an assessment.34Part 1Six Universal Motivators

People with a more balanced motivation mix tend to have more motivators to which they are drawn.

These people respond to a wider rage of rewards. 35Part 1Six Universal Motivators

People with a more focused motivation mix tend to have fewer motivating forces.

This means they often respond more intensely to them.

36Part 1Six Universal Motivators

How to know what works?

Get to know your peopleAsk them what they like and wantSurveys, 1-1 or group discussions, assessmentsExperimentNo single way to reach everyone

The Generations: See Handout p. 637Part 1Six Universal Motivators(See Handout Page 5)

Part 238

Principles of rewardYou get what you rewardMust be in response to something significantTimely, specific, meaningfulImmediate manager has huge impact39Part 2Organize Rewards

40R&R is an ongoing investmentMostly of time and thoughtDo free things first Invest in teaching valuing behavior

Evaluate what you already have in place for impactGet anonymous employee feedback through surveyPart 2Organize Rewards

41Consider having an employee group organize R&R awards and events.Teach them to incorporate the six types of motivation and match generational appealGive them copies of 1501Part 2Organize Rewards

42Why go through all this?

Outperform Competitors43

Companies that manage people right will outperform companies that dont by 30-40%.--Jeffrey Pfeffer, Stanford Business School Professor2012 IndustryProfit Margins

2.9%Food & StaplesRetailing

19.5%Pharma, BioTech,Life Sciences

8.4%Capital Goods

20.2%Software&ServicesImpact onyour company?

Retain Top Talent44Cost to replace employee with salary up to $75K: 20% of salary--2012 Study by Center for American Progress

45Inspire EngagementEffectively recognizing performance can increase employee engagement by almost 60%.--Towers Watson Report: http://bit.ly/1bQv499EEngagedEnabledEnergized

46Values Visible in BehaviorCompanies with values-based strategic recognition, 91% of employees feel they have strong grasp on goals and objectives.--Globoforce.com

RespectAccount-abilityIntegrity

Were in the home stretch47

Part 348

The best recognition is FREE49Part 3Match Rewards to EmployeesTo recognize employeesTo make them feel valuedIdentify outstanding customer serviceActively solicit peoples thoughtsLook at team performanceRecognize real contributionsTrain supervisors for appropriate day-to-day recognitionAllow open expressionEncourage initiative, risk takingShow respect: No bullying, yelling, trivializing, patronizing, deceivingEnsure job performance and pay are linkedLet people input to the decisions that affect themBe transparent and fairDiscuss expectations and responsibilityBuild culture of celebration over competitionExplain why they are important to success of company

50Part 3Match Rewards to Employees1501 is a comprehensive, well-written, easy-to-read handbook for all aspects of reward and recognitionThe ideas listed were implemented at hundreds of companies across many industries1501 Ways to Reward Employees

51Part 3Match Rewards to EmployeesUse the 1501 book toSelect ideas that fit your culture, budget, and employees interestsOrganize the ideas to match the motivators

52Part 3Match Rewards to EmployeesThenLet employees choose a reward from what youve chosen (when appropriate), or take a guess yourselfUse humor and fun too

53Part 3Match Rewards to EmployeesPageIdea From Book 1501 Ways to Reward EmployeesMatching Motivator443Reward employees $10 for every customer compliment they get and deduct $10 for every complaint.Material Possessions58Offer employees access to wellness information and workshops. Self-Improvement63Have an employee-run environmental issues committee to educate and try ideas both for employees personal lives as well as the working environment.Sense of Mission49Pal of the Week: Everyone in the department asked to do or say something nice to the person in the course of a week.Personal Relationships263Reward when someone they refer (usually a friend) is hired. Another one when new hire stays 6 months.Sense of Belonging262Invite employees to your home for a special celebration, and recognize them in front of spouses and colleagues.Status & Recognition

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Summary: The MotivationMatch-UpEEngagedEnabledEnergizedReward and recognition is part of a systemValuing employees sets the stageHow well it works depends on the other parts

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Summary: The MotivationMatch-Up

56Successful MotivationResources

Influencer: The Power to Change Anything1501 Ways to Reward Employees

The Thin Book of Trust: An Essential Primer of Building Trust at Work

57Mary Anne Shewwww.BizVitality.com | 585-746-9140mashew@BizVitality.comWishing YouMotivation Success!