Gift Cards: Are they really an Award?

February 28, 2011

Many of my clients say their employees would like to see gift cards in their reward selection. But are gift cards truly rewarding?  Countless studies regarding cash and non-cash rewards show non-cash rewards get the greatest results. Gift cards are considered equivalent to cash because of the face value and are much less effective than rewarding with tangible, merchandise-based awards.

Many organizations look at gift cards as the ultimate flexible reward – a participant can choose what they want from a local retailer.  But if you look closer at what this person is using their gift card for, it might surprise you.  Many of those who select gift cards are using them for household items such as groceries, diapers, etc.  Are these “disposable” items really a memorable award?

A tangible expression of thanks can be an excellent way to encourage increased performance, promote company values, and boost retention. Here is some data that supports why tangible rewards are more powerful: 

  • Tangible Rewards are Visible – Tangible rewards have trophy value; share your success with co-workers, friends, etc. 
  • Gift Cards are Spent on Necessity – Participants who receive a gift card typically use it for everyday items and rarely on a special purchase, event, or experience.
  • Don’t Remember? – After 30 days of receiving a cash reward or gift cards, a participant will not recall what it was used for.
  • Increased Loyalty – Tangible rewards reinforce association with the sponsor company and increase loyalty. 

A study conducted by the Incentive Research Foundation shows that tangible incentives increase work performance by an average of 22%.  When looking at cash or gift card-based programs, tangible award programs outperform those by an average ratio of 3:1.

When is comes to actual rewards, respondents to an Incentive Federation survey indicated merchandise and travel incentives are more compelling than cash. Merchandise transcends its roll as a reward and becomes a trophy to be “displayed.”  How this item was earned is shared with co-workers, family members, and friends.  You definitely earned your bragging rights!

Take a look at your organization’s reward mix.  Are you using the “right” rewards? And of course, remember to recognize those who go above and beyond!


Reward Employees on a Budget

January 31, 2011

Everyone enjoys a pat on the back for a job well done.  Especially if it includes some type of reward! However, many businesses today face the dilemma of wanting to recognize employees but have a very limited budget to do so.  Engaging and rewarding employees doesn’t have to break the bank! 

A list of creative and easy-to-implement ideas was created by a variety of professionals in a range of industries.  They were asked “What are your best practices to recognize others without breaking the bank?” If your corporate goal for 2011 is to incorporate a culture of recognition and to run lean and mean, here are a couple ideas to get things started in the right direction: 

  1. Flex those Hours – Give deserving employees the ability to flex their hours.  This can range from allowing an employee to telecommute one day a week to the flexibility to start earlier and leave earlier in exchange for high performance. This perk offers the most gain with the least pain. 
  2. Handwritten Note – Hand out personal, heart-thought notes from the top-dog to the top-performers.  It is amazing the lasting power of this low-cost idea!
  3. Help them Connect – Introduce a star employee to someone in senior management or a key supplier.  This low-cost idea will make their day or even their career.
  4. Award a Free Pass – Reward an employee with a pass for a day off.  Everyone can use a day off!
  5. Make it Fun! – This is by far the most important – make it fun and your employees will play, which in turn will boast morale, increase production, and make your organization a fun place that people want to be.

A study conducted by Accountemps found that frequent recognition was named as the number one requested non-monetary compensation by full and part-time employees, with regular comp coming in at No. 2. It is so important to reward someone for a job well done. Recognition creates a positive environment that fosters improved performance. It is the fuel that inspires and energizes others to work smarter and harder, supports behavior change, catapults training initiatives, and increases productivity.

The great news is, you don’t need to break the bank and your bottom line will flourish. Today, I challenge you to recognize someone – make it fun and memorable!


Thank others this Thanksgiving

November 22, 2010

In the spirit of Thanksgiving, I would like to take this time to discuss the importance of saying “thank you” to your employees. Tell your colleagues, coworkers, and employees how much you value them and their contributions. It is a great time of year to recognize and thank each of your staff members for the things they do well.

One of the most important jobs of a leader is a simple one – say “thank you” and recognize others for their hard work. When you recognize people, you reinforce desired actions and behaviors. An effective employee recognition system is simple, immediate, and powerful!

Saying “thank you” and appreciation really goes a long way and can leave a lasting impression. Research has shown that employees respond positively when they’re recognized by their managers for a job well done. While they appreciate pay raises, year-end bonuses and surprise birthday cakes, it’s recognition that propels employees to perform at increasingly higher levels.

A recent Gallup study revealed that an increase in recognition and praise in an organization can lead to lower turnover, higher customer loyalty and satisfaction scores, and increases in overall productivity. Eighty-two percent of employees responded that the recognition or praise they receive at work motivates them to improve their performance.

Thank your team for their hard work and contributions to your organization. Showing appreciation will play a critical role in making your employees feel that you value them, take their well-being seriously, and strive to create opportunities for their career growth.

Have you thanked someone lately? Today, I challenge you to thank those who have gone above and beyond! I would love to hear your ideas!


America’s Happiest Companies

November 4, 2010

Working for a happy company can make all the difference in your organization’s productivity.  I recently read this article regarding the happiest companies in America.  Studies show that positive, happy employees outperform others in terms of productivity, turnover rates, and healthcare costs.

According to a Harvard researcher, optimistic sales people outperform their pessimistic counterparts by up to 37%. Actually, the benefits of happy employees can be witnessed across all industries and job functions. 

“If you infuse fun into the work environment, you will have more engaged employees, greater job satisfaction, increased productivity and a brighter place to be,” says Stacy Sullivan, the chief culture officer of Google, who has a telling and rare title at a company often celebrated for its campus and perks.  Other top companies are offering perks such as flexible schedules, onsite daycares, and fitness facilities.

If adding these types of perks to your organization are just not in the budget, something as small as ‘a great job’ or ‘thank you’ from a supervisor or peer will help employees feel happy and appreciated! If your employees are feeling a little blue, this is the perfect time to create a culture of recognition. Recognition leads to happy, motivated, and engaged employees, and that adds to the bottom line – both in employee retention and net revenue.

When instituting a recognition program, start simple by recognizing others who go above-and-beyond. Next, enable your organization so everyone can recognize others systematically; there are online recognition systems, like ours, that are easy and effective.  These tools allow peer-to-peer recognition, the ability for managers to recognize “on the spot,” and for the entire company to administer a Years of Service program.

What can you do in your organization to make someone happy?  Trying saying “thank you” – it is so important to recognize someone for a job well done.  Make it a daily goal!


What is Employee Engagement?

August 18, 2010

I know I do a lot of talking about employee engagement.  Many of you may ask, what actually is employee engagement and where did the term evolve? 

According to Wikipedia, an “engaged employee” is one who is fully involved in, and enthusiastic about, his or her work, and thus will act in a way that furthers their organization’s interests.  I see engagement as a heightened level of ownership where each employee wants to do whatever they can for the benefit of their internal and external customers, and for the success of the organization as a whole.

I ran across this comic about employee engagement.  Does your management have the same thought about employee engagement?

http://dilbert.com/strips/comic/2009-11-25/

Employee engagement is derived from studies of morale or a group’s willingness to accomplish organizational objectives which began in the 1920′s. The term “employee engagement” at work came to life in the early 1990’s as a modernized term of job satisfaction. 

 Research by Gallop shows that engaged employees are more productive, profitable, customer-focused, and more likely to withstand temptations to leave.  Gallop’s employee engagement work and analysis is based on more than 30 years of research involving more than 17 million employees. 

In the best organizations, engagement is more than a human resources initiative – it is a foundation for the way they do business.  And they tie employee engagement improvements to corporate goals and strategies and that will help them win in the marketplace.  Looking at the flipside, actively disengaged employees deteriorate a company’s bottom line. This cost is over $300 billion in lost productivity alone. 

It takes a lot of attention to drive engagement.  A step in the right direction is to implement with an enterprise-wide recognition system.  This system should give everyone in the organization the ability to recognize each other.     

Research findings show that formal, informal, and day-to-day recognition programs, when linked to the organization’s values and goals, can create a culture of recognition that enhances employee engagement.

What are your thoughts on employee engagement?  What does your organization do to increase employee engagement?


Hear all about it!

August 2, 2010

Take a look at this scenario:  Your organization has decided to create a culture of recognition.  An investment has been made with an online recognition and performance improvement platform.  You, along with management, feel you have created the greatest recognition system with easy-to-use nomination recognition tools. You have aligned corporate strategies and goals.  Soon after launch, participation is lack luster and dismal.  You ask yourself, “What is missing?”  Could it be an effective engagement and communication plan?

It is a fact and backed by research, if your employees are not kept in the loop about the recognition program, participation will suffer.  Communication is an important key in successfully executing any performance improvement initiative. And most importantly, use communication to move and compel people to take action.

Recognition and performance improvement programs’ sole success lies heavily on the communication plan.  A successful communication plan should include: 

  1. Launch – Have a party and include everyone! Make it fun and memorable.
  2. Repetition – The message needs to be frequent and consistent.
  3. Mix it up! – Everyone responds differently to different methods of communication.  Use a combination of print elements, including branded trinkets and posters, electronic messages sent to emails, PDA’s and other devices. 
  4. Management – Encourage and engage managers as “recognition” advocates.
  5. Online – Post reminders and publicize successes on your organization’s intranet pages or other message boards.

Behind every effective program, you’ll find a compelling communication plan. Do you have a communication strategy for your rewards and recognition initiatives?  What types of communication elements do you include?


Motivation Show

July 16, 2010

On October 13, I’m co-presenting at the annual Motivation Show in Chicago.  Along with Scottrade, we will be discussing “Recognition for the Generations”.  For the first time in our history four generations are present and working side-by-side in the workforce; Traditionalists, Baby Boomers, Generation X and Generation Y. 

With the vast differences in these generations, many organizations are struggling with managing, engaging, and motivating them the “right way”. For example, did you know Generation X appreciates timely feedback and Generation Y would prefer it daily?

Here are some other interesting facts and statistics about each generation: 

  • Traditionalists are motivated by money and the corner office.
  • Baby Boomers prefer formal and public recognition.
  • Generation X desires flexible schedules.
  • Generation Y wants daily praise and recognition.

For more information about “Recognition for the Generations” take a look at our fun YouTube video http://www.youtube.com/watch?v=ueyVnx94LVY.  Are you managing a generation and not quite sure you are motivating the right way?  If so, I hope to see you in October!


Managers: The Key Ingredient to a Successful Recognition Program, part 2

July 2, 2010

Last week, I had discussed the importance of mangers and their involvement and commitment to creating a successful recognition initiative within their organization.  This week, I would like to discuss how to build manager buy-in and accountability. Managers are the key ingredient to tying recognition to their critical business strategies because they oversee the day-to-day activities; hence have the most opportunities to recognize employees for doing the right things NOW. 

The most effective way to build manager buy-in is to illustrate the positive effect an integrated recognition program has on your organizations’ bottom line as well as employee engagement, retention, and morale. Sounds like quite the task, but if management is well informed, engaged, and trained, they can be so powerful!

On average, a successful recognition program can yield an RIO from 200% to 600% +, which is common in programs we have designed for our clients.  Successful managers that deliver their business strategies use recognition and they have actively engaged team members as well.

As we all know, an engaged employee is a productive employee.  It is tough to swallow the billions of dollars in lost production because of disengaged employees.  According to the Gallop Poll, the United States has the highest percentage of engaged workers reporting only at 27%.  This equates to over 22 million disengaged employees resulting to over $300 billion annually in lost productivity. 

Different levels of management also play distinct rolls in recognition initiatives – senior managers create the recognition strategy while middle managers implement the strategy.  Tools are available for both levels of management to display timely, actionable reports.  These reports should output who is recognizing, who is getting recognized, and why they are being recognized. 

Today, it is easier to hold managers accountable for their role in using recognition as a feedback and people engagement tool. Other ideas to hold managers accountable are to add recognizing employees to the managers’ job description and hold recognition training sessions.  In the past, we had a client who hosted “Recognition 101” for all management staff.

Managers should consider recognition as a way of providing positive feedback and investing in their employees.  Most managers do agree that recognition is necessary for the health of their organization.  What tools could you use to successfully promote recognition within your organization?


Replace Compensation with Recognition?

June 2, 2010

As I mentioned last week, I recently attended the World at Work Total Rewards Conference sponsored by Towers Watson, the leading professional services company that helps organizations improve performance through people, risk, and financial management. The US Strategic Rewards Report (completed by Towers Watson) was highlighted at the conference noting growing companies in the US are investing more in their recognition programs because it is stimulating a greater energized and productive work force than compensation. The results from this year’s US Strategic Rewards Report created quite the buzz throughout the conference. 

Total Rewards are tools available to employers to attract, motivate, and retain employees.  Total Rewards consists of five elements: compensation, benefits, work-life, performance and recognition, and development and career opportunities.  The stress of the current economy has had an affect on the Total Rewards mix. What is the best combination to retain your employees and keep them engaged?

In 2009, recognition hit the radar with 23% of growing companies increasing the use of rewards and recognition while at the same time holding compensation flat or returning it to the former level; if it had been lowered.   An additional element of development and career opportunities is now part of the Total Rewards mix. Perhaps it’s because of the Gen Y’s hitting the work force by storm. 

In a typical organization, the Total Rewards elements would be weighed and given a perceived value by the employees; then employment decisions are made based on the value they place on the company’s Total Rewards package.  The employee has two options; take the job or look for a different employer they believe better suits their needs. More importantly, the Total Rewards elements impact the employee’s engagement and sense of value to the organization, the team, and their job. 

Now that’s a look at why recognition is so powerful  and is a very low cost way to stimulate engaged, productive, happy employees who take good care of your customers. Recognition is a valuable feedback and role-modeling vehicle.  It can also impact your culture – many successful organizations use it as a change accelerator. Whether it is adopting a new system or procedure or merely taking performance up a level.

Cost savings continued to be a strong focus at the conference; organizations are significantly reducing administration costs and increasing the perceived value of their existing recognition program by simply putting all recognition (safety, productivity, on-the-spot, manager’s discretion, health/wellness, years of service, and cultural/value-based) under one umbrella.  Our award-winning Anderson Enterprise Incentive Solution, AEIS® enables all employees to accumulate the recognition in one place and choose from a broader assortment of awards.  The management reporting is also a powerful tool to use for coaching.

What Total Rewards elements are on the top of your list? Is recognition on the top of your list?  Are you getting a significant return on investment in your people?  Are you stimulating continued improvement?


The Importance of People

May 12, 2010

For years, I have been discussing the importance of recognition and emphasizing that people are your biggest asset. Take a look at this article in Fortune Magazine, “What makes the most admired companies different?”

What makes these companies admired is their dedication to understand that people are an asset, not an expense. This research was conducted by the Hay Group who annually assists Fortune Magazine in determining the World’s Most Admired Companies. The companies appearing on the top of the admired list are Apple, Google, Berkshire Hathaway, and Johnson & Johnson.

As stated by Fortune Magazine, if you think your employees are an asset, then you will keep investing in them.  Creating and sustaining a culture of recognition within your organization could be a way to motivate your employees to keep performing at top levels. On the flip side, if you think employees are an expense, then you’re likely to cut the expense.  This is especially true in a downsizing economy.

This new research conducted shows that top companies are making sure their employees feel engaged by their work. These firms are more likely to have stated what engagement means, how to measure it, to have managers accountable for it, and to align business objectives to it (efficiency, productivity, etc).  Not only more admired, but more profitable as well.

Another lesson learned from these top companies: this is not something they learned overnight; it has been a practice in place for years. Champions know what their most valuable asset is, and they give it the attention and investment it deserves.

What can your company do to make it more admirable?  Would creating a culture of recognition be on your list?


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