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Employee Recognition and Reward
                                 Resource Guide




4800 WESTOWN PARKWAY
WEST DES MOINES, IA 50266-6770
Preface



        Preface
                                                                                                                                                        Recognition & Rewards
        We operate in a complex global economy that is no       In this guide, ITAGroup demonstrates how a well-
        longer driven by sweat and steel but by information     planned, comprehensive recognition and reward
        and understanding. Within this shifting economy,        system energizes, empowers, and rallies employees
        people matter.                                          to achieve both company and industry benchmarks
                                                                that render measurable results. It also demonstrates                                 Drives employee engagement
        As companies across all industries make difficult       how a recognition and reward program can facilitate
        choices with regards to cutbacks and financial          an enriching corporate culture and experience that
                                                                                                                                                  Reinforces employee lifetime value
        pressure—we need reliable methods for recruiting,       attracts not only new talent, but the public at large.                       Supports pay-for-performance compensation
        retaining, and motivating high performers. We need      In other words, an organizationally driven
        strategies for identifying and cultivating people who   recognition and reward program can make a                                    Motivates employees to achieve stretch goals
        will reinforce an organization’s vision, mission, and
        values. That’s why instituting a reliable recognition
                                                                tremendous difference to customers, investors,                                    Improves bottom line performance
                                                                and policymakers overall.
        and reward program is vital in today’s workforce.

                                                                                                                              Employee Engagement
                                                                                                                                                                  Customer Response
                                                                                                                                                                                                Business Performance




                                                                                                                         Figure 1. Investing in recognition and reward programs is proven to increase employee engagement and productivity and
                                                                                                                         improve customer service, which in turn leads to customer satisfaction and loyalty. The results: higher business performance
                                                                                                                         and revenues.




Property of ITAGroup                                                                                                                                                                                                                                         1
Introducing Recognition and Rewards                                                                                                                                                                            Introducing Recognition and Rewards



        Introducing Recognition and Rewards

        Knowledge, reputation, and human capital. Today,           • Improving customer service and product quality                Investing in ELTV                                     Engaged employees
        these are the intangible assets that make corporate          to win brand loyalty
                                                                                                                                   We often hear about the importance of customer        Engaged employees—or those who are both willing
        progress possible.
                                                                   • Boosting sales, market share, and customer                    lifetime value (CLTV), which is the potential value   and able to contribute to company success—
         According to the Brookings Institution, only 15% of         lifetime value (CLTV)                                         presented by long-term customer relationships.        demonstrate commitment to excellence to the
         company expenses represent tangible assets, such as                                                                       Less common is discussion of employee lifetime        organization and inspire among their peers both
         tools and machinery, while about 85% of expenses          • Increasing productivity while instilling safe                 value (ELTV), which represents all that highly        creative thinking and courage. Why? Engaged
                                        represent intangible         work habits                                                   engaged employees bring to the company in the         employees glean a strong sense of satisfaction
              Targeted Value assets. Why? Because                                                                                  long term, measured by both reduced cost and          from their jobs.
                                                                   • Improving morale among teams and cultivating                  top performance.
                                        companies can expect
      Investing in employees’                                        enthusiastic company “brand ambassadors” out                                                                        Take a look at Fortune magazine’s 100 Best Companies
                                        a much greater return
      education and training can                                     of employees                                                   ELTV, a concept introduced in recent years,          to Work For. Each year, employees respond to surveys
      produce twice as much gain        from investing in
                                                                                                                                    may soon—if it hasn’t already—supersede the          that ask questions related to job satisfaction,
      in workplace efficiency as        employees than from        • Attracting and recruiting valuable new talent with             long-coveted CLTV. An Economist Intelligence Unit    attitudes toward management, and workplace
      comparable increases in           purchasing equipment.        your reputation as an appreciative employer                    study found, for example, that 80% of executives     camaraderie. Invariably, the top-ranked companies
      equipment, according to           Another study found
                                                                   • Retaining and motivating the company’s top                                                   surveyed predicted     are those that demonstrate the highest rate of
      researcher Robert Zemsky of       that a company that
      Pennsylvania University.                                       performers to bring their talents to the table
                                                                                                                                         Targeted Value           that the ability to    employee engagement. Along with enjoying lower
                                        lost all of its
                                                                                                                                                                  attract and retain     turnover, these companies consistently provide
                                        equipment but kept                                                                       Sears studied the correlation
                                                                   • Motivating average                                          between employee                 the best people will   initiatives that keep their workforce engaged.
         the skills and know-how of its workforce could be
                                                                     performers to                    Targeted Value             satisfaction and sales and       be the primary force
         back in business relatively quickly. On the other                                                                                                                               It makes sense that
                                                                     improve and excel                                           found improved employee          in influencing
         hand, a company that lost its workforce but kept its                                  Research by Sheffield                                                                     employee engagement
                                                                     to top performance        University showed a return        attitudes boosted sales within   business strategy                                       Targeted Value
         equipment would never recover (McLean 1995).                                                                                                                                    directly affects the
                                                                                               of up to four to one in profits   about six weeks.                 by 2010.
                                                                   • Encouraging                                                                                                         wellbeing of an           The Towers Perrin Talent
        Protecting and cultivating intangible assets through                                   when UK organizations
                                                                     worthwhile                                                    Employee engagement seems simple as a concept,        organization. It also     Report defines engagement
        people-based programs often comes down to                                              focused on people rather
                                                                     risk-taking and                                               but what initiates and sustains it? Obviously, the    makes sense that good     as “the extent to which
        engaging employees—to motivating high performance                                      than on strategy, quality, or
                                                                     inspiring innovative                                          answer is employees themselves. Yet, it’s unlikely    recognition and           employees put discretionary
        while fostering a positive working environment where                                   pure R&D.
                                                                     work with a                                                   that employees can remain engaged and motivated       reward programs           effort into their work, in the
        innovation and self-actualization flourish. The benefits                                                                                                                                                   form of time, brainpower, and
                                                                     competitive edge                                              in a vacuum. In other words, employee engagement      increase employee
        of such programs are as numerous as the breadth of                                                                                                                                                         energy” (4).
                                                                                                                                   needs to be embodied and practiced at the highest     engagement in
        the talent you employ. Listed are the most notable:
                                                                                                                                   levels within an organization. It also needs to be    measurable ways.
                                                                                                                                   supported through ongoing initiatives and events.




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Introducing Recognition and Rewards                                                                                                                                                                        Introducing Recognition and Rewards




        Engaged employees are proud of their work and          It’s a fact that employees who feel valued because        Multi-tiered recognition                                    Recognizing and rewarding
        proud of the company they work for, and they’re        they are both rationally and emotionally connected
        willing to communicate that. But perhaps more          contribute more discretionary effort to meet the
                                                                                                                          To be successful, recognition and reward programs          diverse employees
                                                                                                                          must earn the buy-in of individual employees and
        important is the way employee interactions with        goals of their organization. They become role models                                                                  At ITAGroup, we work hard to understand the
                                                                                                                          leaders at all levels. People across the spectrum must
        customers affect CLTV. In a recent study conducted     for peers, helping to create a corporate culture that                                                                 workforce involved with a specific program. We
                                                                                                                                                           be willing to
        by the Forum for People Performance Management         values qualities like teamwork and innovation. In                                                                     develop strategies that engage employees in ways
                                                                                                                                                           participate and
        (www.performanceforum.org), researchers found          turn, that corporate culture connects people at all
        that the higher the level of employee engagement,      levels of the organization to common goals in
                                                                                                                        ?       Ask Yourself               encourage                 that are meaningful to them both personally and
                                                                                                                                                                                     professionally. This understanding entails knowing
                                                                                                                       What trends in motivational         participation among
        the higher the level of “customer spend”—that when     meaningful and personally enriching ways.                                                                             who they are. For example, what demographic
                                                                                                                       responses have you noticed          coworkers. Wide
        employees are engaged, a customer receives an                                                                                                                                do they belong to? Where do they live? What are
                                                               You can ask yourself these questions to determine       among people at work? What          acceptance promotes
        enhanced experience, which equates to spending                                                                                                                               their cultural expectations? What motivates them
                                                               whether your workforce is fully engaged:                instances caused you to             the perception that
        more money with the organization.                                                                                                                                            to succeed?
                                                                                                                       reverse expectations or             rewards are both
        Your top performers are, without coincidence, your     • How often do your employees go above and              stereotypes?                        attainable and relevant
                                                                                                                                                                                     Your answer depends on the individual. Is she a part
        most highly engaged employees. Consider recent           beyond expectations to complete a project?                                                to the entire
                                                                                                                                                                                     of the sales force or the operations team? Is he a
        Mercer Delta research, which shows that, on average,                                                                                               workforce.
                                                               • How well do your employees understand their                                                                         family man or an unmarried recruit fresh out of
        engaged employees deliver four times more value                                                                                                                              college? Was her work ethic formed in the United
                                                                 roles and how their contributions affect the            Here are some examples of multi-tiered recognition
        to an organization than non-engaged employees.                                                                                                                               States or in India, or in Germany or China? Is he a
                                                                 company’s direction and profitability?                  practices:
                                                                                                                                                                                     baby-boomer or is he from Gen-X? And so on.
        An effective recognition and reward program invites
                                                               • How many would say your company is a great              • Employees recognize peers for excellence or
        employees to challenge themselves to ambitious                                                                                                                               You need to account for the diversity of your
                                                                 place to work? How many would tout its offerings          above-and-beyond behavior in day-to-day work
        goals that ultimately benefit themselves as well as                                                                                                                          employee base as you build a program that
                                                                 to the public?                                            through a companywide e-mail or award
        the company they work for. It turns energy into                                                                                                                              complements your organizational environment.
                                                                                                                           nomination.
        action in a way that aligns human effort with                                                                                                                                Since various employee segments tend to impact
        specific organizational objectives, using employee                                                               • Team leaders recognize a targeted long-term               personal involvement, you want to incorporate
        appreciation as the catalyst.                                                                                      accomplishment, such as completing certification          meaningful types of recognition and rewards that
                                                                                                                           training within an organization or implementing a         encourage participation. Once you’ve determined the
                                                                                                                           “green” idea that results in cost savings.                diversity that exists throughout your workforce, you
                                                                                                                                                                                     can better match motivational strategies for each
                                                                                                                         • A sales team receives a group travel event with a         individual or group of individuals to targeted
                                                                                                                           recognition dinner to mark an increase in sales.          business objectives.




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        Although we discuss specific differences related         Generational differences                                       For example, if a Mature has lost his sense of          Though strategies may vary, these examples illustrate
        to the current workforce below, ITAGroup doesn’t                                                                        purpose at work and begins to perform at bare           that for every generation, demonstrating gratitude
                                                                 Although each individual comes to your workforce
        stop there. We consistently and thoroughly address                                                                      minimum, you might find a strategy for                  has a powerful effect.
                                                                 with individual abilities, needs, and personalities, it
        the bigger picture—and our strategies are                                                                               acknowledging what he has sacrificed for the
                                                                 can be useful to note generational differences that
        grounded in awareness that your employees                                                                               company in the past, giving him a symbolic reward
                                                                 might speak to specific motivational strategies.
        are your greatest asset.                                                                                                that demonstrates your respect for his talent and
                                                                 The most common groupings of generations are
                                                                                                                                time on the job. Remember, when this generation—
                                                                 the Matures, the Baby Boomers, Generation-X, and
                                                                                                                                as well as the Boomers—retires, you may face
        Global workforce                                         Generation-Y. Listed below are qualities for which
                                                                                                                                challenges replacing individuals with a wealth of
                                                                 each of these groups is known.
        In an increasingly global business environment,                                                                         experience. Keeping older generations focused and
        it’s also important to recognize the need to develop                                                                    interested may be one of your greatest investments.
        international, cross-cultural solutions that appeal to          Table 1: Generational Attributes                        As another example, a team comprising young
        a wide-ranging, global workforce. With this global        Matures      Baby Boomers      Generation X    Generation Y   Generation-Ys seems bored and, as a consequence,
        connection comes the responsibility to enhance                                                                          wastes valuable time surfing the Web or text
                                                                  Hard work    Rights            Diversity       Caution
        recognition and reward programs even more. Part of        Dedication   Space             Caution         Change
                                                                                                                                messaging friends. Consider their penchant for
        this charge entails choosing the types of recognition     Sacrifice    Travel            Technology      Optimism       change: Provide opportunities to learn new skills and
        and rewards that are most appropriate and                 Respect      Optimism          Playfulness     Confidence     reward their ability to exchange projects with peers,   Figure 2. Accounting for a diverse workforce by
        motivational for a multi-cultural employee base.          Duty         Teamwork          Self-reliance   Achievement    which can inspire both innovation and teamwork.         incorporating a variety of recognition strategies
                                                                  Honor        Personal growth   Pragmatism      Diversity      This generation is accustomed to learning in a          creates meaningful ways to reward an evolving
        In Europe, for example, food and wine rank highly                                                        Duty           technologically driven, fast-paced environment, and     employee base.
        as popular awards, while in Latin America,                                                                              they feel valued when you give them the chance to
        merchandise vouchers and gift cards tend to be                                                                          show their potential for growth.
        favored. Additionally, in some parts of the world,       Using the qualities listed in Table 1, you can tailor a
        rewards made of certain materials may be                 motivational strategy that will appeal to values
        considered unsuitable; while in other areas,             specific employees have been raised with.
        employees may view certain color choices
        negatively.




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        Building a Recognition and Reward Program

        The overall goal of a recognition and reward               Building a recognition and reward program that is                                                                     when employee performance is not aligned with
        program is this: to increase employee engagement.          right for you requires following a process that                                                                       company objectives, when current incentive
        Invariably, a recognition and reward program should        uncovers what matters most to you and your                                 4. Communicate the program                 initiatives don’t provide ROI, or when best practices
        not simply create happy, appreciated employees; it         employees. The process                                                                                                are not in effect.
        should be linked to overall business performance.          should include unique               Targeted Value                                                                                                        Tip
                                                                   and resourceful                                                                                                       An upfront analysis
         You want a program that reinforces your overall                                       Effective recognition and                                                                 should look at four
                                                                   solutions, frequent
         business strategies, but what does that mean?                                         reward programs are dynamic                    5. Train all participants                  distinct elements of        Many companies don’t realize
                                                                   evaluation, and
                                        It means that a                                        cycles of analysis, strategy,                                                             an organization:            how much they currently
                                                                   efficient monitoring to     implementation, and review—                                                                                           spend on employee
               Tip                      recognition and reward     ensure that you stay        cycles that are built into the                                                            1. Business Strategy.       recognition efforts because
                                        program should             on track to deliver the     way ITAGroup does business.                                                                  What is your             efforts are so fragmented.
                                        reinforce what you         appropriate outcomes.                                                                                                                             A thorough assessment can
      A good recognition and reward                                                                                                                                                         corporate mission?
      program drives employee           want employees to do                                                                                  6. Manage the program                                                  demonstrate how consolidated
                                        and reward how you         The overall program-design process incorporates the                                                                      What are your
      behavior—it rewards the right                                                                                                                                                                                  efforts improve performance
                                        want them to do it.        following steps:                                                                                                         current business
      kind of performance in ways                                                                                                                                                                                    and maximize budgets.
      that are meaningful to your       Establishing these links                                                                                                                            issues? What are
      company and your employees.       between the company’s                                                                                                                               your key business metrics? Which key factors
                                        strategic objectives                                                                                  7. Measure your success                       impact each business issue?
         and the employees’ performance is often one of the                                                                                                                              2. Corporate Culture. How does your organization
                                                                                 1. Conduct upfront analysis
         most overlooked pieces when building a recognition                                                                                                                                 view non-cash performance initiatives? How are
         and reward program.                                                                                                                                                                these currently being used?
                                                                                                                                Each component involved in the development of
                                                                                                                                a recognition and reward program contributes             3. Data Analytics. Which metrics define employee
                                                                                                                                to a program’s overall success.                             behavior? What performance gaps and variability
                                                                                 2. Garner executive-level buy-in                                                                           exist in this data set?
                                                                                                                                Conduct upfront analysis                                 4. Employee Perception. How do employees regard
                                                                                                                                                                                            recognition and reward programs?
                                                                                                                                              It’s easy to make improvement
                                                                                                                                              suggestions by providing a one-size-
                                                                                 3. Develop a needs-based design                              fits-all solution. And it’s easy to hand
                                                                                                                                              out awards. Conducting an upfront
                                                                                                                                analysis, however, often resolves organizational
                                                                                                                                challenges at the onset. For example, it can uncover




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Building a Recognition and Reward Program                                                                                                                                                   Building a Recognition and Reward Program




                                                        Once you have a good understanding of these              Garner executive-level buy-in                              To support a program, management needs to fully
                                                        influences, you need to capitalize on these                                                                         understand its benefits. Initial analysis and
                                                        perceptions to build a foundation for future change.                   A recognition and reward program must        assessment should focus on gathering enough
                                                        This requires key stakeholders in your organization                    be more than a program that exists only      information to show the possible benefits of a
                Audience                   Business     to next:                                                               on paper. It requires its leaders to “walk   reward and recognition program. Once you’ve
               Perceptions                 Strategy                                                                            the talk” and demonstrate commitment         received executive buy-in, you essentially join forces
                                                        • Identify business issues. Analyze historical           to the program over the long term. You want your           in your efforts to build a recognition and reward
                                                          performance data.                                      program to reflect consistently throughout all levels      program. Not only do you start to assemble actively
                                                                                                                 of the company—and you’ll find it performs best if it      involved participants, you get champions of the
                                                        • Identify the behaviors your organization wants         works its way from the top down.                           program as well.
                                                          to reinforce. This often entails gap analysis to
                                                          determine current performance versus desired            You’ll want to ensure that no conflicting goals arise
                  Data                    Corporate       performance.                                            that may cause the program to derail. It’s also a         Develop a needs-based design
                Analytics                  Culture
                                                                                                                  good time to see what initiatives can be                               With the right motivation and a
                                                        • Identify the behaviors the organization wants                                         consolidated and                         strategically designed approach that
                                                          to change.                                                    Targeted Value maximized. At the                                 aligns with corporate culture and goals,
                                                                                                                                                same time, you need                      your employees can drive corporate
                                                        • Incorporate your analysis into a specific            Executive buy-in ensures that    to ensure that              performance. Most successful employee recognition
        Figure 4. Taking into account each of these       recognition and reward program.                      employee performance is
                                                                                                                                                everyone—executives,        and reward programs today incorporate a
        perspectives provides a holistic view to form                                                          aligned with corporate
                                                        • Establish success measures.                                                           management,                 combination of individual and team-based awards.
        an effective program from.                                                                             objectives. In other words,
                                                                                                               it guarantees that the vision    employees—are               Programs focused on productivity and sales generally
                                                                                                               described at the executive       working toward a            reward individuals for product revenue and overall
                                                                                                               level is incorporated into the   global organizational       goal attainment.
                                                                                                               actions of your employees.       goal and vision.




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Building a Recognition and Reward Program                                                                                                                                                               Building a Recognition and Reward Program




        As you design and develop a recognition and reward       Communicate the program                                         • Involve participants by communicating to them         Regardless of the approaches you choose to
        program, you want to ensure that you create an                                                                             throughout the life of the program with follow-up     implement, you want to ensure that the correct
        environment of celebration and reward. You can do                       Since a recognition and reward                     information.                                          message is communicated. Once you’ve determined
        this in several ways:                                                   program represents a sizable investment                                                                  the behaviors you want to recognize, you want to
                                                                                to an organization, communication                • Make information about the program accessible by      reinforce those behaviors in an accurate, meaningful
        • Ensure that executives and managers are                               about the program is key to its success.           posting it in a highly visible place and keeping it   way.
          supportive, engaged, and believe in the program.       Employees should be aware of the program and that                 top-of-mind.
                                                                 it can yield significant                                                                                                Train all participants
        • Create employee movement by offering                   rewards. They should                 Targeted Value                                           Do not overlook the
          recognition and rewards that motivate your             also see program-                                                      Case Study             value of integrating                   Training is crucial to program
          specific workforce.                                                                 Effective communication                                          communications with
                                                                 related materials often captivates and engages your                                                                                  effectiveness. No program can run
                                                                 to generate awareness                                         Communication matters!          program design. After                  effectively if managers don’t know or
        • Be aware of the existing environment and address                                    audience.
                                                                 and enthusiasm.                                               During an ongoing three-year    all, a recognition and                 understand how to give rewards. And
          any necessary changes.                                                                                               program, monthly                reward program is         no program can run effectively if employees don’t
                                                                 A recognition and reward program requires
                                                                                                                               communication was               really a targeted         know or understand
        To provide a balanced recognition environment, you       participation, and that participation comes with
                                                                                                                               temporarily eliminated.         marketing campaign.       how to earn rewards.
        should plan to incorporate three types of                effective, clear communication.                                                                                                                            Targeted Value
                                                                                                                               The results? When compared
        recognition:                                                                                                           to the same month during       When the right             Managers must be
                                                                 Not only is it imperative to create initial interest in                                                                                          Training and recognition and
                                                                                                                               the previous year, program     communications are in      trained to recognize
        1. Day-to-day. This type of recognition, which           the program, it is necessary to encourage that                                                                                                   reward programs often go
                                                                                                                               participation decreased by     place, you ensure that
           includes thank-you notes, e-mails, and phone          interest by establishing a consistent communications                                                                    results. Beyond that,    hand-in-hand—they naturally
                                                                                                                               16%, sales activity decreased  employees not only
           calls, should be used on an ongoing basis. Design     campaign. This can be done in a variety of ways.                                                                        they must be trained     integrate program significance
                                                                                                                               by 76%, and revenue
                                                                 For example:                                                                                 understand why they        how to communicate       with the how-tos of
           programs of this type to recognize behaviors that                                                                   decreased by 144%.
                                                                                                                                                              are being recognized,      the program structure,   performance.
           support organizational values.                                                             Tip
                                                                 • Call attention to the                                         but they know the value of actively participating in    criteria, and rewards.
        2. Informal. This type of recognition, which includes      program and its                                               the program.                                            At the same time, employees must learn why the
           team lunches or low-cost mementos, should               accompanying              Be sure to communicate the
                                                                                             link between performance
                                                                                                                                                                                         program matters and how to participate in ways
           recognize individuals or teams for progress             message by sending                                            A multi-media approach                                  that matter.
                                                                                             and company objectives.
           towards specific goals or milestones.                   out blast e-mails                                             How you communicate your message depends on
                                                                                             You want to foster a greater
        3. Formal. This type of recognition consists of a          and creative              understanding of organizational     the situation. However, it is critical to use multi-
           structured program with a defined process. It tends     marketing                 goals by showing how each           media—you want to get your information across in
           to be public, taking place at an annual meeting or      communication             employee’s actions contribute       as many ways and as often as possible.
           other formal recognition event that is branded,         pieces upfront.           to the overall success of the
                                                                                             company.
           themed, and facilitated by senior leadership.




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        When it comes to training, you should do the          Selecting ambassadors                                       Manage the program                                       years when many companies managed reward and
        following:                                                                                                                                                                 recognition programs on an ad hoc basis or relied on
                                                              There is tremendous value in providing program                            You can determine program success          individual departments or regions to run disparate
        • Incorporate information about your program          “ambassadors”—employees who specialize in program                         through tracking, progress reporting,      initiatives.
          during employee orientation. As you educate them    specifics and can communicate that information                            ongoing analysis, and effective
          about your organizational values and business       articulately and                                                          account management.                        Today, you will want to make sure whether you build
          goals, you can show how the recognition and         enthusiastically. These                                                                                              your online platform internally or use an outside
                                                              employees serve as
                                                                                                   Tip                     Operation and administration of the program entails
          reward program supports these objectives.                                                                                                                                partner, like ITAGroup, that your system integrates all
                                                              internal champions for                                       a large portion of a recognition and reward program.    your reward and recognition efforts and includes the
        • Provide clear expectations of each employee’s       the program,               Solicit volunteers from non-                                     It’s easy to get         necessary functionality to ensure success, such as:
          roles and responsibilities along with the                                      management ranks. Provide a              Tip                     overwhelmed with the
                                                              generating both
          opportunities provided by the program.                                         small incentive or award for                                     volume of information.   • Peer to Peer Awards
                                                              information and
                                                                                         time and effort.
                                                              excitement throughout                                     As with any administrative        As part of managing
        • Offer recognition forums on a regular basis that                                                                                                                         • Manager to Employee Awards
                                                              the life of the program.                                  process, you’ll want to ensure    the program, you’ll
          share best practices. Use this time to reinforce                                                              that participants receive         want to do the           • Team Awards
          information about the program to both               Although you can choose ambassadors in a variety          regular feedback.                 following:
          management and employees.                           of ways, you’ll find that they often volunteer based                                                                 • Activity Based Awards (such as Years of Service,
                                                              on their belief in the program. Regardless of the           • Identify the information you want to track and           Safety, Wellness, Sales Productivity or Training.)
        • Use online tutorials to facilitate recognition                                                                    report
                                                              selection process, you’ll want to choose ambassadors
          training.                                                                                                                                                                • Approval Process
                                                              who will do the following:
                                                                                                                          • Determine methods for tracking, reporting, and
        • Give managers the tools they need to help them                                                                    analysis                                               • Budget
                                                              • Engage in the program themselves
          participate actively in the program. For example,                                                                                                                          Management
          provide a “tool kit” that lists recognition best                                                                • Identify areas of improvement                                                               Tip
                                                              • Mentor others                                                                                                        Tool
          practices, program-branded material, celebration
          checklists, etc.                                    • Motivate others                                           • Look at the data that’s gathered from an overall       • Award                     Only require management
                                                                                                                            perspective                                              Redemption                approval for top awards;
        • Hold workshops that feature outside educators       • Explain to others                                                                                                    Options                   otherwise the process may
          who specialize in one of your program                                                                           Operation and administration                                                         become too administratively
          components.                                         • Work well with others                                     Most reward and recognition programs today are           • Reporting                 burdensome to be practical.
                                                                                                                          managed electronically through integrated web-
        • Measure your training results.                                                                                  based platforms designed to track participants,
                                                                                                                          activity, and budgets. This is a change from previous




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        Measure your success                                   Measurement strategies ensure that your program             What was their overarching objective? They chose to     Example two
                                                               optimizes performance. While success can be                 focus on employee retention in the midst of their       For a leading soft-drink manufacturer and
                     How do you want to measure the            determined in a variety of ways, it should ideally be       new organizational structure. In doing so, they
                     success of your recognition and reward                                                                                                                        distributor, management recognized the need to
                                                               customized to track and connect the type of success         hoped to create a cultural shift in the company that    better integrate their cross-cultural workforce. They
                     program? What kinds of successes are      that matters to your company. You can, for example,         communicated the vision of the organization in
                     you looking for? Do you plan to use a                                                                                                                         knew they had to respond to the changing
                                                               track the following:                                        moving forward.                                         requirements of their company as they expanded
        scorecard? These are the types of questions you
        want to answer as you start to build a program.        • Participation                                                                           The program               internationally.
                                                                                                                               Targeted Value            integrated behaviors
                                      It’s here where you      • ROI                                                                                                               Their goals? To develop a recognition and reward
                                                                                                 Targeted Value          Successful recognition and      the company wanted        program that offered fair rewards for an increasingly
              Tip                     validate expenditures    • Productivity                                                                            to reinforce by
                                                                                                                         reward programs rely on a                                 global workforce. This design entailed addressing the
                                      and show the return                                 Using scorecards that are                                      recognizing how
                                                               • Sales and referrals                                     definitive commitment to                                  objectives of the world-wide workforce on multiple
                                      on investment. It’s                                 customized for each program
      As you gather data to measure                                                                                      excellence and a willingness to business success was
                                      here where we can                                   ensures that you measure the                                                             program levels: peer to peer, manager to employee,
      the success of your program,                             • Customer &                                              make necessary adjustments      achieved through the
      it’s a good idea to identify    understand program                                  information that really                                                                  and mega-performers. Addressing these multiple
                                                                 employee                                                and address changing needs in contributing factors of
                                                                                          matters to you.                                                                          levels provided a means to encourage the flow of
      company best practices—the      performance, provide       satisfaction                                            order to end up with a better   commitment,
      practices that ultimately       feedback, and provide                                                              outcome.                                                  recognition throughout the company and involve all
                                                               • Customer & employee retention                                                           leadership, individual    organizational levels. Through a simple recognition
      support corporate objectives—   program justification.                                                               achievement, and teamwork. Incorporating individual     strategy, employees could be awarded points that
      that can be benchmarked both
                                                               • ELTV                                                      and team awards with service and performance
      in your organization and        Regardless of the                                                                                                                            they could redeem for culturally-specific award
      throughout your industry.                                                                                            awards provided the means to recognize innovation       options through localized customer service
                                      specifics of a
                                                                                                                           and cost-savings techniques. This successive building   representatives.
                                      recognition and          Success stories                                             of behaviors encouraged both daily consistency and
        reward program, we use both qualitative and
                                                               We’ve included the following examples to                    established the importance of ongoing contributions     As a result of the initiative, the program has become
        quantitative metrics. Quantitative and qualitative
                                                               demonstrate how recognition and reward programs             throughout the year.                                    a part of the overall corporate culture, which has
        success measures both add value. Goals should be
        fair and obtainable.                                   make a difference.                                                                                                  translated into significant increase: 72 percent of
                                                                                                                           What were the results? Besides turnover reduction,      participants report improved morale.
                                                               Example one                                                 the company saw cost-savings ideas generated and
                                                                                                                           implemented, productivity improvements, increased
                                                               A global producer and marketer of disposable
                                                                                                                           employee engagement, and increased customer
                                                               foodservice products merged with a competitor to
                                                                                                                           loyalty. These improvements resulted in double-
                                                               become a multi-billion dollar corporation.
                                                                                                                           digit sales growth.
                                                               Management decided to implement a recognition
                                                               and reward program that built successively on both
                                                               individual and team behaviors.




16                                                                                                                                                                                                                                         17
Building a Recognition and Reward Program                       Building a Recognition and Reward Program




        Technology considerations
        As referenced earlier under “Manage the Program-
        Operation and Administration”, the online platform
        chosen to operate your recognition and rewards
        program is vital. Whether you build the platform
        internally, or partner with a company like ITAGroup,
        it is important to utilize a platform that is easy to
        use and modify yet still capable of handling the
        large scale complexity that your program may
        require. ITAGroup offers two unique recognition and
        reward platform solutions—PerformanceSuite® Pro
        and PerformanceSuite® Enterprise.

        PerformanceSuite Enterprise is designed to handle
        the most complex program needs and allows
        for maximum levels of customization and
        advanced rules and rewards structures.
        The platform is fully customizable to an
        organizations specific program needs.

        PerformanceSuite Pro is designed to power a more
        basic program structure yet allows for moderate
        levels of customization while providing an
        organization quick speed to market and lower
        cost of entry.

        The following offers a look at select features
        of the PerformanceSuite Pro platform.




18                                                                                                    19
Conclusion                                                                                                                                                                                                          Works Cited/Consulted



        Conclusion                                                                                                     Works Cited/Consulted

        A successful recognition and reward program             ITAGroup is a founding trustee of the Forum for        “100 Best Companies to Work for.” Fortune and Great   “Engaging employees to drive global business success:
        requires precision, planning, and execution. You want   People Performance Measurement & Management            Place to Work Institute.® Cable News Network, 2008.   Insights from Mercer’s What’s Working research.”
        a program that is well-designed and well-structured,    (www.performanceforum.org) and a member of                                                                   Redistributed by Worldatwork. Mercer, 2007.
        a program with well-defined standards that allows       Recognition Professionals International                “The Economics of Humanity in Business.” Executive
        for meaningful results.                                 (www.recognition.org).                                 White Paper. FORUM: For People Performance            McClernon, Timothy. “Rivals to Systematic Training.”
                                                                                                                       Management and Measurement. Summary of Frank          Advances in Developing Human Resources,
                                                                For more information on how implementing a             Mulhern’s report, “Pulling Together: The Increased    8:442 (2006).
        About ITAGroup                                          recognition and reward program can positively affect   Role and Impact of People in Organizations.”
        ITAGroup is a full-service performance improvement      your corporation’s overall performance improvement     Economist Intelligence Unit Report, 2008              “Working Today: Understanding What Drives
        company focused on improving business                   strategy, visit our website at www.itagroup.com.       [www.eiu.com].                                        Employee Engagement.” The 2003 Towers Perrin
        performance through people. Since 1963, we have                                                                                                                      Talent Report.
        driven powerful and proven results through sales
        incentives, recognition and reward initiatives,
        business-to-business loyalty solutions, product
        launches and business meeting and group travel
        coordination.

        In the ever-changing economy, partnering with an
        expert in human capital is more beneficial than ever
        before. At ITAGroup, we work with you to build and
        execute programs that satisfy—and consistently
        exceed—your objectives. Together, we address the
        specific needs of your organization and develop a
        customized recognition and reward program that
        provides improvements in the way you do business.
        With our expertise, you can achieve your goals, while
        making your company more profitable and a better
        place to work.




20

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Recognition and Reward Resource Guide

  • 1. Employee Recognition and Reward Resource Guide 4800 WESTOWN PARKWAY WEST DES MOINES, IA 50266-6770
  • 2. Preface Preface Recognition & Rewards We operate in a complex global economy that is no In this guide, ITAGroup demonstrates how a well- longer driven by sweat and steel but by information planned, comprehensive recognition and reward and understanding. Within this shifting economy, system energizes, empowers, and rallies employees people matter. to achieve both company and industry benchmarks that render measurable results. It also demonstrates Drives employee engagement As companies across all industries make difficult how a recognition and reward program can facilitate choices with regards to cutbacks and financial an enriching corporate culture and experience that Reinforces employee lifetime value pressure—we need reliable methods for recruiting, attracts not only new talent, but the public at large. Supports pay-for-performance compensation retaining, and motivating high performers. We need In other words, an organizationally driven strategies for identifying and cultivating people who recognition and reward program can make a Motivates employees to achieve stretch goals will reinforce an organization’s vision, mission, and values. That’s why instituting a reliable recognition tremendous difference to customers, investors, Improves bottom line performance and policymakers overall. and reward program is vital in today’s workforce. Employee Engagement Customer Response Business Performance Figure 1. Investing in recognition and reward programs is proven to increase employee engagement and productivity and improve customer service, which in turn leads to customer satisfaction and loyalty. The results: higher business performance and revenues. Property of ITAGroup 1
  • 3. Introducing Recognition and Rewards Introducing Recognition and Rewards Introducing Recognition and Rewards Knowledge, reputation, and human capital. Today, • Improving customer service and product quality Investing in ELTV Engaged employees these are the intangible assets that make corporate to win brand loyalty We often hear about the importance of customer Engaged employees—or those who are both willing progress possible. • Boosting sales, market share, and customer lifetime value (CLTV), which is the potential value and able to contribute to company success— According to the Brookings Institution, only 15% of lifetime value (CLTV) presented by long-term customer relationships. demonstrate commitment to excellence to the company expenses represent tangible assets, such as Less common is discussion of employee lifetime organization and inspire among their peers both tools and machinery, while about 85% of expenses • Increasing productivity while instilling safe value (ELTV), which represents all that highly creative thinking and courage. Why? Engaged represent intangible work habits engaged employees bring to the company in the employees glean a strong sense of satisfaction Targeted Value assets. Why? Because long term, measured by both reduced cost and from their jobs. • Improving morale among teams and cultivating top performance. companies can expect Investing in employees’ enthusiastic company “brand ambassadors” out Take a look at Fortune magazine’s 100 Best Companies a much greater return education and training can of employees ELTV, a concept introduced in recent years, to Work For. Each year, employees respond to surveys produce twice as much gain from investing in may soon—if it hasn’t already—supersede the that ask questions related to job satisfaction, in workplace efficiency as employees than from • Attracting and recruiting valuable new talent with long-coveted CLTV. An Economist Intelligence Unit attitudes toward management, and workplace comparable increases in purchasing equipment. your reputation as an appreciative employer study found, for example, that 80% of executives camaraderie. Invariably, the top-ranked companies equipment, according to Another study found • Retaining and motivating the company’s top surveyed predicted are those that demonstrate the highest rate of researcher Robert Zemsky of that a company that Pennsylvania University. performers to bring their talents to the table Targeted Value that the ability to employee engagement. Along with enjoying lower lost all of its attract and retain turnover, these companies consistently provide equipment but kept Sears studied the correlation • Motivating average between employee the best people will initiatives that keep their workforce engaged. the skills and know-how of its workforce could be performers to Targeted Value satisfaction and sales and be the primary force back in business relatively quickly. On the other It makes sense that improve and excel found improved employee in influencing hand, a company that lost its workforce but kept its Research by Sheffield employee engagement to top performance University showed a return attitudes boosted sales within business strategy Targeted Value equipment would never recover (McLean 1995). directly affects the of up to four to one in profits about six weeks. by 2010. • Encouraging wellbeing of an The Towers Perrin Talent Protecting and cultivating intangible assets through when UK organizations worthwhile Employee engagement seems simple as a concept, organization. It also Report defines engagement people-based programs often comes down to focused on people rather risk-taking and but what initiates and sustains it? Obviously, the makes sense that good as “the extent to which engaging employees—to motivating high performance than on strategy, quality, or inspiring innovative answer is employees themselves. Yet, it’s unlikely recognition and employees put discretionary while fostering a positive working environment where pure R&D. work with a that employees can remain engaged and motivated reward programs effort into their work, in the innovation and self-actualization flourish. The benefits form of time, brainpower, and competitive edge in a vacuum. In other words, employee engagement increase employee of such programs are as numerous as the breadth of energy” (4). needs to be embodied and practiced at the highest engagement in the talent you employ. Listed are the most notable: levels within an organization. It also needs to be measurable ways. supported through ongoing initiatives and events. 2 3
  • 4. Introducing Recognition and Rewards Introducing Recognition and Rewards Engaged employees are proud of their work and It’s a fact that employees who feel valued because Multi-tiered recognition Recognizing and rewarding proud of the company they work for, and they’re they are both rationally and emotionally connected willing to communicate that. But perhaps more contribute more discretionary effort to meet the To be successful, recognition and reward programs diverse employees must earn the buy-in of individual employees and important is the way employee interactions with goals of their organization. They become role models At ITAGroup, we work hard to understand the leaders at all levels. People across the spectrum must customers affect CLTV. In a recent study conducted for peers, helping to create a corporate culture that workforce involved with a specific program. We be willing to by the Forum for People Performance Management values qualities like teamwork and innovation. In develop strategies that engage employees in ways participate and (www.performanceforum.org), researchers found turn, that corporate culture connects people at all that the higher the level of employee engagement, levels of the organization to common goals in ? Ask Yourself encourage that are meaningful to them both personally and professionally. This understanding entails knowing What trends in motivational participation among the higher the level of “customer spend”—that when meaningful and personally enriching ways. who they are. For example, what demographic responses have you noticed coworkers. Wide employees are engaged, a customer receives an do they belong to? Where do they live? What are You can ask yourself these questions to determine among people at work? What acceptance promotes enhanced experience, which equates to spending their cultural expectations? What motivates them whether your workforce is fully engaged: instances caused you to the perception that more money with the organization. to succeed? reverse expectations or rewards are both Your top performers are, without coincidence, your • How often do your employees go above and stereotypes? attainable and relevant Your answer depends on the individual. Is she a part most highly engaged employees. Consider recent beyond expectations to complete a project? to the entire of the sales force or the operations team? Is he a Mercer Delta research, which shows that, on average, workforce. • How well do your employees understand their family man or an unmarried recruit fresh out of engaged employees deliver four times more value college? Was her work ethic formed in the United roles and how their contributions affect the Here are some examples of multi-tiered recognition to an organization than non-engaged employees. States or in India, or in Germany or China? Is he a company’s direction and profitability? practices: baby-boomer or is he from Gen-X? And so on. An effective recognition and reward program invites • How many would say your company is a great • Employees recognize peers for excellence or employees to challenge themselves to ambitious You need to account for the diversity of your place to work? How many would tout its offerings above-and-beyond behavior in day-to-day work goals that ultimately benefit themselves as well as employee base as you build a program that to the public? through a companywide e-mail or award the company they work for. It turns energy into complements your organizational environment. nomination. action in a way that aligns human effort with Since various employee segments tend to impact specific organizational objectives, using employee • Team leaders recognize a targeted long-term personal involvement, you want to incorporate appreciation as the catalyst. accomplishment, such as completing certification meaningful types of recognition and rewards that training within an organization or implementing a encourage participation. Once you’ve determined the “green” idea that results in cost savings. diversity that exists throughout your workforce, you can better match motivational strategies for each • A sales team receives a group travel event with a individual or group of individuals to targeted recognition dinner to mark an increase in sales. business objectives. 4 5
  • 5. Introducing Recognition and Rewards Introducing Recognition and Rewards Although we discuss specific differences related Generational differences For example, if a Mature has lost his sense of Though strategies may vary, these examples illustrate to the current workforce below, ITAGroup doesn’t purpose at work and begins to perform at bare that for every generation, demonstrating gratitude Although each individual comes to your workforce stop there. We consistently and thoroughly address minimum, you might find a strategy for has a powerful effect. with individual abilities, needs, and personalities, it the bigger picture—and our strategies are acknowledging what he has sacrificed for the can be useful to note generational differences that grounded in awareness that your employees company in the past, giving him a symbolic reward might speak to specific motivational strategies. are your greatest asset. that demonstrates your respect for his talent and The most common groupings of generations are time on the job. Remember, when this generation— the Matures, the Baby Boomers, Generation-X, and as well as the Boomers—retires, you may face Global workforce Generation-Y. Listed below are qualities for which challenges replacing individuals with a wealth of each of these groups is known. In an increasingly global business environment, experience. Keeping older generations focused and it’s also important to recognize the need to develop interested may be one of your greatest investments. international, cross-cultural solutions that appeal to Table 1: Generational Attributes As another example, a team comprising young a wide-ranging, global workforce. With this global Matures Baby Boomers Generation X Generation Y Generation-Ys seems bored and, as a consequence, connection comes the responsibility to enhance wastes valuable time surfing the Web or text Hard work Rights Diversity Caution recognition and reward programs even more. Part of Dedication Space Caution Change messaging friends. Consider their penchant for this charge entails choosing the types of recognition Sacrifice Travel Technology Optimism change: Provide opportunities to learn new skills and and rewards that are most appropriate and Respect Optimism Playfulness Confidence reward their ability to exchange projects with peers, Figure 2. Accounting for a diverse workforce by motivational for a multi-cultural employee base. Duty Teamwork Self-reliance Achievement which can inspire both innovation and teamwork. incorporating a variety of recognition strategies Honor Personal growth Pragmatism Diversity This generation is accustomed to learning in a creates meaningful ways to reward an evolving In Europe, for example, food and wine rank highly Duty technologically driven, fast-paced environment, and employee base. as popular awards, while in Latin America, they feel valued when you give them the chance to merchandise vouchers and gift cards tend to be show their potential for growth. favored. Additionally, in some parts of the world, Using the qualities listed in Table 1, you can tailor a rewards made of certain materials may be motivational strategy that will appeal to values considered unsuitable; while in other areas, specific employees have been raised with. employees may view certain color choices negatively. 6 7
  • 6. Building a Recognition and Reward Program Building a Recognition and Reward Program Building a Recognition and Reward Program The overall goal of a recognition and reward Building a recognition and reward program that is when employee performance is not aligned with program is this: to increase employee engagement. right for you requires following a process that company objectives, when current incentive Invariably, a recognition and reward program should uncovers what matters most to you and your 4. Communicate the program initiatives don’t provide ROI, or when best practices not simply create happy, appreciated employees; it employees. The process are not in effect. should be linked to overall business performance. should include unique Targeted Value Tip and resourceful An upfront analysis You want a program that reinforces your overall Effective recognition and should look at four solutions, frequent business strategies, but what does that mean? reward programs are dynamic 5. Train all participants distinct elements of Many companies don’t realize evaluation, and It means that a cycles of analysis, strategy, an organization: how much they currently efficient monitoring to implementation, and review— spend on employee Tip recognition and reward ensure that you stay cycles that are built into the 1. Business Strategy. recognition efforts because program should on track to deliver the way ITAGroup does business. What is your efforts are so fragmented. reinforce what you appropriate outcomes. A thorough assessment can A good recognition and reward corporate mission? program drives employee want employees to do 6. Manage the program demonstrate how consolidated and reward how you The overall program-design process incorporates the What are your behavior—it rewards the right efforts improve performance want them to do it. following steps: current business kind of performance in ways and maximize budgets. that are meaningful to your Establishing these links issues? What are company and your employees. between the company’s your key business metrics? Which key factors strategic objectives 7. Measure your success impact each business issue? and the employees’ performance is often one of the 2. Corporate Culture. How does your organization 1. Conduct upfront analysis most overlooked pieces when building a recognition view non-cash performance initiatives? How are and reward program. these currently being used? Each component involved in the development of a recognition and reward program contributes 3. Data Analytics. Which metrics define employee to a program’s overall success. behavior? What performance gaps and variability 2. Garner executive-level buy-in exist in this data set? Conduct upfront analysis 4. Employee Perception. How do employees regard recognition and reward programs? It’s easy to make improvement suggestions by providing a one-size- 3. Develop a needs-based design fits-all solution. And it’s easy to hand out awards. Conducting an upfront analysis, however, often resolves organizational challenges at the onset. For example, it can uncover 8 9
  • 7. Building a Recognition and Reward Program Building a Recognition and Reward Program Once you have a good understanding of these Garner executive-level buy-in To support a program, management needs to fully influences, you need to capitalize on these understand its benefits. Initial analysis and perceptions to build a foundation for future change. A recognition and reward program must assessment should focus on gathering enough This requires key stakeholders in your organization be more than a program that exists only information to show the possible benefits of a Audience Business to next: on paper. It requires its leaders to “walk reward and recognition program. Once you’ve Perceptions Strategy the talk” and demonstrate commitment received executive buy-in, you essentially join forces • Identify business issues. Analyze historical to the program over the long term. You want your in your efforts to build a recognition and reward performance data. program to reflect consistently throughout all levels program. Not only do you start to assemble actively of the company—and you’ll find it performs best if it involved participants, you get champions of the • Identify the behaviors your organization wants works its way from the top down. program as well. to reinforce. This often entails gap analysis to determine current performance versus desired You’ll want to ensure that no conflicting goals arise Data Corporate performance. that may cause the program to derail. It’s also a Develop a needs-based design Analytics Culture good time to see what initiatives can be With the right motivation and a • Identify the behaviors the organization wants consolidated and strategically designed approach that to change. Targeted Value maximized. At the aligns with corporate culture and goals, same time, you need your employees can drive corporate • Incorporate your analysis into a specific Executive buy-in ensures that to ensure that performance. Most successful employee recognition Figure 4. Taking into account each of these recognition and reward program. employee performance is everyone—executives, and reward programs today incorporate a perspectives provides a holistic view to form aligned with corporate • Establish success measures. management, combination of individual and team-based awards. an effective program from. objectives. In other words, it guarantees that the vision employees—are Programs focused on productivity and sales generally described at the executive working toward a reward individuals for product revenue and overall level is incorporated into the global organizational goal attainment. actions of your employees. goal and vision. 10 11
  • 8. Building a Recognition and Reward Program Building a Recognition and Reward Program As you design and develop a recognition and reward Communicate the program • Involve participants by communicating to them Regardless of the approaches you choose to program, you want to ensure that you create an throughout the life of the program with follow-up implement, you want to ensure that the correct environment of celebration and reward. You can do Since a recognition and reward information. message is communicated. Once you’ve determined this in several ways: program represents a sizable investment the behaviors you want to recognize, you want to to an organization, communication • Make information about the program accessible by reinforce those behaviors in an accurate, meaningful • Ensure that executives and managers are about the program is key to its success. posting it in a highly visible place and keeping it way. supportive, engaged, and believe in the program. Employees should be aware of the program and that top-of-mind. it can yield significant Train all participants • Create employee movement by offering rewards. They should Targeted Value Do not overlook the recognition and rewards that motivate your also see program- Case Study value of integrating Training is crucial to program specific workforce. Effective communication communications with related materials often captivates and engages your effectiveness. No program can run to generate awareness Communication matters! program design. After effectively if managers don’t know or • Be aware of the existing environment and address audience. and enthusiasm. During an ongoing three-year all, a recognition and understand how to give rewards. And any necessary changes. program, monthly reward program is no program can run effectively if employees don’t A recognition and reward program requires communication was really a targeted know or understand To provide a balanced recognition environment, you participation, and that participation comes with temporarily eliminated. marketing campaign. how to earn rewards. should plan to incorporate three types of effective, clear communication. Targeted Value The results? When compared recognition: to the same month during When the right Managers must be Not only is it imperative to create initial interest in Training and recognition and the previous year, program communications are in trained to recognize 1. Day-to-day. This type of recognition, which the program, it is necessary to encourage that reward programs often go participation decreased by place, you ensure that includes thank-you notes, e-mails, and phone interest by establishing a consistent communications results. Beyond that, hand-in-hand—they naturally 16%, sales activity decreased employees not only calls, should be used on an ongoing basis. Design campaign. This can be done in a variety of ways. they must be trained integrate program significance by 76%, and revenue For example: understand why they how to communicate with the how-tos of programs of this type to recognize behaviors that decreased by 144%. are being recognized, the program structure, performance. support organizational values. Tip • Call attention to the but they know the value of actively participating in criteria, and rewards. 2. Informal. This type of recognition, which includes program and its the program. At the same time, employees must learn why the team lunches or low-cost mementos, should accompanying Be sure to communicate the link between performance program matters and how to participate in ways recognize individuals or teams for progress message by sending A multi-media approach that matter. and company objectives. towards specific goals or milestones. out blast e-mails How you communicate your message depends on You want to foster a greater 3. Formal. This type of recognition consists of a and creative understanding of organizational the situation. However, it is critical to use multi- structured program with a defined process. It tends marketing goals by showing how each media—you want to get your information across in to be public, taking place at an annual meeting or communication employee’s actions contribute as many ways and as often as possible. other formal recognition event that is branded, pieces upfront. to the overall success of the company. themed, and facilitated by senior leadership. 12 13
  • 9. Building a Recognition and Reward Program Building a Recognition and Reward Program When it comes to training, you should do the Selecting ambassadors Manage the program years when many companies managed reward and following: recognition programs on an ad hoc basis or relied on There is tremendous value in providing program You can determine program success individual departments or regions to run disparate • Incorporate information about your program “ambassadors”—employees who specialize in program through tracking, progress reporting, initiatives. during employee orientation. As you educate them specifics and can communicate that information ongoing analysis, and effective about your organizational values and business articulately and account management. Today, you will want to make sure whether you build goals, you can show how the recognition and enthusiastically. These your online platform internally or use an outside employees serve as Tip Operation and administration of the program entails reward program supports these objectives. partner, like ITAGroup, that your system integrates all internal champions for a large portion of a recognition and reward program. your reward and recognition efforts and includes the • Provide clear expectations of each employee’s the program, Solicit volunteers from non- It’s easy to get necessary functionality to ensure success, such as: roles and responsibilities along with the management ranks. Provide a Tip overwhelmed with the generating both opportunities provided by the program. small incentive or award for volume of information. • Peer to Peer Awards information and time and effort. excitement throughout As with any administrative As part of managing • Offer recognition forums on a regular basis that • Manager to Employee Awards the life of the program. process, you’ll want to ensure the program, you’ll share best practices. Use this time to reinforce that participants receive want to do the • Team Awards information about the program to both Although you can choose ambassadors in a variety regular feedback. following: management and employees. of ways, you’ll find that they often volunteer based • Activity Based Awards (such as Years of Service, on their belief in the program. Regardless of the • Identify the information you want to track and Safety, Wellness, Sales Productivity or Training.) • Use online tutorials to facilitate recognition report selection process, you’ll want to choose ambassadors training. • Approval Process who will do the following: • Determine methods for tracking, reporting, and • Give managers the tools they need to help them analysis • Budget • Engage in the program themselves participate actively in the program. For example, Management provide a “tool kit” that lists recognition best • Identify areas of improvement Tip • Mentor others Tool practices, program-branded material, celebration checklists, etc. • Motivate others • Look at the data that’s gathered from an overall • Award Only require management perspective Redemption approval for top awards; • Hold workshops that feature outside educators • Explain to others Options otherwise the process may who specialize in one of your program Operation and administration become too administratively components. • Work well with others Most reward and recognition programs today are • Reporting burdensome to be practical. managed electronically through integrated web- • Measure your training results. based platforms designed to track participants, activity, and budgets. This is a change from previous 14 15
  • 10. Building a Recognition and Reward Program Building a Recognition and Reward Program Measure your success Measurement strategies ensure that your program What was their overarching objective? They chose to Example two optimizes performance. While success can be focus on employee retention in the midst of their For a leading soft-drink manufacturer and How do you want to measure the determined in a variety of ways, it should ideally be new organizational structure. In doing so, they success of your recognition and reward distributor, management recognized the need to customized to track and connect the type of success hoped to create a cultural shift in the company that better integrate their cross-cultural workforce. They program? What kinds of successes are that matters to your company. You can, for example, communicated the vision of the organization in you looking for? Do you plan to use a knew they had to respond to the changing track the following: moving forward. requirements of their company as they expanded scorecard? These are the types of questions you want to answer as you start to build a program. • Participation The program internationally. Targeted Value integrated behaviors It’s here where you • ROI Their goals? To develop a recognition and reward Targeted Value Successful recognition and the company wanted program that offered fair rewards for an increasingly Tip validate expenditures • Productivity to reinforce by reward programs rely on a global workforce. This design entailed addressing the and show the return Using scorecards that are recognizing how • Sales and referrals definitive commitment to objectives of the world-wide workforce on multiple on investment. It’s customized for each program As you gather data to measure excellence and a willingness to business success was here where we can ensures that you measure the program levels: peer to peer, manager to employee, the success of your program, • Customer & make necessary adjustments achieved through the it’s a good idea to identify understand program information that really and mega-performers. Addressing these multiple employee and address changing needs in contributing factors of matters to you. levels provided a means to encourage the flow of company best practices—the performance, provide satisfaction order to end up with a better commitment, practices that ultimately feedback, and provide outcome. recognition throughout the company and involve all • Customer & employee retention leadership, individual organizational levels. Through a simple recognition support corporate objectives— program justification. achievement, and teamwork. Incorporating individual strategy, employees could be awarded points that that can be benchmarked both • ELTV and team awards with service and performance in your organization and Regardless of the they could redeem for culturally-specific award throughout your industry. awards provided the means to recognize innovation options through localized customer service specifics of a and cost-savings techniques. This successive building representatives. recognition and Success stories of behaviors encouraged both daily consistency and reward program, we use both qualitative and We’ve included the following examples to established the importance of ongoing contributions As a result of the initiative, the program has become quantitative metrics. Quantitative and qualitative demonstrate how recognition and reward programs throughout the year. a part of the overall corporate culture, which has success measures both add value. Goals should be fair and obtainable. make a difference. translated into significant increase: 72 percent of What were the results? Besides turnover reduction, participants report improved morale. Example one the company saw cost-savings ideas generated and implemented, productivity improvements, increased A global producer and marketer of disposable employee engagement, and increased customer foodservice products merged with a competitor to loyalty. These improvements resulted in double- become a multi-billion dollar corporation. digit sales growth. Management decided to implement a recognition and reward program that built successively on both individual and team behaviors. 16 17
  • 11. Building a Recognition and Reward Program Building a Recognition and Reward Program Technology considerations As referenced earlier under “Manage the Program- Operation and Administration”, the online platform chosen to operate your recognition and rewards program is vital. Whether you build the platform internally, or partner with a company like ITAGroup, it is important to utilize a platform that is easy to use and modify yet still capable of handling the large scale complexity that your program may require. ITAGroup offers two unique recognition and reward platform solutions—PerformanceSuite® Pro and PerformanceSuite® Enterprise. PerformanceSuite Enterprise is designed to handle the most complex program needs and allows for maximum levels of customization and advanced rules and rewards structures. The platform is fully customizable to an organizations specific program needs. PerformanceSuite Pro is designed to power a more basic program structure yet allows for moderate levels of customization while providing an organization quick speed to market and lower cost of entry. The following offers a look at select features of the PerformanceSuite Pro platform. 18 19
  • 12. Conclusion Works Cited/Consulted Conclusion Works Cited/Consulted A successful recognition and reward program ITAGroup is a founding trustee of the Forum for “100 Best Companies to Work for.” Fortune and Great “Engaging employees to drive global business success: requires precision, planning, and execution. You want People Performance Measurement & Management Place to Work Institute.® Cable News Network, 2008. Insights from Mercer’s What’s Working research.” a program that is well-designed and well-structured, (www.performanceforum.org) and a member of Redistributed by Worldatwork. Mercer, 2007. a program with well-defined standards that allows Recognition Professionals International “The Economics of Humanity in Business.” Executive for meaningful results. (www.recognition.org). White Paper. FORUM: For People Performance McClernon, Timothy. “Rivals to Systematic Training.” Management and Measurement. Summary of Frank Advances in Developing Human Resources, For more information on how implementing a Mulhern’s report, “Pulling Together: The Increased 8:442 (2006). About ITAGroup recognition and reward program can positively affect Role and Impact of People in Organizations.” ITAGroup is a full-service performance improvement your corporation’s overall performance improvement Economist Intelligence Unit Report, 2008 “Working Today: Understanding What Drives company focused on improving business strategy, visit our website at www.itagroup.com. [www.eiu.com]. Employee Engagement.” The 2003 Towers Perrin performance through people. Since 1963, we have Talent Report. driven powerful and proven results through sales incentives, recognition and reward initiatives, business-to-business loyalty solutions, product launches and business meeting and group travel coordination. In the ever-changing economy, partnering with an expert in human capital is more beneficial than ever before. At ITAGroup, we work with you to build and execute programs that satisfy—and consistently exceed—your objectives. Together, we address the specific needs of your organization and develop a customized recognition and reward program that provides improvements in the way you do business. With our expertise, you can achieve your goals, while making your company more profitable and a better place to work. 20