Successful Motivation: Employee Recognition That Works!
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Understand six universal human motivators, organize your company reward system to support them, and match rewards to employees.
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Successful Motivation: Employee Recognition That Works!
- 1. Employee Recognition That Works! Successful Motivation Mary Anne Shew Business Vitality LLC RBA HR Exec Forum 4/1/2014
- 2. 2 Happy employees = productive employees Your Dream
- 7. 7 Raises / bonuses / promotions in short supply Problem
- 10. 10 Understand Six Universal Motivators Organize Rewards to Support Motivators Match Rewards with Employees The Motivation Match-Up
- 11. 11 Mary Anne Shew 2nd Career: 1999-today Web Site Design/Development 3rd Career: 2005-today Internet Consulting & Business Coaching 1st Career: IT (Software)
- 12. 1. Understand Six Motivators 2. Organize Rewards 3. Match with Employees 12 What we’ll cover Preface: Set Context
- 14. 14 Employee turnover costs (See Employee Turnover Cost Handout) What could your company do with an extra $54,000+ every year? For 75-person company, 10% annual turnover of $30K-salary employees costs $54,000 per year, not including cost of productivity losses.
- 15. 15 Employee turnover costs Out-of-Pocket “Hidden” / Unmeasured Lost training that will have to be repeated Impact of no one doing that job for 1+ months: Customer satisfaction, etc. Recruiting costs Manager focused on new hire versus existing staff, projects Candidate costs: Travel, meals, hotel Team has to pick up the slack until replacement hired New hire onboarding costs: Relocation, training Time it takes for new employee to fully ramp up (See Employee Turnover Cost Handout)
- 16. 16 Recognizing and valuing Recognition Valuing Acknowledge good work, appreciate efforts Appreciate worth of someone; hold in high esteem Tied to what we do, not who we are Acknowledge not just for tasks but for intrinsic worth For successfully completing a project Letting someone know you’re glad they’re on the team, and it wouldn’t be as good without them Event-driven (singular experience) Environment-driven (sustained) Shows up as driver of employee engagement 30% of the time Shows up as driver of employee engagement 85% of the time It’s a difference in experience
- 17. 17 Recognizing and valuing “I receive recognition when I do good work.” • Across industries and countries: Average score is 55% favorable • For top 10% of companies: 66% • But rest of their scores in 80-90% range • So even they don’t do as well as they could in recognition “I feel valued as an employee of this company.” • When asked, average score is 41% favorable, 32% unfavorable
- 18. 18 Recognizing and valuing To recognize employees To make them feel valued Identify outstanding customer service Actively solicit people’s thoughts Look at team performance Recognize real contributions Train supervisors for appropriate day-to-day recognition Allow open discussion Encourage initiative, risk-taking Show respect: No bullying, yelling, trivializing, patronizing, deceiving Ensure job performance and pay are linked Let people have input to the decisions that affect them Be transparent and fair Discuss expectations and responsibility Build culture of celebration over competition Explain why they are important to success of company
- 19. R&R is part of a system 19 Engaged Enabled Energized Attachment to the company and willingness to give discretionary effort A local work environment that supports productivity and performance Individuals’ physical, interpersonal, and emotional well-being at work Well- functioning equipment Necessary supplies on hand Effective work processes Clear direction from supervisors Clear priorities Effective teams Respectful colleagues Expectations balanced against pressures Attitude towards immediate manager Senior leadership Work/life balance Goals and Objectives Company image
- 20. 20 R&R is part of a system What are you rewarding? 1. If focus is on vital behaviors that have intrinsic satisfaction, and 2. Social support is in place for vital behaviors, 3. THEN external rewards work well. Engaged Enabled Energized
- 21. 21 R&R is part of a system Vital behavior is the key concept • A high-leverage behavior that makes the difference • What does a person do that gets the desired outcome? • Reward a vital behavior, and the outcome will take care of itself
- 22. 22 Examples of Vital Behavior Weight loss: Lost 30 lbs and kept it off for 6+ years • Exercised on home equipment • Ate breakfast • Weighed themselves daily
- 23. 23 Examples of Vital Behavior Epidemic: Eliminated infectious worm spread through drinking water • Strained all drinking water • Kept infected people away from water source • Entire village took responsibility for compliance
- 24. 24 Who’s On Your Front Lines? Supervisors and Managers
- 25. 25 What are their vital behaviors? The Diminisher • Somewhat irresponsible, not trusted • Uses blame instead of accountability The Neutralizer • Gets work done at level specified • Frequently invokes authority (no personal power) The Enhancer • Self-confident, respected, accountable, trusted • Brings more to the organization than is paid for (See Handout Pages 2-3)
- 26. 26 Leadership Management Supervision Emotional IQ Communication Goal Setting Time Management Conflict Management Research Manufacturing Engineering Production Product/Service Marketing Sales Finance Accounting IT How prepared are they for their jobs? Job:Managing people Promoted time They started career here Job: Doing the work Now need to do these
- 27. Build it starting from the top down If senior management doesn’t exhibit R&R vital behavior themselves, first-line managers won’t believe it’s an important part of their own job either 27 Culture of recognition
- 28. 28 • Individuals—regardless of rank, title, expertise, or tenure—freely and readily recognize one another’s contributions • Thoughtful, timely, personal • Keep it fresh and meaningful • Avoid “rote recognition” that has no real purpose or thought behind it Culture of recognition
- 29. 29 (See Handout Page 5) Culture of recognition TRUST is a key foundation for effective rewards and recognition • Four components of trust: Sincerity, Reliability, Competence, Caring • If Caring (a.k.a. “valuing”) is missing, R&R efforts will likely not pay off as you hope, even if other 3 components are in place
- 30. Part 1 30 Understand Six Universal Motivators
- 31. An internal process that makes a person move toward a goal • Can’t be directly observed • Can only infer from behavior • Internal: Survival, pleasure, achievement • External: Money, award, connection to others 31 Part 1 What is motivation?
- 32. Three internally-focused • Material possessions • Self-improvement • Sense of mission 32 Part 1 Six Universal Motivators (See Handout Page 4)
- 33. Three externally-focused • Personal relationships • Sense of belonging • Status and recognition 33 Part 1 Six Universal Motivators (See Handout Page 4)
- 34. Everyone is motivated to some level by all six motivators, some more strongly than others. Placing too much importance on any one motivator will cause that person to over- focus on that motivation. These motivators can be measured by an assessment. 34 Part 1 Six Universal Motivators
- 35. People with a more balanced motivation mix tend to have more motivators to which they are drawn. These people respond to a wider rage of rewards. 35 Part 1 Six Universal Motivators
- 36. People with a more focused motivation mix tend to have fewer motivating forces. This means they often respond more intensely to them. 36 Part 1 Six Universal Motivators
- 37. How to know what works? Get to know your people • Ask them what they like and want • Surveys, 1-1 or group discussions, assessments • Experiment • No single way to reach everyone The Generations: See Handout p. 6 37 Part 1 Six Universal Motivators (See Handout Page 5)
- 38. Part 2 38 Organize Rewards to Support Motivators
- 39. Principles of reward • You get what you reward • Must be in response to something significant • Timely, specific, meaningful • Immediate manager has huge impact 39 Part 2 Organize Rewards
- 40. 40 R&R is an ongoing investment • Mostly of time and thought • Do free things first • Invest in teaching “valuing” behavior Evaluate what you already have in place for impact • Get anonymous employee feedback through survey Part 2 Organize Rewards
- 41. 41 Consider having an employee group organize R&R awards and events. • Teach them to incorporate the six types of motivation and match generational appeal • Give them copies of 1501 Part 2 Organize Rewards
- 42. 42 Why go through all this?
- 43. Outperform Competitors 43 “Companies that manage people right will outperform companies that don’t by 30-40%.” --Jeffrey Pfeffer, Stanford Business School Professor 2012 Industry Profit Margins 2.9% Food & Staples Retailing 19.5% Pharma, BioTech, Life Sciences 8.4% Capital Goods 20.2% Software& Services Impact on your company?
- 44. Retain Top Talent 44 Cost to replace employee with salary up to $75K: 20% of salary --2012 Study by Center for American Progress
- 45. 45 Inspire Engagement “Effectively recognizing performance can increase employee engagement by almost 60%.” --Towers Watson Report: http://bit.ly/1bQv499 Engaged Enabled Energized
- 46. 46 Values Visible in Behavior “Companies with values-based strategic recognition, 91% of employees feel they have strong grasp on goals and objectives.” --Globoforce.com Respect Account- ability Integrity
- 47. We’re in the home stretch… 47
- 48. Part 3 48 Match Rewards with Employees
- 49. The best recognition is FREE 49 Part 3 Match Rewards to Employees To recognize employees To make them feel valued Identify outstanding customer service Actively solicit people’s thoughts Look at team performance Recognize real contributions Train supervisors for appropriate day-to-day recognition Allow open expression Encourage initiative, risk taking Show respect: No bullying, yelling, trivializing, patronizing, deceiving Ensure job performance and pay are linked Let people input to the decisions that affect them Be transparent and fair Discuss expectations and responsibility Build culture of celebration over competition Explain why they are important to success of company
- 50. 50 Part 3 Match Rewards to Employees 1501 is a comprehensive, well-written, easy- to-read handbook for all aspects of reward and recognition • The ideas listed were implemented at hundreds of companies across many industries 1501 Ways to Reward Employees
- 51. 51 Part 3 Match Rewards to Employees Use the 1501 book to • Select ideas that fit your culture, budget, and employees’ interests • Organize the ideas to match the motivators
- 52. 52 Part 3 Match Rewards to Employees Then • Let employees choose a reward from what you’ve chosen (when appropriate), or take a guess yourself • Use humor and fun too
- 53. 53 Part 3 Match Rewards to Employees Page Idea From Book 1501 Ways to Reward Employees Matching Motivator 443 Reward employees $10 for every customer compliment they get and deduct $10 for every complaint. Material Possessions 58 Offer employees access to wellness information and workshops. Self- Improvement 63 Have an employee-run environmental issues committee to educate and try ideas both for employees’ personal lives as well as the working environment. Sense of Mission 49 Pal of the Week: Everyone in the department asked to do or say something nice to the person in the course of a week. Personal Relationships 263 Reward when someone they refer (usually a friend) is hired. Another one when new hire stays 6 months. Sense of Belonging 262 Invite employees to your home for a special celebration, and recognize them in front of spouses and colleagues. Status & Recognition
- 54. 54 Summary: The Motivation Match-Up Engaged Enabled Energized Reward and recognition is part of a system • Valuing employees sets the stage • How well it works depends on the other parts
- 55. 55 Understand Six Universal Motivators Organize Rewards to Support Motivators Match Rewards with Employees Summary: The Motivation Match-Up
- 56. 56 Successful Motivation Resources Influencer: The Power to Change Anything 1501 Ways to Reward Employees The Thin Book of Trust: An Essential Primer of Building Trust at Work
- 57. 57 Mary Anne Shew www.BizVitality.com | 585-746-9140 mashew@BizVitality.com Wishing You Motivation Success!