Less than half of your employees are satisfied with their reward and recognition programs, despite increased spending among companies to improve these programs. Why? In her virtual conference webcast, “I Can’t Get No…Satisfaction”, Michelle Pokorny, Solution Vice President for Employee Engagement and Recognition at Maritz Motivation Solutions will share results from a recent study aimed at helping employers gain key insights on what impacts the success of an employee reward and recognition program.
In late 2011, Maritz Motivation Solutions conducted a poll. When asked to respond with their agreement with this statement: “I am rewarded and recognized for my work performance in ways that are meaningful to me.” Only 45% agreed.Less than half of the participants in our reward and recognition programs feel rewarded and recognized in meaningful ways… not such a good number.
Do you know how satisfied your employees are with their reward and recognition programs?Yes, we regularly survey employees for this feedbackYes, by word of mouth or other anecdotal meansYes, by proxy of participation levelsNo, couldn’t tell ya
The study confirmed a strong relationship exists between employees who feel meaningfully recognized and greaterengagement indicators. Statistics include:
Findings are in line with an annual Engagement Poll conducted by Maritz’ research company, that showed again in 2012 top line engagement scores more than double when an employee is consistently and meaningfully recognized. We are more emotionally committed to our work when well recognized and rewarded
And when formal, structured recognition programs are in place in organizations, here are some numbers worth paying attention to: Companies can enjoy….
But again, our study showed that only 45% of employees are happy with their programs. What’s the impact of that? Let’s just single out productivity, which the SHRM study found could be as much as 63% higher in organizations that effectively recognize employees.
Assumptions: an organization with 1000 people, and if average 45% are meaningfully rewarded and recognized, that’s 450 employeesBenefit = Additional productivity or discretionary effort of motivated employee is 20 hrs (2.5 days) over 1 yearValue of Benefit assumes 2000 hours or 250 days of work, divided by $50,000 avg. salary = $200/day. $200 x addtl 2.5 days= $500 value x 450 employees = $225K$200 x addtl 2.5 days= $500 value x 1,000 employees = $500KTotal Program Costs = ½% (.005) of salary where avg. salary $50K/year for 1000 employees or $250/employee
Assumptions: Larger the company, larger the missed potentialTotal Program Costs= ½% (.005) of salary; avg. salary $50K/year for 10,000 employees or $250/employeeBenefit = Additional productivity or discretionary effort is 20hrs (2.5 days) of over 1 yearValue of Benefit assumes 2000 hours or 250 days of work, divided by $50,000 = $200/day. $200 x addtl 2.5 days= $500 value x 4,500 employees = $2.25M$200 x addtl 2.5 days= $500 value x 10,000 employees = $5M
We don’t want any part of that, right? How do we know what is and what’s going to work?
Start with great new, the latest insights into human motivation and forces at play in the world today.
Begs the question…Poll: Are you experiencing more interest from people in collaborating, are you feeling the impact of globalization and an interconnected world, and do you sense more value being placed on creativity and a desire to impact others/society?YesSome, but not allNot reallyNot sure
Data tells us that reward and recognition program experience and practices can have a big impact on engagement and business outcomes … But we need to REFRAME, think differently to create these program experiences going forward. Centered and aligned around both organizational and individual purpose and values. Programs that Reward and Recognize, and that also incorporate Engagement and Community strategies enabling collaboration and expression.
In the context of employee reward and recognition programs that means we need to know…. and engagement is really about an emotional connection, so we have to learn more about what people care about, how they feel, what they value
In the context of the study results I’ve mentioned I’m going to share additional results and insights. Here’s the back drop on the survey….We ascertained personal values based on the Schwartz values inventory and some proprietary segmentation.
Important to start with values because what is represented here, Red through green layers are really the “filters” employees subconsciously and consciously use before they notice, pay attention to, form an opinion about and act on a stimulus (messages, offers, rewards, etc.—your program tactics, per the gray arrows).
Self direction and stimulationLearning and trying out new things– clearly highly rewarding and a driverMessaging – include me… don’t just talk to me or tell me. Energize me.
security and traditionBalance risk and reward, less likely to want to lead, rather be a contributorVery family orientedMessaging: make me feel safe and secure
Universalism and BenevolenceMost in touch with a sense of or drive for self transcendence, want to pay it forwardEnjoy social, cultural experiencesMessaging: sincerity, authenticity, prefer face to face
Achievement andPower Veryfocused on self enhancement, statusMessaging: How am I doing, tell me something that can help me be more successful, give me the facts
I think this may have to do with the fact that our programs tend to be geared toward the kinds of structures which appeals more to this group – a Driven to compete and win or earn, often more top performer or top tier based reward and recognition. But they are only ¼ of the employee population, and those types of programs only impact a small percentage of employees. So this indicates the importance and need for up to expand or broader or tailor communications, program structure, social/community elements and rewards to more effectively appeal to and engage the other employee segments. More effectively address why different employees want to participate or earn a reward.
Not surprising, most respondents perceived their company was Driver valueOrg value impacts engagement… even when different than personal valuePioneer – self-direction, stimulation… what’s nextAltruist – universalism, benevolence… want to make a difference
partially driven by a greater portion of younger people being Drivers (and more companies are seen as Driver).
Engagement measures are higher when feeling meaningfully rewarded & recognized is higher, yes (is a relationship). While I know your wording supports your point/positioning, and not saying to change, realize that doesn’t mean (from the research) that meaningful rewards/recognition causes and increase in engagement. (It’s that “correlation” vs. “causality” issue.) Same thing on third bullet.
Most people would love to be recognized by senior management, but nearly a third prefer to be recognized by their manager…. And satisfaction a manager’s efforts at recognizing is highly correlated with engagement.
Cool information, what do we do with it? Some good, general insights included:
Just evaluating and expanding reward options can have great impact.Note: A pharmaceutical client added peer to peer, points-based recognition and grew participation to 95%.
After numerous recognition and sales incentive programs the client wanted to learn more about what drives representatives who were newly asked to up-selland cross-sell.Scored lower than reference market in “my company clearly communicates reward and recognition opportunities…”Drivers, Altruist and Pioneers represented like 76% of pax. So, for the call center programs, we recommended balanced scorecard approach with both individual and team earnings. Overrides for mgrs. Competition with other centers. Better comm. Sweeps only for fun, not earning opportunity.
Reach more of your people with the right messages aligned with their values – and expression of your company valuesImprove engagement through the right program structure and elementsReward and recognize your people in more personally meaningful ways In doing so, you enrich their employee experience– in turn they will listen, engage and delivergreater financial results for your business