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SETTING UP
COMPELLING
REWARDS
RECOGNITION
PROGRAMS
D R . S A R M A
WHAT IS COVERED
Why do this?
The Goal
Strategy
Method
The rewards plans
Budget
What is the gain
D R . S A R M A 2
Any action called recognition should
keep in mind
That there is power in
Acknowledgement
Appreciation touches powerfully the
emotions if done sincerely
What recognition can do?
1. Sincere- spoken and body language while
rewarding must reflect authenticity
2. Fair and Consistent- not tool for favor
3. Timely- instant execution
4. Frequent- as often and not once in blue
moon or when you like to do
5. Flexible- not too many conditions/rules
6. Appropriate- relevant to the driver
7. Specific --one goal per reward not too
many things to even qualify
Seven critical success factors:
1. Reinforces desired behaviors,
practices, principles, and values.
2. Gives the ability to show
appreciation
3. Builds self-esteem.
4. Promotes trust and respect.
5. Facilitates and encourages
change.
6. Drives improvement.
7. Creates positive work
environment .
8. Improves the quality of work
life.
Benefits of installing effective recognition:
9. Motivates individuals and teams
to do their best.
10. Enhances loyalty.
11. Creates a brand
12. Addresses the basic human
need to feel appreciated.
13. Reflects commitment to each
other.
14. Inspires accomplishment and
achievement.
15. Empowers individuals and teams
17. Drives out fear.
18. Improves the bottom line.
Benefits of effective recognition
D R . S A R M A 7
Reviewing 128 studies on the effects of rewards Deci
et al. (1999, p. 658)concluded that:
“tangible rewards tend to have a substantially
negative effect on intrinsic motivation (…) Even
when tangible rewards are offered as indicators
of good performance, they typically decrease
intrinsic motivation for interesting activities.”
Rewards have even been found to make people less
creative and worse at problem solving
Word of caution
THE SOCIAL PSYCHOLOGY BEHIND REWARDS
Like it or not, we're wired to bond, and
most of us experience the workplace
first as a social setting. This is what
makes recognition so powerful:
celebrating stories about
accomplishments with co-workers and
managers makes people feel more
appreciated.
D R . S A R M A 8
THE CATEGORIES-
PSYCHOLOGY BEHIND REWARD
The Collector: It's human nature to gather
things and status. Plaques with years
of service appeal to the desire for
status. Other types of incentive
programs tap into this drive as well,
motivating people through their desire
to acquire more possessions.
The Killer: People are biologically
motivated to defend what is theirs. The
winner of last year's "Top in Sales" title
isn't going to let it go without a fight.
Seed 1 player never easily let goes;
And employees engaged by strong
recognition programs will work hard to
protect their company against
competitive threats.
D R . S A R M A 9
TYPICAL MANAGEMENT
DILEMMA-CASH OR NON CASH?
Researchers have
shown it's physically
more likely for the brain
to access a real image
from the right brain.
Symbolism is more long
lasting in mind
D R . S A R M A 10
CASH INCENTIVES:
are abstract numbers, not a clear
image, so they're stored in the left,
logical side of the brain and accessed
less frequently and in less detail.
D R . S A R M A 11
BEST STRATEGY-
GO LONG/SPREAD WIDE
TO SEND A STRONG SIGNAL
The longer the duration, the greater is the
chance that employees get our message and
make positive behavioral change
Cover as many as we can-to create engagement
D R . S A R M A 12
PEER RECOGNITION
This type creates "culture of
peer recognition"
not the boss but people who are
hierarchally equal give each other
praise or rewards for good
work
D R . S A R M A 13
Employees get handed rewards
instantly by immediate supervisor ,
"on the spot" when direct reports
strong performance.
Empowers immediate supervisor
Ensures promptness/timeliness
D R . S A R M A 14
WHAT THE LEADERS DO
Hewlett-Packard Idea Generation
The Golden Banana Award is one of
Hewlett-Packard's most
prestigious honors for inventive
employees. It began when a
company engineer burst into his
manager's office with the answer
to a problem they'd been
struggling with for weeks. The
manager searched his office for a
way to mark this
accomplishment, but all he came
up with was a leftover banana
from lunch. Still, he handed over
the banana and said "Well done!
Congratulations!"
D R . S A R M A 15
AT&T EMPLOYEE RECOGNITION
At AT&T Universal Card Services in Jacksonville,
Florida, paper is the key element for World of
Thanks, one of their most popular programs.
The program helps create a culture of
recognition and higher performance in a simple
way: anyone in the company can write a
message of thanks to someone else and send
it. To make it official, employees use a sheet
from a globe-shaped pad of colored paper. In
four years, employees at AT&T have written
more than 130,000 thank you notes.
D R . S A R M A 16
WALT DISNEY WORLD EMPLOYEE RECOGNITION
There are 180 different employee recognition
programs at Walt Disney World in Orlando,
Florida. One of the most coveted is the
Spirit of Fred Award. It's named for Fred,
who advanced from an hourly to salary
position by exemplifying the values
necessary for success at Disney: friendly,
resourceful, enthusiastic and dependable.
Fred makes each award (a certificate
mounted on a plaque) as well as The
Lifetime Fred Award, a bronze statuette of
Mickey Mouse given to multiple recipients
of the Spirit of Fred Award.
D R . S A R M A
PRODUCERS ASSISTANCE SAFETY PROGRAM
Producers Assistance Corporation provides contract personnel to the
oil and gas industry, an area where employee safety is critical. To
refresh their safety program, they chose reloadable gift cards as an
incentive. Here's how it works: when an employee takes an action, like
attending a safety meeting, points are loaded onto their card. The lure
of point collecting (and spending) has focused employees back on
doing the right thing? to be safe. After a 6-month trial, participation had
more than doubled and there was a significant decline in the incident
rate.
D R . S A R M A 18
PHARMACEUTICAL MERGER REWARD PROGRAM
During the merger of two pharmaceutical giants, a task force was
charged with making the transition a smooth one.
Members worked nonstop over six months, planning how to blend
operations of the two companies. The team was rewarded for its
sacrifices with gift cards that were, literally, the gift of time.
The personalized cards were hand-delivered with a letter from the
project leader, and gave recipients their choice of services:
housecleaning, lawn care, carpet cleaning, pest control, and more.
D R . S A R M A 19
CASE EXAMPLE
D R . S A R M A 20
150 different rewards for 200 employees
To cater to Individual/Team and corporate Goals
Quarterly/Half yearly/Annual
Small cash/large cash-50$ to 10000$
10000$ for trip any where in the world- 10 days
paid off
Outcome-engagement ratio went up to 85% from
63%
1- SPOT AWARDS:
· Managers will be empowered to give on-the-spot recognition to employees who
go above and beyond their job duties in serving a customer, assisting a colleague or
creating a solution to an existing challenge. Examples may include staying late to get
a proposal out the door, nailing a sales presentation or receiving an appreciation
email from a customer.
· ·
D R . S A R M A 21
2- SEMI-ANNUAL INNOVATION AWARDS:
Two awards for employees who exhibit extraordinary skill and initiative in solving
a challenging technical issue for a customer or developing new IP for
Bodhtree.
D R . S A R M A 22
3-SEMI-ANNUAL IMPACT AWARDS:
Two awards provided to employees who create positive, lasting
change in the company. These awards can go to employees in
any role in the company, whether technical, operational, sales
or marketing. Their exceptional performance, creative ideas
and positive influence have made an impact within Bodhtree
that will be felt for months if not years into the future.
·
D R . S A R M A 23
4-BRIGHT FUTURE AWARD -
One award to an employee in any role who demonstrates uncommon leadership
potential through their interactions with clients/prospects, relationships with
employees, exemplary work ethic and ability to apply fresh approaches to
solve existing challenges. The award will include a stipend for formal training
in management, business or technology.
·
D R . S A R M A 24
5- SEQUOIA AWARD:
Named for the world’s tallest redwood trees, native to the coasts of California,
the Sequoia award is an annual award given to one employee who truly
stands out as a leader, whatever their role or position in the company. They
display individual initiative, passion, courage, integrity and hard work in
advancing the mission and values of Bodhtree. This person is a team player
who inspires those around them break out of comfort zones and reach their
potential.
D R . S A R M A 25
SUMMARY
What is expected
1- think of most suitable candidate
2- develop a story to speak about the accomplishment
3-use the nomination form
4- submit it to HR in time
5-Hr will send the reward certificate and amount directly or through payroll
6-inform the employee/praise publically
D R . S A R M A 26

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SETTING UP COMPELLING REWARDS RECOGNITION

  • 2. WHAT IS COVERED Why do this? The Goal Strategy Method The rewards plans Budget What is the gain D R . S A R M A 2
  • 3. Any action called recognition should keep in mind That there is power in Acknowledgement Appreciation touches powerfully the emotions if done sincerely What recognition can do?
  • 4. 1. Sincere- spoken and body language while rewarding must reflect authenticity 2. Fair and Consistent- not tool for favor 3. Timely- instant execution 4. Frequent- as often and not once in blue moon or when you like to do 5. Flexible- not too many conditions/rules 6. Appropriate- relevant to the driver 7. Specific --one goal per reward not too many things to even qualify Seven critical success factors:
  • 5. 1. Reinforces desired behaviors, practices, principles, and values. 2. Gives the ability to show appreciation 3. Builds self-esteem. 4. Promotes trust and respect. 5. Facilitates and encourages change. 6. Drives improvement. 7. Creates positive work environment . 8. Improves the quality of work life. Benefits of installing effective recognition:
  • 6. 9. Motivates individuals and teams to do their best. 10. Enhances loyalty. 11. Creates a brand 12. Addresses the basic human need to feel appreciated. 13. Reflects commitment to each other. 14. Inspires accomplishment and achievement. 15. Empowers individuals and teams 17. Drives out fear. 18. Improves the bottom line. Benefits of effective recognition
  • 7. D R . S A R M A 7 Reviewing 128 studies on the effects of rewards Deci et al. (1999, p. 658)concluded that: “tangible rewards tend to have a substantially negative effect on intrinsic motivation (…) Even when tangible rewards are offered as indicators of good performance, they typically decrease intrinsic motivation for interesting activities.” Rewards have even been found to make people less creative and worse at problem solving Word of caution
  • 8. THE SOCIAL PSYCHOLOGY BEHIND REWARDS Like it or not, we're wired to bond, and most of us experience the workplace first as a social setting. This is what makes recognition so powerful: celebrating stories about accomplishments with co-workers and managers makes people feel more appreciated. D R . S A R M A 8
  • 9. THE CATEGORIES- PSYCHOLOGY BEHIND REWARD The Collector: It's human nature to gather things and status. Plaques with years of service appeal to the desire for status. Other types of incentive programs tap into this drive as well, motivating people through their desire to acquire more possessions. The Killer: People are biologically motivated to defend what is theirs. The winner of last year's "Top in Sales" title isn't going to let it go without a fight. Seed 1 player never easily let goes; And employees engaged by strong recognition programs will work hard to protect their company against competitive threats. D R . S A R M A 9
  • 10. TYPICAL MANAGEMENT DILEMMA-CASH OR NON CASH? Researchers have shown it's physically more likely for the brain to access a real image from the right brain. Symbolism is more long lasting in mind D R . S A R M A 10
  • 11. CASH INCENTIVES: are abstract numbers, not a clear image, so they're stored in the left, logical side of the brain and accessed less frequently and in less detail. D R . S A R M A 11
  • 12. BEST STRATEGY- GO LONG/SPREAD WIDE TO SEND A STRONG SIGNAL The longer the duration, the greater is the chance that employees get our message and make positive behavioral change Cover as many as we can-to create engagement D R . S A R M A 12
  • 13. PEER RECOGNITION This type creates "culture of peer recognition" not the boss but people who are hierarchally equal give each other praise or rewards for good work D R . S A R M A 13
  • 14. Employees get handed rewards instantly by immediate supervisor , "on the spot" when direct reports strong performance. Empowers immediate supervisor Ensures promptness/timeliness D R . S A R M A 14
  • 15. WHAT THE LEADERS DO Hewlett-Packard Idea Generation The Golden Banana Award is one of Hewlett-Packard's most prestigious honors for inventive employees. It began when a company engineer burst into his manager's office with the answer to a problem they'd been struggling with for weeks. The manager searched his office for a way to mark this accomplishment, but all he came up with was a leftover banana from lunch. Still, he handed over the banana and said "Well done! Congratulations!" D R . S A R M A 15
  • 16. AT&T EMPLOYEE RECOGNITION At AT&T Universal Card Services in Jacksonville, Florida, paper is the key element for World of Thanks, one of their most popular programs. The program helps create a culture of recognition and higher performance in a simple way: anyone in the company can write a message of thanks to someone else and send it. To make it official, employees use a sheet from a globe-shaped pad of colored paper. In four years, employees at AT&T have written more than 130,000 thank you notes. D R . S A R M A 16
  • 17. WALT DISNEY WORLD EMPLOYEE RECOGNITION There are 180 different employee recognition programs at Walt Disney World in Orlando, Florida. One of the most coveted is the Spirit of Fred Award. It's named for Fred, who advanced from an hourly to salary position by exemplifying the values necessary for success at Disney: friendly, resourceful, enthusiastic and dependable. Fred makes each award (a certificate mounted on a plaque) as well as The Lifetime Fred Award, a bronze statuette of Mickey Mouse given to multiple recipients of the Spirit of Fred Award. D R . S A R M A
  • 18. PRODUCERS ASSISTANCE SAFETY PROGRAM Producers Assistance Corporation provides contract personnel to the oil and gas industry, an area where employee safety is critical. To refresh their safety program, they chose reloadable gift cards as an incentive. Here's how it works: when an employee takes an action, like attending a safety meeting, points are loaded onto their card. The lure of point collecting (and spending) has focused employees back on doing the right thing? to be safe. After a 6-month trial, participation had more than doubled and there was a significant decline in the incident rate. D R . S A R M A 18
  • 19. PHARMACEUTICAL MERGER REWARD PROGRAM During the merger of two pharmaceutical giants, a task force was charged with making the transition a smooth one. Members worked nonstop over six months, planning how to blend operations of the two companies. The team was rewarded for its sacrifices with gift cards that were, literally, the gift of time. The personalized cards were hand-delivered with a letter from the project leader, and gave recipients their choice of services: housecleaning, lawn care, carpet cleaning, pest control, and more. D R . S A R M A 19
  • 20. CASE EXAMPLE D R . S A R M A 20 150 different rewards for 200 employees To cater to Individual/Team and corporate Goals Quarterly/Half yearly/Annual Small cash/large cash-50$ to 10000$ 10000$ for trip any where in the world- 10 days paid off Outcome-engagement ratio went up to 85% from 63%
  • 21. 1- SPOT AWARDS: · Managers will be empowered to give on-the-spot recognition to employees who go above and beyond their job duties in serving a customer, assisting a colleague or creating a solution to an existing challenge. Examples may include staying late to get a proposal out the door, nailing a sales presentation or receiving an appreciation email from a customer. · · D R . S A R M A 21
  • 22. 2- SEMI-ANNUAL INNOVATION AWARDS: Two awards for employees who exhibit extraordinary skill and initiative in solving a challenging technical issue for a customer or developing new IP for Bodhtree. D R . S A R M A 22
  • 23. 3-SEMI-ANNUAL IMPACT AWARDS: Two awards provided to employees who create positive, lasting change in the company. These awards can go to employees in any role in the company, whether technical, operational, sales or marketing. Their exceptional performance, creative ideas and positive influence have made an impact within Bodhtree that will be felt for months if not years into the future. · D R . S A R M A 23
  • 24. 4-BRIGHT FUTURE AWARD - One award to an employee in any role who demonstrates uncommon leadership potential through their interactions with clients/prospects, relationships with employees, exemplary work ethic and ability to apply fresh approaches to solve existing challenges. The award will include a stipend for formal training in management, business or technology. · D R . S A R M A 24
  • 25. 5- SEQUOIA AWARD: Named for the world’s tallest redwood trees, native to the coasts of California, the Sequoia award is an annual award given to one employee who truly stands out as a leader, whatever their role or position in the company. They display individual initiative, passion, courage, integrity and hard work in advancing the mission and values of Bodhtree. This person is a team player who inspires those around them break out of comfort zones and reach their potential. D R . S A R M A 25
  • 26. SUMMARY What is expected 1- think of most suitable candidate 2- develop a story to speak about the accomplishment 3-use the nomination form 4- submit it to HR in time 5-Hr will send the reward certificate and amount directly or through payroll 6-inform the employee/praise publically D R . S A R M A 26