Constructing Culture Through Rewards and Recognition
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While a reward and recognition program can encourage better performance and productivity, it can also communicate a lot about your organization’s culture. What types of behaviors and habits are you encouraging (or discouraging) in your employees? Organizations with strategic recognition programs can reduce employee frustration in the workplace by 28 percent while constructing a productive and positive culture. Is your program building your culture?
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Constructing Culture Through Rewards and Recognition
- 1. 1
- 2. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Steve Sonnenberg CEO/Founder Awardco Anna Lim HR Evangelist BambooHR
- 3. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition 69% of employees would work harder if they were better recognized. -Globoforce
- 4. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition • 82% of employees find it annoying when they’re not recognized for their accomplishments (BambooHR) • Organizations with strategic recognition programs exhibit 28% lower frustration levels than those without (Officevibe) • The #1 reason most Americans leave their jobs is that they don’t feel appreciated (Officevibe)
- 5. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Global Business Drivers • Attract & Retain Top Talent • Increase Engagement • Improve Culture
- 6. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition HARVARD BUSINESS REVIEW STATED THAT, employees go above and beyond when inspired by company culture. Research shows that when employees go beyond the call of duty, their work experience is more meaningful and their organizations operate more effectively. “ ” Culture already exists whether you’ve defined it or not. Culture is organizational DNA
- 7. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition 45% of workers have not been recognized in 6 months or more. —Globoforce, WorkHuman 2017 Survey Report What message are you sending your employees?
- 8. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition • Two factors: hygiene factors and motivation factors • Hygiene factors: salary, benefits, safety • Motivation factors: expression, purpose, friendship • Decreasing dissatisfaction with hygiene factors doesn’t automatically increase satisfaction Herzberg’s Theory
- 9. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Workforce Characteristics • Generation • Life stage or lifestyle • Income and/or class • Urban and/or rural • Size of organization • Job function
- 10. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition 1. Empower employees 2. Convert single location labor pools to regional talent powerhouses 3. Communicate changes clearly How to recognize as times change and workforces become more diverse
- 11. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition It’s not about who deserves recognition, but what deserves recognition.
- 12. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition
- 13. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition
- 14. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition How to Design an Effective Recognition Program
- 15. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition 1. Keep it Simple for both Managers and Employees
- 16. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition 2. Make Recognition Timely
- 17. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition 3. Make the Recognition Meaningful
- 19. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Remote Employees
- 20. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Since these folks rarely meet with their teammates face-to-face, they tend to focus on tasks and ignore the team. This may work for a while, but you must develop a culture in order to foster engagement and sustain their performance over the long term. –Sean Graber, Cofounder and CEO of Virtuali “ ”
- 21. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition
- 22. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Individual vs. Collaborative Reward
- 23. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Employees need to be involved, but let managers drive. Peer Nominations Manager Recognition
- 24. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Peer Recognition
- 25. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition • Core values • Technology • Company-wide participation • Timely, frequent feedback • Measurable results FocusAreas for Peer Recognition
- 26. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Communication 1. Introduce program in advance 2. Explain the how and why 3. Keep it front of mind 4. Make the recognition visible
- 27. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition
- 28. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition
- 29. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition
- 30. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Treat your employees like your most important guest. If you take care of your employees, they will take care of your customers and your business will take care of itself. –J.W. Marriott, Jr “ ” Peopledon’tbelievewhattheyreadonthewalls,theybelieve whattheyseeinthehalls.
- 31. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition BambooHR Receive a free job posting on our ATS. We will contact everyone within the next few days to set this up Let us know you attended this webinar and save $500 off your implementation with Awardco. Awardco.com Questions? Good through May 2018
- 32. bamboohr.com awardco.com Constructing Culture Through Rewards and Recognition Follow BambooHR and Awardco on social media: bamboohr.com/blog | awardco.com Thank you!
Editor's Notes
- Welcome.
- Anna Lim - HR Evangelist at BambooHR Anna Lim is an HR Evangelist at BambooHR where she spends her time inspiring and enabling HR to be more strategic. She manages the online thought leadership program where thousands come to learn and gain HR accreditation. She loves talking about workplace dynamics and what makes a great company great. In her spare time she fly fishes and keeps bees. Steve Sonnenberg - CEO/Founder of Awardco Before launching Awardco, Steve worked with tech startup Qualtrics on a new team that focused on employee engagement surveys around the world. He has a bold vision, coupled with a diverse set of abilities that he uses to usher in new methods of employee recognition and engagement. Sonnenberg works closely with Amazon Business to continually introduce new ways to motivate and engage employees around the world and offers solutions in more than 100 countries. He majored in information technology and started his first multimillion-dollar organization while a full-time student at Utah Valley University.
- BHR Thanks so much for joining us today. We are excited to talk to you about reward and recognition programs, especially as they relate to your organization’s culture as a whole. First, of all, let’s talk about why recognition is so important in the first place. This probably isn’t news to you. Reward and recognition programs can boost performance and productivity among employees dramatically. In fact, Globoforce reported that 69% of employees would work harder if they were better recognized for their great work. But that’s not all they can do.
- BHR When an organization utilizes a reward and recognition program, employees typically experience less frustration and are less likely to leave their jobs, as you can see from these stats: 82 percent of employees find it annoying when they’re not recognized for their accomplishments. (BambooHR) Organizations with strategic recognition programs in place exhibit 28% lower frustration levels than companies without recognition programs (officevibe) The #1 reason most Americans leave their jobs is that they don’t feel appreciated (officevibe) So how does culture factor into all of this?
- AWARDCO Yes, culture has a major impact. A 2015 Human Capital Trends study cites employee engagement and cultural issues as the top challenge companies face around the world. It doesn’t matter where you are or what industry you represent, organizations today are facing the same set of issues: -How do you attract great people, talented, high-performing, skilled people and more importantly, how do you keep them at your company? -How do you get your people more engaged or engage them in core business initiatives? -And How can you create a culture or an environment that engages, motivates and inspires people to go above and beyond and feel valued?
- AWARDCO Why is culture so important? Because culture helps attract the top talent you want and helps to keep them there and helps them to be engaged while they are there. Harvard Business Review stated that employees go above and beyond when inspired by company culture. Research shows that when employees go beyond the call of duty, their work experience is more meaningful and their organizations operate more effectively. So… How do you create an environment that engages, motivates and inspires people to perform above and beyond? Well…. According to Harvard Business Review, showing appreciation for employees is key.
- BHR Despite the importance of effective recognition programs, 45% of workers have not been recognized in 6 months or more, according to Globoforce’s WorkHuman 2017 Survey Report. It’s true that we can encourage high performance when we use rewards and recognition in our organizations. But have you considered what other messages we might be sending to our employees by failing to recognize them? Or by failing to recognize them in meaningful ways?
- BHR The psychologist Frederick Herzberg created a now popular two-factor theory behind motivation. He believed that human needs fall into two categories: hygiene factors, where an unaddressed lack leads to dissatisfaction; and motivation factors, where earning a reward leads to increased satisfaction. When it comes to the employee experience, getting a paycheck and not getting fired falls under the hygiene category, while having an enjoyable time with coworkers is a motivating factor. Herzberg’s work showed that, in most cases, decreasing dissatisfaction in hygiene factors did not correlate with increasing satisfaction in motivating factors. In other words, raising salaries doesn’t necessarily encourage higher performance. Likewise, if the hygiene factors are lacking (i.e. your employees are working crazy hours for lackluster wages), offering free movie tickets as a performance reward won’t encourage higher performance either. You have to provide employees with basic needs and meaningful rewards together for a recognition program to be effective.
- BHR The key is to tailor a strategic program to your workforce. Not every reward will appeal to every employee, and the value of one reward could change based on a variety of characteristics. We’ve listed several here including generation, life stage or lifestyle, income level, urban or rural location, organization size, and job function. You may also want to consider characteristics of a diverse workforce including gender, ethnicity, and race. The better you know your people, the better you can choose meaningful rewards that will inspire, motivate, and engage them. And this will, in turn, build up a meaningful company culture.
- AWARDCO Diversity is the spice of companies. So the question is… How can you keep up with the diverse workforce demographics and how to motivate them. Simple – variety People are motivated by different things so you need to recognize them and motivate them in different ways and with a variety of choices. The best reward is always personal and tailored to employee interests and lifestyle. You also need to be sensitive to employees across the globe and provide award options to motivate them as well. I don’t know about you, but I have seen so many recognition programs offer employees a limited overpriced catalog of gift options. When you don’t give employees variety, the program will have a negative effect on the employee. This is one of the reasons why I started Awardco. I wanted to solve that problem, by partnering with Amazon, and offering hundreds of millions of choices, free and fast shipping. Once you identify a solution that can provide the variety of award options, you now need to figure out a variety of ways of rewarding the employees. The best managers promote a recognition-rich environment, with praise coming from every direction and everyone aware of how others like to receive appreciation. This type of employee feedback should be frequent -- Gallup recommends every seven days -- and timely to ensure that the employee knows the significance of the recent achievement and to reinforce company values. For this reason allowing all employees to recognize for outstanding work, for exemplifying core values is very important. An open style recognition platform is an excellent way to give managers and employees the tools to recognize frequently and from all angles. Managers need to know their team members and understand how each will react best. Are you a person that prefers to receive an email or do you need a handshake and pat on the back? Provide the ability to email or print off the recognition. Everyone is different and not everyone wants to be recognized in the same way.
- BHR So what makes a reward and recognition program meaningful? Well after you’ve considered the characteristics of your workforce and what they might find valuable, you need to think about what you want to reinforce in your organization. This is where the real culture construction happens. Try not to think of your program in terms of who deserves recognition but more in terms of what deserves recognition. Here at BambooHR, culture has always been a huge focus for our executive team, and therefore the entire organization.
- BHR The WorkHuman 2017 Survey Report shows the impact that recognition can have on a company’s culture and core values among its employees. In the graph here, we see that when an organization uses a values-based recognition program, employees are much more likely to embrace the core values. On the other hand, when there is no recognition program at all, employees are much more likely to not even be aware of the core values.
- BHR Here at BambooHR, culture has always been a huge focus. At our year-end holiday party, we give out a handful of awards to stand-out employees in front of the whole company. One of these awards is the Culture Champion award; it is given to an employee who embodies the Bamboo values like being open, leading from where you are, growing from good to great, etc. An award like this sends a clear message about what’s important to us here at Bamboo: our culture! Because at the end of the day, an inspiring culture will boost your employees more than any carrot you can dangle in front of them.
- AWARDCO I love those graphics… that is something every organization should do, bring your core values to life. Now the next few slides I am going to talk plainly on how to design an effective recognition program, and I am going to cover three main points.
- AWARDCO First and most importantly, keep it simple for both managers and employees. Simplicity is the common denominator of a successful recognition program. I have seen way to many programs where you almost need to have some sort of “Recognition Masters Degree” to even understand how to recognize a peer or even redeem a gift. Or I have seen some homegrown recognition programs where the HR staff is doing everything manually, buying gift cards, keeping track of complex spreadsheets, so it’s HARD and not scalable. If the technology is cumbersome or confusing managers will not award and employees will not redeem and the impact will be lost.
- AWARDCO Second, Recognition is most impactful when presented as close as possible to the action or event. Share Gretchen story.
- AWARDCO Third, make recognition meanigful. In a very recent Gallup workplace survey, employees were asked to recall who gave them their most meaningful and memorable recognition. The data revealed the most memorable recognition comes most often from an employee's manager (28%), followed by a high-level leader or CEO (24%), the manager's manager (12%), a customer (10%) and peers (9%). Worth mentioning, 17% cited "other" as the source of their most memorable recognition. What's most surprising about these findings? Nearly one-quarter said the most memorable recognition comes from a high-level leader or CEO. Employees will remember personal feedback from the CEO -- even a small amount of time a high-ranking leader takes to show appreciation can yield a positive impression on an employee. In fact, acknowledgment from a CEO could become a career highlight. When asked what types of recognition were the most memorable, respondents emphasized public recognition or acknowledgment via an award, certificate or commendation private recognition from a boss, peer or customer promotion or increase in scope of work or responsibility to show trust
- BHR You definitely want to start with those foundational elements when building your organization’s reward and recognition program. But now, we want to dive a little deeper into some special considerations.
- BHR If you have a majority remote workforce, or even just a partially remote workforce, you will need to get more creative with your rewards and recognition. Even if your organization doesn’t have many remote employees right now, it may be an important consideration in the future. According to Global Workplace Analytics, 40% more of employers in the U.S. offer flexible or remote work options today than they did five years ago, and the trend is only increasing.
- BHR When members of your workforce are not in the office regularly, it can be tough to maintain your organization's culture and foster engagement. Sean Graber, cofounder and CEO of Virtuali, writes, “Since these folks rarely meet with their teammates face-to-face, they tend to focus on tasks and ignore the team. This may work for a while, but you must develop a culture in order to foster engagement and sustain their performance over the long term.”
- In a conference talk from 2014, Cody Chapple, an employee of GitHub, talked about what his organization does to keep their remote workforce united. New GitHub employees are required to work on-site for the first week to get a grasp of the culture; the organization uses chat and collaboration tools to keep everyone on the same page. Reward and recognition also factors into their strategy. The company uses an online forum where employees can post big accomplishments and virtually raise a toast to their teammates. They compile all of the toasting pictures into a short video that everyone can watch, which is what you can see in the image here. While this tradition isn’t for every organization, it helps GitHub communicate its culture across locations. And ultimately it’s this kind of informal recognition that will keep your remote workforce connected to the culture and engaged in their work.
- AWARDCO You should also consider the pros and cons of individual rewards versus collaborative rewards. If you only use individual recognition, some people can learn to game the system and it breaks down into a popularity contest. You don’t have to look too far to see badly incentivized programs that lead to the wrong types of behavior. For example, let’s say that your company has an employee excellence award, where you give out $250 once a quarter to a deserving employee. You go over the nominations, and you select a kind, reliable, driven employee who had a big win last week. Now when you hand this award out, the winner is ecstatic. But what about the kind, reliable, and driven employees who didn’t have any publicly visible wins when you sent out the email pleading for nominations? What about the other members of the winning employee’s successful team who made the win possible? When you set up special recognition programs it’s important to provide a degree of transparency so that they don’t turn into popularity contests. Individual rewards work best when you target them to specific actions with measurable results. With data to back up your decision, there’s no reason for those who didn’t win to feel slighted. And when a group of employees completes a project with a huge impact, you can celebrate the whole team with a team lunch or smaller gifts. This helps recognize success in the same way your employees do: as part of a team effort.
- AWARDCO As stated earlier, employees need to be involved with recognizing peers, but let’s let the managers drive the program home. For Peer nominations: Employees want to be involved Employees want to have a sense of involvement and a voice Make sure when it is monetary it goes through a manager to contain the integrity of the recognition. Meaning a manager approves the monetary nomination to protect the integrity of the recognition program. Managers need to understand why people are being recognized. As for Manager Recognition Trust managers to make real time recognitions. To many times organization try to setup complex approval processes. If you give a manager a monetary budget to reward, let them reward how they feel is best. Provide a budget to help build guidelines. Remember, as stated earlier in a Gallup study, recognition from a peers manager has the greatest impact on an employee.
- BHR Like Steve pointed out, employees enjoy feeling involved in the reward and recognition process. Research has shown that peer-to-peer recognition can increase engagement and reduce turnover even more effectively than salary raises. This graph from the WorkHuman 2017 Survey Report shows how employees who reward and recognize another employee have a more positive experience at their jobs. The blue bars are the response percentages of employees who had recognized someone else for great work within the last two months, while the green shows those who had never offered recognition for any other employee. Obviously, the positive response rates are much higher for those who had participated in peer recognition.
- BHR How can you institute effective peer recognition in your organization? According to Harvard Business Review, you need to focus on the following: Aligning with core values This goes back to values-based reward and recognition that we’ve already talked about today. Make sure your employees are looking at others’ performance through the lens of company culture. This will help everyone embrace the core values and help new hires come into the fold more quickly. Utilizing technology Between social media and innovative software, there are countless tools out there for you to use to build up peer-to-peer recognition. GitHub, an example I mentioned earlier, uses an online forum tool for their program. There are plenty of resources available to make peer recognition easy. Ensuring company-wide participation This is central to a successful program. If your managers don’t participate, or your executive team shows no interest, how can you expect the rest of the employees to jump on board? When you’re introducing a new program, you need to focus on its adoption at every level, from the newest hire to the most senior executive. And while the day-to-day might fall more to the employees than the executive team, it’s important that everyone views the program as an important part of the culture. Encouraging timely, frequent recognition One of the greatest advantages of peer recognition is its immediacy. Employees who work alongside each other in the trenches will be able to see each others’ great work more often and more easily than a manager, so giving them an outlet to voice that praise just makes sense. Measuring results Make sure you and your managers pay attention to how peer recognition impacts some of your overall company goals like reducing retention or increasing engagement. After all, you can only know the true value of a program if you measure the results!
- AWARDCO Communicate with the company, both employees and managers on what will be recognized to set expectations. Many employees do not know what their program is and how/why they get recognized. introduce the program in advance of the roll out, people will get excited to use Amazon and a meaningful recognition program. have detail roll-out including the how/why employees will be recognized. Keep this available on the branded website. Mission statement, company core values etc… once communicated keep it front of mind. Keep recognition in front of the entire company. Not everyone will always be recognized so it needs to be in front of people to keep everyone involved.
- AWARDCO Additional research conducted by the Cicero group looked at the correlation between effective performance recognition and engagement. They found performance recognition for great work significantly impacts employee engagement at a rate of more than 2-to-1
- BHR Finally, as you’re building out your own reward and recognition program, you want to keep your eyes out for perverse incentives. A perverse incentive is an incentive that has an unintended and undesirable result which goes against what you’re actually trying to incentivize. In other words, a negative unintended consequence. Let me give you an example from Forbes. “Mr. Jeremy R. Shown, a father of six who blogs at Rhymes with Clown. One evening, Shown and his wife decided to incentivize their kids to clean up their toy-strewn rec room. So they offered the kids candy. This achieved the immediate goal perfectly, with the kids cleaning up the rec room in just a few minutes. Unfortunately, the couple had also unintentionally set up a perverse incentive. While each kid was sucking on the piece of candy that he or she had earned, their 4-year-old boy walked up to his 6-year-old brother and whispered conspiratorially, ‘Tomorrow, we have to make another mess so that we can get another one of these.’” Now, you probably aren’t handing out lollipops to motivate your employees to complete their assignments, but perverse incentives can come in many forms. Quantity over quality, finding shortcuts, gaming the system...unfortunately, a poorly executed reward and recognition program can encourage many behaviors like that. So be deliberate and thoughtful, and don’t be afraid to adjust things if they aren’t working.
- AWARDCO So how do we incorporate executive buy-in, such as company core values and top down driven initiatives Executives, want to impact the bottom line which is impacted by customer experience, employee retention and engagement. These are directly impacted by your employees buy-in which can be directly impacted by how your employees are appreciated. So incorporate company core values, mission statement recognition and other top down approaches to bring it full circle. Recognition is effective because it answers a universal human need. We all want to matter to those with whom we work. Communication combined with recognition of strategically important behaviors takes your vision and values off the wall and puts them into the heart and minds of your people, which is exactly the place you want your vision and values to be. Studies show that companies investing in recognizing excellence is strongly associated with the best financial performance. Recognition is a proven business essential. It is a simple truth: we work harder at places where we feel recognized and valued for our unique contributions. And valued and engaged employees bring great value and profit to their organizations. Recognition is one of the key characteristics of effective managers and great organizations. Executives who get that make sure that they give their managers the tools to make recognizing their employees easy and motivating. They see the value and set the example by showing appreciation and recognizing their employees.
- AWARDCO Model the behaviors of your corporate values and recognize your employees when you see them emulating those same desired behaviors. It’s internal marketing. Does your external brand match your internal brand? People need to feel valued. Connect with your employees, allow them to connect with one another, show them that you care and show them that caring for others is good. Showing them is better than telling them, telling your employees to care doesn’t mean they will, regularly showing them how to care will eventually become a learned behavior. Engaged employees feel cared for, they feel valued, they have positive working relationships with those around them they take pride in their work, they feel they play a big part in the company’s successes, they trust their employers and believe that all promises are delivered. Showing a little gratitude in the office could be the simplest, yet most effective way to boost morale and promote a healthy culture. Yet, many leaders hesitate to show their appreciation. Generosity is contagious. When leaders show appreciation and gratitude, there’s likely to be a ripple effect. Studies show cooperative and altruistic behavior spreads from person to person. Showing gratitude toward someone is likely to inspire that person to thank other people. J.W. Marriott, Jr said, “Treat your employees like your most important guest. If you take care of your employees, they will take care of your customers and your business will take care of itself.”
- Thank You!