Post on 11-Aug-2014
description
HOW
Impacts Innovation & Employee Engagement
PERFORMANCERECOGNITION
T H I N K A B O U T T H E L A S T T I M E
S O M E O N E YO U W O R K W I T H TO L D YO U ,
HOW DID IT MAKE YOU FEEL?
“GREAT JOB!”
FOR MOST OF US,
SINCERE RECOGNITION CAN BE A
WHETHER IN
POWERFULMOTIVATOR
TO REDOUBLE OUR EFFORTS
AND STRIVE FOR EVEN GREATER
PERFORMANCE IN THE FUTURE
SPORTS , AMONG OUR FAMILIES , OR AT WORK .
IN FACT,STUDIES SHOW who receive recognition
are more l ikely to be highly engaged.
EMPLOYEES
ARE MORE LIKELY TO PERFORM AT THEIR BEST
WAYS TO IMPROVE THEIR COMPANY.
MORE LIKELY TO DEVELOP
AND AS A RESULT,
&INNOVATIVE
WE WILL LOOK AT TWO DIFFERENTTYPES OF PERFORMANCE RECOGNITION:
ONGOING EFFORT:This is typical ly informal, casual , and more frequent recognit ion, typical ly del ivered in the form of a written note, an email , or a sincere thank you.
ABOVE AND BEYONDPERFORMANCE:
This type of recognit ion is typical ly more formal and tied to a more signif icant achievement. It is frequently accompanied by announcement to the team or company and/or an award item.
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how performance recognition impacts your employee’s engagement, innovation, and output.
LET’S EXPLORE
ENGAGEMENT
IN THE LAST FEW YEARS,
A RECURRING FOCUS OF DISCUSSIONSOF BUSINESS PERFORMANCE HAS BEEN
INCREASING EMPLOYEE
AVG. SHAREHOLDER’S RETURN %
EMPLOYEE ENGAGEMENT %
60-70
24.2
49-60
9.1
>25
-
While definit ions of engagement abound, the crux of the idea is simple - when employees are more fulf i l led in their work and committed to their colleagues and company, they (and the company) wil l perform better.
2004 Hewitt Associates, Employee Engagement at Double-Digit Growth Companies
AS A RESULTcompanies are investing heavilyin a variety of ways to increase
employee engagement.
O N E O F T H E M O S T E F F E C T I V E
WAY S TO I N C R E A S E E N G A G E M E N T
IN BOTH FORMAL ANDINFORMAL WAYS.
is simply to recognize employees for their performance,
RECOGNITION ACROSS FOURCOMPONENTS OF ENGAGEMENT:
WHEN COMPANIESFOCUS ON RECOGNITION
PERCENT OF EMPLOYEESWHO ARE HIGHLY ENGAGED
DRIVE & DETERMINATION
WHEN COMPANIESDON’T CARE
89%
44%
RECOGNITION ACROSS FOURCOMPONENTS OF ENGAGEMENT:
WHEN COMPANIESFOCUS ON RECOGNITION
PERCENT OF EMPLOYEESWHO ARE HIGHLY ENGAGED
COMPANY CONNECTION
WHEN COMPANIESDON’T CARE
81%
35%
RECOGNITION ACROSS FOURCOMPONENTS OF ENGAGEMENT:
WHEN COMPANIESFOCUS ON RECOGNITION
PERCENT OF EMPLOYEESWHO ARE HIGHLY ENGAGED
WORK RELATIONSHIPS
WHEN COMPANIESDON’T CARE
78%
35%
RECOGNITION ACROSS FOURCOMPONENTS OF ENGAGEMENT:
WHEN COMPANIESFOCUS ON RECOGNITION
PERCENT OF EMPLOYEESWHO ARE HIGHLY ENGAGED
PERSONAL STANDING
WHEN COMPANIESDON’T CARE
76%
28%
WHEN LOOKING ACROSS THESE FOUR DIMENSIONS,
DRIVE &DETERMINATION
COMPANYCONNECTION
WORKRELATIONSHIPS
PERSONALSTANDING
there is a stark difference in the engagement levels of those who receive recognit ion with those who do not.
MORE THAN TWICE AS MANYEMPLOYEES ARE HIGHLY ENGAGED
among those who receive performance recognit ion compared to those who do not.
COMPANIES WITHSTRONG RECOGNITION
PERCENT OF EMPLOYEESWHO ARE HIGHLY ENGAGED
RECOGNITION AND ENGAGEMENT
COMPANIES WITH WEAK RECOGNITION
78%
34%
A good example of this is seen in
the relationship between managers
and those they directly oversee.
AMONG THOSE WHO RECEIVE
STRONG PERFORMANCE RECOGNITION
Great job!
87%say they have a strong relationship
with their direct managers
AMONG THOSE WHO RECEIVE
WEAK PERFORMANCE RECOGNITION
...
51%say they have a strong relationship
with their direct managers
Great job!
IN ADDITION,
82% of managers who recognize their employees’ performance more than once a month
REPORT HAVING GOOD RELATIONSHIPS WITH THEM.
FREQUENTRECOGNITION
Great job!
IN CONTRAST,
only 63% of managers who recognize performance less frequently
REPORT HAVING GOOD RELATIONSHIPS WITH THEM.
INFREQUENTRECOGNITION
UNFORTUNATELY, OF MANAGERS REPORT THAT THEY INFREQUENTLY RECOGNIZE THEIR TEAM MEMBERS’ PERFORMANCE.39%
While it’s certainly possible that
RECOGNITION IS A RESULT OF
GOOD RELATIONSHIPS(and good managers),
THE OPPOSITE IS CLEARLY ALSO TRUE
INCREASED PERFORMANCE
RECOGNITION APPEARS TO BE
ONE OF THE MOSTEFFECTIVE WAYS
to improve relationships between managers and employees.
employees believe either type of recognitionis much more important than a cash bonus.
IN FACT,
>
5% SALARYBONUS
ABOVE & BEYONDRECOGNITION
ONGOING EFFORTRECOGNITION
28%22%
50%
EMPLOYEE/MANAGER RELATIONSHIPS AREIMPROVED BY PERFORMANCE RECOGNITION
EMPLOYEES CHOICE OF WHICH BENEFIT WOULD
MOST IMPROVE THEIR RELATIONSHIP WITH THEIR DIRECT MANAGER.
PERFORMANCE RECOGNITIONFUELS EMPLOYEE INNOVATION
?HOW DOES THAT AFFECT
EMPLOYEE AND COMPANY
PERFORMANCE
SO, IF EMPLOYEE ENGAGEMENTincreases with strong performance recognition,
THE FIRST MAJOR EFFECTTHAT RECOGNITION HAS ON PERFORMANCE
DRIVING INNOVATIONA top priority for successful
executives everywhere.
EMPLOYEES GENERATED IN THE LAST
MONTH TO IMPROVE THEIR COMPANY’S
PRODUCTS, SERVICES, OR SYSTEMS
THE RESPONSES WERE COMPELLING.
When asked how many new ideas
Employees receiving strong recognition generate
nearly twice as many innovative ideas each month.
THE RESPONSES?
EMPLOYEES RECEIVINGSTRONG RECOGNITION
EMPLOYEES RECEIVINGWEAK RECOGNITION
1.8 NEW IDEAS per month
to help improve their company
3 NEW IDEAS per month
to help improve their company
Employees will proactively seek new ways to improve efficiency at their
company when they receive strong performance recognition.
IN ADDITION,
EMPLOYEES RECEIVINGSTRONG RECOGNITION
EMPLOYEES RECEIVINGWEAK RECOGNITION
54%seek new ways to improve efficiency
87%seek new ways to improve efficiency
We found that recognit ion can be a powerful driver of continual improvement.
While there are many factors that go into an individual ’s or a company’s abil ity to innovate,
5% SALARYBONUS
ABOVE & BEYONDRECOGNITION
ONGOING EFFORTRECOGNITION
41%32% 27%
EMPLOYEE INNOVATION ISIMPROVED BY PERFORMANCE RECOGNITION
EMPLOYEES CHOICE OF WHICH BENEFIT WOULD
MOST IMPROVE THEIR INNOVATION FOR THE COMPANY.
PERFORMANCE RECOGNITIONFUELS EMPLOYEE OUTPUT
THE SECOND MAJOR EFFECTTHAT RECOGNITION HAS ON PERFORMANCE
WORKING AT MAXIMUM CAPACITYIncreasing employees’ wil l ingness to
work at their best.
COMPANIES WITHSTRONG RECOGNITION
PERCENT OF EMPLOYEES WORKINGAT 90% CAPACITY OR ABOVE
EMPLOYEE & TEAM OUTPUT
COMPANIES WITH WEAK RECOGNITION
53%40%
EXPECTATIONS
Employees have a wide variety of expectations
ABOUT THE FREQUENCY AND NATURE
OF RECOGNITION
IDEAL PERFORMANCE RECOGNITION FREQUENCY
MULTIPLE TIMES A WEEK 9%
ONCE A WEEK 11%
MULTIPLE TIMES A MONTH 19%
ONCE A MONTH 26%
ONCE A QUARTER 20%
ONCE EVERY 6 MONTHS 7%
ONCE A YEAR 9%
HE/SHE SHOULD RECOGNIZE HIS/HER
EMPLOYEES
HOW IS A MANAGERsupposed to know how often
thoughtful ly combining frequent andinformal recognition for “ongoing effort”
with less frequent but more meaningfulrecognition of “above and beyond performance.”
THE ANSWER
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ONGOING EFFORT,
especial ly when provided frequently and
sincerely , can be used to recognize l itt le wins
and encourage employees to keep going.
ON THE OTHER HAND,
recognizing employees less frequently but
with more formality for above and beyond
performance sets apart the most signif icant
achievements in a unique and social way.
that both types of recognition are important andshould be used in deliberate and complementary ways.
RESEARCH SHOWS
+
Source: Cicero 2013, The Effect of Performance Recognition on Employee Engagement