2014 Trends in Recognition: Utilizing Recognition to Drive ... · Value of $10K Invested...

2014 Trends in Recognition: Utilizing Recognition to Drive Employee Engagement

November 14th, 2013

Rob Catalano CRP, REP

Vice-President, Marketing

Achievers

Employee SuccessTM starts with Achievers. Our social employee recognition software helps engage and retain

employees while driving performance globally.

Learning Outcomes

1. What is Recognition? Why & How does it drive engagement?

2. Understand the 2014 Trends shaping recognition strategy

3. See how recognition impacts all stages of the employee life cycle

4. How to get executive buy-in for recognition

3

an after-the-fact display of “thank you”

or acknowledgement of an individual's or team's desired

behavior, effort or business result

that supports the organization's goals and values

INTRODUCTION TO RECOGNITION

rec•og•ni•tion:

Let’s talk engagement!

Facts from Recent Studies

“Engaged employees perform 20% better and are 87% less likely to leave their organization.”

- HR Magazine


“Actively disengaged employees erode an organization's bottom line while breaking the spirits of colleagues in the process. Within the U.S. workforce, Gallup estimates this cost to be more than $300 billion in lost productivity alone.”


“Research has clearly and consistently proved the direct link between employee engagement, customer satisfaction and revenue growth.”

Focus on Employees First

The Power of an Engaged Workforce

10X Case Era of Study Value of $10K

Invested Performance

Relative to Market Performance

Relative to Industry

Amgen 1980-2002 $4.5M 24X 77.2X

Biomet 1977-2002 $3.4M 18.1X 11.2X

Intel 1968-2002 $3.9M 20.7X 46.3X

Microsoft 1975-2002 $10.6M 56X 118.8X

Progressive Insurance

1965-2002 $2.7M 14.6X 11.3X

Stryker 1977-2002 $5.3M 28X 10.9X

Great by Choice: Uncertainty, Chaos, and Luck--Why Some Thrive Despite Them All - by Jim Collins and Morten T. Hansen (Oct, 2011)

Southwest Airlines

1967-2002 $12M 63.4X 550.4X

Is this recognition thing for real?

Recognition impacts engagement

1. Strategic Alignment

2. Trust in Senior Leadership

3. Career Support

4. Developmental Opportunities

5. Immediate Manager Relationship

6. Peer Culture

7. Personal Influence

8. Employee Recognition

9. Pay Fairness

10. Nature of the Job

11. Nature of My Career

Through an extensive literature review and extensive testing, Korn/Ferry has developed a research-based employee engagement model based on 11 “Drivers” (causes) of engagement.

Talent Engagement Architect, Korn Ferry, 2013

11 Drivers of Engagement

2013 Employee Engagement Model, Aon Hewitt

Recognition

21 Drivers of Engagement

…and why is recognition important?

U.S. Department of Labor, 2008 Bersin Rewards & Recognition Framework, 2012 Gallup, Inc. – Majority of Americans Are Not Engaged, 2011

2014 Trends in Recognition

3 Confluences

Global Mobile,

Social, SaaS

Emergence of SaaS

SaaS is becoming the default application for HR tools

…if we’re talking trends…

3 Confluences

Global Mobile, Social,

SaaS

58% of the Workforce is

Gen X & Y

Performance vs. Presence

2013 Trends in Recognition Model

Theory of Human Motivation

Salary & Rewards

Job Security

Culture & Values

Recognition

Engagement

Physiological

Safety / Security

Social / Belonging

Self Esteem

Self

Actualization

Trend 1: Peer Recognition

Extrinsic and Intrinsic Motivation

Does Peer Recognition Work?

Does Peer Recognition Work?

Situation

‘Voice of the Employee’ surveys showed room for improvements in recognition & rewards

Action

Implemented solution that enabled transparent peer-to-peer recognition

Result

Moved from low/average engagement scores to highest scores of any worldwide affiliate

2014 Trends in Recognition Model

Impact of Manager Recognition on Engagement

Impact of Manager Recognition on Engagement

1. Managers are employees too

2. Focus on manager training

• How? vs. Why & How?

3. Managers were not always born managers

4. Managers have impact

Driving Engagement with R & R

Trend 2: Results Based Recognition

Trend 2: Results Based Recognition

Everyday behaviors

Living company values

Cost saving

Going above and beyond

Innovation

Wellness & Safety

Teamwork

Hitting goals

Sales results

Personal wins

Recruiting

Start with a Benchmark!

Case Study: Results Based Recognition

Employee Referrals Doubled ratio Y/Y to 26% Average CPH - $511

Cost Savings $1M+ in 7 months

Increasing Sales Up to 200% increase in sales in a week

Driving Engagement with R & R

Authentically builds Employer Brand

Drives Social Recruiting

Share on Social Networks

Trend 3: Social Recognition

Authentically builds Employer Brand

Share on Social Networks

Trend 3: Social Recognition

Drives Social Recruiting

Trend 3: Social Employee Recognition

Where do you anticipate looking for a job when you graduate?

Trends in Recognition Model

Reputation Feedbackn Employee Predictability

Future Trends?

What are you going to do differently?

1. ASK employees if they’re engaged

2. Get executive buy-in - use data

3. Identify the behaviors your company wants to see

more of

4. Do it! – Recognize Performance, Not Presence –

build a recognition rhythm (and make it SMT)

5. If you’re going to recognize - Re-think Rewards

5 things you can do differently tomorrow

Re-think Rewards?

http://www.youtube.com/watch?v=aQlhrrqTQmU

Recognition’s role in all functions of HR

1. Capitalize on the diverse experience here today to

build a broad understanding of how effective

recognition programs can strengthen HR overall.

2. Provide real world examples and strategies to

help you create actionable plans to improve your

programs and HR offering

Objectives

Recognition Program

Talent Management

Recruitment

Learning & Development

Performance Management

Recognition can support all HR functions

• Like many functions, HR groups or teams can often

work in silos.

• How interconnected the HR pillars are within

organizations is an indicator of the level of maturity

for the overall function.

• The stronger the linkages that exist, the greater your

ability to impact and influence your organization.

A common challenge…

• Recruitment – The act or process of hiring talent

• Talent Management – Leverages the capability and potential

of employees to achieve organization goals. Captures

employee lifecycle post recruitment. i.e. – Onboarding,

Orientation, Career Development and succession.

• Learning & Development – Bettering the performance of

individuals or groups

• Performance Management - Activities which ensure that

goals are consistently being met

HR Pillar Definitions

Group Discussion

How can Recognition support the

HR pillars?

Discussion

Exercise

Recognition Program

Talent Management

Recruitment



Recognition Supports Talent Management

• Can help identify high potentials

• Can help identify informal leaders & provides informal leadership

opportunities

“emerging leaders found through recognition”

• Provides a ‘finger on the pulse’ of your talent (top & bottom)

• Identifies individual strengths and growth opportunities (talent gaps)

“Used as a method of providing real time feedback”

Talent Management Supports Recognition:

• Encourages recognitions as opportunity to build leadership skills (Gallup)

• Identifies the critical behaviors for high potentials

Talent Management

Recognition Support Recruitment:

• Adds to employee value proposition - “Branding & Retention strategy”

• Encourages referral quality through rewards and recognition “referral bonus”

• Helps onboarding of new hires by setting expectations on what behaviors are

essential for success

• Benefits cost per hire & retention metrics

Recruitment Supports Recognition:

• Adds certainty to a recognition program (PIC)

• Creates awareness of how recognitions and individuals connects to broader

objectives

Recruitment

Recognition Supports L&D:

• Can recognize learning achievements & milestones

• Helps motivate staff to complete required learning - reinforces learning

• Encourages personal development

• Helps identify informal champions/trainers

“Public recognition drives learning & development – allows associates to feel

valued and a motivator for continuous learning”

L&D Supports Recognition:

• L&D can help train people on recognition – how and why?

• Can impact your managers and future leaders

• Provide fresh and relevant content (learn from stories & examples)


Recognition Support Performance Management:

• Creates real-time performance management opportunities (not once

annually)

• Can provide input into performance management - supports 360 reviews

• Provides meaningful examples of performance (richer conversation)

• Helps to recognize and encourage high performers

“Behaviors lead to results – it’s performance too!”

Performance Management Supports Recognition:

• Establish specific individual and organization criteria & benchmarks

• Identifies high performers to be recognized

• Helps demonstrate ROI with metrics that show the impact of recognition


Review ideas and identify potential

appropriate next steps for your

organization.

Next Steps

Achieving and Sustaining Executive Buy-in

Achieving Executive Buy-in

I WANT ROI ?!

1. The CFO/CEO perspective

2. The business case for rewards & recognition

3. Why isn’t this easy?

4. 5 strategies for obtaining executive buy-in

Key Points

Perspective is everything

Revenue

Generating

Revenue

Maintenance Overhead


Revenue

Generating

Revenue

Maintenance Overhead

Employable Top

Talent


HR:

“Our people are our greatest assets”

CEO/CFO:

“Our people are our greatest cost”

Classic disconnect

“Without doubt, the head of HR should be the

second most important person in any

organization.

From the point of view of the CEO, the

director of HR should be at least equal to the

CFO”

- Jack Welch

The Business Case for Recognition

Payroll Personnel HR

Transactional Admin Benefits

Terminations

Training Review

Employee Events

Employee Engagement

Employee Experience

Employee Success

Measurable results

Evolution of People Management

Employee Success™

Customer Loyalty

Shareholder Value

Employee Success Drives Business Success

John “The Sales Guy” Smith $10,000

Ten Thousand

Sales Commission CFO

March 27, 2013

= Employee Engagement?

What CFO’s LOVE!

A paycheck is not a thank you

Cash has the opposite effect than you think

Cash is great at first, but people become income adjusted, resulting in no change in discretionary effort.

Recognition is FREE!

Employees work:

• Hourly

• Daily

Why isn’t this easy?

Executives think in:

• Quarters

• Semi-Annual & Annually

5 Strategies to Obtain Executive Buy-in

Strategic Objectives

Cost/Benefit Analysis

Bottom Line Return

5 strategies to obtain executive buy-in

1. Talk to them in their terms

What happens to Highly Engaged Companies?



2. The business case

87

What happens to Highly Engaged Companies?




3. Share industry best practices





4. Tie back to corporate goals

The ART of Data

Absolute

Relative

Trend




4. Tie back to corporate goals

5. Survey your employees


2014 Trends in Recognition: Utilizing Recognition to Drive ... · Value of $10K Invested...

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