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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
Facts from Recent Studies
“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.”
Facts from Recent Studies
“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
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
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
50
51
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
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
Learning & Development
Performance Management
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)
Learning & Development
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
Performance Management
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
Perspective is everything
Revenue
Generating
Revenue
Maintenance Overhead
Employable Top
Talent
Perspective is everything
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?
5 strategies to obtain executive buy-in
1. Talk to them in their terms
2. The business case
87
What happens to Highly Engaged Companies?
5 strategies to obtain executive buy-in
1. Talk to them in their terms
2. The business case
3. Share industry best practices
5 strategies to obtain executive buy-in
1. Talk to them in their terms
2. The business case
3. Share industry best practices
4. Tie back to corporate goals
The ART of Data
Absolute
Relative
Trend
1. Talk to them in their terms
2. The business case
3. Share industry best practices
4. Tie back to corporate goals
5. Survey your employees
5 strategies to obtain executive buy-in
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