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Advanced GuideHow to Reward and Recognize Employees for Innovation



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INTRODUCTION. A Key to Sustainable Innovation: Energizing Employees 2

PART ONE: LEARN FROM LEADING INNOVATORS 3

Framework. Four Ways to Energize Employees for Innovation 4

Role Models. How Leading Innovators Motivate Their Employees 5

Blending All Four Approaches. Case In Point: Procter & Gamble 10

PART TWO: DEVELOP A REWARDS AND RECOGNITION PROGRAM 11

Starting Out. Things to Consider Before Building Your Rewards and Recognition Program 12

Jump-starts. Bring Innovation to Life In Your Organization 14

Worksheets. Mapping Your Rewards and Recognition Program 18

Filled-In Example. How One Sample Company Might Build its Program 23

Suggested Roadmap. How to Roll Out a Rewards and Recognition Program in Your Organization 25

PART THREE: RESOURCES TO LEARN MORE 26

Google This. Search Terms to Help You Learn More 26

APPENDIX: REWARDS AND RECOGNITION WORKSHEET

Step 1. Who and What 27

Step 2. How 28

What’s Inside…



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IntroductionA Key to Sustainable Innovation: Energizing Employees

Employees are essential to innovation—they come up with great ideas, follow through in development processes, and bring ideas to life. They are, by definition, the lifeblood of innovation in an organization. You can sense a palpable difference in employees’ attitudes and participation in innovation at companies like Google, W.L. Gore, and Motorola. In a marketplace where people are your most critical assets, it is essential to have a well-designed rewards and recognition program in place.

Recognizing and rewarding employees is essential to innovation ...

44% of senior executives agree that attracting and retaining innovative people is a critical ability for a company to innovate successfully.1

78% of employees say that being recognized for their work motivates them on the job.2

Employees at “Rewarder Organizations” generate ideas 250% more frequently than employees of organizations that don’t reward staff.3

However ...

15% of organizations have not updated their rewards programs in more than 8 years.4

83% of organizations don’t have strong recognition programs.5

And of these programs in place, 87% of recognition programs focus on “tenure” but research has found that they virtually have no impact on organizational performance.6

Energize your workforce for long-term innovation. An innovation effort becomes sustainable when it is driven from the inside. Without a motivated set of employees, innovation efforts can go through fits and starts. You need to measure and reward the behavior you want to promote. Your rewards and recognition program plays a fundamental part in driving innovative behavior.

Don’t expect easy answers. Exactly how to reward and recognize employees can be a divisive issue. Some suggest that monetary rewards are the answer. Others say that a focus on financial rewards makes the relationship with your employees too transactional, and that symbolic recognition is the best route. Some companies focus on individual rewards, while others build collaborative, team-centered cultures. There isn’t a simple answer. It will involve you crafting a plan that relates to the unique climate that exists in your organization.

Take a balanced approach. The best innovators strive to achieve a balance with their incentive programs. They blend monetary rewards with recognition programs, and individual with team rewards. The balanced approach is effective because these organizations have a clear understanding of their innovation goals, and know what behaviors they need to shape and control in order to meet their objectives.

Base your program on the leading innovators. This tool will help you design a program that is effective, based on business objectives, and impactful. It’s based on the models that leading innovators use. You’ll understand the factors you need to take into consideration, and discover specific techniques that you can apply in your organization. When such a program is designed correctly, you’ll have the tools to effectively and dramatically engage your employees in innovation.

1 Globoforce 2011

2 Global Innovation Barometer 2013

3 Babson Executive Education survey 2010

4 Accelir, “2014 Trends Report: Rewards and Recognition in Corporate Human Resources” 2013

5 Deloitte and Bersin & Associates, “The State of Employee Recognition” 2012

6 Deloitte and Bersin & Associates, “The State of Employee Recognition” 2012



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Companies such as Samsung, Google, and Salesforce provide valuable insights into how to energize employees to drive successful innovation efforts. This section of the tool focuses on real-life examples of how leading organizations use rewards and recognition to motivate their workforce.

PART ONELearn from Leading Innovators



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FrameworkFour Ways to Energize Employees for Innovation

compensateMake financial rewards the centerpiece.

provide non-cash giftsReward individuals in informal ways.

recognize symbolicallyShowcase innovators publicly and recognize a job well done.

sweeten the experienceMake the rewards implicit and focus on the overall environment.

In the following pages, you’ll read about the specific ways in which companies utilize these four models to revitalize innovation efforts.

There are four fundamental methods that organizations use to reward and recognize their employees with regard to innovation. A blend of these approaches helps motivate and energize employees, and engages them as integral parts of innovation efforts.



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Role ModelsHow Leading Innovators Motivate Employees

Many companies use financial compensation as the primary motivation tool to get employees to participate in innovation. These include performance bonuses, cash-for-ideas, stock options, and other forms of variable compensation awarded to employees beyond a base salary. Take a look at some of the examples; you’ll see a mix of large-scale and small-scale techniques:

General ElectricAt GE, 20 percent of managers’ bonuses come from how well their divisions meet customer needs.

GlaxoSmithKlineThis large pharmaceutical company rewards its scientists with investment-banker-style bonuses (worth up to $15 million) for discovering blockbuster drugs. The payout is determined by judging which staff were key to its discovery and development.

SamsungSamsung has a compensation system to reward employees for job-related inventions. The company compensates each employee that submits patent applications on its behalf, and rewards team members upon applying the new technologies to its products.

TargetRetail giant Target holds “Big Idea Contests” for employees in which winners receive time and money to develop prototypes for their projects. This encourages employees to be inventive, take risks, and be creative.

ZapposOnline shoe and clothing retailer Zappos gives employees the ability to award cash bonuses to other employees who exemplify the company’s cores values, such as “Embracing and Driving Change” and being “Adventurous, Creative, and Open-Minded.” Each employee gets $600 per year to distribute to fellow employees. This type of peer-to-peer rewarding is becoming increasingly popular in innovative companies.


The most innovative companies have found success largely because they have a motivation program in place that suits their climate and goals. Here are some examples of each of the four ways we’ve outlined:



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Role Models (continued)How Leading Innovators Motivate Employees

TD Bank Many of TD Bank’s best ideas spring from its rebellious approach. It has an organization-wide “Kill a Stupid Rule” policy, where employees are awarded a $50 gift card for addressing a conventional banking rule and coming up with a creative solution that is more customer-friendly. The bank actively encourages managers and tellers to submit their ideas through an intranet system.

These rewards cover informal gifts and incentives (beyond money) that employees highly value. They include methods like gift certificates, days off, spa-days, or group outings. This approach doesn’t focus on financial compensation. Instead, it shows appreciation in a more personal manner that’s consistent with the organization and its goals. In fact, a McKinsey study shows that “non-cash motivators” are becoming more effective at motivating employees than financial incentives7. A PWC study also found that “using more non-financial rewards to motivate staff” is a focus for top executives in the upcoming years8.

Westin At this cutting-edge hotel chain, employees participate in an innovative idea-suggestion program called

“Dream Westin.” The person who contributes the “best” idea in a given quarter is gifted an all-expenses- paid five-day trip to an exotic Westin location.

DDB Worldwide This advertising agency based in New York City offers bottles of champagne to employees who go above and beyond while developing an idea.

The Department for Work and Pensions (DWP)This UK Government department uses gamification by using points and leader boards to encourage ideas from employees. The platform is called “Idea Street,” where points can be earned for submitting ideas and further developing ideas. Employees can also “invest” their points into promising ideas, and if these ideas are implemented, more points are earned.

Research predicts that by 2015, half of all managed innovation processes will include game mechanics, and that by 2014, 70% of all the Global 2000 organizations will have at least one “gamified application” in place9. This includes leader boards, virtual currencies, and challenges between users.


7 McKinsey, “Motivating people: Getting Beyond Money” 2009

8 PWC 14th Annual Global CEO Survey, “Growth Reimagined” 2011

9 Gartner Enterprise Architecture Summit 2011



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Employees appreciate simple recognition—both public and private—for a job well done. Whether it be an award received in front of peers, or a phone call from senior management saying “thank you,” recognition goes a long way in getting people on board with innovation efforts. In the long term, recognition is often more effective in terms of motivating employees than impersonal financial rewards. Here’s how some companies recognize their best employees:

AppleEmployees who worked on the first Macintosh computer had their signatures placed inside the computer’s casing.

General ElectricGE showcases a select number of “growth heroes”—those employees who demonstrate the behaviors associated with innovation (courage, execution, etc.). These growth heroes are featured on its intranets and on public documents like the GE annual report.

Hewlett-PackardThe “Golden Banana Award” is one of Hewlett-Packard’s greatest honors for inventive employees. It started when an engineer burst into his manager’s office with the solution to a problem their team had been struggling with for many weeks. The manager tried to find a way to recognize this accomplishment, but all he came up with was a leftover banana. The symbol of the banana is still used to recognize in-novative ideas in the company.

American Cancer SocietyIf an employee submits an idea that is deemed worthy of investigating, he or she is given total ownership to implement the idea and work closely with senior management to move it forward.

Dow CorningManagement hosts an “ice-cream social” at which managers make and serve special sundaes to thank employees.

HoneywellThis company developed a recognition program called “Great Performers.” Select employees were interviewed and their stories were used to create posters placed prominently across the offices. They also received pins in the shape of the letter “G.”

recognize symbolicallyShowcase innovators publicly and recognize a job well done



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In a few companies, coming to work is the reward. These organizations cultivate an overall work atmosphere that motivates the workforce. This approach weaves innovation into the fabric of the company and lessens the focus on formal rewards and recognition. Keep in mind, incentive programs exist at these companies, but they’re not necessarily the primary mechanism for motivating people.

GoogleGoogle is known as one of the most energizing places to work. Its success and reputation for innovation are what drive many of its employees to continue innovating. Google has taken active steps to create an engaging work environment that creates a sense of collective pride and ownership:

> A relatively flat structure with a 20:1 ratio of line-employees to managers, compared to the industry average of 7:1.

> The Googleplex—the company’s Mountain View, CA, headquarters—is an airy, light-filled office famed for its glass cubicles, small distributed libraries, and brainstorming rooms.

> Employees spend 20 percent of their time on unique pet projects that have nothing to do with their day jobs. These “googlettes” are often developed into successful innovations for Google.

> Employees have at their disposal free food, electric scooters, in-house day care, and ample social and recreational space.

The Boston Consulting GroupThis global management consulting firm has frequently been featured each year in Fortune’s “Best Companies to Work For” list. BCG maintains the work-life balance of its employees by issuing a “red zone report” to flag when individuals are working too many long weeks. Employees can receive up to $10,000 to volunteer at a nonprofit.

LinkedInSocial network company LinkedIn has created an inspiring and creative work environment to stimulate the creativity of its employees. These include:

> “InDays” where employees get to work on projects outside of their normal daily work on a Friday of each month. LinkedIn recognizes that creativity is stimulated by encouraging people to get out of their usual routine and by working on side-interests and passions.

> Every month, LinkedIn hosts at least three “Speaker Series,” inviting inspiring speakers to speak at their workplace. Past speakers have included new age Deepak Chopra and Martin Luther King III.

> LinkedIn gives employees a $5,000 stipend to spend on education per year. Taking interest in employee development is a huge incentive for employees.

> Every two weeks, the CEO and executive team meet with all employees for an hour to answer questions. This makes senior leadership frequently accessible and the meetings have a relaxed and fun atmosphere.



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ZapposThis innovative company puts considerable effort into creating a work environment that engages employees and makes them feel passionate.

> “Create Fun and A Little Weirdness” is one of Zappo’s 10 Core Values. They encourage employees to be comfortable and feel themselves at work (since employees in other corporations often act differently on the weekends versus at the office). Employees dress in their individual styles (mohawks and pink hair have often been sighted) and are encouraged to decorate their desks to create their

“home away from home.”

> Zappo’s headquarters is in Las Vegas and getting a sheltered parking spot close to the entrance is a treat because of the heat. The “Master of WOW Parking” is an award for employees to award other coworkers who have WOW’d them. This simple but innovative award allows winners to park in this special parking spot for a week.

> Zappos provide an on-site life coach for employees to fulfill their “higher purpose.” Employees have pursued goals such as career advancement, weight reduction, and boosting confidence. Zappos believe that by helping employees achieve their personal goals, it helps them achieve the bigger goals of the company. This is a growing trend amongst companies—the more you help employees achieve their personal goals, the more you increase company loyalty.

> When a big milestone happens, such as a million-dollar sales record, a special parade starts in its honor. Teams will parade through the building with music and costumes, throwing candy on its path. Actions like this make Zappos a very fun place to work.

GenentechBiotechnology company Genentech provides employees with a number of benefits to “sweeten the experience” at work. Not only do they provide dog-sitting for their employees, they also have on-site services like haircuts and weekly car washes. Their reward program, GenenCheck, allows any employee to receive a $1,000 to $2,500 check for key contributions made beyond his or her regular responsibilities.

SalesforceGlobal cloud computing company Salesforce rewards employees for exceptional results. They have created a fun, innovative culture with perks to attract top talent. > High performers at Salesforce are rewarded with a $5,000 “Breakfast at Tiffany’s” shopping spree in

Hawaii to recognize exceptional performance.

> Employees are allowed to spend 1 percent of their time (6 paid days a year) on volunteer projects. Community service is very important at Salesforce, and a defining part of their culture.

> Salesforce is known for holding the “party of the year” in San Francisco for its staff and guests. Over 5,000 people attend each year, and past parties held have featured famous bands and celebrities.

A comprehensive approach to rewards and recognition takes into account all of these four mechanisms. On the next page, we show you how P&G blends all four mechanisms to motivate its employees for innovation.



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Blending All Four ApproachesCase In Point: Procter & Gamble


> P&G offers a very generous Tuition Reimbursement Plan that allows employees to seek continuing education courses that are related to their current or potential next assignment within the company. They reimburse 80 percent of tuition fees.

> It developed a place called the “Innovation Gym” that trains managers to think more creatively.

> Innovation is expected at P&G. When originally developing their Innovation Program, former CEO A.G. Lafley didn’t want to revamp pay schemes to reward innovation. Instead, managers who fail to share ideas with other groups and divisions simply do not get promoted.


Innovators are showcased in a dedicated section of P&G’s intranet.


When P&G went through a few years of sustained growth, P&G awarded all employees with two extra vacation days. Though employees did have the option of taking the cash equivalent, P&G wanted to focus on the non-cash aspect of the reward.


Employees get 50 stock options for submitting creative ideas that pass a preliminary screener.

“Innovation has always been —and continues to be—P&G’s lifeblood.”

– P&G 2013 Annual Report

P&G has seen unprecedented growth and has transformed itself into a visionary innovator with the success of breakthrough products like the Swiffer and Crest Whitestrips. One of its key initiatives has been changing the mindset of their employees. Rewards and recognition have played a critical part in this initiative. P&G has effectively blended the four approaches described in the previous section. It provides important learnings for your organization to take away.

P&G has a family-like culture, so it was important to offer modest rewards and not tilt the balance too far in favor of an individual’s accomplishments. Here are a few things they did to maintain the current culture, and still powerfully motivate innovation.



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Now that you’ve seen how other organizations motivate their employees, it’s time to focus on your organization. This section of the tool will help you develop an effective plan, and guide you through the many practical steps you may take.

PART TWODevelop a Rewards and Recognition Program



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Starting OutThings to Consider Before Building Your Rewards and Recognition Program

The following are some important considerations to keep in mind as you build your innovation rewards and recognition program. They will be consistent themes throughout the next several pages that are invaluable in helping you develop a plan for your organization.

The first question: What behavior do you want to incent? Many organizations assume that motivating for innovation is as simple as offering a reward for every idea submitted. However, If your organization already has a surplus of ideas, it may not be effective to solicit more ideas.

In fact, there are three discrete stages of innovation in which employees play a key role. In each stage, different behavioral aspects come into play. The figure below illustrates these three areas:

Your motivation program will be even more effective if you isolate the specific behaviors you want to shape. These will be a combination of your current weaknesses (which behaviors are weak or missing that you want to encourage?) and strengths (which behaviors are currently embedded in your organization that you want to continue to foster?).

Think about: Rewarding individuals and groups. An IBM study showed that CEOs preferred to develop collaborative, team-based cultures, but 77 percent of them agreed that it was critical to complement such an environment with individual-focused rewards. One of the decisions you’ll be mak-ing is when to reward individuals vs. when to reward entire groups. We recommend you base your decision on what specific behavior(s) you’re rewarding. For example, in places when you can pinpoint individual achievement, it’s important to reward individuals (e.g., for ideas submitted). However, when it comes to more overarching accomplishments (e.g., meeting rev-enue numbers on a particular innovation) that can’t always be attributed to specific individuals, you should consider reward-ing entire teams and groups (or, like P&G did, reward the entire company. See page 10).

INNOVATION INPUTS INNOVATION OUTPUTSINNOVATION DEVELOPMENT

The “front-end” of innovation, where ideas are generated.

The results of innovationInnovative ideas/projects in process for launch.

Is your organization creativity-starved or lacking rich ideas?

Does your organization falter while getting ideas to market?

Are you launching innovations that are not meeting your market goals or objectives?



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Starting Out (continued)Things to Consider Before Building Your Rewards and Recognition Program

Think short and long-term. The program you design should have the right mix of short and long-term initiatives. A good balance ensures that you’re sending immediate signals about your intention to motivate employees, while planning for long-term sustainability and innovation. The figure below illustrates the difference between the two.

SHORT-TERM TACTICS LONG-TERM TACTICS

Budgets Requires little or low budgets Requires high or significant investment or budgets

Timing Immediate. Can be rolled out quickly. Has significant impact on how your organization is currently structured

Example $50 gift card Stock options, embedding innovation in performance management systems

Keep it consistent and fair. There’s nothing more demotivating than offering a carrot and then taking it away. If you’re making a commitment to reward people, be firm and stick with it. If this is a tactical program that is being run for a limited period of time (for example, a contest for most innovative idea), make sure you clearly communicate to people that this is the case. Employees shouldn’t expect a reward system that’s more than what they’ll actually be receiving. Remember, any rewards program you implement will receive opposition and will be unsuccessful if employees view it as inconsistent or unfair. Make sure rewards are aligned in proportion to the amount or scope of work done.

Communicate. Your employees should know that a program of rewards and recognition for innovation is rolling out. It’s critical that a communication plan becomes part of your efforts. Work with your internal communications and HR teams on a cohesive plan. Ensure that:

> The right employees know about the program> Expectations are clear (what is being rewarded, for how long, what the reward is, etc.)> Changes to existing reward/incentive systems (if any) are clarified> Communication is meaningful and driven by the needs of your audience

Last, but not least, don’t forget about other stakeholders. This guide focuses on your internal climate—your employees. However, vendors, customers, ex-customers, and other strategic partners might all play an important role in your innovation efforts. If this is the case, you might have to motivate them as well. The issues addressed in this hotspot are relevant, even for external audiences.

If you’re considering roping in external audiences, we recommend a tiered approach. This helps you build the program in stages, and lets you focus on one audience at a time.

Tier 1: “ Core Constituents” Your employees—the lifeblood of innovation

Tier 2: “ Friends and Family” Vendors, suppliers, and other strategic partners

Tier 3: “ Stepping Outside” Customers, the general public, and other unrelated firms



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Jump-startsBring Innovation to Life in Your Organization

The jump-starts described on the following pages are wide-ranging and diverse. The specific ones you select will depend upon the existing climate of your organization. Use the check boxes pro-vided to denote those tactics that could relate to your organization.

On the following pages, we outline numerous “jump-starts”— practical ways you can reward and recognize your employees. They’re broken down by each of the four approaches we’ve described. Within each approach, we list short-term and long-term tactics.

Cash awarded for each idea submitted in a specified format or using a specific system.

Cash awarded for every idea accepted in the innovation pipeline.

Cash awarded for unique, breakthrough ideas (or for ideas that meet certain criteria).

Idea submission contest (held on a monthly/quarterly/annual basis). Prizes awarded for winning ideas.

An innovation “slush fund” that employees can dip into (without approval) to move certain ideas forward.

On-the-spot cash awards that managers are empowered to award without approval.


SHORT-TERM

These are ideas to financially compensate employees for their efforts in innovation. They include performance bonuses, cash-for-ideas, stock options, and other forms of compensation beyond a base salary.

Give employees skin in the game: they receive a percentage of revenue or savings generated by the idea.

Give annual bonuses linked to innovation objectives.

Implement a peer-to-peer cash reward system for staff to reward other employees.

Award promotions if individuals/team members meet innovation goals.

Award a percentage of expected revenue in advance.

Add innovation in performance management or evaluation reviews.

Offer dual career paths for exceptional performance in innovation.

Patent citations for employees who contribute to innovation that offers financial compensation for any commercialization derived from the patent.

Offer stock options for excellent performance in innovation.

Pay an installment of employees’ mortgages, car loans, tuition fees, etc.

Provide company-wide profit-sharing bonuses.

LONG-TERM



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Jump-starts (continued)Bring Innovation to Life in Your Organization

Senior management leaving personal handwritten notes, thank-you calls, voicemails for select employees.

Gift cards (pre-loaded debit cards or gift certificates to a local store or restaurant).

Premium parking spots reserved for individuals⁄teams, or free transportation⁄parking.

Time off: Either days off, three-day weekends, or the entire week.

Personal visits from senior management to employees.

Offers to wash the employee’s car (or surprise him or her).

Flowers, chocolates, and other small treats.

Field trip⁄day trip to nearby events or locations.

Lunch.

Magazine subscriptions.

iTunes gift cards.

Tickets to sporting events, concerts, etc.

Free massages, facials, manicures, spas.

A round of golf.

A limo ride for a day or week (to⁄from office).

Contributions to a charity of the employee’s choice.

Services to save employees’ time: house cleaning, baby-sitting coupons, offer to do grocery shopping for them.

Office decorations.

Dinner for two and a night’s stay in a local hotel or bed and breakfast.

Movie or theater tickets.

Lunch or dinner with a member of the C-Suite.

SHORT-TERM

These rewards cover informal gifts and incentives—beyond money—that employees highly value. This approach doesn’t focus on financial compensation. It instead shows appreciation in a more personal manner.

Free travel or other travel goodies (all-expenses-paid trip to exotic destinations).

Removal of projects from employees’/teams’ plates to give them a little break.

Tickets to exclusive industry, research, and other conferences.

Photo sessions with CEO/Senior Management.

Gift catalogs with the option to pick any item for free.

Overseas training trips.

Gamified “points” for idea submissions.

LONG-TERM




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Showcase personal profiles of individuals/teams on the intranet, common bulletin board, and other common areas (Iobby, corridors, canteens).

Offer certificates or letters of recognition.

Send out group or all-staff emails celebrating employees/teams.

Provide special recognition lunches.

Put announcements in local papers.

Have exclusive “employee-dedicated” BBQs/cookouts.

Give special engraving, plates, or plaques for select employees.

Create employee of the month programs.

Create recognition boards in public areas (lobbies, kitchens, conference rooms).

Give public thank-yous at town-hall meetings, staff meeting.

SHORT-TERM

One of the more powerful ways to energize people is to recognize them personally, or in front of their peers.

Showcase in public areas like website or annual reports.

Offer exclusive, highly public awards at special events: Innovator of the month/year, “failure of the year,” chairman’s award (CEO/President’s award).

Name cubicles or other public spaces after employees.

Place electronic billboards in a common area that highlight certain employees’ accomplishments.

Offer larger/more responsibilities, like bigger projects, more resources, larger teams, etc.

Assign employees to special teams or exclusive innovation/advisory boards.

Give employees more autonomy.

Offer chances to shadow programs with organizations’ leadership/ senior management.

Use social media as a way of recognizing employees.

LONG-TERM




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Personal time. Let people work on pet projects (anything besides their day jobs) for a specific amount of time (20 percent, or two hours on a specific day of each week).

Let employees design and customize their own office spaces; give them the tools/resources to do so.

Offer training courses in alternative topics like yoga, tai-chi, improvisation, drawing, music, etc.

SHORT-TERM

How can you take the focus away from rewards and recognition and make coming to work the reward?

Free food (cafeteria meals, or pantry snacks).

Flex time. Let employees work from home, or during the hours that are convenient for them.

Day care facilities in the office.

“Thinking Fridays”: Make one Friday every month a day when people work only on innovation projects.

Flatter organizational structures.

More inspiring and creative workspaces.

Libraries stocked with books and magazines from all industries/subjects.

Game rooms and social areas where employees can unwind, or collaborate informally.

Inspirational guest speakers who speak at the office.

A “bring your pet to work” day each month.

Creative and active spaces with ping pong tables, trampolines, and music.

Free gym/wellness reimbursement.

Paid days to volunteer on community projects.

Inviting outdoor workspaces for employees to brainstorm ideas, hold meetings, or simply get fresh air.

LONG-TERM


Now, that you’re armed with practical motivational ideas, you can begin designing your program. The worksheets on the following pages will help you develop one for your organization.



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WorksheetMapping your rewards and recognition program

There are two parts to this worksheet:

Step 1: “Who and What” In this step, you’ll map out the individuals, groups, and behaviors you want to encourage across three broad stages in your innovation process.

Step 2: “How” In this step, you’ll select specific motivation tactics based on the four fundamental methods we outlined on page 4.



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Worksheet: Rewards and RecognitionStep 1: Who and what?

INNOVATION INPUTS

INNOVATION DEVELOPMENT

INNOVATION OUTPUTS

Which employees do you want involved at this stage?

• senior management?• mid-level managers?• line employees?

• departments/groups (sales, marketing, operations, etc.)?

• project teams?

What skills and behaviors do you want to encourage?

• creativity?

• best/most original or groundbreaking ideas?

• most number of ideas?

• kill projects in time?

• meet project deadlines during the process?

• keep within budgets or resource constraints (time/money/people)?

• apply learning from failed projects?

• meet revenue goals?• meet market share goals?• meet profit goals?• growth in share prices?

• meet time-to-market goals?

What’s stopping them from behaving the way you want?

NOTES:



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INNOVATION INPUTS


INNOVATION OUTPUTS




• project teams?


• creativity?










NOTES:

These worksheets will help you walk through—step-by-step—the issues you should take into consideration while developing your program. Over the next few pages, we’ll show you how to use the worksheets with comprehensive instructions and a filled-in example of how a hypothetical company used the worksheets. This will help you get a good understanding of how to use them in your own organization.

We recommend that you use this tool with a small team that’s in charge of energizing the workforce within your organization. These could include business heads, HR, communications, or a cross-functional group with representation from throughout your organization. Once you’ve made an initial decision, share the program with a larger group (including senior management) for validation and budget approvals.



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Worksheet (continued)Step 1: “Who and What”



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INNOVATION INPUTS


INNOVATION OUTPUTS




• project teams?


• creativity?










NOTES:

On the next page, we provide instructions on how to fill in the worksheet

In the first step of the worksheet, your innovation process is distinctly mapped into three separate parts:

1. Innovation Inputs. The “front-end” of innovation, where ideas are generated

2. Innovation Development. Innovative ideas/projects in process for launch

3. Innovation Outputs. The results of innovation

At each stage, you’ll identify the specific employees you want to incent as well as focus on the behavior you want to motivate.



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INNOVATION INPUTS


INNOVATION OUTPUTS




• project teams?


• creativity?










NOTES:

InstructionsTips for filling out PART 1 of the worksheet

1 Your approach to motivating employees will differ through each part of the innovation process. Start with the first column and work your way downwards before you move to the second column.

2For a more holistic program, you’ll have specific motivation techniques across all three columns. However, if you’re strapped for resources, try to focus on the column in which you think your organization needs to improve immediately.

Each stage of the process has very different behaviors that need to be incented. It’s helpful to think about the specific behaviors you want to motivate, since this will become part of your communication and rewards program.

5

3 Who do you want involved in each stage of the process? Are they individuals or groups? We offer a few helpful suggestions, but think about specific audiences within your organizations. Use the blank lines to fill in your entry.

4 Keep in mind that as you move across the innovation process, you’ll find a shift from individual to group rewards.

This row will help you think about the psy-chographics of your audience. Think about their work every day, and why they may not behave in the ideal manner. Is it because they have too much on their plates? You could reward them with a day off. Or are they not being held accountable for results (tie compensation to reaching market goals)?

6



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Worksheet (continued)Step 2: “How”



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INNOVATION INPUTS


INNOVATION OUTPUTS




• project teams?


• creativity?










NOTES:

On the next page, we provide instructions on how to fill in the worksheet.

By now, you’ve identified the “who and what” of your rewards program. This step will help you identify the “how”:

1. What specific motivation tactic will you use to change the behavior you identified in the previous step? You’ll be using the framework we defined on page 4, and select ideas from our Jump-starts section from pages 14–17.

2. What metrics will you put into place at each stage in your innovation process so you know if your rewards and recognition program is working?



22

InstructionsTips for filling out PART 2 of the worksheet



27


INNOVATION INPUTS


INNOVATION OUTPUTS




• project teams?


• creativity?










NOTES:

1 Based on your analysis from your current step and the role models provided from pages 5–9, which of the four approaches (or combination of the four) do you think is best suited? The most effective way will depend upon the unique climate of your organization. Think about the notes you’ve outlined in Step 1 of the worksheet to help you make this decision.

2Here’s where you can add in your specific reward techniques. For a comprehensive list of ideas, go to the Jump-starts section. There, you’ll find practical ideas that are broken down by the four approaches. You’ll also find recommendations for short- and long-term ideas.

3 Some provocative thought-starters to use when generating ideas for your organization:

- What reward would employees NEVER expect?

- What’s the simplest thing you could do to get the biggest impact?

- What reward/recognition was sorely needed from the last employee survey that you conducted?

- Ask three employees at random about the “best reward” they could get.

- What BIG reward could you offer that would blow everyone away?

4 Lastly, it’s important to identify metrics that will help you understand if your program is effective. We’ve provided a few sample metrics across each stage in the process. With any measure, it’s important to identify the following:

- What’s the current baseline for this metric in your company?

- What’s the goal you want to achieve?

- What’s the timeline within which you want to meet your goals?



23

Filled-In ExampleStep 1: Who and what?

INNOVATION INPUTS


INNOVATION OUTPUTS




• project teams?

ALL EMPLOYEES Teams associated with innovation projects (research, marketing, business, production, sales)


• creativity?










Not enough exposure to outside thinking—we have traditional views of how to do business in our industry. People need the opportunity and the time to get fresh, alternative perspectives.

We focus too much on getting our products launched on time—and we lose sight of the market and competition.

NOTES:

We do not have enough break-through ideas, and we always have a problem meeting revenue goals.

In this example, company X fills out both steps of the worksheet by focusing on two areas of innovation it found to be weak in its organization: innovation inputs and outputs.



24

Filled-In ExampleStep 2: How?

INNOVATION INPUTS


INNOVATION OUTPUTS

Which approach do you think will best motivate those involved?

COMPENSATE

NON-CASH GIFTS

SYMBOLICALLY RECOGNIZE

SWEETEN THE EXPERIENCE

COMPENSATE

NON-CASH GIFTS



COMPENSATE

NON-CASH GIFTS



What specific tech-nique will you use to incent behavior you want?

SHORT-TERM: low cost and immediate implementation

LONG-TERM: medium to high cost and significant time to develop

SHORT-TERM:

Monthly contest to reward three most breakthrough ideas: Winners get three-day weekends.

SHORT-TERM: SHORT-TERM:

Gift cards to local electronics store for meeting Q1 goals.

LONG-TERM:

1. Send certain employees to events and conferences that are tangential to our industry.

2. Let employees design their own workspaces.

LONG-TERM: LONG-TERM:

Annual bonuses offered to those who meet their innovation revenue goals

What measures will you put into place to know if your program is working?

• # of ideas generated• # of groundbreaking

ideas generated• # of projects in pipeline• Amount of time spent on

innovation by employees

• shorter time-to-market cycles

• projects that are killed on time

• projects meeting deadlines during the process

• projects within budget

• increased success rate of innovations (market share, revenue, profit)

• increase in overall organization performance (stock price, revenue, customer satisfaction)

• number of new products/services, patents, or “industry-firsts” developed

• value of innovation port folio (present/3 yrs/5 yrs)

# of projects that meet specific revenue goals.

NOTES:

current baseline: nonegoal: at least 10/quartertimeline: immediately

current baseline:goal:timeline:

current baseline: 20% of projects meet revenue goalsgoal: 80%timeline: within Y2 of implementing program



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Suggested RoadmapHow to Roll Out a Rewards and Recognition Program in Your Organization

DEFINE

Use the worksheet to design your rewards and recognition program.

MOBILIZE

Implement the plan as laid out in previous step.

MEASURE

Check progress on a frequent basis to see if plan is meeting or falling behind expectations.

A comprehensive program that takes into account:

> Stakeholders, behaviors that are identified across the innovation process

> A combination of the four approaches (compensate, non-cash gifts and incentives, recognize symbolically, sweeten the experience)

> Specific motivational tac-tics for both the short- and long-term

> Select metrics and goals to measure program

> Appropriate budgets allocated for the program

> Key stakeholders involved and in agreement with the plan (senior management, HR, communications team, etc.)

> A communication plan that ensures that employees will understand the plan and their roles to make it effective

An analysis of the program; what’s being worked on and what needs to be done in order to fix the elements that are not working; an understanding based on some of these metrics:

> Number of ideas submitted

> Number of groundbreaking ideas

> Increased success rate of innovations (market share, revenue, profit)

> Shorter time-to-market cycles

> Projects that are killed on time

> Projects that meet dead-lines during the process

> Projects that stay within budgets

AC

TIVITIES

OU

TPU

TS

)!!

If you’re looking to successfully implement your rewards and recognition program, you need a methodical approach that focuses on execution. This roadmap will help you as you roll out your efforts.



26

Want to learn more about rewards and recognition programs? There is a lot of information in the public domain that can provide additional insight. Here, we provide some direction to make your search easier.

You can always get more practical advice and a clear approach to all your innovation needs at www.futurethink.com.

PART THREEResources to Learn More

Google ThisSearch terms to help you learn more

Here are some Web search terms that can get you better results:

Creative employee reward

Empowering employees innovation

Energizing employees innovation

Innovation incentives employees

Motivating employees innovation

Reward innovation

Rewards recognition innovation

Successful innovation reward



27


INNOVATION INPUTS


INNOVATION OUTPUTS




• project teams?


• creativity?










NOTES:



28

Worksheet: Rewards and RecognitionStep 2: How?

INNOVATION INPUTS


INNOVATION OUTPUTS

Which approach do you think will best motivate those involved?

COMPENSATE

NON-CASH GIFTS



COMPENSATE

NON-CASH GIFTS



COMPENSATE

NON-CASH GIFTS



What specific tech-nique will you use to incent behavior you want?

SHORT-TERM: low cost and immediate implementation

LONG-TERM: medium to high cost and significant time to develop

SHORT-TERM: SHORT-TERM: SHORT-TERM:

LONG-TERM: LONG-TERM: LONG-TERM:

What measures will you put into place to know if your program is working?

• # of ideas generated• # of groundbreaking

ideas generated• # of projects in pipeline• Amount of time spent on

innovation by employees

• shorter time-to-market cycles

• projects that are killed on time

• projects meeting deadlines during the process

• projects within budget

• increased success rate of innovations (market share, revenue, profit)

• increase in overall organization performance (stock price, revenue, customer satisfaction)

• number of new products/ services, patents, or “industry-firsts” developed

• value of innovation port folio (present/3 yrs/5 yrs)

NOTES:






29

Notes

Documents

Advanced Guide How to Reward and Recognize Employees for ...futurethink.com/wp-content/uploads/2017/03/ag_rewardsrecognize.pdfShowcase innovators publicly and recognize a job well