Reward and Recognition

“Establishing an Effective Workplace Recognition System”

Module objectives:

Candidates will learn:

•What’s Lean about Reward & Recognition

•What is Effective Recognition & why do it.

•Recognition vs. Reward

•What to Recognise

•Recognition Tools

How does Recognition fit with Lean?

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Effective recognition: Empowerment Culture Change Invert the pyramid

Recognition versus Reward cont.’

PHYSIOLOGICAL

SAFETY

SELF - ESTEEM

SOCIAL / LOVE

SELF ACTUALISATION

Maslow’s Hierarchy of Needs

Any action called recognition should include

all three A’s:

What is recognition?

•Acknowledgment

•Appreciation

•Approval

1. Sincere

2. Fair and Consistent

3. Timely

4. Frequent

5. Flexible

6. Appropriate

7. Specific

Seven critical success factors:

Put individual names in your area newsletter & attending their work group brief to shake hands and say thanks

Writing ‘Congratulations to all those who have completed a long service milestone this month.’ in your area newsletter.

Don’t just say thanks for the sake of it – mean it.

Example: Long Service Qualifiers

1.Sincere

Recognition loses its value if it is perceived as inequitable or inconsistent. Standardisation is important.

Don’t leave recognition up to managers – encourage peers to recognise each other.

Example: Two teams have no accidents for over 1 year. One GL uses his initiative & asks you to come & thank his team.

Send a congratulatory email back to the Group Leader who contacted you & feel proud of yourself for being good at R&R.

Find out if anyone else has equal achievement & visit all relevant groups. Share what you have done with other managers in your area.

2. Fair and Consistent

Immediate recognition ensures that achievements are not overlooked. The recognition is more likely to be remembered and thus the behaviour or practice more likely to be repeated.

3.Timely

At the end of the year, write a Xmas note to your team, listing the area’s achievements for the year.

Before the score is announced decide what to do if the team reach or exceed the target score. When the results are announced personally congratulate the key players with a phone call / visit that day.

Example: An area receives a good score in an audit

There will be daily opportunities to say “thanks” – use them. It does not cost anything but is a great investment.

Make time in your diary each week to review attendance figures and send thanks to teams with good records.

Wait until a team has 0% absence for 1 year and then send them an email.

4.Frequent

Example: Attendance

Recognition should be a personal matter – try & use a variety of recognition tools, matching your choice of tool to the individual / team’s needs.

Speak to both separately & ask if they would like their project being highlighted on the area notice board with a photo of themselves.

Without asking, get them to stand up in front of the wider team & give them an award.

5.Flexible

Example: Two of your direct reports complete projects on time with good results. You know one of them is quite shy, whilst the other enjoys being in the limelight.

•The recognition method selected should match the effort expended, the behavior exemplified, or the results achieved.

Recognition should not be reduced to a lottery.

6.Appropriate

Give both the individual & the team a free meal voucher.

Congratulate the team and give them a free meal voucher / coffee & cake during break. Send a general note to all in the area thanking everyone who has contributed to the area’s safety record.

Example: An individual & a team in your area both have no accidents for 1 year.

6.Appropriate

Supervisor / Group Leader mentions in team meeting.'Well done' posted on team or area notice board

Mentioned in area newsletter

Small article on team or individual in plant magazineMention on screen saver/ intranet

Display on area notice boardArea manager attends team meeting to congratulate.

Article in company magazine.Display featured in prominent area on site

e.g. canteen.Plant or regional manager congratulates.

Featured in Industry magazine / External

media.MD congratulates.

Initiated improvement activity to solve Difficult quality issue or make substantial cost savings

Team has achieved a number of targets, e.g 0 accidents

Team taken part in Kaizen activity or 6Sigma project

Long serviceGood SpotGood attendance record (team or ind)

Appropriate Recognition Tools

Recipients should know exactly what they are being thanked for and why their contribution is valuable.

Example – An operator carries out a Kaizen activity making cost or waste savings.

Thank him for his ‘hard work’ via an email to his Group Leader.

Ask the operator to demonstrate what he has done and why. Thank him personally & explain why what he has done is important to you and the business. If appropriate arrange for his project to be featured on a wall display / plant magazine.

7.Specific

“Hearts and Minds” Concept:

To encourage individuals to want to change, want to be their best, and want to come to work, you must win over both their ‘hearts’ and their ‘minds’.

Recognition will win over both.

Recognition and reward are often used synonymously or are combined into one system – the R & R system. However, often efforts to improve R & R systems totally neglect recognition.

Recognition versus Reward

V

Recognition Reward

Non-cash Monetary

Needed frequently Infrequently changes

Psychological Financial

Personal Impersonal

Value – and principle-based Based on corporate budget

Used to keep employees Used to attract employees

Reinforces behaviours Supports short-term goals

Differences between Reward and Recognition

•Values and Behaviours:

Recognising the behaviors that you want to encourage and see repeated.

•Objectives and goals:

Recognising a the achievement of team, area or plant goals / targets.

What Should You Recognise?

What to Recognise

Behaviours to recognise include:

•Team working•Continuous improvement mindset.•Building quality into the process•Encouraging safe working•Incident Reporting•Lean thinking•Sharing of best practice•Appropriate Escalation•Good use of 5C•Use of Work Group board as focus for group activity.

What to Recognise

Achievements that we should be recognising include actions towards achieving work group, department, or plant objectives.

For example:

•No Lost Time Accidents / good team safety record•Putting forward an idea for a kaizen activity which will eliminate waste from a process •100% attendance•Involvement in an environment / community programme.•Instigating a time saving / standardising idea.•Team achieves excellent right first time score.•Green Belt training completed.

Recognition Tools

Recognition Boards

Thank you

Lunches or after work events

Family days

Recognition Tools

Go – Look – See – Say Thank you !

Team meetings / briefs

Newsletters & Magazines

Group Exercise

How would you recognise each of the following achievements:

•Work Group has not had any accidents for a year.

•Area has had no accidents for one month.

•Somebody is celebrating 30 years service with the company.

•Plant achieves an exceptional score in an audit

•An individual’s kaizen idea is implemented, which improves a simple process.

•An individual spots a potential quality issue

•A Group Leader makes a presentation to senior management on a plant tour.

1. Reinforces desired behaviours, practices, principles, and values.

2. Gives the organisation the ability to show appreciation and say “thanks!”

3. Builds self-esteem.

4. Promotes trust and respect.

5. Facilitates and encourages change.

6. Drives improvement.

7. Celebrates success.

8. Improves the quality of work life.

Benefits of effective recognition:

9. Motivates individuals and teams to do their best.

10. Enhances loyalty.

11. Creates a positive attitude and confidence that carries over to public.

12. Addresses the basic human need to feel appreciated.

13. Reflects commitment to each other.

14. Inspires accomplishment and achievement.

15. Empowers individuals and teams

17. Drives out fear.

18. Improves the bottom line.

Benefits of effective recognition