2010 December Archive - RecognizeThis! Blog

Archive for December, 2010

My New Year Resolutions

Thank you all for a terrific 2010. I hope you’ve enjoyed the dialogue of this blog as much as I have. In the spirit of hope that comes with the ringing in of a New Year, I share with you my top 5 resolutions as a manager:

1) Continue to make a top priority recognizing my colleagues for their efforts that make Globoforce a successful company and a fun place to work.

2) Always remember it’s just as important to stop, acknowledge and celebrate the achievements of others as it is to “get the work done.”

3) Notice the efforts of those not on my team or in my location and take the time to thank them for it.

4) Keep it real. Always be sincere in my appreciation.

5) Make the time to be specific. Always remember a quick thanks is valued, but a detailed description of why I appreciate someone’s efforts is even more so.

What are your workplace resolutions in the new year?

Keeping Employee Recognition Programs Current

Recognize This: If you build it, they will come. But you better update it, or they won’t stay.

Ann Bares on Compensation Force wrote a great post on a commonly ignored best practice of employee recognition and incentive program design – “a relentless commitment to continuous review and improvement.”

Ann wisely points out that too often people will invest time and energy in program design and deployment, then step back and “let the program run itself.” This is a sure path to recognition program failure.

Too often, people believe an incentive or recognition program is a “soft” initiative, throwing a program out there. They’ll “make it nice,” but they won’t worry too much about the details (like ensuring they aren’t incenting the wrong behaviors).

Truly strategic recognition programs require careful planning, consideration of details like metrics and measures of success, and well communicated launches.

But even more important are the tweaks and improvements made over time. A marathoner doesn’t run at the same pace at the beginning of the race as they do in the middle or close to the finish line. The same is true with recognition programs. People change. Companies change. Objectives change. You need the ability to flex with that. A strategic recognition program will easily flex with you, helping you realign employees to changing priorities and messages.

Do you have a recognition or incentive program in your company? How long has it been since any changes were made to it? When was the last time you heard anything about it? Are you even really aware of it in your day to day work? What actions or events would attract your attention?

Say “Thank You” Unexpectedly to Motivate More Powerfully

Recognize This: Unexpected appreciation is a far more effective motivator than a predictable reward.

A friend, trying to explain to me the joys of parenting immediately after venting about the challenges, sent me this article in Slate. To be honest, the parenting stories didn’t stick with me as much as this observation:

“If you give animals a predictable reward—say, a shot of sugar every time they press a lever—you can get them to press that lever quite regularly. But if you want irrational and addictive behavior, you make the reward unpredictable. Pressing the lever produces sugar, but only once every 10 tries. Sometimes, the animal might have to go 20 or 30 tries without a reward. Sometimes it gets a big jolt of sugar three tries in a row. If you train an animal to work for an unexpected reward, you can get it to work harder and longer than if you train it to work for a predictable reward.”

And that is precisely the difference between incentives and recognition. Irregular, unpredictable, but highly desired praise for work well done, work demonstrative of company values, work that contributes to strategic objectives, work that keeps the team running smoothly – most certainly encourages and, dare I say, motivates employees to want to continue those behaviors.

It’s proven in the scientific literature, too. If you thank someone, they are 100% more likely to help you again in the future than if you don’t. It’s simple. But the meaning and power of true, sincere appreciation is limitless.

Would you (do you) work harder when you know there is a possibility of recognition for your efforts or when you know you’re working to a predetermined reward? Why?

Tell Me “Thank You” or I’ll Leave

Recognize This: People really do quit because of lack of recognition.

Yes, even in this economy, people really do look for other work (and 2/3 of employed Americans are looking right now) because of a lack of recognition.

2008 research at the start of the recession from Salary.com showed that 17% of employees list “insufficient recognition” as a top five reason to leave a job. Other, more recent, research shows 34% list “no recognition” as a reason to leave.

But is this really shocking? If you slogged away every day, giving it your best, and no one seemed to notice or care, would you want to keep going? Or would you want to find a workplace (where you spend the majority of the time you’re awake) where what you do matters. And you know it matters because people tell you so. Frequently. Repeatedly.

It’s no wonder 23% of companies are adding recognition programs, even in this slow recovery, according to Towers Watson.

Have you ever quit because of lack of recognition? Would you? Tell us the story of your breaking point. What finally pushed you over the edge?

Bonus ≠ Compensation. Stop Confusing the Two

Recognize This: Compensation and bonus are two different things, like oil and water. Stop trying to mix them together.

UK press reported last month that the banks find themselves between a rock and a hard place. On one side, the country is operating under deep austerity measures, banks are being accused of not lending to businesses enough, and London banks plan on paying out £7 billion in bonuses (or maybe they’ll reduce it to £4 billion). On the other side, if the banks agree with each other to cap bonuses (which are seen as a critical recruiting/retention tool), then they could be prosecuted for competitive collusion.

How’d the banks find themselves in this mess? Simple. Like on Wall Street in the US and elsewhere in the world, they confuse bonus with compensation. One banker is quoted in the article:

“There’s no chance that the big US investment banks will follow our example, which means that business and good people could leave London for New York or elsewhere if we’re seen to be paying less than the market rate.”

Did you catch that? “Paying” less than the market rate. Bonuses are not pay. Bonuses are given for achieving stretch goals, going beyond what is expected. Bonuses are not base compensation. They should never be an expectation.

The only thing your employees should be expecting to receive is a paycheck for work rendered. Anything beyond that – bonus, incentive, recognition, reward – is never “paid.”

Does your organization confuse bonus and compensation? Would you rather receive less compensation and hope for a bonus or would you rather know your base compensation is fair and reasonably equitable for the role and anything on top of that is icing?

A Real Holiday Present: Serve the Public Good

Recognize This: Companies are sitting on record profits, but with no change in sight for their people practices.

How flush are you feeling right about now? If you celebrate Christmas, your wallet is likely feeling quite a bit lighter or you’re waiting in dread for the Christmas present bill to come due in the new year. The harsh reality of the last two years feels much the same for many of us, but not for the corporations.

CBS MoneyWatch reported companies have experienced seven consecutive quarters of profit growth and, in the third quarter of 2010, made more money than in the 60 years the Commerce Department has been tracking this data.

Are you feeling the benefit of any of that profit? I doubt. The article goes on to report companies are sitting on the cash, more concerned with “Increasing shareholder value than the public good.”

Many would argue companies are simply following the mandate of why they exist – to make money for shareholders. I disagree. I believe companies exist to do both. It’s only logical. You can’t make money without the brains and brawn behind what you’re selling. It follows that if you look out for the “public good” by doing right by your employees, by reinvesting in them, by restoring pay levels and staff cut during the recession, by showing your employees how much you appreciate them.

Give employees a real gift this holiday season. Return to reason in your people practices. Show your employees you know they can’t keep up this pace forever. Express your appreciation for their herculean efforts and reward them appropriately.

Image credit: CNNMoney.

Hiring Cheap for the Short vs. the Long Term

Recognize This: Talented employees know what they’re worth and are ready to get it.

Did you snap up any good “deals” during the recession? You know – overqualified employees you were able to get cheap?

As the economy (slowly but surely) improves, what are you doing to retain those talented employees and keep them (and their knowledge) away from your competitors?

The Wall Street Journal reported last month that employers who hired on the cheap in the recession should start being concerned. According to a recruiter quoted in the article, 1 in 5 candidates who call him are trying to return to their previous salary levels after being in their current job for a year or less.

This shouldn’t be surprising. Talented people will always find a way to get what they’re worth. It’s up to you be sure you know the outcomes of hiring on the cheap:

• Hiring cheap for the long-term = poor hire. If you’re just looking for cheap labor and those people stay without complaint, you’ve likely gotten what you paid for.

• Hiring cheap for the short-term = quality hire at a good price, but with a catch. Now you have to decide if you’re willing to pay the person what they’re worth, or let them go somewhere that will.

The difference is – are you cheap or are you proactive? A proactive strategy will snap up talent while it’s available then do the right thing as soon as feasible. A cheap strategy will let things fester and watch good talent walk out the door. Which are you?

Yes, Quitting Is Real, Even in This Economy

Recognize This: More people are quitting than being laid off – and it’s not a new trend.

Even after reading my posts from Monday and Tuesday this week, do you still, deep-down, think that your employees won’t quit (either out of loyalty to you or because of the lousy job market).

Give up that false hope. TLNT reported on Bureau of Labor Statistics results:

“2 million people left their jobs voluntarily while only 1.8 million were laid off. That’s right, more people voluntarily left their jobs than quit and it has been trending that way for some time.”

TLNT reports this has been the trend for the last year. You can only push people so far before they leave to potentially join your competitor. Think of the double impact of that – you’re out a star employee and your competitor just got information and skills you’d rather they never had.

TLNT goes on to say:

“With the economy in doubt, employees have been hesitant to be the squeaky wheel and complain — and you can’t necessarily blame them. So when they find a competitive job and move on, the employer is surprised.”

“Surprised” seems a bit disingenuous to me. After rounds of layoffs, extra work, pay freezes, pay reductions, and a general atmosphere of fear, no one should be “surprised” when good employees decide to leave for a hopefully better environment.

The bigger question is, what are you doing about? Yes, they’re really looking for other work. Yes, they really will quit and leave you for your competitors. So what are you going to do right now to stem that tide?

Your CEO is "OUTTA HERE!" Too

Recognize This: Even senior executives need appreciation.

Picture the members of your C-Suite in your mind. How many of them do you think are in it for the long-haul? Can you imagine any of them leaving?

Apparently, they can. According to recent research from ExecuNet and Finnegan/MacKenzie:

“Executives’ collective satisfaction with their current leadership role and employer is demonstrably lower than their steady commitment to carry out the core and ever-evolving responsibilities of their job… Nearly any executive can be hired away at any time. If opportunity knocks, executives will take the risk to pursue it, even in an economic cycle like this.”

Just how many would consider leaving?

“92% of CEOs and 94% of all other management respondents say a leader can be engaged in their work and with their employer but still open to considering new career opportunities with other organizations.”

Why would they consider leaving? The research delves into possibilities, but money isn’t a leading factor. I suggest another reason – even your senior executives need to be appreciated for the work they do. Even those in the ivory tower need to know that those who work for them appreciate their efforts and recognize how hard they are working.

Are you in a senior leadership position? When was the last time someone thanked you for what you do? When was the last time you felt you and your efforts were truly appreciated?

If you’re not in senior leadership, would it feel odd to you to recognize someone above you? Why? Have you ever done that? Share your story.

I'm OUTTA Here! (and there's nothing you can do about it)

Recognize This: 66% of your employees are actively seeking or open to a new job.

How wedded are you to the idea, “My employees have a job. That’s recognition enough for their work.”

If that’s your attitude, get ready to start recruiting to replace your top talent (and good luck trying to retain competitive advantage without them). TLNT reported on a recent Jobvite survey:

“Two-thirds of currently employed Americans, roughly 77.5 million people, are either actively seeking a job or open to taking a new opportunity. An additional 33 million American adults – unemployed job hunters or soon-to-be college graduates – are also looking for work, for a total of 110.5 million job seekers looking to make a move overall.”

That’s not much better than the results reported by Right Management in a December 2009 survey:

• 60% – Yes, I intend to leave
• 21% – Maybe, so I’m networking
• 6% – Not likely, but I’ve updated my resume
• 13% – No, I intend to stay

Workplace trust is in its death throes. Employee loyalty seems to have become a quaint 20th century emotion. What does all this mean to you?

Which employees do you think are the most likely to stay? I guarantee it’s not those with the most options – your top performers. Look at it another way. The majority of your employees are distracted by thoughts, plans and actions to leave. (When do you think they’re interviewing? On the weekend?)

Think about the impact of that. It’s not just the POTENTIAL loss of those employees someday, it’s also their attitude on the job right now.

Are you ready to rethink your stance on “a job is recognition enough?” Or are you one of those 77.5 million who will leave as soon as you get a chance? Why? What could your company have done differently to keep you on board, productive, happy and engaged?

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Archive for December, 2010