2011 July Archive - RecognizeThis! Blog

Archive for July, 2011

Recognition, Total Rewards, Global Programs, Silo Thinking & More

Contributions on other sites this month you may be interested in – click through for the full stories.

Compensation Cafe: 3 Reasons Why Recognition Is a Powerful Component of Total Rewards (July 20)

Taking my inspiration from an interview with Exelon Corporation CEO John W. Rowe, I give three reasons why employee rewards should be included in a total rewards program:

Recognition and reward reinforce desired messages more frequently and more clearly.
Specific recognition based on company values – encouraged and sponsored by the CEO – extends the CEO’s ability to influence thousands of individuals.
Regular reinforcement of key values through recognition is more effective than waiting to do so through a promotion.

Compensation Cafe: Balancing Process and Outcomes – How “Silo” Thinking Can End Up Rewarding the Wrong Thing (July 11)

Organizations that implement employee recognition and reward programs usually do so with the best of intentions. However, company leaders and HR pros must think through possible scenarios to be sure they are rewarding the right things. Avoiding silo creation and balancing process and outcomes are the two critical areas to always keep in mind in recognition and reward program planning.

The HR Director: Making Metrics Work Harder (July 2011)

My article on metrics that matter in employee recognition and reward programs appeared in this month’s issue of The HR Director. Every employer knows that the mood of their workforce affects business performance, but few measure how employee engagement impacts the bottom line. If recognition employee recognition is linked to company values and strategic objectives, then metrics will help executives determine which divisions of the business, regions or teams fully understand what the company is working towards.

EmployeeBenefits.co.uk: Recognition Has Global Difference (July 4)

I did not write this article, but I am quoted in it discussing the importance of having one global strategic recognition program: “Many organisations continue to have adhoc, disparate recognition schemes that are completely different in France, the UK or the US. This is not acceptable any more because it is possible to do things in a unifying way. In my experience, the only criterion for needing recognition is being a human being.” Click through to read an excellent case study of Globoforce client Symantec as well.

"Your Dream Job Is Living a Passionate Life"

Recognize This! – Regardless of “dream job,” all employees need and deserve positive recognition and constructive feedback to have value, purpose and passion in their work

The title of this post – “Your Dream Job Is Living a Passionate Life” – is a quotation from Kevin Grossman‘s discussion on TLNT Radio on Tuesday this week. Following my portion on the show on motivating employees and company culture, Kevin spoke about dream jobs and how people can find value, purpose and passion in their work – whether it’s their “dream job” or not.

Kevin made several excellent points and I encourage you to listen to his full segment. Just three key points (in bold) were (closely paraphrasing Kevin’s comments):

On #TChat last week, we were talking about dream jobs, what that means and do they exist. A recent Mercer survey revealed that 51% of employees are looking for a new job or are mentally checked out of the one they are in. The dream job is a misnomer that sets people up for failure. I thought it was fascinating. What led me to write about that was the cute DQ commercial of blowing bubbles with kittens inside. I think that even multigenerationally, we’re think we’re going to find a job with kittens inside of bubbles.

My work, life and everything I do are all part of it. I bring that to work. I want to work in a place that shares that. Your dream job is living a passionate life. If that involves work great. If it has to be separate, fine, but if it’s a blend, then that’s the best. For me, it’s all one big public swimming pool.

Not everyone is going to win. Of the coaches I had as a child, the ones I remember are the ones that told me, “Even though we lost, individually these are the things you did really well, and and these are the things you need to work on.” It’s that that is so important. That culture of acknowledgment of engagement and you did a good job and continual feedback loop we keep talking about.

Can we all work at jobs blowing bubbles with kittens inside them? No. I’m not sure I would want to. That’s not my dream job. And that’s the point. My dream job is different than Kevin Grossman’s dream job – and it’s very likely different than yours.

In your workplace today, on the team of people you work with every day, there are likely a few people who are happy in their “dream job” and a few people who “punch the clock” so they can live out their passion outside of work. Regardless, wouldn’t you as a fellow team member or manager of the team want to make the work day as appreciative and productive as possible? As Kevin pointed out, all employees can feel more validated in their work and more productive in ways you need them to be if you keep the feedback loop constant – both positive and constructive.

Are you in your dream job now? What is it? If not, what would your dream job be?

Making Appreciation and Recognition a Habit

Recognize This – Simply encouraging frequent “thanks” can mass mobilize your employees to achieve more than any manager could dream.

Yesterday I had the opportunity to appear on TLNT Radio (playback here) with hosts John Hollon and Lance Haun plus Kevin Grossman as a fellow featured guest.

John and Lance used a recent post of mine on how appreciation – once it becomes a habit in the workplace – can spill over into personal lives as well. They noted that, sadly, many organizations aren’t doing much to encourage a habit of simply saying “thanks.”

I commented that we know employees really value feedback. However, the tools available to do that are challenged – performance appraisals are annual and formal. Employees work under a mix of different manager styles. Whereas recognition – if leadership can make it part of way the company works, encouraging every employee to recognize and appreciate others – then you get the mass mobilization of your own employees. They naturally become the campaigners and champions for living out your values and strategy every day.

I also clarified that this is absolutely not about the “program.” Critically, this is about fostering and encouraging a culture of recognition and appreciation. It’s not about a traditional “employee of the month” or the President’s club. It’s not 5% of employees being recognized – it’s 85% of employees being recognized and appreciated by peers and managers alike. It’s getting that mass mobilization of employees living out those values and being recognized and appreciated for it.

What habits are encouraged in your workplace?

How Performance Management Is Like Running a Plant Nursery

Recognize This! – Without real-time performance feedback and recognition, employee engagement withers and dies.

This year the discussion around the performance review process has lasted longer with a more consistent theme than I’ve ever seen in the past. That theme? The current annual review process is broken. But there are precious few suggestions on how to fix it.

In a recent New York Times “Corner Office” column, Jack Dangermond, founder and president of Esri, had this to say after reflecting on his early work experience in a plant nursery:

“In a nursery, if you don’t take care of those plants, your profits get lost real quickly. You have to weed. You have to water. You have to nurture. Also, you have to take care of your employees in such a way that they do the same.”

I take four clear lessons for the performance appraisal process from that:

Weed – give constructive feedback when needed to “remove the bad”
Water – give positive recognition as appropriate to “feed the good”
Nurture – mentor and coach employees through the process so they understand the organization’s investment in their development
Encourage – all employees should be encouraged to give positive praise to their colleagues as well as constructive criticism (when coached how to do so properly)

The success of such an approach – in a nursery or in the workplace – relies on real-time action. If you fail to weed, water and nurture your plants regularly, they will die. The same is true for your employees – or at least their ability and willingness to fully engage with your organization, culture and strategic priorities.

In a recent TLNT article, Lance Haun described the performance review in the perfect world:

“In a perfect world, the performance review itself would simply be a summary of the last year of real feedback, support, improvements and deficiencies. Since it is a summary, it would be quick to review and submit since all of the feedback is past tense, and any discussions and corrective actions would have been in the past as well. That leaves the performance appraisal as a final formality for record keeping purposes and to determine any performance based incentives or increases.”

I couldn’t agree more. There is a place for the annual performance review and Lance describes that proper role perfectly.

What’s the performance review process in your organization like? Hurry up and remember a year’s worth of activity? Or progress feedback and praise, simply summarized at year end?

TLNT Radio Tomorrow * Company Culture & Motivating Employees

Recognize This! – Company culture extends far beyond your company walls and impacts employee relationships at home. Find out how plus more on motivating employees on #TLNTradio Tuesday, 26th July.

In my bio, I talk about how I have the best job in the world because I help companies win with a culture of recognition. Part of what makes my job so great is the large percentage of my time I spend in face-to-face conversations and workshops with people to help them figure out the best way to foster and manage a culture of recognition in their own workplaces.

The downside is there is the natural limits on how many people I can share this insight with in such a capacity. That’s one of the major reasons I write this blog. It gives me the capacity to engage with far more people.

Lately, I’ve been invited to discuss the power of strategic employee recognition on BlogTalk Radio shows as well. Last week on HR Technology Happy Hour (archive available here), I particularly appreciated the opportunity to emphasize that strategic recognition is not about the “program.” It’s about your culture and finding fun, easy (yet showing solid business results) way to celebrate employees who live your values in their work every day as they help achieve your strategies.

Tomorrow I’ve been invited to share on TLNT Radio. Join us Tuesday, 26th July 2011, at 2:00 pm Eastern (11:00 am Pacific / 6:00 pm GMT) as we talk about how to motivate employees and the powerful role of company culture.

You can listen to it live from the web or you can dial in to (818) 572-8036 to listen to the show or to ask a question. You can also follow the show hashtag on Twitter by searching for #TLNTradio. After the show airs, the archive will be available shortly after the end of the show.

I recently wrote about how motivating employees is all about understanding three key issues:

1. Do employees know how to do their job well?

2. Do they know when they do it well?

3. Do they know why they should be doing it?

If a manager can’t confidently answer those questions in the affirmative, it is time to really think about how to fix it so managers can effectively motivate their employees. We’ll also be talking about how company culture doesn’t only impact people at work but also how it can influence their personal life as well.

I hope you’ll join us at 2pm ET/11am PT/6pm GMT on Tuesday for this great discussion.

Recognition ROI * Company Culture & Values in Performance Management

Recognize This – Performance management systems must not measure only results while ignoring company culture and values.

I’m often asked, “Where’s the ROI in recognition?” One answer is in the dramatic, double-digit boost strategic employee recognition regularly gives to employee engagement. (Towers Watson reported a 15% increase in employee engagement correlates to a 2% increase in operating income.)

Another less obvious but more powerful impact on revenue is having a strategy for improving company performance through your people.

Mark Harbeke reported on analysis of companies who applied for Winning Workplaces’ Top Small Company Workplaces award that those how had such a strategy had a 41% higher average revenue in2010 than those who did not.

Mark’s research into small companies is born out in CEO research conducted by Hay Group, reporting:

13% of firms align their performance management system to company strategy
93% of U.S. business leaders stress that culture has an important influence on the effectiveness of performance management
Only 27% of firms align their performance management strategy to company culture and values
36% of U.S. business leaders believe managers in their firms fail to use their performance management process effectively
40% do not actively support the performance management process.

Katie LeMaire, vice president at Hay Group, commented: “Most organizations view performance management as a process for controlling compensation. Leading organizations treat it as a management process that empowers employees to drive performance and creates discretionary effort.”

The disconnect in poor performance management practices is clearly significant. The Hay Group research has born out our findings that a deep understanding of the company values and strategic objectives – to a level that it matters to employees in their work – and a company culture of appreciation based on mutual respect is foundational to company success.

Blending detailed, specific employee recognition data with performance management processes not only adds data points to a performance review. It also ensures the performance management system clearly reflects how individual employees (and even teams and divisions) are producing to deliver the strategic objectives in line with the company values.

Be sure to read my colleague Carol Meyers’ post on these research results to see how this is critical to increasing productivity when employees are already producing beyond capacity but executives are not yet ready to increase hiring.

Merit Pay Increases Aren’t Keeping Up with Cost of Living

Recognize This! – If “raises” can’t keep pace with cost of living, should they still be called “merit pay?”

WorldatWork recently released their 38^th annual salary budget survey showing anticipated pay increases, showing median salary increases at all levels at 3.0%. This corresponds to Hay Group’s assessment at 3.0% median pay increase expectation for 2012.

More interesting to me are the merit increase projections by performance category in the WorldatWork results:

High performers: 4.0% increase
Middle performers: 2.7% increase
Low performers: 0.7% increase

Factor into that annualized consumer price index growth of 3.6 % and the “merit increase” for low and middle performers completely disappears and is reduced to a negligible 0.4% increase for top performers.

I have to ask again, are annual merit increases the right approach to pay for performance?

Considering the angst and drama associated with the traditional performance review process that relies on differentiation methodology to lump employees into a 1-5 range of performance, is it worth it? Is there a better way?

I suggested in a post on Compensation Café this Spring:

“Year-round rewards commensurate with year-round recognition of employee efforts. Those who perform at a higher level are naturally more frequently recognized and rewarded for those efforts. Does that mean “raises” become a thing of the past? Of course not. They just take a different form, the most likely being:

A standard annual cost of living or inflation increase for all employees to keep salary levels in line with industry norms

Promotion-based raises”

I made this suggestion at a round-table discussion and was met with outrage at suggesting limiting “raises” to a COLA increase. Yet, looking at the numbers above, that would be better than the anticipated salary increase in 2012.

Note, however, I’m not suggesting limiting raises to COLA. I am suggesting using recognition and rewards to far more effectively remunerate employees throughout the year. An example would be recognizing an employee who agrees to take on a new task and excelling at it. Recognize and appropriately reward that person for his or her achievement in the moment! Don’t wait until the annual performance review or raise cycle!

Has merit-based pay outlived its usefulness? Is there a better way? What would you propose?

Ask Me Your Questions Tomorrow on HR Technology Happy Hour

Recognize This! – A conversation takes at least two. Please call in to HR Technology Happy Hour tomorrow!

I’m excited to participate tomorrow in my first HR Technology Happy Hour WebMingle with HRchitect. I’ll be on the show live tomorrow, Thursday, 21st July at 3:00 pm Eastern (19:00 GMT). I’ll be taking live questions on the topic of strategic employee recognition, using recognition to create a 365-day, 360 degree performance review process, successful recognition program implementation strategies – and anything else you’re interested in asking me!

To listen to the show live, just go to BlogTalkRadio.com/MattLafata or HR Technology Happy Hour.

While the show is live you can ask questions by:

Twitter – Add #WebMingle to the end of your question
Phone – Call 646.595.2360
Email – Send it to tappleby@HRchitect.com with my name and “Happy Hour WebMingle” in the subject line

To listen to a broadcast after it has aired, scroll down the WebMingle show page to access previously aired episodes.

I’m excited about being a guest on the show and hope you’ll be able to tune in or call-in with a question!

How to Adjust an "Attitude Problem" in High Performers

Recognize This! – Often the best “attitude adjuster” is encouraging all employees to pause and recognize the good work of those around them.

Surveys are tricky things. Especially one-question, multi-choice polls with little context. Sure, they’re fun and occasionally insightful (I enjoy running them on my own blog), but reading and interpreting the results should always be taken with a grain of salt.

Case in point - a recent poll in SmartBrief on Leadership:

Whom would you rather lead as a member of your team?

High performer with an attitude problem: 44%
Low performer with a great attitude: 33%
Mediocre performer with an average attitude: 23%

Frightening results when taken at face value. Mike Figliuolo’s take in response to those results is pitch-perfect:

“Your team members who might not be high performers see the high performers get away with having an attitude problem. It damages morale, and that attitude might even rub off on average or low performers. Address the attitude issue head-on. Explain to high performers that their attitude is hurting the team and its performance. If they’re true high performers, they’ll want to achieve in all areas, including having a positive attitude.”

I like the idea of a definition change – you won’t be classified as a high-performer if your attitude doesn’t reflect a positive, supportive desire to help others achieve. What’s a key element of such an attitude? Actively recognizing and praising others for the good work they do. This outward expression of recognition indicates the high performer knows he/she isn’t achieving such stellar results alone. Their success is backed by an entire cadre of people making it possible for them to continually succeed.

That humility, reflected as a desire to acknowledge and recognize the contributions of others, can change the attitude of the individual as wall as the entire “attitude” of the company as reflected in the company culture.

Cuba Gooding Jr’s Oscar acceptance speech is an excellent example of the “pay it forward” nature of recognition. People love to be acknowledged and recognized for the good work they do. Once recognized themselves, they often recognize others, especially those who helped them achieve their success.

Cuba Gooding Jr Accepting Oscar (Click through to watch video)

Appreciation is contagious. You can see it in how the crowd responds to Cuba’s joy. The same effect can be seen in the workplace. Contagious joy in the sharing of recognition and appreciation.

Would You Publish Your Company Culture in a Free Book?

Recognize This! – Company culture can spill over into employee personal lives. Make sure that’s a positive effect.

I enjoyed Tony Hseih’s speech at SHRM 2012. I particularly appreciated that he offered to send a copy of Zappos’ 2010 Culture Book to anyone who emailed him. (You can get your free copy here.) We did just that. I’ve enjoyed flipping through the book.

At around 200 pages of full-color images and text, this culture book is no small investment. Most impressive to me is the total lack of “corporate messaging.” 100% of the content reflects the thoughts and contributions of the employees about Zappos’ culture, company values, and why it’s a great place to work. From long missives to short paragraphs (even a word-search puzzle), Zappos employees took the time to express clearly the importance of the company’s approach to creating a culture in which they can thrive.

Here’s just one example:

“The Zappos Culture, to me, is the environment where I can be my best self. Our culture reminds me to be patient, generous, and kind. And, because I’m living that every day at work, it spills over into my personal life, and I find myself more patient, more generous, and more kind there also. In that way, the Zappos Culture not only benefits me, but it also benefits my friends and family. I’m lucky to be a part of a place like this.”

This quote resonated so strongly with me because I so often see the same effect with recognition and appreciation in the workplace. When employees are encouraged to frequently acknowledge and appreciate their colleagues and peers for behaviors that reflect the company values and contributions that move the team and company forward, they soon find that pausing, noticing and thanking others becomes a habit – at work and in their personal lives. I know it certainly has for me.

Two questions today – have you created such a strong, positive culture in your workplace that you would trust your employees to contribute their thoughts and observations on that culture to a book you would offer free to anyone who wants it? Perhaps more importantly, does the culture you work in every day at your job spill over into how you interact in your personal life?

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