Building a WOW! Recognition Culture

Bill Bergstrom National Recognition Manager

Terryberry Company

www.terryberry.com800.253.0882

1. Employees Needs

2. Recognition Opportunities

Building a Successful WOW! Recognition Culture

3. Recognition Results

4. Recognition Responsibilities

1. Understanding Employees Needs

“Yeah I called her up, she gave me

a bunch of crap about me not

listening to her, or something, I

don't know, I wasn't really paying

attention.”Jeff Daniels

Dumb and Dumber

A.H. Maslow, ‘Learning and Human Abilities.’

Self Actualization NeedsAdvancement opportunities

Esteem NeedsRecognition/Appreciation

Belongingness NeedsWork culture

Safety NeedsHealth insurance, job security

Physiological NeedsFood, clothing, shelter (paycheck)

Maslow’s Theory In the Workplace

4 Predicators of Overall Job Satisfaction

1HealthStream Research 2008

•Morale•Extent to which I enjoy the work itself

•Service Quality•Do I have pride in my workplace?

•Sense of Belonging•Value of my work and ideas and input

•Employee Recognition•Is the system fair in recognition and job promotion?

4 Predicators of Overall Job Satisfaction

(Many Years Ago)

1Herzberg, 1968 & Baird, 1976 & Korman 1970

•Responsibility•Performing well at an interesting & stimulating job

•Self Esteem•Engaging in behaviors consistent with self-image

•Advancement•Value of my work and ideas and input

•Achievement & Recognition•Addressing individual needs & personal growth

90% of businesses indicate they recognize their employees.

Only 40 % of employees feel adequately recognized by their supervisor.

65% of employees say they received no recognition in the last year.

Realities of Today’s Recognition Practices

1World At Work, Towers Perin & Gallup

“People often say that motivation doesn’t last. Well, neither does

bathing- that’s why we recommend it daily.”

Zig Ziglar

2. Recognition Opportunities

Recognition is a 3-Legged Stool

Structured Recognition

Formal Recognition

Significant Awards for Significant Achievements

Objective Criteria

Service Recognition Supports a WOW! Recognition Culture

0

2 0

4 0

6 0

8 0

Employee Performance

MGR’s Attention

# of Employees

Casual Structure

Informal Recognition

Often Supervisor and/or Department Driven

Defined Criteria

Most Commonly Used Award Programs:

“Trends and Best Practices in Employee Recognition”, RPI 2006

Service Award Programs:Service Award Programs: 90%90%Performance:Performance: 87%**87%**Retirement:Retirement: 51%51%Sales:Sales: 51%51%Suggestion:Suggestion: 41%**41%**Employee of the Mo/Qtr/Yr:Employee of the Mo/Qtr/Yr: 39%39%Safety:Safety: 33%**33%**Attendance:Attendance: 22%**22%**

Casual Structure

Day-to-Day Recognition

Peer-2-Peer & Manager-2-Peer Driven

Combine Subjective & Objective Criteria

Monthly Weekly Daily

Recognition Drives Engagement:

ENGAGEMENT LEVEL

20% increase

35% increase

Daily Telegraph, March 22, 2008, Ford. (citing findings of David Brown, Director of Hewitt Associates)

FREQUENCY

4. Recognition Results

“The Seven Standards are nothing more than idealistic

quotes on walls until employees live them out each day on the

job…”

Karen Mathews

WellStar Health System

Discovering your ABCs is keyRecognition Underscores the:

»Attitudes

»Behaviors and

»ContributionsYour organization values most

.

“A Watson Wyatt Reward Plan Survey of 614 employers with 3.5 million employees showed that the average turnover rate of employers with a clear reward strategy is 13% lower than that of organizations without one.”1

1. Nolan, Paul. (2007, March/April) The Accelerator: Workplace recognition can bridge the gap between where your team is now and where it can be. SalesForce 17-22

Op

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tin

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in

Worst 2nd 3rd Best

1.0%

4.1%

6.6%

Employees’ Rating

2.4%

“Hard Evidence”, Incentive Magazine, August 2005 p.10

Link Between Employee Satisfaction & Profitability

Set Expectations & Criteria

Don’t: set criteria that conflict with other corporate objectives

•Simple •Quantifiable•Challenging•Attainable

Awards should…

Have Trophy Value

Exclusivity – “Buzz” Factor

Longevity

Differentiation

Timely

Aligned

Specific

Positive & Personal

Make A Meaningful Presentation

4. Recognition Responsibilities

“HR is important in good times. It defines a company in bad times.”

“…get out of the picnic, birthday card, and insurance forms

business.”Jack Welch

2009 National SHRM Conference

A research study conducted by The American Management Association identified eight different areas of job satisfaction most often linked to employee motivation.

Employee Ranking Supervisor Ranking

1 72 33 14 55 46 87 68 2

Areas of Job Satisfaction

Credit for the work they do; RecognitionInterest in workFair pay with salary increaseUnderstanding and appreciationPromotion on meritsCounseling on personal problemsPhysical working conditionsJob security

Likely to look for a new job 54%

Gen Y 71%

Post-Recession Plans

Source: Adecco, June 2009

Influence Recognition

• Leadership– Culture starts @ Top

• Management– Make it personal– Relationship with manager is #1 predicator of job

satisfaction• Marketing

– 11.3

HR’s Influence on Recognition

• Hire

• Train

• Accountability

• Keep Things Fresh

• Recognize

“Your job is to raise the quality of the team.”

Jack Welch

2009 National SHRM Conference

1. Employees Needs

2. Recognition Opportunities

Building a Successful WOW! Recognition Culture

3. Recognition Results

4. Recognition Responsibilities

Available at Amazon.com or www.RecognitionUniversity.com

What’s inside:

Real-life recognition stories from top businesses

Training tool for your management teams

Ideas to differentiate your organization’s recognition program

CONTACT:616.458.1391b.bergstrom@terryberry.comwww.terryberry.com

Conclusion

Bill BergstromNational Recognition Manager

Terryberry Company