Posted by Health Wellness | Posted in workplace wellness | Posted on 27-05-2010
Looking for recognition ideas that get results? Here are two keys to success –
The most common characteristics of high-ROI recognition programs – regardless of their monentary value – are their spontaneity and perceived value by staff members themselves.
In reality, the cost of some of most effective spot awards and bonuses often amount to less than 1% of base pay – and the awards don’t even have to be given in cash.
Less sense of entitlement
Part of the problem with traditional end-of-year or quarterly bonuses (apart from the fact that they cost companys an average of 10 percent of base pay) is that employees expect to receive them for reaching certain goals.
Sometimes staff members simply expect it no matter what. for example, at many firms, an annual holiday bonus is viewed as an entitlement and people inevitably grumble that it’s not high enough. on the flip side, with spontaneous awards and bonuses, staff members are often pleasantly surprised.
Benefits consultant Ken Stahlmann spells out four keys to making the latter kind of awards work, even when they’re lower in cost –
1. Creativity is crucial
The most effective programs generally give out awards weekly or monthly. to avoid over-stretching the budget – and avoid a ho-hum attitude establishing in – creativity is a must.
One way that never gets old – combining time off with a second, non-cash award. Example – One firm gives a half-day off in combo with movie passes once a month.
Another, at weekly staff meetings, holds a random drawing for a dinner gift certificate, plus permission to leave work early once.
2. Make it personal
Rewards have more lasting impact when they’re geared to individuals ’s personal needs or interests. Two examples –
• one firm with many foreign-born, low-wage workers awards a $20 pre-paid phone card after 90 days of service, and a $100 card for outstanding work, and
• another business with a lot of sports nuts took several top-performers to a ball game. Managers said it was the best $200 they’ve ever spent in terms of creating ongoing enthusiasm.
3. Add structure
The awards might seem spur of the moment, but top programs have a fixed budget and structure set before anything is handed out. Example – One retail firm awards “points” for good work. Folks can then trade in their points for store merchandise.
By letting people bank points for additional valuable rewards, the business saw a solid jump in retention.
Other organizations prefer to let employees reward each other. for example, a small healthcare provider keeps a “goodies box” onsite – compensated for in petty cash and stocked by employees themselves.
When someone spots a peer going the extra mile, he or she pulls out a prize and awards it.
The program is a enormous hit – It’s immediate and personal, yet structured.
4. Don’t let good intentions backfire
Most spot awards go over well. But keep these four issues in mind –
• for most cash or cash-value awards, there are tax implications (just as with traditional bonuses)
• Awards need to be spread around or else resentment can creep in
• Be certain honorees don’t mind being the center of attention (some firms have accidentally alienated individuals they tried to reward), and
• Make certain the reward is something individuals actually want. One firm that awarded a VIP parking space next to the CEO found no one used it. No one wanted the CEO knowing what time he or she came and left.