| Optimizing Employee Loyalty and Performance | | | | recognition and reward strategies have three key |
| Given the competitive pressures in the marketplace, | | | | components -formal events, informal events and day |
| changing dynamics, downsizing, restructuring and other | | | | to day recognition initiatives. |
| challenges in these difficult economic times, how can | | | | Each of these components can involve different |
| you raise the performance of your employees to | | | | budgets, planning, gifts, criteria for recognition, etc, etc. |
| meet these challenges?? | | | | In this article we want to focus more on the informal |
| Let's face it, when a company has lost sales, laid off | | | | recognition activities. Since overall performance is the |
| significant employees, frozen wages, etc morale can | | | | key to success for any individual, department, division |
| be very low and can negatively impact motivation and | | | | or company, doesn't it make sense to tie the |
| engagement levels. | | | | recognition and rewarding of employees to their on the |
| Many companies, however, feel now is not the time to | | | | job performance? |
| consider recognition strategies or these types of | | | | If you believe in Plato's ancient philosophical statement, |
| expenditures! | | | | "What is honored is cultivated" then maybe you can |
| Yet the abundant research and studies available | | | | cultivate the performance you require by honoring the |
| proves that companies with strong programs, policies | | | | performance you require. |
| and strategies in place designed to keep employees | | | | Many companies are starting to look at people |
| motivated and engaged and performing at their best | | | | performance measurement and management |
| will outperform companies that don't have any | | | | programs as a way to do exactly that; measure |
| programs in place by as much as 30-35%. | | | | performance and understand who the key contributors |
| Why then, if this has been proven, do less than 40% | | | | are to performance success. Programs are available |
| of companies operate recognition programs or utilize | | | | to identify goals, communicate objectives, measure |
| recognition as a strategy to "Optimize Performance"? | | | | progress and then reward employees accordingly if |
| Costs? Administration Concerns? Lack of | | | | the results are achieved. Should a cash bonus be |
| Understanding? Timing? Other Priorities?.... | | | | used? Possibly but keep in mind that research shows |
| In one recent study, employees were asked "Would | | | | that "non cash" merchandise motivates and has had |
| your boss notice if you were to increase your | | | | better success in altering attitudes and changing |
| workload by 15%?" They also asked the question | | | | behavior than "cash" by a ratio of between 2 and 3:1 |
| "Would your boss notice if you were to decrease your | | | | when comparing the ROI on both initiatives! |
| workload by 15%?" In both cases the majority of | | | | There are programs available now to provide a vehicle |
| respondents said NO. Basically this represents a 30% | | | | to basically measure almost anything. In addition these |
| range of discretionary effort that you may or may not | | | | performances can be linked directly to financial |
| get from your employees. How is your company | | | | benefits and gains. If the company realizes a $30,000 |
| encouraging this effort?? | | | | financial gain due to the performance of specific |
| Consider for a moment if it could help your company | | | | employees who were assigned goals and met their |
| to obtain this discretionary effort or to outperform your | | | | objectives could it make sense to take 10-20% of that |
| competitors by 15-30%? I suspect it would? How then, | | | | gain and say "Thanks, we appreciate your efforts!" |
| can a company nurture, encourage and reinforce the | | | | Would this help your organization to encourage future |
| types of behaviors, attitudes, enthusiasm and results | | | | performance and commitment to company goals? |
| that are required to drive performance and success? | | | | At this time of economic duress and instability it is |
| Although not the only or entire answer, recognition and | | | | probably even more important to optimize |
| rewards programs can play a key role. Tenure or | | | | performance to not only survive but to compete, grow |
| service award recognition programs are still the most | | | | and excel in the marketplace. In reality, is the success |
| popular type of recognition program in North America. | | | | of any company not solely resting on the abilities and |
| But are they enough? To recognize and thank and | | | | performance of their collective employee workforce |
| employee every 5 years (the standard for these | | | | to improve, grow and meet the challenges ahead? |
| programs) probably wont do a lot if you are looking to | | | | Could it make sense then, to focus on ways and |
| nurture and encourage the day to day performance | | | | means to optimize employees performance? |
| your expect and require. The most effective | | | | |