Top companies recreate experience they desire for their customers
Most organizations with a focus on employee engagement know the reward and recognition of employees at all levels is essential to employee engagement.
In conducting research for the 2007 version of its 50 Best Employers in Canada survey, consulting firm Hewitt Associates found a significant difference in the growth rate between the top- and bottom-ranked employers.
Employee engagement benefits a company’s bottom line, the study suggested, with the top-20 publicly traded best employers experiencing an average compound annual growth rate in net sales over five years of 12.9 per cent. Compare that to only 4.9 per cent for publicly traded companies among the 20 lowest-ranked study participants.
Top companies create an experience for employees that reflects the caliber of the experience they desire for customers.
There are five critical elements to incentive program success.
Alignment and communications
The best recognition programs reflect an organization’s philosophy and values.
Employee alignment is driven by continuous and varied communications such as face-to-face contact, regular meetings, print and e-communications. This helps employees understand the program, enables them to participate and motivates them to change behaviour, provide feedback to other employees and celebrate their successes.
Employees perform best when they have a clear understanding of how their performance affects customer satisfaction and corporate success.
To keep the program top-of-mind, communication should occur at least once a month.
Leadership commitment
Incentive programs need to be championed by senior management and viewed as an investment. Managers and supervisors need the knowledge, skills and abilities to get the most out of the program.
Managers are the link between employees and senior executives and can make or break the program’s success. It’s important to train managers so they fully understand their program responsibilities. To reinforce what they’ve learned, they should receive a recognition tool kit to use after the training.
Rewards and recognition
Before launching a new incentive program, organizations must ensure employees are fairly compensated, otherwise staff will see rewards as a method of topping up what they may feel are inequitable salaries. Instead of motivating employees, this could quickly demotivate them.
Once compensation issues have been addressed, a program can be designed that will “wow” participants. Products, services or travel are all effective options, but resist offering cash. Cash has no trophy value and provides minimal motivation because it can be confused with compensation.
Rule structure
Ensure participants see the awards as valuable and, more importantly, achievable. The rule structure development should take into consideration the objectives, budget and performance metrics to help forecast success.
Here are some elements to consider when developing the rule structure.
• ensure objectives are clear;
• identify the right participants;
• budget enough for awards;
• ensure awards are perceived as valuable by participants;
• offer a real opportunity to earn awards;
• ensure the awards are worth the effort;
• keep rewards positive, immediate and certain; and
• keep it simple.
Measurement and tracking
Although measurement and tracking take place after the program is launched, the return on investment (ROI) and any other performance metrics should be identified upfront. That way, ongoing program analysis will identify challenges and provide opportunities to make adjustments along the way.
Types of ongoing program measurement can include the frequency of recognition, redemption and web activity (if the program is web based). Key measurements in evaluating ROI include reduction in employee turnover and absenteeism, an increase in employee satisfaction scores, productivity, customer satisfaction scores, customer acquisition and sales performance. These should outweigh the program costs and produce a positive ROI.
April Harvey is an incentives analyst with Maritz Canada in Mississauga, Ont. For more information visit www.maritz.com.
In conducting research for the 2007 version of its 50 Best Employers in Canada survey, consulting firm Hewitt Associates found a significant difference in the growth rate between the top- and bottom-ranked employers.
Employee engagement benefits a company’s bottom line, the study suggested, with the top-20 publicly traded best employers experiencing an average compound annual growth rate in net sales over five years of 12.9 per cent. Compare that to only 4.9 per cent for publicly traded companies among the 20 lowest-ranked study participants.
Top companies create an experience for employees that reflects the caliber of the experience they desire for customers.
There are five critical elements to incentive program success.
Alignment and communications
The best recognition programs reflect an organization’s philosophy and values.
Employee alignment is driven by continuous and varied communications such as face-to-face contact, regular meetings, print and e-communications. This helps employees understand the program, enables them to participate and motivates them to change behaviour, provide feedback to other employees and celebrate their successes.
Employees perform best when they have a clear understanding of how their performance affects customer satisfaction and corporate success.
To keep the program top-of-mind, communication should occur at least once a month.
Leadership commitment
Incentive programs need to be championed by senior management and viewed as an investment. Managers and supervisors need the knowledge, skills and abilities to get the most out of the program.
Managers are the link between employees and senior executives and can make or break the program’s success. It’s important to train managers so they fully understand their program responsibilities. To reinforce what they’ve learned, they should receive a recognition tool kit to use after the training.
Rewards and recognition
Before launching a new incentive program, organizations must ensure employees are fairly compensated, otherwise staff will see rewards as a method of topping up what they may feel are inequitable salaries. Instead of motivating employees, this could quickly demotivate them.
Once compensation issues have been addressed, a program can be designed that will “wow” participants. Products, services or travel are all effective options, but resist offering cash. Cash has no trophy value and provides minimal motivation because it can be confused with compensation.
Rule structure
Ensure participants see the awards as valuable and, more importantly, achievable. The rule structure development should take into consideration the objectives, budget and performance metrics to help forecast success.
Here are some elements to consider when developing the rule structure.
• ensure objectives are clear;
• identify the right participants;
• budget enough for awards;
• ensure awards are perceived as valuable by participants;
• offer a real opportunity to earn awards;
• ensure the awards are worth the effort;
• keep rewards positive, immediate and certain; and
• keep it simple.
Measurement and tracking
Although measurement and tracking take place after the program is launched, the return on investment (ROI) and any other performance metrics should be identified upfront. That way, ongoing program analysis will identify challenges and provide opportunities to make adjustments along the way.
Types of ongoing program measurement can include the frequency of recognition, redemption and web activity (if the program is web based). Key measurements in evaluating ROI include reduction in employee turnover and absenteeism, an increase in employee satisfaction scores, productivity, customer satisfaction scores, customer acquisition and sales performance. These should outweigh the program costs and produce a positive ROI.
April Harvey is an incentives analyst with Maritz Canada in Mississauga, Ont. For more information visit www.maritz.com.
