Incentives aren’t just for sales anymore

Effective employee recognition is no longer an option for employers

If an organization wants to maximize the performance of those individuals that come to work for your organization, recognition is a key driver for obtaining that performance.

This is true for all employees, not just salespeople, who traditionally made up the bulk of incentive rewards in the past. Organizations need to learn to use recognition and rewards programs on a proactive, rather than a reactive, basis to simply address pressing problems of the moment.

Rewards and recognition need to be aligned with an organization’s mission, vision, values and strategies, not limited to more narrowly defined objectives of the past: Sales are flat? Install an incentive program to spark business and get the sales force cranking. Insurance costs on the rise? Institute a safety program to incentivize reduced accident claims. Quality is off? Install a quality program to reduce errors and defects.

This piecemeal approach to using incentives leads to uneven and redundant efforts and inconsistent results that can be counterproductive to the overall organization’s goals. If an organization has taken the time and effort to clearly establish a core mission, values and strategies, then its reward and recognition efforts should clearly and systematically reward the behaviors and outputs that reinforce those elements.

In fact, research clearly validates that the best forms of recognition are contingent in nature, although the bulk of recognition dollars are still spent on programs that reinforce presence over performance, such as years of service awards.

What’s the solution? Greater clarity, co-ordination and communication of recognition, rewards and incentives can be obtained from a more strategic approach that systematically reinforces organizational goals. Organizations need to create work environments that are both positive and reinforcing at the individual level for those things that most matter to the organization’s success.

Managers have fewer ways to influence employees and shape their behavior today, but they can use positive reinforcement in overt ways to influence and encourage desired behavior and results from employees. Having an organizational value and expectation to recognize performance when it occurs makes it easier for any manager to participate in the practice.

How best can you enhance human performance using the power of recognition? In my experience, it involves two things:

Commitment from the top. A heartfelt leadership mandate, sponsored by the executive ranks of the organization, is the best way to drive any performance initiative. Top management needs to take a look at what type of organizational environment exists and make a conscience focus to use more positive and productive management strategies to systematically reinforce performance that matters.

Management training in recognition. From my research, the number one reason managers report as to why they don't use recognition is "they don't know how" and 56 per cent of today’s managers will never use recognition without an intervention that changes their beliefs and practices regarding the topic.

Managers typically feel they lack the time, creativity and knowledge to provide recognition well to their employees. This shortfall can be overcome by providing training to managers to embrace the topic though their heads, hands and hearts.

“Heads” is the conceptual model for managing and beliefs they hold about recognition and their role in making it happen. “Hands” is their skill level and confidence in doing recognition well. And “hearts” is their motivation and passion to do recognition well with their employees.

The real key to making a breakthrough with management involves a blended learning model which uses the best of live training and combines that with an e-learning system for maximum integration of skills and competencies back on the job.

The Celebrity Service Institute (CSI) recently launched a research-based business results process delivered over the web. Its spaced repetition learning web-based education and performance support system integrates skill competencies on recognition with managerial responsibilities, allowing organizations to systematically raise both the awareness and skill levels of all its managers on an ongoing basis.

In addition to being able to be delivered in short 15- to 20-minute lessons directly to managers’ laptops, CSI uses a wide diversity of learning experiences including interactions, simulations, online role play, interactive testing and real-time feedback and coaching to make the lessons engaging.

From an organizational perspective, the e-learning system provides both consistency and scalability – two important dimensions in taking any message out to all corners of the organization.

Regarding the topic of recognition this e-learning system marries the factors employees most want and value today, with the required leader behaviors to meet and exceed those needs. The results lead to a more energized, fast and flexible workforce, and an organization that will have recognition as a core competency on the part of all its managers. The system also includes pre-post attitude and knowledge assessments, interactions where the learner can practice, drill and rehearse in a safe virtual environment with real time feedback, and tracking and reporting to ensure transfer and application back on the job.

Timely formal and informal rewards and recognition provide effective ways of encouraging higher levels of performance from employees. Yet, it is a rare organization that embraces the principles of recognition to create a competitive advantage in achieving its organizational mission, strategy and objectives.
Any organization has the ability to tap into a wellspring of energy that their employees are ready to bring to bear in helping the organization reach its goals and objectives.

Bob Nelson is president of San Diego-based Nelson Motivation Inc., co-founder of the Recognition Professionals International (formerly the National Association for Employee Recognition), and a multi-million copy best-selling author of numerous books on reward and recognition, including 1001 Ways to Reward Employees and The 1001 Rewards & Recognition Fieldbook: The Complete Guide. He can be reached at [email protected] or www.nelson-motivation.com.

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