strategic compensation

 
         
   

RECOGNIZING EMPLOYEE ACHIEVEMENTS

by Catherine M. Meek
President, Meek and Associates

Let them eat cake! Or how about breakfast at Tiffany's? Or lunch with the President?

Recognizing employee achievements is not new. In the past, however, recognition focused on service and retirement. Today, recognition programs are as varied and diverse as our employees.

How about an advertisement in the local newspaper naming and thanking your employees for their contributions? Or providing a donation in the employee's name to the charity of their choice? What would you say to house-cleaning services for six months?

At a time when businesses are being pressed to maximize every payroll dollar and when customers and shareholders are being emphasized, it is critical not to overlook the important contributions of employees. And recognition programs are a cost-effective, high-impact way of saying thank you in public -- they show the company does notice and it cares.

Recognition awards are used by many of our clients to:

  • Create role models and heroes by publicizing super-achievers -- team and individual.
  • Express appreciation for employee contributions.
  • Reinforce important company values -- existing and desired.
  • Celebrate and publicize company and individual successes.
  • Have fun!

While cash compensation approaches can also address these objectives, money is not the only, or even in some cases, the best way to go. One of the most consistent findings in our studies is that cash compensation, while important, is often overshadowed by relationships with co-workers, opportunities for growth, challenging job assignments, the company's top reputation and feeling valued and appreciated.

EXAMPLES OF WINNING PROGRAMS

Here are a few highlights of innovative, creative recognition programs used by our clients:

  • "Caught in the Act of Caring"
    Patient care workers receive special awards for outstanding and/or innovative patient service in a hospital.

  • "Guaranteed Services"
    A fund is set up to guarantee customers outstanding service. If customers feel they don't get it, they are reimbursed for services rendered directly from the fund. At the end of the period, all dollars remaining in the fund are raffled to employees.

  • Safety Awards
    Drivers receive cash and plaques quarterly for the best safety records at an Oscar-like awards banquet.

  • "Cost Busters"
    Employee teams research and suggest ideas for saving money. If the idea is implemented, the team members become part of the "Cost Busters Club" and large posters of the team are prominently displayed throughout the company.

Other examples include:

  • Have the President or manager of choice do the recipient's job for a day!
  • Provide a week off with pay.
  • Have the President or senior manager write a letter of appreciation for the employee's achievements.
  • Create special, very public awards for those who are usually behind the scenes or on different shifts.
  • Provide tickets and childcare arrangements to sports, music or cultural events.
  • Arrange for a month's tutoring for employee's child.
  • Have your boss attend a meeting where you acknowledge employees' accomplishments.
  • Establish and name an award after an exceptional employee.

MAKING RECOGNITION WORK

While recognition programs like these and others can be real winners, our experience suggests it is not always as easy as it looks. If you are considering recognition programs for your organization, keep in mind a few principles:

  • Make sure the program is compatible with your culture and values.
    Employee of the Month is disastrous in a company that emphasizes teamwork.

  • Define the selection criteria up front.
    Make sure everyone understands the connection between achievements and rewards, and the criteria used to determine them.

  • Keep the selection process clean.
    Favoritism and politicking are instant credibility killers.

  • Employee involvement can promote fairness and excitement.
    Never establish quotas.

  • Required notes of commendation each month and required monthly winners destroy the spontaneous impact of awards.
    Too many recognition programs dilute the performance message.

  • Recognize and reward publicly.
    Make sure recipients get lots of open, well-publicized attention. Not to do so defeats much of the program's purpose.

  • Change the programs frequently to keep them fresh.
    The same program, the same winners, the same awards get old fast. Be aware these programs have short life cycles (6 to 12 months).
  • Do not use recognition programs to mask an inadequate compensation program.
    These awards cannot make up for noncompetitive salaries.

Celebrating special achievements through recognition programs is a low-cost, high-payoff strategy for motivating top performance. If you are already doing this, we would be interested in hearing what works for your organization. If you are not yet convinced -- remember Marie Antoinette!

top of page | main list