Rewarding and recognizing an employee should be easier.
Back in the day, my VP of HR gave me a $50 gift certificate to Ann Taylor for meeting my quarterly goals and objectives. It was a nice surprise. I was appreciative. I walked into the store — where the cheapest petite pants were over $50 and needed to be hemmed — and I bought a pair of sunglasses. Then I walked out and forgot about the gift.
Isn’t that how most rewards and recognition programs work? You do your job because you are an adult. Someone gives you a nice surprise for being an adult. You say thank you. Then you go about your business and forget about it.
Well, it’s much more complicated than that. There is a huge industry built around the psychology of recognizing colleagues. And there’s a huge business in giving junk made in China stuff to employees and acknowledging accomplishments.
Who’s in that business? There is OC Tanner, Globoforce, Michael C Fina, Inspirus, Martiz, and I Love Rewards. There are hundreds, actually. Go search for them.
Some of these companies operate as clearinghouses for gas grills and gold watches. Other companies allow you to use the fancy internet to thank your colleagues and send them a bottle of wine. None of these programs are cheap. It’s more cost-effective to go buy a gift card at Macy’s than to recognize an employee through one of these systems.
But if you are in HR, you want a reliable and valid way for colleagues to recognize one another. You want data. And you want to avoid ‘quid pro quo’ recognition. And you don’t want HR to manage this shit. Aren’t you busy enough with the company picnic?
You probably want to look into employee recognition software, but please don’t pick a vendor based on a catalogue full of pens and golf bags.
- The best ‘employee rewards & recognition tools’ allow an employee to share the recognition with friends and family members. (The recognition is sticky and lasts longer than a simple transaction at an overpriced retail store.)
- You want to buy a system that allows employees to build a history of her accomplishments and fold that information into her social networking profiles and enhance her professional ‘brand’.
- And a great tool will allow a manager to keep track of the data, review the information in an organized way, and import the data into a performance management tool.
So If you’re in the market for a rewards and recognition provider, I don’t care what company you pick. I am not part of some chumpy affiliate program where I earn 15% if you pick a certain vendor. I do want you to apply critical thinking skills and understand how your company historically recognizes and rewards its people. I want you to choose a program that is easy to use. I would also recommend a software solution that requires very little effort from IT to implement and maintain. Finally, I would recommend a program that you would use yourself.
- Is it fun? Is it simple? Does it require very little oversight from HR?
If you can say yes to all three, you’re on the right path.
And you can keep your dated rewards catalogue and give me something meaningful for my hard work. I want to be recognized with a trip to London. (Just saying, Starr Tincup. Just. Saying.)
26 comments ...wanna add one?
The first thing I thought of when I heard about these recognition plans is how management actually figures out who to recognize. Some jobs involve really sexy tasks that are visible. These are the jobs that get recognition. There are jobs that are just as important (and sometimes more important) where people slog through years of work to keep everything working. There are projects that just have to get done such as infrastructure jobs that are invisible to all except those who are aware of them in the trenches. These almost never get recognition. In general, these recognition system can not be fair to the employees overall. Everyone knows that, but no one will deal with it since it gets complicated. Cynicism builds.
It’s tough to create an equitable system where people get recognized fairly. Software can help (sorta). So can a leadership team that reminds people that it’s part of being a good human being to say THANK YOU.
You knew I’d be here sooner or later….
I’d add a couple of thoughts for your readers….
A.) The best recognition and reward program is based on a good analysis of what you want to accomplish – don’t just go with the “standard” – there isn’t one. It has to be designed around your unique culture.
2.) Software doesn’t alleviate the need to educate and train management on how to “do” recognition, what to recognize and how to use the systems – managers (management) is a key gear in this machine – don’t expect your software to do the work – it just makes doing the right work easier.
iii.) As RogertheGeek highlights – when a program misses groups and segments of people it isn’t a good program. That’s a design issue – not a software issue. That’s a management involvement issue not a program issue. Fix that first – then look at how you do the logistical side of recognition and rewards.
IV.) Remember – most if not all incentive and reward companies make money by selling STUFF… if they didn’t sell stuff they wouldn’t stay in business. They have a vested interest in your program using stuff as an award. However, many times the stuff is less important than the act of recognition. Design the program to drive and reinforce appropriate values and behaviors first – look for stuff second.
Now – I’m a bit biased… I don’t sell stuff. I sell design – and then help you go buy the stuff. Sales pitch over.
Dude, go blog!
Thank-you for reading my mind again. There has been rather a lot of promotion of these rewards businesses lately not least of which is a recent promo event naming a list of businesses name ‘best employers’ by some mysterious survey completed by an unnamed expert or something and gushingly sent on its little viral path by (not naming any names here) internal HR Professionals-who, uhm, work for said companies.
It isn’t just rewards for ‘doing whatever on the job’ involved it is also the ‘here is a gift and a mini pin for length of service’ programs all wrapped up by the same suppliers. Just for the record-the cash and extra vacation offered by one employer before the advent of rewards suppliers remembered years later, the catalogue of what appeared to be mass produced stuff that goes in drawers or sits on shelf collecting dust to choose your reward from-only memorable in how disconnected it is from whatever the reward is supposed to signify.
You know what many peopke say: I would prefer a letter referring directly to my accomplishment that I can show to my family/friends, it would be an real benefit if this was noted in my performace review file so when I apply for a promotion it is on record, You know I really like the hand written Thank-you note my manager gave me-let me know he understood espactly what I do in my work; there are so many more examples of this that I have heard over the years but that covers the theme. People want to know that their manager really does know what they do and acknowledges it, they want to know that whether you work on the high profile sexy projects or are committed to getting it done, care about quality and customer service, quietly do more than required on a regular basis that it is noted, Thanked, acknowledged in a meaningful way.
We should not be surprised that acknowledgement in writing and verbally that actually shows a record of accomplishment is more meaningful than a cheap massed produced catalogue item. Few people covet another pen, coffee mug, paper weight-although that iPad in the iStore……
Thanks, Karin!
Good post, Laurie. I believe in the importance of recognition and rewards–survey after survey says employees are looking for this–but am conflicted about the best way to provide it. Packaged gift plans are dull; cutesy, themed notes and rewards are fun, but become trite over time. When I want to say thank you to someone, I try to find out their favorite restaurant or store or pasttime and pick up a small gift card that fits. Handwritten notes still are best, I think, but even a prepared card is okay.
I still think the best recognition, though, is the unexpected note or email from someone. Having already admitted to being incredibly needy myself, I confess I have a “kudos” Word doc I created, where I copy and paste those unsolicited words of praise and save for a day of discouragement or frustration: Just rereading them reminds me I know what I’m doing, I am appreciated for my contributions (even the little ones) and I have something to offer my company and my colleagues. Goofy, I know, but it works for me.
That kudos word doc is a great idea.
Yay, great timing. My inbox was recently filled with gushy, virally little promos about companies announced as “best companies” to work for which appears to have been awarded based on some mysterious survey by an unnamed organization.
What employees say they want: written acknowledgement of my specific accomplishment that I can show my family/friends and is in my performance file as a record of my awesomeness.
What employees say they get: an email with a link to an online catalogue of a bunch of stuff that bears no connection to what the reward is supposed to be acknowledging. With a standardized form letter that doesn’t quite seem to mention specifically what their contribution was. Except those length of service rewards, because that only requires that the HRIS fill in the (date) and send it off to my manager to sign.
Few people covet another pen, pin, coffee mug, paper weight etc. Many people very much appreciate real acknowledgement and appreciation from the person who directly affects their career, the kind of acknowledgement that might be a contributing factor to their getting that next promotion, or being chosen to join that oh so cool project team etc.
I have had employees bring their ‘reward’ offering and ask if the company could just donate the $ to their favorite not for profit organization, quite a lot of people actually. I have also had a few employees say they would rather the company stop giving these things out and improve the overall compensation packages with the money instead.
There is a disconnect between how awards are handled in large organizations and what people will tell you is meaningful. And the cost difference is quite significant.
So true.
So great to see an emphasis on employee recognition & reward- a hugely undervalued & underappreciated area in this challenging economic environment!
This is a huge biz… and it’s my fault for not seeing it sooner!
How ’bout motivating many (70-90 people) multi-generational (age 18-60ish) retail employees who are minimum wage-warriors? I’ve been busting my ass with my assistant manager for over a year to appropriately recognize and motivate my team for morale reasons (and great business results), but I’m starting to come up empty handed. And of course, I’m working on a super-shoestring budget. They like it when I hop around in the halloween costumes for a giggle, but I’m sure that even that will get old fairly soon. Handwritten thank-you notes are a part of our company culture, so personally saying “thanks” is a given. Is my plight just the nature of the retail beast, or do I have any options?
Am I paddling alone in my little retail boat? Anyone else out there? Thanks!
Hm. Good luck with that. We’ll see if anyone has any ideas!
PS, Laurie, love your blog! I’m a fellow North Carolinian, and I look forward to your blog updates every day. Keep up the great work!
Thank you!
I once had a company purchase an artwork for an employee in recognition for passing a test that opened the door for significant new business. It certainly passed the test for allowing the “employee to share the recognition with friends and family members” and it was special and unique. That employee remains a very committed and loyal employee who feels very valued by the company.
It is a mystery to me how any software could ever give you that kind of personal touch. And above anything else, I think workers want someone to recognize that they are more than a number.
What if your boss recognizes you and you can post that recognition on Facebook and then your mom, your BFF, and your cat friends could also see it and congratulate you?
That’s the personal touch.
Laura, I don’t know what you’re retailing, but my daughter works for a clothing retailer that recognizes her efforts almost every day with goods from the store for meeting her sales and service quotas. Earning minimum wage is a little less painful thanks to the free wardrobe! Last week alone she earned a pair of jeans, a sweater, a denim jacket and a necklace. They have these little scratch off cards so at the end of her shift she gets to pick one and find out what her “prize” is. Like I said, I’m not sure if what you’re selling has that kind of mass appeal, but hopefully this gives you at least a hint of inspiration
Good ideas!
This post reminded me of something I haven’t thought about in years. My former employer the had some wierd options for service awards. In addition to the usual ugly clocks and ugly jewelry, at 10 years you could get a big hunting knife and at 20 you could get a shotgun. Guess they figured if you made it 20 years they could trust that you wouldn’t go postal with it.
I work for a major global electronics and entertainment company. But somehow, someone decided that a gift card to Tiffany’s would be the perfect length of service award. With 5 years of service, employees get a $50 card. Yeah, maybe they can buy an empty blue box with that. I got a $250 card for 15 years of service this year. You can actually get something with that, but I’m a pretty simple kind of gal. Tiffany’s isn’t my thing. And I haven’t even begun to talk about what many of our male employees think about this. I know we could have a whole other conversation about “service” awards, but if you’re going to give them — why not give a gift card for to buy one of your own company’s products! Duh!
This stuff makes me crazy.
Nice post Laurie
I don’t want stuff. Give me cash – like a big on the spot bonus.
In my first corporate gig I collected letters from the execs. They were big on the “psychic” rewards. I still have all of them. I have the letter from the Chairman for figuring out how to make $1 million of working capital appear, the letter from the CFO that thanked me for the $100,000 leak we had in inventory, the countless notes thanking me for this project or that project. That company went through a LBO in the late 1980′s – and all of the officers and directors got “equity grants” – basically stock options for when the company went public again. The lowest guy on the list was me – and I was not even a manager – just an analyst. It was nice to get that kind of recognition.
I still have all of those letters. The one that I really cherish is from the VP I worked for. And it was not a thank you. It was a statement that he thought the work was great – but not to get discouraged as the company did not move on the idea – that it was just too far ahead of it’s time and they would never understand it. He was right. I keep it as a reminder of how really stupid most business leaders really are.
HI Laurie,
First time reader, and love this post. It pretty much hits everything on the head.
For years I’ve been harping on clients to use data to manage their awards efforts, some software systems do a decent job of this, most don’t. The industry has been split on this issue from the time when the service award companies have been selling their jewelry or when Maritz developed their first incentive program. Data to implement these initiatives is hard to come by and takes a lot of work and planning up front. And these award companies may sound the same, but they are very different when it comes to employee recognition. The traditional service award companies (the Tanners and Finas) developed their platforms to sell more high priced jewelry etc. The Maritz developed theirs to implement incentive activities that were aimed at improved performance not employee recognition, When you put them all in the same pot, and then try to determine which is best suited to your needs, the confusion that reigns at the time of purchase is one of the toughest decisions that an HR person will make, and by experience most eally aren’t trained in the nuances and information needed to make the best decision.
Paul Hebert has it right and knows more about how to design programs that work than 99% of the folks selling this “stuff.” I’m just one selling this “stuff”, I’ll leave all that heavy lifting to others who have the patience to deal with it.
Keep up the good work
Ah recognition. My long tour was with hi-tech/engineering companies who seemed to struggle recognizing that they were populated by people. What better recognition than after a death march project to get to play pin ball again. Life work balance is life is work and hence is balanced.
We did love project or company memorabilia though and to give them credit they usually sprung for quality. For projects we fell in love with shirts. When a project was done/released those involved in the project in any way got a shirt. (tee shirts, or at times up market knit shirts with company logo and project logo and/or name. It became “here have a shirt!” But as someone herein’s already said if you’re going to recognize project participation, you’d better do your homework and dare not leave someone(s) out who thinks they helped. the invisible people..procurement, accounting, facilities, and yes HR. Hell to pay.
Reward & recognition programs are a minefield if not done right.
Then there’s individual of the month, quarter year etc. who picks? what criterion? One company unit I worked for decided to do that by a committee of individual contributors, no managers allowed, using rules of fairness designed by management. That didn’t work too bad as everyone knew who the top producers were anyway. The committee also designed the proposed award with management deciding on the winning design . I can’t remember if the person got to keep it, or it was handed off to the next lucky winner. I do remember, that it was universally considered butt ugly, but as such was cherished for its difference & proudly displayed. I think as someone point out, it came with some cash.
The most successful idea, judging by total acceptance and lack of sarcasm was the donations program. The facility Director has a discretionary budget of 1K (aka petty cash). We turned it into a donations program. Any employee could submit a donation suggestion he/she wanted to sponsor in the name of the company. (excluding religious or political causes). An employee committee managed the fund. People were very conscientious in its use, meaning sensible. No one requested 1K. Volunteer fire departments, school athletic programs, and the like. If approved, that person, speaking for the company donated the check in person to the recipient. The troops loved it, and 1K went surprisingly far.
It was a computer company so in addition to that we donated computers to schools to a pretty generous degree. Also popular with employees.
I’m sure it is a tough job to choose a vendor. Many of the comments above are right on and so valid. Ultimately it is about the recognition experience, both the presentation and the award must be meaningful and pertinent for this to be a positive outcome. Leadership and managers need to be on board and understand the power of recognition done right. Written thank you notes and kudos specific to the achievement or behavior truly work. The fact that your manager notices your work and takes time to mention it and recognize your value goes a long way. Unfortunately taking the time to notice AND to recognize is easier sad than done. Many managers miss the opportunity to give praise and suddenly the need for coaching arises… the positive behavior is now in the past and the focus has to be on the negative. When positive reinforcement takes place all along the way it makes those necessary coaching opportunities more pleasant, less negative and more powerful resulting in a trusting relationship. There are times when an award and the “right” award is appropriate and there are times when it’s not necessary. The best recognition vendor will be able to help you understand the reasons why recognition is important and how to practice it effectively.