Step Four - Develop Effective Recognition Programs

THE STONE GROUP
1981 MEMORIAL DRIVE
Suite #223
CHICOPEE, MA 01020

Michael J. Stone
phone(413) 726-9095
toll free: (866)615-6698 Mike@BuildaBetterWorkforce.com

...

Step Four - Develop Effective Recognition Programs

There is enough evidence to show the value of a solid recognition program when it comes to BBWF. A properly executed recognition program can produce a return on investment of up to 20 times.

However this is not an exercise to be taken lightly. Poorly executed recognition programs can have a tremendous negative effect on your intended outcome. In developing recognition programs, like developing leaders, perception is reality. If your employees perceive your program to be unfair, or random it will most certainly have a negative affect on employee morale.

For your recognition program to be effective it must be built on a "win/win" foundation. Your employees must feel genuinely appreciated while essential company objectives are being met, and reinforced.
As you begin to develop your recognition program, you must also begin to decide what behaviors to recognize and reward. This, of course, is very critical to the success of any program you try to develop. Before you start to worry, I have good news for you. You have all the ingredients for a premiere recognition program. I mean a top-notch recognition program where your employees are rewarded, and recognized for the behaviors that drive your business to the levels of success you dreamed about.

Look first to your brand message. What message do you want the world to know about your company? This becomes the foundation of your recognition program. Recognize and reward behaviors that reinforce your brand message. Your constant attention to your Brand message will fortify the significance of that message.
If your brand message is that you are the world leader in customer satisfaction, then I would not suggest that you base rewards on sales volume. Instead, you might reward customer retention. If you want to include a sales volume reward, perhaps you could reward existing account growth.

If you want to be known as the sales leader, I would not reward the person with the best cost-saving idea of the year. If you want to reward sales as well as savings, again, perhaps you reward sales growth to existing accounts since new accounts are much more expensive to acquire than existing accounts are to grow. Therefore, you can stay true to your long-term brand message, while addressing some more immediate business concerns.

Next, look to your top performers. The job match pattern created by the Profiles XTTM outlines the behaviors of your top performers. Recognize and reward the behaviors that lead to top performance. The reports generated by the Profile XTTM give you the verbiage to formulate very targeted recognition programs that strengthen the commitment to top performance, and guide all employees to greater success.

Traditional recognition programs have evolved over the years. Some of the tried and true methods of recognizing employees remain effective today, while others no longer provide the intended return on investment.

Industry studies show that rewarding length of service still works. However, with today's American worker averaging 7 jobs by the time they turn 35,5 you might not want to wait ten years before you hand out that first pin.

The biggest change in the recognition game is implementation. Today, the key word is choice. You choose wisely what gets recognized, and then wisely allow that employee to choose whatever award they want from a variety of options. The evidence supporting this change is very clear.

Be creative, be spontaneous, and be careful! Some of the most effective recognition programs cost you next to nothing. It could be as simple as lunch with the owner to share ideas. Low Dollar amount gift cards are very popular, and very effective. Even if you have free coffee in your office, a $5.00 - $10.00 gift card to the local coffee shop goes a long way (unless it's Starbucks) to increasing your employees morale, productivity, and engagement.

Here are the things you must do in order to have an effective recognition program: You must:
1. Recognize behaviors that support your brand message.
2. Recognize behaviors that support top performance (as indicated by the Profile XT mentioned in Step 2: Leverage Top Performers).
3. Recognize Behaviors that help develop the future (i.e. develops leaders, develops products, develops leverage for you as an owner, etc).
4. Reward Employee Referrals
You must not:
1. Allow room for anyone to feel as if your program is unfair (i.e. picking favorites, random recognition, sales rewards are "better" than service rewards, etc.)
2. Wait too long to recognize employees who deserve to be recognized.
3. Hold back from employees with previous company transgressions. This is shortsighted and can have long-term negative effects on overall company morale.