Reap the Rewards of Recognition

Power of Recognition Everybody likes recognition Show your employees love or risk losing them No. 1 reason employees leave jobs… they don’t feel appreciated (U.S. Dept. of Labor) Making people feel good is good for business

Power of Recognition Employees are motivated by recognition It is three times more important than salary as a satisfying element of work (Harvard Business Review) Leads to increased productivity and employee retention In turn, leads to improved customer relations and increased business

Recognition drives results A good recognition program can: Motivate and encourage good behavior Improve morale and build loyalty Retain employees; cut recruiting and training costs Increase productivity and sales Increase customer satisfaction Boost profits

Recognition drives results 50% lower turnover Key employees cost 150% of their salary to replace 38% more productivity Engaged employees perform more efficiently, are more loyal and are easy to manage 27% more profitability Companies with motivated employees are more financially stable 56% higher customer satisfaction When employees are happy, customers are happy 50% lower turnover - Key employees cost 150% of their salary to replace 38% more productivity - Engaged employees perform more efficiently, are more loyal and are easy to manage 27% more profitability – Winning companies are financially stable and return more to their stakeholders 56% higher customer satisfaction – less customer churn, more customer referrals, decreased marketing and sales expenses for new customers

Creating a Recognition Program Best recognition programs use gifts and awards Thoughtful, last in memory Constant reminder of achievement Motivate to do better Gifts are better than cash bonus Used immediately, nothing to show for accomplishment Don’t remember why received cash award in the first place Better than money…stand for more than monetary value Stand for achievement Constant reminder of success that drives an employee to do better Cash is used immediately, often to pay bills Nothing to show for accomplishment Recipients don’t remember why received the cash award in the first place

Creating a Recognition Program Promotional products are effective for motivating, rewarding and recognizing Service-based events Watches, timepieces, crystal, glass, plaques, pens, artwork, leather gifts Performance-based recognition Electronics, leisure/sporting goods, apparel, desktop/computer accessories, household items

Reward the right way Recognize with a tangible, visible reward Seen by peers, family and friends Make them proud Proud to receive and display Bring positive emotions and reminder of why recognized More personalized, the greater its impact Gives higher perceived value Recognition should involve a tangible and visible reward.  Non-monetary awards are seen by supervisors, peers, family and friends every time they are used.  Make them proud. When you give an award to someone, you want them to be proud of it. So, you don’t want to give someone something you’re not proud of. Rewards should be something recipients are proud to display. They should evoke positive emotions and remind recipients of when and why they were recognized. The more personalized the award, the greater it's impact will be. Personalization on an item makes it even more special and gives it higher perceived value. Choose items that will get the most visibility with your audience.  Do they work in an office?  Then choose a nice desktop accessory or plaque they will use or see throughout the day.  Or, if they travel a lot, pick an item that will travel with them - a watch or leather briefcase.

Reward the right way Informal recognition is important Hand out spontaneous awards when an employee excels Not just for employment milestones Sooner, not later Start recognizing right away to develop loyalty 90 days, 6 months, 1 year, etc. Retention isn’t fought at 20 years, it’s fought at one-to-5 year level • Informal recognition is important. While all employees like to receive formal recognition, including annual awards, not all employees are impacted by these programs. Empower your managers to engage rank-and-file employees by handing out spontaneous rewards, such as logoed apparel or desk accessories, when an employee excels. • If the only time you recognize employees is when they hit employment milestones, you may have already said good-bye to a lot of high-quality employees. Loyalty is less common among the younger generation. You can’t wait five years to show appreciation for loyalty in employees you wish to retain. You start right away. The retention battle isn’t fought at 15 or 25 years, it’s fought at the one-to-5 year level.

Reward the right way Consider the recipient Involve the family One-size-fits-all doesn’t work Offer choice and let employees help choose items Involve the family Rewards than can be used in leisure time If an employee’s spouse is on board, he/she will be more engaged in the workplace • Consider the recipient. One-size-fits-all rewards don’t work, especially on a global playing field. Offer choice in your recognition programs and let employees help choose the items. Effective programs feature high employee involvement during development of program. Ask for employees’ opinions and find out what awards would best motivate them as a group. • Involve the family. Sending home a picnic basket full of goodies to an employee who has put in long hours helps drum up support at home. If an employee’s spouse is on board, you can bet that employee will be more engaged in the workplace.

Reward the right way Give more frequently, but on smaller scale Generation Y employees crave constant recognition Reward for day-to-day achievements Unusual action to please a customer Long hours to meet project deadline Cost-saving or productivity enhancing suggestion Completing a big sale Reward for day-to-day achievements

Summary Increased business is the result of customer satisfaction If you want customer satisfaction, motivating and retaining employees is key Retention is directly tied to rewarding and recognizing individuals Training and motivating employees is the key to customer satisfaction Keep customers satisfied by treating your employees well. To keep customers, treat employees well. Increased business is the result of good customer relations Customer satisfaction stems from employee motivation and retention Retention is directly tied to rewarding and recognizing individuals