Boosting Employee Morale While Maintaining Superior Customer Relations Chris Rossi

Rewards and Recognition Industry Proliferation of companies/associations designed to grab a piece of this market.  Awards and Recognition Association o Return on Performance magazine  Incentive Marketing Association o Recognition Review magazine  Recognition Professionals International  Incentive Magazine $76.9 billion Market for Employee Recognition *2013 Incentive Federation Incentive Market Survey 2

Why Incentive Plans Cannot Work Alfie Kohn - Harvard Business Review “Rewards do not create a lasting commitment. They merely, and temporarily, change what we do.” Examine True Costs of Incentive Program 1.Pay is not a motivator 2.Rewards punish 3.Rewards rupture relationships 4.Rewards ignore reasons 5.Rewards discourage risk-taking 6.Rewards undermine interest 3

THE PSYCHOLOGY OF MOTIVATION 4

How Recognition Works Employee Needs 5

Intrinsic Motivation How Motivation Is Drive By Purpose and Not Monetary Incentives How Motivation Is Drive By Purpose and Not Monetary Incentives Intrinsic Motivation 1.Autonomy – the urge to direct our own lives. 2.Mastery – the desire to get better and better in something that matters. 3.Purpose – the yearning to do what we do in the service of something larger than ourselves. 6

Question: So where does that leave us? Answer: Employee Engagement Let’s review the research that supports our findings. 7

70% of American workers are “Not Engaged” or “Actively Disengaged” Category Breakdown Actively Disengaged - 18% Not Engaged - 52% Engaged - 30% Active disengagement costs the United States $450 billion to $500 billion per year The Gallup Organization Study released in 2013 Over 150,000 U.S workers surveyed 8

The Current State of Affairs 1 Team = 3 Engaged + 5 Not Engaged + 2 Actively Disengaged 9

Study Findings Financial Impacts High Employee Engagement Affects Performance Outcomes* 37% lower absenteeism 25% lower turnover (in high turnover organizations) 48% fewer safety incidents 10% higher customer metrics 21% higher productivity 22% higher profitability *Comparing top quartile in engagement results to the bottom quartile. Leadership Impacts “Managers who focus on their employees’ strengths can practically eliminate active disengagement and double the average U.S. workers who are engaged nationwide.” 10

Study Findings Employee Impacts The generation at the beginning (Millennials) and at the end (Traditionalists) of their careers tend to be more engaged than those in the middle. Millennials are most likely of all the generations to say they will leave their job in the next 12 months. Women are more engaged than men. Employees with college degrees are less likely to report having a positive, engaging workplace experience. Engagement eclipsed corporate policies and perks. Customer Impacts Employees are not prepared to engage customers. Only 41% know what their company stands for and what makes them different. Engagement among service employees are among the lowest of any occupation and continue to decrease. 11

Dale Carnegie Training & MSW Research Study released in 2012 Sample Size: 1,500 U.S workers Key Drivers to Employee Engagement 1.Relationship with immediate supervisor 2.Belief in senior leadership 3.Pride in working for the company 12

Study Findings 71% of the U.S. workforce is Actively Disengaged or only Partially Engaged Category Breakdown Actively Disengaged - 26% Partially Engaged - 45% Fully Engaged - 29% Snapshot of Partially or Actively Disengaged Segment Middle-aged employee (40-49 years old) The most highly educated (ex. post- graduate education) Lower-level income employees earning less than $50K Newer employees (Less than a year) Client facing and clerical staffers Those working in government, military, education and manufacturing sectors 13

By leading in a “Person-centered” way… Caring Managers and Workplace EnvironmentEngaged Employees Employees more committed, dedicated, and motivated to make the organization a success Customer EngagementIncrease in Sales and ProfitsIncrease in Stock Price 14

Evolution of An Engaged Employee Source: Dale Carnegie 15

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Bain & Company and Netsurvey Study released in 2012 Sample Size: 200,000 employees across 40 companies in 60 countries Concerning Trends Uncovered Regarding Engagement 1.Engagement scores decline as employee tenure increases. 2.Scores decline at the lowest levels of the organization. 3.Engagement levels are lowest in sales and service functions. 17

Study Findings Common Themes of Successful Engagement Leaders 1.Line supervisors lead the charge. 2.Supervisors have the right preparation to hold candid dialogues with teams. 3.Teams rally around the customer. 4.Engagement tactics are tailored for different employee segments. 5.It’s all about the dialogue, not the metrics. 18

Summary Research Supports Intrinsic motivation is the key to an engaged employee. It’s what will drive the permanent adjustments in behaviors. The front line supervisor is pivotal in creating and maintaining a team’s engagement level. An highly engaged workforce outperforms an lower engaged workforce. This engagement tends to yield greater financial success. 19