Building a WOW! Recognition Culture Bill Bergstrom National Recognition Manager Terryberry Company

1.Employees Needs 2.Recognition Opportunities Building a Successful WOW! Recognition Culture 3.Recognition Results 4.Recognition Responsibilities

1. Understanding Employees Needs “Yeah I called her up, she gave me a bunch of crap about me not listening to her, or something, I don't know, I wasn't really paying attention.” Jeff Daniels Dumb and Dumber

A.H. Maslow, ‘Learning and Human Abilities.’ Self Actualization Needs Advancement opportunities Esteem Needs Recognition/Appreciation Belongingness Needs Work culture Safety Needs Health insurance, job security Physiological Needs Food, clothing, shelter (paycheck) Maslow’s Theory In the Workplace

4 Predicators of Overall Job Satisfaction 1 HealthStream Research 2008 Morale Extent to which I enjoy the work itself Service Quality Do I have pride in my workplace? Sense of Belonging Value of my work and ideas and input Employee Recognition Is the system fair in recognition and job promotion?

4 Predicators of Overall Job Satisfaction (Many Years Ago) 1 Herzberg, 1968 & Baird, 1976 & Korman 1970 Responsibility Performing well at an interesting & stimulating job Self Esteem Engaging in behaviors consistent with self-image Advancement Value of my work and ideas and input Achievement & Recognition Addressing individual needs & personal growth

 90% of businesses indicate they recognize their employees.  Only 40 % of employees feel adequately recognized by their supervisor.  65% of employees say they received no recognition in the last year. Realities of Today’s Recognition Practices 1 World At Work, Towers Perin & Gallup

“People often say that motivation doesn’t last. Well, neither does bathing- that’s why we recommend it daily.” Zig Ziglar 2. Recognition Opportunities

Recognition is a 3-Legged Stool

 Structured Recognition Formal Recognition  Significant Awards for Significant Achievements  Objective Criteria

Service Recognition Supports a WOW! Recognition Culture Employee Performance MGR’s Attention # of Employees

 Casual Structure Informal Recognition  Often Supervisor and/or Department Driven  Defined Criteria

Most Commonly Used Award Programs: “Trends and Best Practices in Employee Recognition”, RPI 2006 Service Award Programs:90% Performance:87%** Retirement:51% Sales:51% Suggestion:41%** Employee of the Mo/Qtr/Yr:39% Safety:33%** Attendance:22%**

 Casual Structure Day-to-Day Recognition  Peer-2-Peer & Manager- 2-Peer Driven  Combine Subjective & Objective Criteria

Recognition Drives Engagement: ENGAGEMENT LEVEL 20% increase 35% increase Daily Telegraph, March 22, 2008, Ford. (citing findings of David Brown, Director of Hewitt Associates) FREQUENCY

4. Recognition Results “The Seven Standards are nothing more than idealistic quotes on walls until employees live them out each day on the job…” Karen Mathews WellStar Health System

Discovering your ABCs is key Recognition Underscores the: »A ttitudes »B ehaviors and »C ontributions Your organization values most

. “A Watson Wyatt Reward Plan Survey of 614 employers with 3.5 million employees showed that the average turnover rate of employers with a clear reward strategy is 13% lower than that of organizations without one.” 1 1. Nolan, Paul. (2007, March/April) The Accelerator: Workplace recognition can bridge the gap between where your team is now and where it can be. SalesForce 17-22

Operating Margin Worst 2nd 3rd Best 1.0% 4.1% 6.6% Employees’ Rating 2.4% “Hard Evidence”, Incentive Magazine, August 2005 p.10 Link Between Employee Satisfaction & Profitability

Set Expectations & Criteria Don’t: set criteria that conflict with other corporate objectives Simple Quantifiable Challenging Attainable

Awards should…  Have Trophy Value  Exclusivity – “Buzz” Factor  Longevity  Differentiation

 Timely  Aligned  Specific  Positive & Personal Make A Meaningful Presentation

4. Recognition Responsibilities “HR is important in good times. It defines a company in bad times.” “…get out of the picnic, birthday card, and insurance forms business.” Jack Welch 2009 National SHRM Conference

A research study conducted by The American Management Association identified eight different areas of job satisfaction most often linked to employee motivation. Employee RankingSupervisor Ranking Areas of Job Satisfaction Credit for the work they do; Recognition Interest in work Fair pay with salary increase Understanding and appreciation Promotion on merits Counseling on personal problems Physical working conditions Job security

Likely to look for a new job54% Gen Y71% Post-Recession Plans Source: Adecco, June 2009

Influence Recognition Leadership –Culture Top Management –Make it personal –Relationship with manager is #1 predicator of job satisfaction Marketing –11.3

HR’s Influence on Recognition Hire Train Accountability Keep Things Fresh Recognize “Your job is to raise the quality of the team.” Jack Welch 2009 National SHRM Conference

1.Employees Needs 2.Recognition Opportunities Building a Successful WOW! Recognition Culture 3.Recognition Results 4.Recognition Responsibilities

Available at Amazon.com or What’s inside:  Real-life recognition stories from top businesses  Training tool for your management teams  Ideas to differentiate your organization’s recognition program

CONTACT: Conclusion Bill Bergstrom National Recognition Manager Terryberry Company