When Monetary Rewards Are Not Possible Stacy Klund December 15, 2003

Events triggering trouble Low unemployment rate makes hiring difficult (2000 & 2001) Attack on the World Trade Center (2001) Recession lowers company earnings (2002) War tightens up corporate spending (2003)

Companies reduce spending by: Freezing raises Halting hiring Cutting budgets Delaying projects

When cash is not available... How does a company motivate employees? How does a company retain employees?

Research question Do employees perceive non-monetary rewards and recognition as positive influencers of their job performance and retention?

Goals of this research What non-monetary items are valued most? Do the same items both motivate and retain employees?

Survey Population Client Service Technologies in Minneapolis 102 employees Convenience sample Design Paper survey Inter-office mail 40 questions

Question categories Work-life balance Job characteristics Recognition Celebrations Rewards Team and community involvement Relationship with leader

Survey items I appreciate receiving public recognition for accomplishments in a group setting It is important for me to work on assignments that increase the depth of my skills

Survey response 67 surveys returned Response rate of 66% Favorable responses reported

Work-life balance Flexible schedule (99%) Leader support (88%) Remote location (85%) Flexible job structure (84%) Part-time option (54%)

Job characteristics Meaningful work (94%) Challenging assignments (93%) Opportunity of new skills (93%) Increase in depth of skills (91%) Preparation for different career path (79%) Formal training (52%)

Recognition Leader verbal recognition (95%) Leader written recognition (94%) Peer verbal recognition (92%) Peer written recognition (87%) Company written recognition (82%) Company verbal recognition (61%)

Celebrations Team or project celebrations (93%) Team lunches (78%) Team outings (75%) Team building activities (63%) Department celebrations (61%) Company-wide celebrations (39%)

Motivation and retention affected by same characteristics Flexible work schedule Challenging projects/assignments Meaningful work Opportunities to gain new skills Paid time off

Answer to the research question Do employees perceive non-monetary rewards and recognition as positive influencers of their job performance and retention? Yes!

Recommendations for leadership group Support flexible work arrangements Create challenging projects and assignments Recognize your employees Celebrate with your team

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