Building a True Recognition Culture in the Workplace Created by Scott Trumpolt August 2008

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1 Building a True Recognition Culture in the Workplace Created by Scott Trumpolt August 2008 Extensive research over significant periods of time has now revealed that proper recognition of employees in the workplace can and does reap significant benefits to the business by engaging employees towards the fulfillment of business objectives that impact the bottom line. From the employee perspective, recognition of employee achievement by employers in a meaningful fashion is one of the most sought after aspects to be obtained in a full and enriching employee work life experience. Providing such experiences can significantly reduce voluntary employee turnover while at the same time provide a clear distinction to prospective employees wanting to join a company that can clearly demonstrate that such a recognition environment exists and is thriving in their workplace. The key operative word is on proper recognition and that means building a true and enduring recognition culture that puts the emphasis on recognition rather than just rewards, spreads as wide a net of inclusion as possible and ties such recognition to the demonstration of workplace behaviors and results which the company values. In order to build this culture of recognition, several key elements should be considered in the design and ongoing fostering and development of the recognition experience. Key Elements 1. Spreading the recognition culture as wide as possible 2. Effectively utilizing recognition as a key part of leadership training and performance management 3. Emphasizing the presentation in addition to the actual award received 4. Linking the recognition program to business objectives/company values and the company brand 5. Providing peer-to-peer recognition opportunities 6. Setting recognition targets and ongoing analysis of results against those targets 7. Surveying employees frequently 8. Aligning the company with an external strategic recognition partner 9. Recognizing early 10. Ensuring top level management support Spreading the Recognition Culture as Wide as Possible This really means providing as many outlets as possible to reach a maximum audience. A good start can be provided with an e-thank you card program that

2 costs next to nothing but can have a powerful and widespread impact. This is where building the recognition culture really starts. Do not under estimate the power of a few well written and sincere lines of appreciation to the recipient. You will never have enough money budgeted to continually recognize employees with gifts that have monetary value and in many cases, this is not the type of recognition that is needed to make an impact. Nonetheless, there are situations which call for an award which is more monetarily substantial and merits a full scale presentation accompanying the achievement. Such programs as part of an overall comprehensive total recognition package could include the following: Milestone achievement (length of service) Tangible gift spot award programs (performance or demonstration of company valued behaviors based) Business specific funded programs (points based awards that accumulate over time which can be redeemed at various stages as key project milestones are met) The key idea here is have multiple avenues to cast as wide a net as possible for potential recipients and to house all programs under one big tent and not as a collection of disparate programs that do not send a consistent, organization-wide message. A good way to convey this message is via a one-stop recognition hub as a centralized source that is accessible to all employees via the company intranet. Effective Recognition as a Key Part of Leadership Training Effective recognition has been shown to act as an accelerator in engaging employees toward the achievement of business goals; the direct supervisor plays a key role in this process. Proper recognition of employees and the sharing of credit for successes achieved acts as a bridge to build trust between the manager and his/her direct reports which benefits everyone. If your company deploys online leadership training modules or other methods as part of a variety of leadership skills, effective recognition should definitely be one of the skills to include. Depending on the sophistication and length/depth of training of recognition programs/tools available within your company, you may want to take this concept one step further and ensure that recognition of employees is part of the core leadership competencies on which leaders are measured, and that performance based pay management processes are tied to these.

3 The Importance of the Presentation vs. the Actual Award Received Are you trying to build a recognition culture or an award culture? If you are trying to build a recognition culture, the importance of the presentation by the right individual that is linked to the specific reasons why the employee is being recognized cannot be understated. The award is a nice and often clearly appropriate gesture. But do make sure to keep the emphasis on the specific action that was taken by the employee and why it was important to recognize the behavior/action that was demonstrated. This presentation process also helps to create role models for others to emulate. The presentation does not need to be lengthy, but should be meaningful and always focused on the event itself. If you have an intranet page devoted to recognition at your company, provide tools to the manager on all aspects of how to give an effective presentation. It will be well worth the effort and time invested as lack of a successful presentation (or a presentation of any kind for that matter) often dooms the giving and receiving of an award to be quickly forgotten by the recipient and the positive behavior may not be repeated by the individual or others. Linking the Recognition Program to Business Objectives/Company Values and the Company Brand This is important. The ultimate success of the program from a business perspective depends on supporting the business objectives, company values and tying it all back home to the company brand. For example, if providing a superior customer service is fundamental to the company mission, the recognition programs should be recognize and reward the demonstration of customer success. Active demonstration of behaviors that support the stated company values is also crucial in the design of reward criteria for certain programs. Lastly, an effective recognition culture is established when every employee believes he/she can contribute in achievement of company goals and participate in the recognition of others who demonstrate value added behaviors. A key way to do this is to link the programs to the company brand, which should be representative of what the company offers its customers; it is all employees and not just a select few that contribute to the brand name every day. All employees must feel they are included and represent the brand if a true recognition culture is to fully emerge and flourish. Provide Peer to Peer Recognition Opportunities While management needs to take a clear role and assume the responsibility of fostering the recognition culture, every employee must have the opportunity to participate and understand that such opportunities are available to them as well. While management should approve nominations as guardians of the program s effectiveness against business goals, all employees should know that they can send out thank you cards and nominate employees for other award programs.

4 Often, co-workers may be in the best position to understand what an employee actually accomplished that is worthy of a recognition event. The more this concept is understood, the greater the spread of recognition throughout the organization that will take place. Setting Recognition Targets and Ongoing Analysis of Results against those Targets Like any other business activity, recognition activities can be measured and thus understood in terms of their positive business impact on the workplace. Depending on the evolution of your recognition programs, you can set realistically achievable targets for a percent of unique recognition events as a percent of the total population. Ongoing analysis can then be done to see how close you are to achieving your goal balanced against a key and relevant business indicator such a voluntary turnover for the same time period. Survey Your Employees Frequently Key to the success of building the recognition culture is to receive ongoing input to measure progress via quarterly program surveys. Key questions can revolve around the quality of not only the award received but the quality of the presentation itself as well as suggestions for improvement. At my company, we actually incorporated recognition questions as part of our overall Annual Employee Opinion Survey and assessed responses against employee engagement factors. Early on, the results of the survey indicated that while employee engagement factors were up and turnover was down, the actual percent improvement was not what was expected given the significant utilization of the programs. What we discovered was that a smaller than desired portion of employees was receiving the bulk of the recognition multiple times while sometimes not within the spirit and intent of the established program. Thus, the culture of those experiencing recognition was not yet widespread enough and education on proper and more extended utilization of existing programs was necessary to get back on track. Align Your Company with an External Strategic Recognition Partner Selecting a vendor to assist your company in building a recognition culture should be based on a partnership and not just with intent of a vendor who sets up the mechanics and administers your programs. Seek a vendor who provides you with the latest updates to what is happening in the world of recognition and how it can strategically be incorporated into your existing program given your specific business model. Challenge your partner to analyze your recognition results and provide pathways to continuous improvement. Make sure that your recognition partner highlights your achievements in your industry and provides effective media coverage where appropriate. In return, assist your recognition partner in

5 communicating your experience to other companies to spread the recognition culture outside your own walls. Recognize Early It was mentioned earlier that prospective candidates are looking for genuine reasons and specifics to join companies where they will be recognized for their efforts. To this end, make sure that such candidates see your recognition culture in action as part of new hire/candidate orientation materials about the company. Once onboard, a specific way to indoctrinate new employees into the recognition culture is via a 100-day employee milestone recognition program. Such a program includes a presentation by the manager that celebrates this difficult transition period for the new employee and reinforces that the recognition culture they read about in their new hire materials is alive and well at your company. This is also a great opportunity to take the pulse of the new employee as to whether or not the organization is living up to what it says in its literature and is indeed walking the talk. Top Management Support As with all people-based initiatives, top management support is essential to the establishment of a true recognition culture where everyone feels included and that they can also participate in the forming and thriving of this culture. Utilize a variety of communication formats from top management to spread this message and of its importance in achieving business success and in promoting an environment where employees feel their contributions are valued. Taken together, these elements can provide a foundation toward building a true recognition culture. But be sure to evaluate progress on an ongoing basis, making modifications as necessary and enlisting high levels of support to ensure success. Suggested further readings: The Carrot Principle, by Adrian Gostick & Chester Elton The Invisible Employee, by Adrian Gostick & Chester Elton Note: WorldatWork provides no guarantee that this document has received legal review, or that it conforms to local, state and federal laws. Nothing herein is to be construed as legal, accounting, actuarial or other such professional advice. WorldatWork is not responsible for the availability or content of external Web sites, nor does WorldatWork endorse, warrant or guarantee the products, services or information described or offered at other Web sites. Contents WorldatWork WorldatWork members and educational institutions may print 1 to 24 copies of any WorldatWork-published article for personal, non-commercial, one-time use only. To order 25 or more print presentation-ready copies or an electronic copy for distribution to colleagues, clients or customers, contact Gail Hallman at Sheridan Press, ghallman@tsp.sheridan.com or 717/ , ext

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