A Different Kind of Hat in the Workforce - Engagement of Millennials Through Effective Rewards Strategies
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1 A Different Kind of Hat in the Workforce - Engagement of Millennials Through Effective Rewards Strategies Michael F. Maciekowich National Director michaelm@astronsolutions.com
2 From WorldatWork (Study on the Impact of Total Rewards on Employee Engagement) Organizations that encourage managers to engage employees by making it a performance criteria and rewarding engagement through incentive programs indicate that their organizations more effectively foster employee engagement and motivation then those organizations that do not. Develop performance metrics that measure the extent to which supervisors or managers encourage engagement among their subordinates. Reward supervisors and managers for developing employee engagement among their subordinates and peers. Specifically define employee engagement and include it as goal in the strategic plan. When the impact of different categories of rewards programs on engagement was studied, it was discovered that base pay and benefits had the overall weakest relationship with the organization s ability to foster high levels of employee engagement and motivation compared to incentives, intangible rewards and quality of leadership on engagement. Use pay packages to attract leaders who have demonstrated their ability to engage employees. Think in terms of total rewards and not just financial rewards. Develop employee engagement resources that are directed toward work environment or organization climate, work-life balance and the nature of the job and quality of the work, and career opportunities.
3 From WorldatWork (Study on the Impact of Total Rewards on Employee Engagement) Respondents indicated that employee surveys were used by 80% of the organizations they represented. Although more frequent use of employee opinion surveys was associated with effectiveness in fostering high levels of employee engagement and motivation, the relationship was much stronger for organizations where employee opinion survey results generate action and change. As such it is not enough to conduct employee opinion surveys; management must respond to input and suggestions with concrete actions and change. Employees should be involved in those change efforts. The gold standard in terms of building cooperation and commitment is involvement. The study indicated this was true for the design, implementation and assessment of total rewards programs. Although supervisors and managers are involved in the design, implementation and assessment of rewards programs more frequently than employees, their involvement is still relatively infrequent. Thus, involvement in the design, implementation and evaluation of total rewards programs offers a direct way for human resource professionals to enhance employee engagement.
4 SHRM/AON/Hewitt Engagement and Rewards Perception Study Among engaged employees, 60% said their total rewards overall are above or well above what other employers offer. Among engaged employees, 51% view their organization s career development as better than what other employers offer. Paid time off (84%) and base pay (83%) were the most understood of all the total rewards programs. Bonuses (64%), career development (61%) and work/life balance (60%) were among the least understood. Among engaged employees, 77% feel that their employer encourages them to share ideas. Overall conclusion: Engaged employees value a more balanced, less oriented toward pay only rewards package, compared to those who are disengaged.
5 The Generations in the Workplace
6 We Are All Getting Old.
7 Overview VETERANS (born between 1909 and 1945) Have a sense of accomplishment and strong sense of self Are motivated by their pride in knowing what they can accomplish Act to take charge, make decisions and delegate responsibility Operate in a command-and-control decision-making system may translate to others as having all the answers BOOMERS (born ) Get involved because it is the right thing to do, because one should give back to their community Hold a strong sense of hope Value tradition, teamwork and loyalty Have time to give to volunteer, as many women stayed home to raise a family
8 Overview GENERATION X (born ) Drawn to opportunities that offer them opportunities to learn, enjoy, and be recognized Have been described as tough to motivate, too expectant, lazy, skeptics and loners Describe themselves as caring, committed and seeking opportunities for learning and leadership Value frequent feedback on their performance, recognition, increased responsibility and exposure to decision-makers Attracting and retaining these members will depend upon an organization s ability to be flexible, adaptive and responsive to their needs.
9 Overview GENERATION Y (born ) Most valued traits are individuality and uniqueness Have a global and diverse perspective that other generations did not have Can be cynical and driven by a need for instant gratification Strengths are their adaptability, innovativeness, efficiency, resiliency, tolerance and commitment Challenge is motivating them to get involved and retaining them for a sustained period To engage this group, organizations need to tell the truth, explain the why, tune in to their frequency, make them a star, and look for rewarding opportunities
10 The Millennial Mindset at Work Qualtrics.com What Millennials What from the Workplace in terms of Innovative Thinking, Skill Development, and their Contribution to Society Leadership vs. Millennials Expectations in terms of Contributions, Oversight, Employment, and Feedback Attracting and Retaining Millennials- Professional Growth, Compensation, Flexibility, Mission, and Mentorship Job Satisfiers-Recognition, Resources, Pay, Social setting, Professional Growth, Fun Successful Engagement Strategies-Involvement, Fair Pay, Flexible Work hours, Mentoring, Career Advancement, Room to Run and Fail
11 Overview GENERATION Z (born ) The Internet, technology, war, terrorism, the recession, and social media shape their lives. Gen Zs are tech savvy. Social media has connected them globally to their peers. The internet has connection them globally to knowledge. They are bright, and their IQ scores are higher than previous generations. They are flexible in nature and expect flexibility from institutions. They are accepting of diverse populations.
12 Successful Rewards Strategies to Reinforce Millennial Engagement The One Minute Manager Gamification Outside the Paycheck Customer vs Millennial Expectation Letting Go of Failed Programs Decentralization of Reward Administration What s Next-Step by Step Process
13 FIRST SECRET: One Minute Goals The One Minute Manager One minute goal setting is about being aware of what is expected from the beginning. When deciding upon the desired goal and the performance standards, it is recorded on a single sheet of paper. One minute goal setting is so called because it should take only one minute to be able to read it. SECOND SECRET: One Minute Praising After the one minute goal setting, the second step in one minute management is to catch people doing something right. This is when the one minute praising are given. One minute praising are so called because it hardly takes a minute for you to tell someone that he or she did a good job. There is no need to elaborate when you can simply say that he or she he did something good and you noticed it. One minute praising include praising the people immediately, telling them what they did right, how you feel about it and encourage them to do more of the same. THIRD SECRET: One Minute Reprimands One minute reprimands are given as soon as an employee does something wrong. One minute reprimand has two parts. The first half includes telling the people that what they did wrong, how you feel about it and then let it sink in with a few seconds of uncomfortable silence. Then in the second half you tell the people how much you think they are capable of and how much you value them. One important aspect of one minute reprimands is that it criticizes the work not the doer. The employee is not blamed as a person, only his work is accused of not being up to the desired level. And once it s over, it s over.
14 Gamification And Instant Recognition Gamification is the use of game thinking and game mechanics in non-game contexts to engage users in solving problems. [1][2][3] Gamification is applied to improve user engagement, return on investment, data quality, timeliness, and learning. [4] Gamification techniques strive to leverage people's natural desires for competition, achievement, status, self-expression, altruism, and closure. A core gamification strategy is rewards for players who accomplish desired tasks. Types of rewards include points, [5] achievement badges or levels, [6] the filling of a progress bar, [7] and providing the user with virtual currency. [6]
15 Gamification and Instant Recognition On-Boarding Competency Enhancement Rewards & Recognition Compliance Career Advancement
16 Gamification and Instant Recognition Financial Performance Utilization of Resources Core Competencies Required 0/1 Pt Score 0 10 Pts Customer Performance Customer Interactions Core Competencies Required 0/1 Pt Score 0 10 Pts Organization Success Quarterly Score 0-55 Growth Performance Proposed Improvements Core Competencies Required 0/1 Pt Score 0-10 Quality Performance Process Core Competencies Required 0/1 Pt Score 0-10 Pts Human Resources Performance Teamwork/Interaction Core Competencies Required 0/1 PT Score 0 10 Pts
17 Looking Outside the Paycheck
18 Customer Expectations vs Millennial Needs Tip 1: Identify your top performers. Most incentives programs begin and end here simply with rewards for the superstars. But there is only so much you can do by motivating the top tier of employees. To get real results, you need to find a way to improve everyone else -- the middle 80 percent of employees who are steady but unremarkable performers. Tip 2: Figure out top performers best practices. Get in the game and ask questions like: How is it going? What is contributing to your success? What are your obstacles? If you could wave a magic wand and change anything today, what would it be? Use the answers the top performers give to identify the best practices they're using that could help average employees move to the superstar level. Tip 3: Define what you need in terms of behaviors and results. To make it simple, I often use two best-practice behaviors and one result. That way, you are rewarding the behaviors that lead to success, while keeping your program grounded in reality so people do not spend endless hours executing the behaviors perfectly. For example, suppose you are monitoring activities for the sales for ABC product/service. You might establish an incentive program where reps are rewarded for validating their knowledge of the service (behavior #1), asking open-ended questions and recording the answer (behavior #2), and increasing the amount of call/talk time with those customers a most likely to purchase ABC product/service A.
19 Customer Expectations vs Millennial Needs Tip 4: Reward people on the spot for achieving the behaviors. Every time someone performs the behavior you desire, reward it. Do not wait for the end of the program. Rewarding at the end of the incentive program is like trying to solve the crime with an autopsy - and no crime scene evidence. Tip 5: Determine how you are going to reward people. Cash may seem obvious and easy to disburse. But it has also been proven in studies to be the worst incentive there is for changing behavior. I will not go into all the reasons here, but look at it this way: Would you be more motivated by cash that you would probably put toward bills, or a new top of the line DVD player? Find out how people want to be rewarded to change their behavior, as it may not be cash. Tip 6: Make it short. Usually a few days is enough to see if the program is working and to make adjustments as necessary. Once 60 to 80 percent of participants are achieving the desired behaviors, stop. The total length of a program might be as short as one month or as long as one year. It may even be an ongoing program focusing on tougher issues such as culture, learning and other corporate objectives. Publicly recognize the people who improved the most, and identify the best practices that contributed.
20 Letting Go-What s Missing Passion: When people align with passion and higher purpose, they are working in the flow and making the best use of their skills. Understanding: To motivate people, you must first understand them. Understanding is the first step to acceptance, and only with acceptance can we make great things happen. Respect: People perform at their best when they feel respected and valued. Give respect to everything you can, anytime you can, to anyone you can. There will always come a time when you will be grateful you did. Potential: To motivate people, look for their unique potential. When you recognize their talent, they ll want to show you more of what they can do. Opportunity: Seek opportunities to let people shine, and let every moment be an opportunity for greatness. Support: Sometimes all you really need to do for people is to be there supporting them, believing in them, standing beside them. Empowerment: Feeling empowered is the ultimate motivator. What we can achieve can change our reality. There is no greater motivator for empowerment than people inspired to create a better life.
21 Decentralization of Total Rewards By Generation By Profession By Market By Strategic Contribution Implications for the HR Professional and Employee Morale
22 Step by Step Process External Position Equity Internal Position Equity Employee Pay and Recognition Equity Total Non-Cash Compensation Benefits/ Retirement Ability to Fund all Aspects of the Program Competitiveness in terms of Geography. Competitiveness in terms of industry. Level of competitiveness by organization and position. Recruitment and Retention Trends. Determine organizational value of positions regardless of market value. Determine value of positions not matched to the market. Determine the differences among families of jobs. Determine internal pay levels of employees based on seniority, performance, or other methods. Determine appropriate methods to recognize employee performance and contributions. Understanding the impact of Generations in compensation decisions. Addressing the rising cost of insurance in plan design. The need to have more employee cost sharing. Understanding pressures from organized labor. The need for flexibility in addressing generational differences in both benefit and pension design. Impact of fluctuating stock market on pension design strategies. Funding all aspects of the program understanding the impact of current industry trends. Determining the ROI of all programs to demonstrate the impact on effective recruitment and retention of staff required for the organization to succeed. Proactively developing strategies that reduce cost impacts while remaining effective.
23 Step by Step Process Audit Current Recognition Programs & Meet with Senior Management Review Potential Alternatives Available to Current Systems Form a Recognition Program Development Committee Identify a Program Purpose Define Award Themes & Selection Criteria Determine Award Eligibility & Award Frequency Select Types of Awards & Publicity Establishing and Monitoring the Program
24 Michael F. Maciekowich Michael F. Maciekowich is a National Director for Astron Solutions. His areas of expertise include the development, design, and implementation of executive, physician, and employee base pay, short and long term incentive programs, sales incentive programs and performance management systems in all industries. His primary focus is the integration of compensation and human resource strategies with organization-specific missions, visions, values, and strategic operating plans. Michael has over thirty years of consulting and industry compensation experience. Prior to Astron, Michael was the National Director of Healthcare Rewards Consulting and the Metro New York Operations Manager for Rewards Consulting for the Hay Group. He was also compensation consultant with a number of consulting firms, including Towers Perrin (Senior Consultant), Hartstein Associates (Vice President), Adams, Nash & Haskell (Vice President), The Omni Group (Vice President and Partner), and Modern Management (Senior Consultant). In these roles, he focused on the role compensation plays in human resources and labor avoidance strategies. He has assisted hundreds organizations in his twenty plus years of consulting. Prior to his consulting career, Michael was responsible for compensation services at the American Hospital Association, Honeywell International, and Zenith Electronics. Michael is a sought-after speaker in compensation program design. He is a regular speaker for the national conference of the American Society of Healthcare Human Resource Administration (ASHHRA) regarding healthcare compensation and performance management strategies. In addition, he has presented to numerous local ASHHRA and Society for Human Resource Management (SHRM) chapters. Michael is an active member of WorldatWork (former American Compensation Association), American Society of Healthcare Human Resource Administration, Society for Human Resource Management, and SHRM s Consultants Forum. He is also a member of various local and state human resource associations in Massachusetts, Connecticut, Upstate New York, Greater New York City, and Louisiana. Michael is a member of the International Who s Who of Professionals. He received a lifetime achievement award from WorldatWork. Michael received bachelor s degrees in political science and philosophy and a master s degree in industrial relations from the Loyola University of Chicago.
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