Using Rewards & Recognition to Foster Retention
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1 Using Rewards & Recognition to Foster Retention Emily D. Tisdale Recourse Resource. All rights reserved.
2 About Recourse Resource Consulting works with organizations that are passionate about changing the healthcare experience. We break down the silos and create systems between patient experience, employee engagement, and marketing. We know healthcare. How can we help you? Recourse Resource. All rights reserved. 2
3 Today s Presentation Using Rewards & Recognition to Foster Retention Employee rewards and recognition programs, which were once viewed as options, are now seen as vital tools in an organization s employee retention strategy. When developed and administered appropriately, these programs can reap numerous benefits for the organization. Recourse Resource. All rights reserved. 3
4 Objectives! Evaluate the cost-savings realized through successful employee retention.! Learn to differentiate between rewards and recognition and understand when to leverage each one.! Understand the key components that comprise effective employee rewards and recognition programs. Recourse Resource. All rights reserved. 4
5 Recourse Resource. All rights reserved. 5
6 Recourse Resource. All rights reserved. 6
7 By the Numbers: Employee Engagement 88% $500 billion 79% Recourse Resource. All rights reserved. 7
8 Employee Satisfaction Engagement! Satisfaction: The level of happiness that an employee has with their current job.! Engagement: The level of connectedness the employee has to their work.! Is a satisfied employee always an engaged employee? Recourse Resource. All rights reserved. 8
9 Low Engagement: SYMPTOMS! Profitability! Productivity! Absenteeism! Turnover! Customer ratings! Safety incidents! Patient safety accidents! Quality of care Recourse Resource. All rights reserved. 9
10 Low Engagement: OUTCOMES! High customer turnover! Lower company profits! High employee turnover! Lost productivity! Poor company reputation! High number of sick days! Lack of teamwork! Increased theft Recourse Resource. All rights reserved. 10
11 Engagement Problems = Retention Problems Recourse Resource. All rights reserved. 11
12 By the Numbers: Cost of Turnover 150% Annual Salary $50,000 COST OF TURNOVER One employee $75,000 COST OF TURNOVER Mid-sized company with 1,000 employees who has a 10% annual turnover rate $7.5 million COST OF TURNOVER Mid-sized company with 1,000 employees who has a 5% annual turnover rate $3.75 million Recourse Resource. All rights reserved. 12
13 R + R = R! Increase employee morale! Lower turnover! Increase employee loyalty and dedication! Decrease absenteeism! Increase teamwork! Improve communication between employees & management! Help identify low performers / those that aren t a good fit Rewards + Recognition = Retention Recourse Resource. All rights reserved. 13
14 What NOT To Do Wake-Up Calls & Lattes Recourse Resource. All rights reserved. 14
15 Recognition Rewards Recourse Resource. All rights reserved. 15
16 Rewards Impersonal Consumed Great for recruitment Tangible Transferable Expected Outcome-driven Transactional Economical Fixed Recognition Personal Experienced Great for retention Intangible Non-transferable Surprise Emotion-driven Relational Emotional Ongoing Recourse Resource. All rights reserved. 16
17 Pros Easy to administer Easy to distribute Strong motivator for highachieving employees Rewards Cons No trophy value May be subject to taxes May tell the employee that he/she is worth x dollars Pros Easy Inexpensive High visibility Self-esteem booster Appreciated by all types of employees Recognition Cons None Recourse Resource. All rights reserved. 17
18 Common Examples Rewards Cash Gifts Gift cards Prizes Time off work Recognition Thank you note Parties Appreciation events/ activities Employee of the month Employee of the year Recourse Resource. All rights reserved. 18
19 Important Considerations! You can give recognition without giving a reward.! But! Recognition programs are very cost-effective. Ideal for:! Start-ups! Organizations with a small incentive budget! Both rewards and recognition efforts need to be as timely as possible. Recourse Resource. All rights reserved. 19
20 Key Components: Rewards & Recognition Programs Recourse Resource. All rights reserved. 20
21 Getting Started! Needs to be aligned with business goals and corporate culture.! Focus on affordability, convenience, and relevance.! Key components:! Program Objectives! Budget! Implementation Recourse Resource. All rights reserved. 21
22 Program Objectives! What do you want to accomplish?! What behaviors and achievements do you want to reinforce?! Are the rewards & recognition individual-based, group-based, or a blend of both?! What is the criteria for receiving a recognition? A reward?! Who will be empowered to give a rewards or recognition? Recourse Resource. All rights reserved. 22
23 Budget! What is your total number of employees?! What amount do you want (or have) to allocate to the program?! Will you base your budget per employee or allocate an overall cost for each period?! Are there any hidden costs to consider? Recourse Resource. All rights reserved. 23
24 Implementation! Who will administer the program?! Will the program have start/end dates, be ongoing, or a blend of both?! How will you make employees aware of the program?! How will you encourage employees to participate in the program?! How will you advertise who s been recognized or rewarded? Recourse Resource. All rights reserved. 24
25 Implementation 21 st Century Problems For remote employees:! Develop attractive online cards and certificates that can be easily customized and ed.! Invite remote employees to rewards/recognition meetings.! Solicit feedback through online surveys. Recourse Resource. All rights reserved. 25
26 Implementation Evaluation Committee! Committee should include:! Managerial! Non-managerial! Interdepartmental! Committee tasks:! Determine measurements of success! Review total participation levels! Determine if desired outcomes were achieved! Obtain feedback from employees Recourse Resource. All rights reserved. 26
27 Recourse Resource. All rights reserved. 27
28 By the Numbers: Cost of Turnover 150% Annual Salary $50,000 COST OF TURNOVER One employee $75,000 COST OF TURNOVER Mid-sized company with 1,000 employees who has a 10% annual turnover rate $7.5 million COST OF TURNOVER Mid-sized company with 1,000 employees who has a 5% annual turnover rate $3.75 million Recourse Resource. All rights reserved. 28
29 Q & A Recourse Resource. All rights reserved. 29
30 Emily D. Tisdale Founder & Principal Consultant (317) Recourse Resource. All rights reserved. 30
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