EmployeeEngagement

The Importance of Recognitionin Employee EngagementEmployee recognition by both peers and management can significantly impact theoverall corporate culture. Research shows that the most effective recognition comesthrough consistent, formal programs that are tied to an organization’s businessstrategy and direction. A consistent program throughout a company builds aculture of recognition and helps to drive positive employee engagement.

60% of Best-in-Class organizations stated that employee recognition isextremely valuable in driving individual performance. - Aberdeen GroupMuch of the literature today on building a strong corporate culture is centered around the importance ofkeeping employees positively engaged at work, creating a culture in which each employee feels connected,empowered, and ultimately contributing to the forward momentum of the organization.One important way that we can impact employee engagementis through recognition – whether it be through verbal praise,monetary rewards, social networks, or service award programs.The impact of recognition on employee engagement can be a significant factor in training – and retaining -quality employees who feel engaged and empowered to make a difference every day. In fact, research bythe Aberdeen Group found that “60% of Best-in-Class organizations stated that employee recognition isextremely valuable in driving individual performance” (Driving a Culture of Employee Recognition). In addition,“ . . . in organizations where recognition occurs, employee engagement, productivity and customer serviceare about 14 percent better than in those where recognition does not occur” (Bersin & Associates).Recognized employees are more likely to be engaged employees –interested in contributing to a positive organizational culture and its growth.What are the risks of NOT recognizing employees? Replacing an experiencedIs there any negative impact to the health and well-being of a company 50%worker can costand its culture? Research suggests that “without a way to engage or more of theemployees, organizations risk losing top talent and jeopardizeorganizational growth” (Aberdeen Group). Disengaged employees individual’s annual salaryare decidedly less productive, contribute less and may, in fact, in turnover-related costsdrive the corporate culture in an apathetic, if not negative direction.Unfortunately, “only 14% of organizations provide managers with (AARP)the necessary tools for rewards and recognition” (Aberdeen Group).Recognition, even in small ways, helps employees to develop astrong sense that they can positively impact the forward-momentumof the organization.

Always treat your employees exactly as you want them to treat your best customers. - Stephen R. Covey To win in the Recognition can take many different forms, both formal and informal.marketplace you Informal recognition might include anything from off-the-cuff remarks, praise or even monetary incentives based on random criteria left solely must first win to manager discretion. While these are noble efforts, they often havein the workplace. no tracking or accountability either from a performance or financial perspective. In fact, research from the Human Capital Institute suggests - Doug Conant that “ . . . sporadic recognition may in some cases be worse than no Campbell’s Soup recognition” (Human Capital Institute). CEOLeft without a structured program, recognition can beinconsistent and results entirely unknown.Formal recognition programs might be the “best way to implement a recognition program . . . as a rational,carefully formulated program that is based on sound theory and is well integrated with an organization’s businessstrategy (Human Capital Institute). Within a formally designed program consistent with company culture andvalues, these programs can provide thoughtful and meaningful recognition to employees, contributing to anoverall culture of both engagement and positive recognition. Furthermore, a properly-managed programwith the right software can also provide significant data on use, feedback, results, accounting, and reporting.Tracking this data can pin-point effective recognition strategies, align program goals among managers andcomply with financial and accounting regulations. In addition, the use of social technologies linked to a formalprogram “ . . . allows employees an established way to provide recognition and easily receive specificfeedback” (Bersin & Associates). Organizations with the most sophisticated recognition practices are 12 times more likely to have strong business outcomes than those without. Bersin by Deloitte The State of Employee Recognition

Examples of two best practice case studies in which aformal, agency-managed program helped to build a cultureof recognition and employee engagement ... Example 1: Healthcare Services A leading Healthcare Services Company with over 80 hospitals and 80,000 employees developed a two-phased approach:1PHASE In Phase 1, the company wanted to standardize their Service Award Program by creating2PHASE a consistent look and feel to build a culture of recognition. The program included the use of e-cards and technology alerts to engage both managers and peers. In Phase 2, the company wanted to better understand all of the recognition methods being used within the organization. To do this, they created a formalized process which included: > Budgeting > Tracking > An Electronic Recognition Process > Social Technologies > Award Redemption > Tracking of Taxes and AccountingThis phased approach allowed the company to start creating a consistent culture of recognition, allowingthe program to gain a foothold while the second phase was being implemented. Phase 2 brought addi-tional structure and opportunity to the program and allowed the company to see just where recognitionwas making an impact – and where it could be used to build more significant employee engagement.WORKS Example 2: Foodservice Distribution CITEDA large Foodservice Distributor with over 30 distribution centers and 8,000 employees created an employee‘Loyalty’ Program in which employees can earn points for Safety, Wellness, Above & Beyond Performanceand Years of Service. In addition, the individual distribution centers can run ‘contests’ and ‘games’ specific totheir location to help drive awareness in particular initiatives. Program technology alerts help to engage managersand peers in the recognition process, while data functions track taxes and accounting for financial reporting. Aberdeen Group. Driving a Culture of Employee Recognition. Bersin & Associates. Bersin & Associates Unlocks the Secrets of Effective Employee Recognition. Human Capital Institute. The Value and ROI in Employee Recognition. Incentive Services University at www.isu.IncentiveServices.com

Who is Incentive Services? 1 Incentive Services exists to help organizations maximize the performance of their people through the use of recognition and incentives. DESIGN > We provide cloud-based technology solutions to help clients manage Recognition & 2 Incentive Programs that deliver memorable reward experiences to recipients around the world.IMPLEMENT > W e provide a team of marketing professionals to assist in the design, implementation 3 and management of successful Service Award Programs, Recognition Systems, and Performance Incentives. MANAGE Our number one goal is to help organizations maximize on the investments in their people through the proper management of recognition and incentivesWhat We Do How We Do It Service Award Programs Communications recognize and reward the service and that connect employees to your dedication of your Employees. mission, vision and values. Recognition Systems Trainingare designed to motivate and engage through that educates your managers on the reinforcement of achievements. the importance of employee engagement Performance Incentives and their role in recognition.help you to maximize the performance of your Rewards People and improve your bottom line. that engage and inspire your employees. Measurements & Analysis of overall award activity, including manager and employee engagement.

Some of Our Clients “In program design, roll-out, and administration, Incentive Services has been professional and consultative. Their approach has made Incentive Services a great partner. They understand the need for communication, training, measurements & analysis, and rewards.” - Vice President, Kraft Foods“We have found Incentive Services to be flexible in designing programs aroundour needs and very creative in their approach to Employee Recognition. I highlyrecommend Incentive Services as a provider of quality incentive programs.”- Vice President, Wal-Mart Learn More Online! www.IncentiveServices.com