Recognition programs send a valuable message to staff

Published 9:00 pm Sunday, November 14, 2004

In a somewhat prominent place in our relatively small home rests a trophy presented to my wife, Mary, by a former employer.

The trophy stands tall five years later because, by golly, my wife earned it, along with the designation Salesperson of the Year, fair and square. And the rewards for achieving the honor were generous – a sizable bonus and a company-paid trip for two to Hawaii.

But I couldn’t help but wonder what Mary’s co-workers were thinking, besides being happy for her accomplishment. After all, they had worked really hard, too.

This reminiscence flashed back as I participated in a recent workshop on recognizing employee value. People representing a wide range of businesses and organizations – from the Snohomish Health District to the Boeing Co. to Dunn Lumber – gathered to learn more about the business value of regularly and effectively recognizing employees.

The philosophy behind spreading recognition beyond the employee of the month and salesperson of the year is based on letting each worker, including managers, regularly know that their efforts are truly and sincerely appreciated, and occasionally rewarded as well.

It is the antithesis of the “let’s cut costs by reducing payroll” crowd that has been so prominent since mid-2001. It stands apart from managers who still think the best motivator is money, that employees competing against each other brings out their best, that only “star performers” deserve recognition, and that people should just assume they’re doing a good job.

An effective employee recognition program succeeds by becoming ingrained in the organization’s culture and filtering down from the executive suite to the janitor’s closet. Recognition communicates best the values and behaviors important in reaching the company’s strategic goals and objectives.

It is nonstop. Recognition can range from the day-to-day compliments usually offered by peers, to informal, often manager-driven celebrations, end-of-project events, group and team accomplishment parties, and more formal companywide annual reward and recognition events.

Recognition is a low-cost way of telling employees they are appreciated and valued, and there is no better time than now to begin, said Theresa Chambers, chief motivation officer of Recognition Works, who conducted the workshop. “As the economy improves, some studies estimate that over 80 percent of employees are primed to change employers,” she said. “And the No. 1 reason employees do leave is not lack of money but not feeling appreciated.”

There’s no end to the creativity people use to express appreciation. Imagine getting a stuffed bear holding a roll of Lifesavers with a note “You saved our bacon,” a pack of Reese’s Pieces (for bringing together all the pieces in the project), car wash coupons, video store gift cards and even a hand-written “Thank you” note from the CEO.

Recognition works only for organizations that recognize the nuances of bottom-line benefits, Chambers said. “You can give an employee a votive candle in a stylish setting with a card reading, ‘You really shine around here,’ or you can spend $3,000 to $4,000 to replace her when she leaves.”

While the logic behind such an argument is inescapable, recognition programs remain shrouded in controversy. While buy-in by senior management is essential to effective recognition programs, despite their limited costs, top managers are convinced only by solid return-on-investment statistics.

“They want specific metrics that prove employee recognition works,” said one workshop participant. Since it is intrinsically part of the “soft side” of business management, this is nearly impossible to accomplish.

Chambers conceded that “there still is room to grow in this area,” but said companies proceeding with an employee recognition program take benchmark measurements on such matters as employee satisfaction scores, retention, productivity, participation levels and feedback from award recipients.

“The cold, hard facts show a positive return on investment comes from treating people with dignity, respect and consideration,” said Bill Catlette and Richard Hadden in their book “Contented Cows Give Better Milk: The Plain Truth About Employee Relations and Your Bottom Line” (Saltillo Press, 1998).

“This occurs not as an afterthought, but as a vital, premeditated element of business strategy.”

Write Eric Zoeckler at The Herald, P.O. Box 930, Everett, WA 98206, or e-mail mrscribe@aol.com.