Looking for recognition ideas that get results? Here are two keys to success -
The most common characteristics of high-Return On Investment (ROI) recognition programs â.” regardless of their monentary value â.” are their spontaneity and perceived value by staff members themselves.
In reality, the cost of some of most effective spot awards and bonuses often amount to less than 1 percent of base pay â.” and the awards don’t even have to be given in cash.
Less sense of entitlement
Part of the problem with traditional end-of-year or quarterly bonuses (apart from the fact that they cost employers an average of 10 percent of base pay) is that employees expect to receive them for reaching certain objectives.
Sometimes staff members simply expect it no matter what. for instance, at many firms, an annual holiday bonus is viewed as an entitlement and individuals inevitably grumble that it’s not high enough. on the flip side, with spontaneous awards and bonuses, staff members are often pleasantly surprised.
Benefits advisor Ken Stahlmann spells out four keys to making the latter type of awards work, even if they’re lower in cost -
1. Creativity is crucial
The most effective programs ordinarily give out awards weekly or monthly. To avoid over-stretching the budget â.” and avoid a ho-hum attitude establishing in â.” creativity is a must.
One way that never gets old - combining time off with a second, non-cash award. Example - One firm gives a half-day off in combo with movie passes once a month.
Another, at weekly staff meetings, holds a random drawing for a dinner gift certificate, plus permission to leave work early once.
2. Make it personal
Rewards have more lasting impact when they’re geared to people ’s personal needs or interests. Two examples -
o one firm with many foreign-born, low-wage workforce awards a $20 pre-paid phone card after 90 days of service, and a $100 card for outstanding work, and
o Another company with a lot of sports nuts took several top-performers to a ball game. Managers said it was the best $200 they’ve ever spent in terms of creating ongoing enthusiasm.
3. Add structure
The awards might seem spur of the moment, but top programs have a fixed budget and structure set before anything is handed out. Example - One retail firm awards “points” for good work. Folks can then trade in their points for store merchandise.
By letting individuals bank points for more valuable rewards, the employer saw a solid jump in retention.
Other businesses prefer to let workforce reward each other. for instance, a small healthcare provider keeps a “goodies box” on-site â.” compensated for in petty cash and stocked by workforce themselves.
When someone spots a coworker going the extra mile, he or she pulls out a prize and awards it.
The program is a enormous hit - It’s immediate and personal, yet structured.
4. Don’t let good intentions backfire
Most spot awards go over well. But keep these four issues in mind -
o For most cash or cash-value awards, there are tax implications (just as with traditional bonuses)
o Awards need to be spread around or else resentment can creep in
o Be sure honorees don’t mind being the center of attention (some firms have accidentally alienated individuals they tried to reward), and
o Be certain the reward is something individuals actually want. One firm that awarded a VIP parking space next to the CEO found no one used it. No one wanted the CEO knowing what time he or she came and left.
