Spend less, retain more with better employee incentives

Companies that are restructuring or going through a merger should consider another approach to retaining valuable employees other than just throwing money at them.

According to a recent McKinsey Quarterly report “Retaining key employees in times of change”, there is a better and less costly way to keep good people – and it can put the company in a stronger position to seize opportunities as the economy picks up.

Companies should target the key players who are most critical and most at risk of leaving, and offer them a mix of financial and noncash incentives geared to their aspirations and concerns.

A European industrial company applied this approach during a recent relocation and restructuring, and found that it used only 25 percent of the budget it had spent before on a broad, cash-based employee retention scheme.

Here are three ways to keep top talent without breaking the bank:

1. Find the “hidden gems”

Look for the “hidden gems” who are critical to business success. Not just the usual high-flying sales people and senior executives, but the more average performers whose skills or social networks may be valuable to the company. These gems could be in IT, finance, or admin.

For example, the product-development manager nearing retirement age who is no longer on the company’s list of “high potentials” yet is crucial to ensuring a healthy product pipeline. Some sales support personnel who fill orders can be just as important as the star salespeople.

2. Be mindful of their mind-set

One company that was restructuring identified two different employee mind-sets:

• A family-oriented group worried about relocating and uprooting their families. They were offered incentives such as an increase in base pay, assistance in finding schools and kindergartens, spousal career counseling, language training, and alternative work arrangements so employees could work at home or commute instead of relocating.

• A more career-driven group was open to a move but were concerned about furthering their careers. Managers offered them a cash bonus but focused primarily on their new responsibilities in the reorganized unit, number of direct reports and leadership opportunities.

This targeted approach stabilized the new unit at one-quarter of the cost and, one year later, some 80 percent of the staff who received personalized incentives had started to work in the new location.

3. Employee recognition can be better than money

One financial services firm that was cutting costs used only nonfinancial measures—including leadership-development programs—to retain the pivotal players at risk of leaving. One year later, none of those players had quit.

Praise from a manager, recognition from leaders, promotions, opportunities to lead projects, and chances to join fast-track management programs are often more effective than cash.

As companies reinvent themselves for long-term business success, they should also reinvent their approach to determining who is really key to their organization. Offering hidden-gem employees at risk of leaving a tailored mix of financial and nonfinancial incentives can be more effective and will probably save the company money.

Written by Leslee Vivian
Leslee Vivian is a professional writer specializing in employee recognition. She blogs for Power2Motivate®, the On-Demand service that helps companies recognize, motivate, train and reward their employees.

Six ways to motivate Millennials

The Millennial generation, born between the early 1980s and 2000, wants a good job in a good environment with good pay … but they also want to find meaning in what they do. But what exactly does “meaning” mean to them?

In their new book The M-factor: How The Millennial Generation Is Rocking The Workplace, authors Lynne Lancaster and David Stillman offer valuable insight and practical tips on understanding the fastest growing segment of workers today.  

According to the authors, Millennials define meaning very broadly. Once employers understand what makes this new workforce tick, they’ll be able to find many ways to help Millennials experience meaning in their work, which will help build employee engagement and loyalty.

Here are the six meaning motivators the authors identified to help explain exactly what Millennials want:

1. Millennials want to make a difference in the world.
2. Millennials want to feel they are contributing.
3. Millennials want to be innovators.
4. Millennials want to be heard.
5. Millennials want to know they’re succeeding.
6. Millennials want to express who they are through work.

An upside of the search for meaning is that while it may require some thought, it doesn’t cost a lot. Companies that can’t pay as much in salaries and benefits can still motivate employees by scoring high on the meaning index. Millennials talk, text and tweet incessantly about what they do in their jobs. Companies that find ways for Millennials to express their passions and do meaningful work will benefit from the positive buzz, along with increasing loyalty and reducing turnover.

Understanding what Millennials “mean” by their desire for meaning in their careers is the first step towards creating more motivating and rewarding environments for them.

Employee motivation: Bucking the cash trend

How do you motivate employees when budgets are tight? The good news is that effective employee recognition isn’t always about the all-mighty buck. According to a recent McKinsey Quarterly survey¹, some noncash incentives can be even more motivating than cash.

Three noncash incentives that motivate employees:

1. Praise from immediate managers
2. Attention from leaders (for example, one-on-one conversations)
3. A chance to lead projects or task forces

The employees surveyed rated these incentives as no less or even more effective motivators than the three highest-rated financial incentives: cash bonuses, increased base pay, and stock or stock options. The noncash incentives made them feel that their companies valued them, took their well-being seriously, and were striving to create opportunities for career growth.

In an era of shrinking budgets, why aren’t more companies opting for creative, non-cash rewards?

One reason may be that managers don’t want to challenge the status quo belief that money is what really counts. They may assume that bonuses rule. Another reason could be that recognizing people with something other than a cheque takes time … often a lot more time and commitment from senior management.

However, some visionary companies are looking beyond cash to understand what truly motivates employees. Numerous studies point to the fact that for workers who are making enough money, some nonfinancial motivators are more effective than extra cash in building long-term employee engagement.

To find out more about bucking the trend with noncash incentives, read “Motivating people: Getting beyond money” (November 2009).

http://www.mckinseyquarterly.com/Organization/Talent/Motivating_people_Getting_beyond_money_2460

¹ McKinsey Quarterly conducted the survey in June 2009 and received responses from 1,047 executives, managers, and employees around the world. More than a quarter of the respondents were corporate directors or CEOs or other C-level executives. The sample represents all regions and most sectors.

10 predictions for the future of social learning from the 2020 Workplace

The last ten years has seen phenomenal change in technology and the learning function in such a short time. What can we expect to happen over the next 10 years? How will it affect the way we work and live? And what can companies do to prepare for the change ahead?

In their new book, "The 2020 Workplace, How Innovative Companies Attract, Develop, and Keep Tomorrow's Employees Today", corporate learning professionals Jeanne C. Meister and Karie Willyerd bravely predict the nature of the workplace of the future. Here is an excerpt from a recent article with some of what they have discovered.

1. Augmented reality learning emerges
2. Most learning incorporates use of a mobile device
3. Games and simulations are used for every content area
4. We will have a huge app-etite
5. Peer-to-peer learning blossoms
6. Expert and credibility ratings create trusted search networks
7. Search bots go on the prowl for you
8. Governments will become more involved in ensuring that its citizens have access to training and retraining
9. The learning function's focus shifts to accreditation, with less emphasis on the learning process itself
10. You will be rated publicly, much like a Yelp or Amazon rating for people

This article was based on the book, "The 2020 Workplace: How Innovative Companies Attract, Develop, and Keep Tomorrow's Employees Today."

HarperBusiness, 2010

Click here to read the full article.

Employee recognition – put people before profits for greater success.

Companies are in the business to make money. So why would a company even consider putting its people ahead of profitability? Because in our post-recession economy, employee recognition methods that put people first may be the key for future success.

 
The emergence of social media, an increasing need for transparency, and labor market trends are transforming the global marketplace into a people-centered economy and giving rise to a new concept called “Employee Enrichment.” These are the findings according to a new study entitled Leadership and the Performance of People in Organizations: Enriching Employees and Connecting People¹."

Employee enrichment is a strategic approach that genuinely emphasizes the quality of people’s lives with a “people-first” orientation that extends far beyond the typical work/life balance.
Very simply, the concept is that the better a person’s well-being, the better that person performs. So if a company takes care of its people first, its people in turn will take care of the profits.

Move over employee engagement
Over the past few years, employee engagement has been the hot button with techniques such as special training, career development and employee incentives often yielding impressive and measurable results. But that was fundamentally driven by a profit-first approach – companies wanted employees to be engaged so they would perform better.
Now visionary leaders are adopting the new mantra of employee enrichment as they recognize that today’s workers are looking for more than money and advancement in their careers.

More powerful perks for employee recognition
Smart companies are moving to an employee enrichment model by taking a more proactive interest in their people and fostering personal growth through education support, training programs, physical and mental wellness efforts, rewards and incentive programs.

According to the most recent selection of Fortune magazine’s Best Companies to Work For (CNN Money.com, downloaded 1/21/10), some new perks that work include things such as a fully staffed on-site medical center, a free fitness center and natatorium, corporate artists in residence, an on-site farmers market, healthy living incentives, concierge services and paid sabbaticals along with the more common techniques like generous retirement investment matches, etc.

The ability to attract, retain and motivate high-performers will become increasingly important for today’s companies. Managers that put their people first and reward them in ways that truly enrich their lives will be more likely to keep profits in the picture.
 
Written by Leslee Vivian
Leslee Vivian is a professional writer specializing in employee recognition and blogs for Power2Motivate®, the On-Demand service that helps companies recognize, motivate, train and reward their employees.                                                                            
¹ Study by The Forum for People Performance Management and Measurement, “Leadership and the Performance of People in Organizations: Enriching Employees and Connecting People” (Won-joo Yun and Frank Mulhern, Nov. 2009).

Give virtual employees real rewards.

Okay, so you've got a great team of virtual employees that work remotely or from home. They like the freedom and independence of working off-site, and you like the lack of overhead. The question is how do you keep them focused and motivated when you may not see them for days, weeks or at all?

Here's how:

Build trust.

Trust is the starting point in almost any good relationship. As a manager, you have to believe that your virtual workers can perform their jobs properly with little or no supervision. Your workers need to know clearly what's expected of them and that you believe in their ability to deliver on those goals.

Have a virtual open door.

Strong, trusting relationships spring from honest and regular communication. Create a virtual open door policy. Keep in touch on a consistent basis through email updates, regularly scheduled status meetings or conference calls. Encourage genuine feedback and input.

Show your appreciation to the world.

Regularly praise your virtual workers for their accomplishments and make sure their other team members know as well. Phone calls, emails, posting a note on the company Facebook wall, or tweeting are all good ways to help workers feel recognized and appreciated in their community.

Motivate through involvement.

Involve your team in determining their performance rewards. Create a simple survey and ask what motivates them. Typical rewards like a corner office don't matter when you're working from home. However, things such as the latest smart phone or a faster computer probably do. Perhaps they'd like to take seminars to learn new skills or want rewards linked to a hobby or personal interest. Find out.

Connection is also its own reward.

Making your employees feel connected to a greater community can be a reward in its own right. When people know they're being kept in the loop and are up on what's happening, they feel more like part of your company.

In a virtual environment, the biggest hurdle is recognition and reward. To keep your virtual team productive and satisfied, remember they're still real people and real rewards work.

Written by Leslee Vivian

Leslee Vivian is a professional writer and blogger who helps companies motivate, reward and train their employees. If you know her, you know what motivates her is being a better golfer.

 

We're mad as hell, and not going to take this anymore!

60% of workers plan to say "take this job and shove it" as soon as the economy picks up.

According to a recently released White Paper by the Recognition Council, a recent U.S. Manpower study showed that 60% of workers plan to look for new jobs as soon as the economy picks up.¹

http://www.recognitioncouncil.org/

As Newsweek's Jeffrey Pfeffer points out in a recent article about corporate downsizing, "When the current recession ends, the first thing lots of employees are going to do is look for another job." (Lay Off the Layoffs, Jeffrey Pfeffer, Newsweek, Feb. 5, 2010, downloaded Feb. 17, 2010.)

http://www.highbeam.com/doc/1G1-218456702.html

Feeling lucky that you have a job is no longer enough for many employees. Overworked and under-rewarded for a few years now, they're fed up and are looking for more stability, opportunity and appreciation.

As an employer, how do you prevent your best people from packing up as the economy picks up?

Proving to them that they're individually appreciated may be the only way to engage them and keep them from heading for the exits.

1. Forget one-size-fits-all recognition programs.

Not everyone responds the same way to incentives, especially with today's multigenerational workforce that includes Baby Boomers, Generation X, and Generation Y (Millennial Generation). More than ever, creating recognition and reward programs that address the diversity of generational needs is essential.

2. To know them is to motivate them.

There's only one way to determine how best to motivate individuals. You have to get to know them. Managers should spend time on a regular basis with each employee to determine what type of recognition would be the most effective.

3. Recognize what everyone brings to the team.

Studies prove employees need to feel valued and know that the work they do on a daily basis matters. In fact, 67% say the most important employer attribute is "recognizes the value I bring to the organization." (Length-of-Service Awards Becoming More Personal, Rebecca Hastings, SPHR, 2009 HR Trendbook, p. 46.) www.recognitioncouncil.org/photos/custom/FuelingRecovery__final_2.pdf

Employees who feel valued are more likely to return the favor by paying attention to the company's bottom line, treating customers better, and supporting the overall work community.

4. Put their best interests before yours.

Let's face it, we prefer to do things that are in our own best interest. The trick for employers is to find ways to connect what employees want with what benefits the company and reward that behaviour in a way that is meaningful to the employee. If it works for them, they'll work harder to help achieve your company's business goals. (Influencing and Reinforcing the Behavior You Want in Employees and Customers, Dittman Incentive Marketing, downloaded Feb. 11, 2010.)http://www.buzzle.com/articles/influencing-and-reinforcing-the-behavior-you-want-in-employees-and-customers.html

5. Explore new technology to motivate today's changing workforce.

Exciting new alternatives for employee engagement are now available in the market. On-Demand solutions that use a "Software as a Service" (SaaS) design, such as Power2Motivate® (P2M®), are reshaping employee recognition and performance programs.

P2M® offers incredible flexibility to tailor programs to the way you want to meet individual needs, unsurpassed reward selection with immediate access to millions of rewards, and a simple pricing model that can save your company up to 20% off your total program cost. >>Find out more about Power2Motivate®.

The recession has been a grueling and challenging time for so many, to say the least. As the economy improves and new opportunities present themselves to workers, employers need to ensure their good employees are engaged and willing to put in the effort to help the business recover. By successfully tapping into the right employee motivators, companies have a real chance of achieving success.

¹  "Pump Up Employee Engagement: Fuel Prosperity with Strategic Recognition".

This white paper was produced by the Recognition Council, a strategic industry group within the Incentive Marketing Association (http://www.incentivemarketing.org). More information about the Recognition Council is available at http://www.recognitioncouncil.org/. http://www.recognitioncouncil.org/