Rewards and Recognition Will Positively Impact Employee Engagement

Over the last decade employee engagement levels have barely budged since Gallup started tracking them.  This flat result comes in spite of extensive research identifying the logical links between the engagement and organizational success.  Maybe more importantly, it comes in spite of the billions spent on motivational speakers, leadership gurus, coaching, engagement surveys, technology, communication, training, rewards and recognition.  So where have we gone wrong? 

The state of employee engagement today might be best described by using the hiking term “false summit.”  That’s the disappointment one feels when reaching the crest of a ridge, only to discover that the real summit looms high above.  The good news is that despite the apparent lack of progress, the path to significant improvement in employee engagement remains, as more and more executives have a greater appreciation of the role of engaged people.  

The Question Is Always How? 

In decades of working with clients in the incentive rewards and recognition industry, we know the easiest way to begin a strategic connection between employees and the engagement needed to deliver your brand promises is to implement the principles contained in the employee behavior model. Executives, especially in HR are aware of the principles that great psychologists such as Watson, Skinner, Maslow and Thorndyke taught.  But it seems that the traditional thinking surrounding behavior has been set aside in favor of new approaches of the consultants of today that permeate the C-Suite. Through decades of implementing successful employee award systems that followed the simple approach of the behavior model, we know you can produce results. 

Employee Recognition Will Produce Results 

If you design and implement the right employee award system you will definitely engage employees. You don’t have to make it any more complicated than that.  

The sense of a false summit comes from the fact that the industry is replete with gurus delivering leadership advice, various performance apps, wellness programs, feedback surveys, all types of rewards and recognition items, and other measures to engage employees. HR and related technology trade shows and conferences feature education topics and exhibits on all manner of ways to engage employees—and yet employee engagement levels remain stuck well below 50%.  Why? 

People come to work each day because you’ve provided a contract of income to get them there.  But this contract doesn’t necessarily motivate them to perform at their highest level once they are there.  That’s where the connection to improved performance by implementing a well-structured reward and recognition system should begin.  

Where Have All the Experts Gone? 

The Reward and Recognition Industry began employee engagement long before it was ever titled that.  The successful incentive rewards houses made large investments in expertise in all the facets of the behavior model, and gave that expertise away in order sell their commodities of merchandise and travel.  Those companies became the floor upon which the entire recognition and reward business was built.  But the industry has changed, the new companies didn’t bring the expertise and now merely sell the rewards as consequences to behavior without regard to the other behavior pieces.  Studies from the Incentive Research Foundation clearly show that the vast majority of companies never look at their award supplier as someone who can assist them in building a strategic connection with their employees.  We believe that’s the first place you should look. 

Some Problems Still Exist 

If you want to break the 50% engagement barrier, you need to think in terms of systems not silos.  When you entertain experts, who remain firmly planted in their own curriculum you will not be able to connect all the behavioral dots.  When was the last time you had a training company present measurement and feedback coupled with rewards as part of their solution? When was the last time you had a technology company present an app or IT solution which included communications, feedback analysis and rewards necessary to make it effective?  When was the last time you had a recognition or awards salesperson concerned about anything other than how many awards you needed and when?  

There is no one cure-all for employee engagement.  It has so many facets and levels that it is difficult for any company to achieve.  The ones that have it didn’t get there overnight, and are constantly tweaking the pieces.  We’ve watched companies grapple with how to begin and spend countless hours arguing over the important pieces that make up the foundation and how to start.  If you want to delve into the world of employee engagement, look through the lens of the behavior model and you’ll find the best way to build it for yourself. You’ll know what pieces you already have, which ones you do well and which ones are missing, and if they are working in unison to produce your desired results.

Getting More From Holiday Gift Card Awards

The holiday season is here again, and for those looking to thank their employees, channel sales teams or clients, gift cards remain a favorite option.

What are the advantages of using gift cards as holiday awards? 

• Gift cards provide a real value and allow the recipient to get the merchandise item that they want, when they want it and from where they like to shop. 
• During the holiday season and beyond there are a myriad of items that will be on sale.  The value of the card you give is actually expanded, often by double, when used for discount bargains.
• From the buyer perspective, lead times on giving gift cards are far shorter than other merchandise items; you can get them quickly, often within 24 hours.he shipping cost of getting the cards to you is very small and doesn’t adversely affect your budget…almost 100% of the budget gets into the hands of those you want. 
• You can get gift cards in almost any denomination that fits your needs, large of small.
• You can get universal gift cards such as the Award of Choice that gives your award winner over 500 of the most popular brands to choose from.  You no longer have to agonize over what brand to use.  They will know what they want, let them have it. 
• You can use electronic gift card awards such as instant Award of Choice where all you have to do is order a certificate online, send it to the recipient and they can in turn order the electronic card they want.  All this can be done in minutes.

Many buyers we’ve spoken to over the years don’t like gift cards because they think they are too impersonal (or don’t want the recipient to know what they actually spend.)  Unless you plan to buy a specific different item for each recipient, at least 50% of what you give won’t hit the mark, and won’t be personal at all.  And with the ease of comparison shopping online, figuring out the cost/value of almost anything this side of a space ship is a breeze.

Research has shown that the recipients would much rather choose what they want rather than something they have no use for. Closets desk drawers and garage sales are full of items given that were never used. 

Why Gift Cards are More Compelling than Cash as Employee Awards

 

Executive responses to a recent Incentive Federation study on employee incentives showed that merchandise and travel are more compelling than cash as employee awards.  And specifically in the merchandise category gift cards were the most popular awards. 

The reasons most incentive planners feel why gift cards are more effective were listed as:

1. Trophy value: Gift card purchases are more memorable – they create a lasting reminder of achievement.

2. Viral value: Employees tell each other how they redeemed gift cards.

3. More discrete: It’s polite to mention non-cash awards.

4. True gift perception: Gift cards are not viewed as part of compensation.

5. Universal benefits: Gift cards combine the benefits of merchandise with the benefits of cash.

6. Guilt-free spending: Recipients don’t feel guilty treating themselves.

7. More likely to improve work performance: Studies show that cash doesn’t improve work performance – gift cards do.

8. Family support: Because the participant’s family is involved in selecting awards – they’re more likely to support the participant’s goals.

9. Pleasing loved ones: There is a strong motivation to earn an award for one’s significant other

10. Long-term positive feelings toward organization: Gift cards reinforce positive associations with sponsoring organizations.

To review the entire research click here.

Should You Have Year End Celebrations?

Clearly no one seems to be in the mood to celebrate all that has happened to us this year.  Businesses and employees are traumatized with the layoffs, closures, budget cutting and depression and anxiety abound in the workplace.

However, we would suggest that this is not the time to skip that holiday celebration; in fact it may be one of the best times ever to have one.  Granted, budgets have been cut and you may not be able to have the elaborate events of the past, but if there was ever a time to thank your dedicated employees it is now.   If 2020 taught us one thing it’s that our employees are tremendous people with big hearts and loyalty.  Now is the time to tell them you appreciate them.

Consider a simple note from middle management or executives personalized to the employees that speak to the things they have achieved, the hardships they have endured and the obstacles they have overcome often doing things outside their job descriptions to help keep the business going.  You might want to include with it some small token of thanks pertinent to your particular business…you can find hundreds of logo merchandise ideas in your ASI catalogs.  

Also consider bundling the ASI item with a gift card voucher for extra emphasis.  Gift cards are shared with the family.  Using a gift card voucher that gives your employee the choice of hundreds of gift card brands, allows you to give one gift and the employee gets something they want or need...a wide variety of merchandise, entertainment, restaurants or grocery stores.  If your employees are not in central locations, issuing gift card vouchers can be done electronically with very little effort on your part,

Say Thank You and celebrate those who make a difference.