Rewards, recognitions that make cents - Human Resources

Money is the first thing that springs to mind-at least if you're a manager--when you mention employee rewards and recognition. And how better to show employees appreciation than by giving them a raise or a bonus?

But then questions begin to fill your head. "How will I recognize people by giving them money when I'm already over budget on payroll. And if I tell someone they are doing a good job, won't he or she expect a promotion, or at least a raise?"

While money is certainly an important factor for employees, they often are looking for more nonmonetary types of recognition.

In his book, "Off the Bench and Into the Game," former National Hockey League star and now motivational speaker Ryan Walter says people want two things in life: significance and intimacy. They are looking for these things at work and in their personal lives.

THINKING DIFFERENTLY

Employee and manager surveys over the past 60 years bear out Walter's belief. Lawrence Lindahl conducted one such survey in 1949. It asked staff members and managers of firms to rank from 1 to 10 (1 being highest) what they wanted most from their jobs.

On the list of 10 choices was everything from good wages to promotion opportunities, and from appreciation for work done to tactful discipline.

A clear difference in thinking between managers and employees emerges when we look at the survey's results.

For managers, the top three issues were wages, job security and promotion opportunities. For employees, full appreciation for work done, feeling "in" on things and help with personal problems topped their list--the same three items managers ranked No. 8, No. 9 and No. 10.

Even more surprising is that this survey has been repeated over the years with the same results. Even a retention survey our firm conducted in 2001 indicated similar trends and gaps in management's understanding of what workers look for in job satisfaction.

In fact, when our survey asked executives, "What makes your job worth investing your time?" we found that executives' priorities mirrored those of other employees. So, from CEO to entry level, all employees are looking for much the same thing--being appreciated, being part of what's going on and being recognized as a whole person.

INTRINSIC, EXTRINSIC REWARDS

How does this apply to reward and recognition? Let's look at rewards first, and the difference between intrinsic and extrinsic rewards.

In the surveys, managers focused on extrinsic rewards for their employees. They believe that money and promotion are the rewards that keep employees loyal, that motivate employees and that keep companies competitive. Managers who believe the best rewards are extrinsic also will be concerned that if extrinsic rewards are not given, employees will leave. They believe that when employees get positive feedback about the quality of their work, they will expect extrinsic rewards.

However, if the focus is on intrinsic rewards, rewards and recognition have a different meaning and structure. Intrinsic rewards are supported by voiced appreciation for work done--in other words, feedback.

When individuals find satisfaction in the work itself, they appreciate all types of feedback because it helps them do a better job and guides them to do their job in the best way possible. This increases the intrinsic reward of doing the job well.

This becomes a positive loop, with the output (intrinsic worth) stimulating more good work, which creates more positive feedback, and so on.

Many employees believe that the reward for doing a job well will be to become part of the decision-making process, or at least to become part of the team that knows what is going on and is privy to the reasons why decisions are made.

Being "in the know" is a reward in itself. It tells employees that they are trusted and they are valuable because you, as a manager, can trust them to work in the company's best interest.

While a business environment may not be the best place to develop significant and deep friendships, when employees believe their managers make an effort to know them, to see them for the whole human being they are--and not just as a number on a spreadsheet--that relationship also has an intrinsic value to that employee.

This is one reason why well-crafted mentoring programs have such a powerful effect. Not only do they transfer knowledge, they create significant business friendships.

RECOGNITION

All of us want to hear that we are appreciated and that we're doing great work. And if we are intrinsically motivated, we also appreciate constructive feedback on our weaknesses so we can do the best job possible.

If constructive feedback is not given, positive feedback will be dismissed because simply telling employees they are doing a good job, no matter how often, doesn't indicate an investment in making the employees better. Everyone has room for improvement.

Also, if positive feedback is not given well, that is, if it is not specific or linked to expectations, then constructive feedback also will be dismissed. Properly delivered feedback becomes a motivator for the intrinsically driven employee.

MORE THAN MONEY

Aside from money and feedback, what are reward and recognition options available to an organization? The answer is simple: There are as many different rewards and recognition programs as there are employees.

The key is in discovering what motivates each employee and then working that motivating factor into a program that has credibility and merit.

Indeed, the process of designing the program can be a reward in itself.

Look at the group that is the most vulnerable to turnover in organizations--the entry-level professional--and get them involved in the process. These people are often the hardest workers with the least recognition. How do you get them involved? Find a sponsor--a company decision-maker--who can convene a team of employees and give them guidelines, both financial and cultural, as they progress.

Invite interested firm members to participate in the team, and then ask them to brainstorm possible rewards and recognition. Once the trips to Bali have been overruled, you might be surprised at what a clever team can create.

Here are a few ideas from companies we've worked with:

One group came up with the idea of a morale officer, whose job it was to plan an event, contest or potlucks that brought the group together in new and creative ways. A new team member was the morale officer each week, and a small sandwich board announced the person's name each Monday.

The events ranged from doughnuts and potlucks to mind puzzles to writing contests, with prizes for the most outrageous entries.

Other groups have designed ways of giving peer feedback that is specific and describes a peer's behavior using notes; socks (for "knock your socks off' service); a shoe (bronzed, of course), with a hole in the sole, for "management by walking around;" and other mementoes that recognized team and organization sanctioned behaviors.

Managers must overcome the fear that if they recognize an employee's good work, the employee will expect a monetary reward. You don't stop recognizing people because you have no money to give them a raise, you find creative ways to recognize people that is in line with their value system. This way, the reward is more creative and reinforces the employees' value by saying you care enough about them to find out what is important to them.

Lt. Colonel Mark Johnson, a Green Beret who served in Desert Storm, comments that humans are more important than hardware. In other words, the people in the organization are more important than the tools they use to get their jobs done. We, as mangers, need to tell this to employees.

And a well-designed reward and recognition system will accomplish just that.

Money isn't everything

This study, first conducted by Lawrence Lindahl, asked managers and
staffers to rank from 1 to 10 (1 being highest) what they wanted most
from their jobs.

Statement                          Manager  Employee
                                   Rating    Rating

Good Wages                            1        5
Job Security                          2        4
Promotion/Growth Opportunities        3        7
Good Working Conditions               4        9
Interesting Work                      5        6
Organization's loyalty to Workers     6        8
Tactful Discipline                    7       10
Appreciation for Work Done            8        1
Help with Personal Problems           9        3
Feeling "In" on Things               10        2

Mary Richardson is a senior consultant at Herrerias & Association, a San Anselmo-based firm dealing with team development through training and organization development. You can reach her at [email protected].

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COPYRIGHT 2003 Gale Group