TM - December 2007 - (Page 30)

their awards on “bills.” That is considerably higher than the only 9 percent who used their cash award on a “special personal treat.” (See Figure 2.) What Companies That Use Non-Cash Rewards Say well as easily order a gift of their choice for their specific recognition achievement. Access to the recognition Web site makes employees feel valued and appreciated, as if they are part of the process. At Meridian Health, a leading provider of quality health services, facilities and programs in New Jersey, the goal of their recognition program is to increase employee satisfaction and loyalty. “Showing your employees that you appreciate them makes them feel that they are important to the organization. When your employees feel appreciated, they work harder to meet the organization’s mission,” said Wendy Edelson, Meridian’s director of resources. Online recognition tools have enabled Meridian Health’s managers to recognize its employees in a timely manner using email reminders to prepare them for the event. Giving employees the option to choose gifts and acknowledging their anniversaries in a special way makes them feel important to the organization. Since the inception of Meridian’s recognition programs, the company has noticed a much lower turnover and job vacancy rate. They continuously reinforce their employee recognition program, as well as other initiatives that help employees balance work and family life. Many companies choose to use non-cash recognition programs because cash does not reinforce brand loyalty. Also, most employees do not remember what they spent the money on. Therefore, giving cash awards reduces recognition impact. Additional responses include: • Cash is a commodity, so it cannot differentiate. Intangibles distinguish and make a difference. • Cash programs always become entitlements. Administrators like to have the flexibility to “refresh” merchandise items, thus keeping their programs new and exciting. • Administrators get more attention and excitement out of non-cash programs. • Employees are more willing to brag about their non-cash rewards. Cash has no trophy value. Since employee achievement awards are items of tangible personal property that an employer gives to an employee for achievement or length of service, if certain requirements are met, these awards have advantageous tax results for both the employer and the employee. Cash awards, conversely, are taxed as income, which diminishes their value to the recipient. Use Recognition Services to Honor Employees Since employee achievement awards are items of tangible personal property that an employer gives to an employee for achievement or length of service, if certain requirements are met, these awards have advantageous tax results for both the employer and the employee. ABB, a leader in power and automation technologies that enable customers to improve performance while lowering environmental impact, operates in around 100 countries and employs about 109,000 people. According to Linda Stevens, contact manager for service awards, ABB currently recognizes their employees at five-year intervals, and plans are in the works to expand the program to recognize employees after they mark a three-year milestone with the company. “Early recognition is important, as it shows our employees that we appreciate their work and dedication to the company,” said Stevens. “It also reduces turnover and fosters a feeling of goodwill throughout the organization.” “Providing an attractive and positive workplace for your employees is vital to any health care organization because of the ongoing competition between health care organizations to find and recruit the best talent,” said Dan Miller, vice president of human resources for EMH Regional Healthcare System, a premier health care provider in Ohio. Through EMH’s recognition Web site, employees can view gift options from any of the reward categories, as talent management magazine www.TalentMgt.com 29 December 2007 http://www.TalentMgt.com

Table of Contents Feed for the Digital Edition of TM - December 2007

Talent Management - December 2007 Editor's Letter Contents Letters to the Editor Human Performance Leading Edge Capabilities The Engaged Difference: What People Want Analytics in Talent Management: The Sports View The Use of Merchandise for Employee Recognition Taking Aim at Performance Appraisals Talent Management Drives Organizational Change Generational Diversity: Mastering the Boomer-X-Y Divide Dashboard: Security-Savvy Workforce: Designing a Security Awareness Program That Works Application: Hilton Hotels Corporation:Checking Out the Merits of Paperless Efficiency Insight: Unlimited Engagement: Innovative Corporate Communication at Deloitte & Touche USA Advertisers' Index Editorial Resources Foundations

TM - December 2007

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