Incentive - June 2008 - (Page 38)

PRIMER B a tt l i n g t h e Hi g h C o st o f E m p l o y e e D i s e n ga ge m e n t By Derek Irvine mployee disengagement is one of the biggest threats to a company’s bottom line. Underperforming and disengaged employees are more contagious than engaged employees. Disengaged employees cause productivity levels to drop, company morale to plummet and can even destroy a company’s ability to recruit new talent. Many companies today are increasingly realizing that strategic employee recognition programs can drive improved engagement, advancing recognition from a “nice-to-have” to a business success requirement. However, for far too long, employee recognition programs have been allocated to human resources departments as a tactical task. These programs are now seen as a strategic business investment that influences a high-performance workplace. Recognition reinforces the most important results employees deliver for their company— advancing the firm’s mission and vision by consistently performing their duties in alignment with company values. Executives are beginning to recognize the benefits of recognition as a key driver in employee engagement. Executives across industries have seen for themselves the difference between a “willing” employee and a truly “engaged” one. “Willing” employees get the job done, doing what’s essential, but nothing more. “Engaged” employees seek to improve efficiency, effectiveness and results, looking for opportunities to go Fi ve Po i nt s to R em em b e r w h e n Sta r ti n g a R e cogn i ti o n Prog ra m • • • • • Consultation Capabilities Cross-Program Validity Global Capabilities Rewards Model Technology Expertise and Client Services Derek Irvine VICE PRESIDENT OF GLOBAL STRATEGY, GLOBOFORCE Derek Irvine has worked with such global enterprises as Avnet, Dow Chemical, Intel, Intuit and Thomson Reuters, advising his clients in the development of their strategic employee recognition programs. Contact Derek at derek.irvine@globoforce.com E above and beyond to achieve personal and team bests. The ROI on Employee Recognition According to a 2004 Gallup survey of employees worldwide, organizations with higher than average levels of engagement also enjoyed 27 percent higher profits, 50 percent higher sales and 50 percent higher customer loyalty levels. Meaningful Appreciation for “Doing It Right” Studies prove most people want to perform well at their jobs. But even the most enthusiastic workers need recognition—frequent and timely pats on the back for a job well done. Sadly, a recent Gallup poll found 65 percent of Americans reported receiving no recognition for good work in the prior year. Employees need to be recognized as important contributors to the company mission and the bottom line. Employee recognition programs are gaining momentum as a strategy for fully engaging employees by motivating and driving employee productivity, but also in promoting the company brand to the Illustration: Katharine Sandalls employees themselves. Smart companies recognize that success in the marketplace depends largely on their employees’ belief in the integrity of the brand and the company. What is trumpeted externally through advertising and other communications must resonate internally, or the campaigns will not inspire and motivate employees. Smart companies recognize their employees need to be interested—engaged—in what they do every day. Towers Perrin conducted a global study that showed only 14 percent of employees worldwide consider themselves to be fully engaged in their work. How do successful organizations keep their employees engaged in corporate values and strategic mission? Total rewards play a critical role. Total rewards seek the highest ROI, with the optimal mix of rewards including salary, benefits, equity, recognition, appreciation and intrinsic rewards. See the extended version of this article, with Derek Irvine’s Five Priorities to remember when starting a recognition program, and his tips on evaluating such a program. Visit INCENTIVEMAG.COM/IRVINE 38 | Incentive | June 2008 | incentivemag.com http://INCENTIVEMAG.COM/IRVINE http://incentivemag.com

Table of Contents Feed for the Digital Edition of Incentive - June 2008

Incentive - June 2008 Contents Editor’s Note In The News Cover Story: Seventh Annual Industry Roundtable Incentive Interview Case Study Soft Incentives Empowerment and Engagement The Incentive Career Incentive Primer Travel News: Where To Go and What To Do The Cook Islands Field Report: Bermuda Potentials: Here and Now 50 Top Motivators: The Best of the Best Electronics: High-end Audio Equipment Gift Cards: Should One Be Enough? Advertiser Index Off The Cuff

Incentive - June 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.