non-cash rewards: accelerate & reinforce obm strategies
DESCRIPTION
This presentation was given by Chris Galloway, General Manager for 3Cheers! with Maritz Motivation Solutions and Patrick Carpenter, VP at the Great Game of Business at the 2013 Gathering of the Games Conference. The session promotes adoption of OBM principles using recognition and carefully selected rewards. At this session, you will learn why non-cash rewards increase performance by a 3-to-1 margin over anything cash related, and will be presented with a roadmap of how to implement recognition and rewards at your company.cash rewards programsTRANSCRIPT
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Non-Cash Rewards are best for accelerating and reinforcing
OBM strategies
Patrick Carpenter │ GGOBChris Galloway │ 3Cheers!
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The Winner’s Circle
• Session Goals– Learn best practices for non cash rewards by the
market leader in non-cash rewards– Give you the facts you need to justify increasing
your non cash rewards programs– Support for the execution of your MiniGames™
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Educate(Think)
Empower(Act)
Engage(Feel)
We are here
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Part of a Total Rewards StrategyN
on-
cash
and
Ca
sh
Reward for Perform
ance
Lever Objective Program Ownership
Target % - Annual Pay
Recipients (% of
Population)
Recognition
• Recognize and reward excellence• Recruit and retain top performers• Reinforce company values/ core
competencies
0.75 – 1.0%of Total
Pay
RewardsIncentiveAwards
• Incentivize achievement of short-term business objectives
• Promote specific behaviors/activities• Increase motivation and productivity
to well-above expected levels
1 – 2.5% of Total Pay
Performance Comp
Incentive Pay
• Incentivize achievement of company objectives
• Recruit and retain top talent• Link individuals to business goals
9-30% of Total Pay(non-sales)
Salary Base Comp
• Pay for performing job duties • Ensure consistency in “meets
expectations” for objectives; baseline for performance
• Recruit and retain talent
70-100% of Total Pay
Benefits• Security Needs• Work Environment
Non
-ca
shCa
sh
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Connecting OBM to Rewards
Healthy OBM companies go beyond simple recognition of the power of everyone understanding the numbers. The top OBM companies have locked-in on patterns of non-cash rewards. And when non cash rewards are executed well they reinforce everything good about business – giving purpose to work and connecting us with our fellow team members. Maritz is to rewards and recognition as SRC is to OBM. They practically invented the practice.
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Topics1. Goals of recognition2. What makes recognition effective?3. Why non-cash?4. Measurable value of non-cash rewards5. How to get started with implementing a
program
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Why Recognize?
“You get a paycheck, isn’t that enough?”
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Recognition drives engagement
Meaningful recognition causes a 14% increase in employee engagement and productivity.
Bersin & Assoc., 2012
When combined with OBM practices, this will result in:• More games played AND won• More profit to invest• Self-funding for employee rewards
… resulting in even higher engagement!
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Why Recognize?
You want:
More of a good thing / behavior
Consistent best effort – aka care
Know that you notice/care
Ownership/dedication/loyalty
… An Emotional Connection
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Effective Recognition
Rational AND Emotional
Multiple Motivators
Individual AND Social
Peop
le P
rinci
ples
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Bottom Line
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Effective Recognition
It’s not just about the rewards• Purpose, authenticity• Atmosphere for
appreciation• Flexibility and style• Personal, in person• Non-cash rewards
Handout
• Know and teach
the rules• Follow the action
and keep score
(huddles)• Provide a stake in
the outcomeSource: The Great Game of Business
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Why focus on Rewards?
• Significant investment– 90%+ of program cost
• Can work against you– Entitlement– Demotivating– Decreasing loyalty
Choosing Non-Cash Rewards WILL pay long-term dividends.
Why? …
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What is a social norm?
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Proof Point #1
Source: Heyman and Ariely, 2004. “Effort for Payment: A Tale of Two Markets”
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101 159 168
162 169 168
Source: Heyman and Ariely, 2004. “Effort for Payment: A Tale of Two Markets”
Proof Point #1
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Proof Point #2
30 60 90 120 150 1801000
1200
1400
1600
1800
2000
Baseline Cash Bottle Origami
Source: University of Zurich 2011. “The Currency of Reciprocity – Gift-Exchange in the workplace”
5%
25%
30%
Number of Characters Entered
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Proof Point #2
Source: University of Zurich 2011. “The Currency of Reciprocity – Gift-Exchange in the workplace”
+ =?5%
Market ExchangeLow Effort
25%
Social ExchangeMedium Effort
30%
Really??
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Proof Point #2
30 60 90 120 150 1801000
1200
1400
1600
1800
2000
Baseline Choice Bottle
Source: University of Zurich 2011. “The Currency of Reciprocity – Gift-Exchange in the workplace”
25% 25%
Number of Characters Entered
Choice!
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Other Findings
1. 2007 presentation by Scott, Jeffrey, Ph.D., entitled “From Art to Science: Why Tangible Non-Cash Rewards are More Rewarding for You and Your Participants,”
2. Jeffrey, S. A., & Adomdza, G. K. (In Press). Incentive Salience And Improved Performance. Human Performance3. Markham, S. E., Scott, K. D., & McKee, G. H. (2002). Recognizing Good Attendance: A Longitudinal, Quasi-Experimental Field
Study. Personnel Psychology, 55(3), 639-660
University of Chicago2007 (1)
• 3X more cash to drive behavior than tangible rewards
Human Performance Research 2011 (2)
• Non-Cash Awards capture more employee attention
Field Study 2002 (3)
• 29% - 52% reduction in absenteeism
3-for-1
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How to get started
Program design goes well beyond providing a tool and access to rewards
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Benchmarks
• Recognition budgets should be between 0.5% and 3% of payroll
• Sales incentive prizes are not included in this budget (contra funds)
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Handouts
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Thank You for Attending!
Non-Cash Rewards are best for accelerating and reinforcing OBM strategies
Presented by: Patrick Carpenter and Chris Galloway
Please fill out a session evaluation using the paper forms on the table or the conference application on your phone/tablet.