reward and recognition best practices

8/3/2019 Reward and Recognition Best Practices

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Recognition Programs:Trends and Best Practices

Wisconsin Society for Human Resource Mgmt20 th Annual Conference

October 13, 2006


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Agenda

Economic BackdropImpact on CompensationSystems

Reward & RecognitionPrograms

Plan Design/Best PracticesCeridian Programs

Wrap-Up / Questions


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2002 2005The Business Environment

OilPrices

Job

Market HealthcareCosts

WorldCom

Enron

CorporateGovernance UnderwaterOptions

Sarbanes-Oxley Act of

2002

Expensingof Stock Options

Pay forPerformance

Salary IncreaseFreezes Stock

MarketUncertainty

Iraq

Dilution AtUnprecedented

Levels


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The More with Less Economy

2003 productivity +5.3%: biggest increase since 19651979-2000: Factory output doubled; manufacturing

jobs 2.3M1980: GM assembled 5 million vehicles with454,000 workers

2003: GM assembles roughly same number with118,000 workersProductivity revolution second wave: Services!

American Express: Rev +$1.2 billion, with 9,000fewer employees.Sprint: Rev up 4.3% with 11,500 fewer workersNWA: 755 check-in kiosks each can replace 2 employees


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Compensation Systems Overview

Base Pay Bonus

Benefits Equity

The other compensation component.

Rewards & Recognition


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Compensation Trends

Average annual salary increasesCompanies focus on keeping their bestemployees

Companies rethinking stock optionsContinued focus on cash incentivesBenefit costsIncreased focus on reward andrecognition programsMore open communication


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Reward & Recognition External Data

Recognition Program in Place? 84% 87%

Nearly 9 out of 10 companies offer some sort of recognition programs for employeesReward and Recognition programs are generally lessexpensive than base pay, benefits, stock options andbonusTop objectives for recognition programs includemotivating high performance, reinforcing desiredbehaviors and creating a positive work environment.Recognition programs have grown over the years frominformal thank yous to plans with a written strategyand more defined budget.

20022003

Workspan, December 2003


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Benefits +Reward andRecognition

+ Variable Pay + Base Pay =Total

Rewards

Total Rewards Components


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Reward and Recognition Program Design

What?Why?

Characteristics of a SuccessfulProgramPlan Design Steps

Best Practices Examples


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What is Recognition?

Recognition is any thought, word, or deed towardsmaking someone feel appreciated for who they are and

recognized for what they do. 1

Recognition can be a strategic tool for shaping behavior and moving an organization in a desired direction. 2

Recognition is something a manager should be doing all the time its a running dialogue with people. 3

1 Making Recognition a Daily Event by Roy Saunderson, Recognition Management Institute 2 A Culture of Recognition; Building a System to Celebrate Great Performance by RhondaSunnarborg, BI Business Improvement Series

3 Ron Zemke, Training magazine


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Why Focus on Recognition?

Employees identify recognition as one of the mosteffective motivators 1

Even small increases in supportive practices areassociated with decreased turnover and increasedsales/profitability 2Employees who feel that their organization values themare more likely to value their customers 2

Appreciation and/or praise are among the top threedrivers of employee motivation and engagement across

a variety of industries and companies 31 The Conference Board, 1999 HR Executive Review:

Employee Recognition Programs2 Pfeffer 2001 study3 Hewitt Associates


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Evidence from Best Employer Studies

Best Employers around the globe have cultures that emphasizerecognition

In the US: Fortunes 100 Best Companies to Work For All of the 100 Best Companies recognize employees outstanding

performance or service using special awards and programs50 Best Companies to Work for in Canada

Best companies in Canada have people practices that communicate andreinforce the organizations culture and values, including recognition of outstanding performance

Hewitt Associates


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Evidence from Best Employer Studies

In the UK: The Sunday Times Best Companies to Workfor

Best employers are quick to acknowledge the extra effortand hard work of individuals and teams

In addition to tangible rewards, the best companiesrecognize the critical importance of a simple Thank You Employees of the UK 100 Best never doubt how muchthey are valued by their employers

Hewitt Associates


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General Characteristics

Formal Informal

Cash Non-cash


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Characteristics of Successful Programs

Senior management support and involvementInclude employees/managers in design andimplementationKeep programs simple and easy to administerTailor rewards to individual interests, needs, desireMatch the reward to the achievementCommunicate, Communicate, Communicate!Be timely and specific

Make sure each employee understands what they didto earn the reward


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Trends and Best Practices

Rewarding teams and individualRealization that some employees value recognition asmuch as merit increases and bonusesEmployees recognizing employees

Greater use of informal/spontaneous awardsImproved publicity of winners

Biggest obstacle to success:Communication

Management support


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Achievements Recognized by Fortunes 100 BestCompanies to Work For

0%

10%

20%

30%

40%

50%60%

70%

80%

90%

100%

Outstandingindividual/ team

performance

Anniversaries/service

Goal achievement Project completion Meeting/exceedingfinancial target

Patents/ innovativeideas

Managerial/Professional Employees Hourly/Administrative Employees

Percent of

Companies


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Awards Used by Fortunes 100 Best Companies toWork For

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Communication Parties Cash Prizes Time Off Trips Stock

Managerial/Professional Employees Hourly/Administrative Employees

Percent of

Companies


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Reward and Recognition:Best Practices Examples

Southwest AirlinesOther examples in handout include

Texas InstrumentsSiemensGatewaySofitelTDKMerckHewlett-PackardXerox


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Southwest Airlines

Reward and recognition are part of the cultureTeam of employees from across the country work tothink of new ways to recognize and rewardperformance

Over 13 different recognition awards Super Service awards Monthly winning spirit awards, department awards,celebrations

Heroes of the Heart airplane

Airplane painted with team name flies for one yearAwarded to team whose dedication and behind-the-sceneswork makes a genuine difference in customer service

Industry : Airline

Employee Size : 34,000 employees

Annual Revenue : More than $6 billion


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Ceridian Reward and Recognition Programs

ObjectiveEmployee Feedback Process/Results

Three-Tiered Formal Reward andRecognition ProgramIntranet Demonstration


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Rewards and Recognition

Objective:Reward individual and/or team performance

Recognize above-and-beyond contributions, high performance,supporting Ceridians vision of changing the world of work

Delivered as cash and non-cash awardsKey Characteristics:

Unplanned and unanticipated

Reflective of performance on significant work assignment or singlenoteworthy act

Consistent with Ceridian business goals, such as processimprovement, customer service improvement


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What do Ceridian employees say?

Employee Opinion SurveysEmployee Preferences Surveys


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And the survey says

During the last Employee OpinionSurvey, Total Rewards Satisfactiondropped from 59% (2001) to 47%(2002).In 2003 our Preferences surveyindicated that Total Reward was an

area of opportunity.


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What do the results mean?

We decided to dig deeper.

Conducted four focus groups (3 employee

and 1 manager) , including employees fromcross-functional areas.


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Top Issues from the Focus Groups

Top 2 Issues for the EmployeesBase Pay

Reward and RecognitionTop 3 Issues for the Managers

Base payShared Success

Formal Recognition

R d d R i i R d i b


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Reward and Recognition Recommendations to beImplemented

Communicate the Reward andRecognition programs, to include thenomination and selection processes, to allemployees.

Notify managers when one of theiremployees is nominated for a Star award(prior to selection process).

Provide all employees tools to give non-monetary recognition.


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Rewards and Recognition

Our Rewards and Recognition program has been retooled tobetter enable each of us to recognize our employeesperformance and contributions.The enhanced program was designed based upon feedbackprovided in our Employee Opinion and Preferences Surveys, andfrom employee focus groups.Feedback from focus groups included the need to improvecommunication surrounding Reward and Recognition Programs.We listened and enhanced Reward and Recognition Programs.

Enhancements include:Two new non-monetary programs, Ceridian Gift Card and Thank YouNotes, which includes an electronic optionPresidents Circle increased from $1,500 to $2,000 and offers a tripoptionCommunication tool developed


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Three Tier Recognition Program


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Ceridian Goals & Objectives

All formal award programs tie back to the samegoals and objectives

Attract and develop enthusiastic achievers (e.g.

team player, leadership)Delight customers for long term profitablerelationshipsDeliver world class quality and productivity utilizingSix Sigma Process ImprovementLive the FISH philosophy


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Tier One


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cCash Recognition Program

Who is eligible to participate?All employeesIndividuals and teams can be recognized

How does it work?Complete the cCash Nomination form

What can you win with cCash?Cash

How does cCash work?cCash awards are presented to you in the form of an

eCash card. It can be used at any Cirrus NetworkATM machine or at any retailer that accepts MaestroPoint of Sale (POS) transactions (e.g., Walmart,Target, Walgreens, etc.)


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cCash Nomination Form

Changing the World of Work Values

Attract and developenthusiastic achievers

Delight customers for long termprofitable relationships

Deliver world class quality andproductivity utilizing Six Sigma process

improvement

Live the FISH! philosophy

Employee Name: Employee Facility Code:

Employee Number: Job Title:

* Employees Dept Number: Employees Corp Code:

** Nominators Name: Amount of Award:($20-$500, increments of $20)

Who cCash card should be sent to: Location cCash card should besent:

Employees Manager Approval:

The Ceridian Employee cCash Recognition Program is designed to support Ceridians vision of Changing the World of

Work. Check (x) the appropriate box or boxes, which represent Ceridians values that the employee has supported.Complete only the blue sections of this form.

Describe the employees accomplishments that support the above checked (x) Ceridian Goals andObjectives:


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Thank You Cards

Employees can send a quick, timely thankyou, on the spot, with a click of a button orthe stroke of a pen.There are two Thank You Card options

available to all employees:1. Hard copy thank you cards2. Electronic thank you cards


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Hard Copy Thank You Card


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Electronic Thank You Cards

Electronic Thank You Cards are available on CeridianetThree simple steps to follow to send a co-worker a ThankYou cardInstant recognition

No cost to CeridianCards can be printedNew card selections can easily be posted, and allow formany cards to choose from

In 2005 there were 4,000 electronic thankyou cards sent!!!!


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Ceridian Gift Card

Allows the recipient to choose from an arrayof gifts.

Nominator can present a hard copy or send anelectronic card.


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Ceridian Gift Card Nomination Form

Ceridian HR Solutions Goals and ObjectivesAttract and develop

enthusiasticachievers

Delight customers for long termprofitable relationships

Deliver world class qualityand productivity utilizing SixSigma Process Improvement

Live the FISH!philosophy

YourName:

Your e-mailaddress:

Your Facility Code:

Employee Name: EmployeeFacility Code:Employee Number: Job Title:

Employees Dept Number: EmployeesCorp Code:

You have three different mailing options to choose from. Please check the appropriate box below: 1. Send Gift Card to me, so that I can hand deliver the award to the recipient. 2. Send an electronic Gift Card to the recipient, at the following e-mail address: _______________________________________

Note: You will be notified via e-mail when the electronic card is sent. 3. Mail the Gift Card to recipient to the Facility Code listed above.

Please include your Personal Thank You in the box below, so that your text can be printed on the Gift Card or Electronic Gi ftCard prior to mailing the award to the recipient. If the box is left blank, the Gift Card will be mailed to you so that you mayinsert your Personal Thank You on the Gift Card and mail to the recipient.

Please forward this form to the Employees Manager for approval.

Employees Manager Approval:

Please complete the following information regarding the recipient of the Gift Card:


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Tier Two


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Ceridian Stars

Eligible Participants All employees

How does it work?Complete the Ceridian Stars Nomination Form

Ceridian Star winners will be selected on aquarterly basis.


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Ceridian Stars

Gateway to Presidents Circle!

What do Ceridian Stars Win?Winners will receive $200 in cash via Ceridians eCash program along with a desk recognition item. Allnon- sales Ceridian Star winners will also be included in the Presidents Circle winner selection processheld in January.

Selection criteria to determine winners each quarter Delights the Customer : Demonstrates outstanding customer service by consistently going above andbeyond the service expectations of customers, managers, peers and subordinates.

Process Improvement : Delivers world class quality (Six Sigma). Team Player : Promotes working together and is a team player within his/her functional area and

across the organization. Leadership: Supports the organizations strategic direction through behavior and example. Lives the FISH philosophy by choosing to bring energy, passion, and a positive attitude to the job

every day.


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Tier Three


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Presidents Circle is the Premier Recognition


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President s Circle is the Premier RecognitionProgram

Out of the 1,332 Stars Winners for 2005, 224winners were awarded the Presidents Circle,which is equivalent to 17% of the StarsWinners, and 4% of the total population. Theaward includes:

Cash or Vacation Package for twoDesktop AwardDinner with Manager and guestCertificate

Each organization is allotted a certain numberof Pres. Circle slots, depending on thepopulation size of the organization, and theselection is made.

Note: Management takes repeat winners into consideration if award is warranted.


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Presidents Circle Trip Selections

Las Vegas

MGM Grand

W New York Times Square

New York City


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New Orleans

Omni Royal Orleans

Radisson Hotel Harbor View

San Diego


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Boston

Boston Marriott Copley Place

Sheraton Safari Resort

Renaissance Stanford Court

Orlando

And SanFrancisco!


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reward and recognition best practices

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