Employee engagement – new HR strategies

By Michael Levy

In this period of heightened competition, employers continue to ask their employees to do more with less. Michael Levy, CEO of Online-Rewards.com offers some tips for sustaining productivity and engaging staff.

Throughout 2010, companies clearly demonstrated they can achieve profitability and productivity goals after downsizing. To continue to benefit from increased productivity and performance, Human Resource leadership must find ways to continue to motivate and engage their employees. Smart companies are finding ways to keep valued employees engaged while maintaining payroll and spending levels.

Michael Levy is the CEO of Online-Rewards.com, the technology leader in reward and recognition programs. Online Rewards has over 120 concurrent reward and recognition programs in operation with an estimated 10 million program participants.

Sustaining Productivity through 2011

Companies survived the economic downturn by relying on greater output from their employees. They proved they could reduce headcount and keep productivity levels the same. The results of these hard decisions helped many companies produce profitability results that exceeded expectations.

The challenge facing HR Managers in 2011 is how to sustain the productivity levels, retain valued employees, and not increase payroll?

The most successful and respected US corporations are seeking finding creative and innovative ways to engage their employees. Companies from AMR to Zappos.com are finding new and creative ways to engage their employees. Studies by Hay Group Insight (www.haygroup.com) show that engaged employees can increase productivity by 30 percent, and that they are 2.5 times more likely to exceed performance expectations.

Increased output is not the only benefit of engaged employees. Gallup research shows that engaged employees drive innovation, increase customer loyalty, boost revenues, and stay with the company longer. It seems logical that every company would strive for engaged employees. 

Principals of Engagement:

Have a clear vision and goals for the company. Most employees want to do well in their job, but they must know the goals and definitions for success. Spend some time reviewing your company's vision and goals to make sure they are still relevant. Review the products and services to ensure they align with the company's mission and goals. "We have already seen an impact on employee engagement based on bringing a structured program to life, recognizing distinctive customer service behaviors as a core Company objective, says  Annette Jackson, Human Resources Manager, State Farm.

Clearly communicate each employee's role in making the company successful. Each employee needs to know how their work will help the company maintain profitability and reach new levels of innovation.

One insurance company implemented a performance recognition program and found that agents active in the program increased sales by at least 60 percent when compared to non-participating agents. "Employees want to succeed in their jobs," says Michael Levy, president of Online Rewards. "If they know how their work helps make the company profitable, they know they are making a difference."

Reward and recognize employees in ways that are meaningful to them. Employees struggled along with their employers through economic uncertainty, increased workloads, and higher demands placed on them. To keep your people operating at maximum output, recognize their effort. "When compared to wage increases, employee programs offer a significant opportunities for greater ROI," Levy says, "You need to create a program that is meaningful to your people, whether that is cash, travel programs, restaurant outings, or something completely unique, like sky-diving trips."

Celebrate milestones and achievements. Whether it is celebrating their efforts on a new product rollout, or long-term employment with the company, effective employee recognition programs help to celebrate the achievements of your employees and reinforce a culture where tenure of rewarded and respected. "While the days of the 5-year pen are long gone," Levy says. "the value and importance of peer recognition has not diminished" The key is match the program's format and personality to the culture of the Company. Recognition gifts for tenure at Google compared to Macy's would be significantly difference." Surprisingly, cash is not always the best incentive, when measuring actual outcomes. Most people who receive cash as a reward or incentive spend it paying bills - when does paying a bill generate the sentiment of a reward?.

Be consistent. "When creating a program to engage your employees, be certain the program is implemented consistently across the organization. We realized the added benefit of reducing corporate silos and facilitating cross-departmental achievements once we implemented consistency in reward programs across the organization" - Wanda Ladd, Vice President of Human Resources, Bank of Oak Ridge. Ranked as one of the Best Places to Work.

Maintaining the program works best with feedback from the employees. They can offer suggestions on ways to make the program more successful and further enhance employee engagement.

2011 will prove how successful companies maintain their streamlined efficiency. The key to making it work is having your employees maintain maximum output. And the best way to reach that goal is with engaged employees.

Tel: 888 826 0783

www.online-rewards.com