We Know You Are Giving Recognition, But Is It Producing Results?

Gala events, best-of-the-best awards, on-the-spot recognition, gift certificates, performance reward points, sending e-cards and just plain saying thanks – most organizations today have some form or all of these recognition programs in place with the intent to make a positive difference. The 2008 WorldatWork Survey – Trends in Employee Recognition revealed nearly nine in 10 responding organizations have employee recognition programs of some kind in place . These results haven’t changed much from the last time this subject was surveyed back in 2005.

When these same respondents, who are professionals responsible for managing or administering total rewards and probably recognition programs, were asked about the impact these programs have on performance it was only with relation to employee retention versus any other measures or ROI indicators.

However, more companies are being challenged to prove their dollars spent on recognition are producing results beyond just employee retention. The goal of anyone responsible for recognition programs is to shift the C-suite mindset that recognition should be viewed as an investment rather than an expense.

Recognition Assessment

How can you tell whether your recognition programs and practices are meaningful and effective? What if the programs you have in place are not reaching the employees you hoped it would? Are your recognition programs producing a good return on investment? What about our productivity and performance outputs – has recognition helped?

Hearing a string of questions like this can remind of us of visits to the doctor. Standard operating procedures for most doctors would be checking temperature and heart pulse, taking blood pressure readings, and then gauging that against latest norms by age, gender, height and weight.

If an immediate diagnosis of our health concerns could not be determined, then follow up assessments would be made with specialists to measure some aspect of our physical functioning and compare it against normative data to see how we compare.

In like manner, when we don’t know how well our recognition programs are performing, it is best to seek out a recognition assessment by specialists who are able to make a qualified diagnosis of the problem. The Recognition Management Institute (RMI) can provide such expertise with an assessment to determine the gaps in your existing recognition practices and provide a set of practical recommendations for immediate implementation.

A Recognition Assessment is both an on-site and off-site assessment of your recognition programs, policies, procedures and practices accompanied by a review of all available online and off-line reports, supportive materials, metrics and communications that relate to employee and business performance. The findings and measures from the assessment are compared against best practice standards and organizations, as well as motivational and business theories and models to determine what is working well and what is not.

If you are having concerns about the value of your recognition programs and processes and how they can be improved, it makes sense to commence with a Recognition Assessment before investing in a new recognition program without evidence to validate the need.

Best Practice Standards

In the recognition industry, the Recognition Professionals International (RPI) has established some of the normative data by which organizations can benchmark their recognition programs and practices. RPI (formerly the National Association for Employee Recognition) has developed seven best practice standards whereby companies may submit their programs and practices and be judged for consideration as a “best practice” award winner. Past best overall recipients have included Cargill Inc., and MGM Grand, while best in class recipients have included Delta Airlines and Bank of America.

After researching Fortune magazine’s 100 Best Companies, the Baldridge Award, recognition literature and recognition experts, RPI developed seven strategic best practice standards, namely:

• Recognition Strategy
• Management Responsibility
• Recognition Program Measurement
• Communication Plan
• Recognition Training
• Events and Celebrations
• Program Change and Flexibility

The Recognition Management Institute (RMI) uses these established standards as one measure when conducting their Recognition Assessments to examine how an organization’s programs and practices stack up against the best practice organizations.

Taking the Recognition Pulse

Often RMI is called in to assess an organization’s recognition program following an employee engagement or satisfaction survey revealing less than stellar results on how well employees feel appreciated or recognized for their work or contributions. These surveys act just like checking a person’s pulse. It can be the first indication of a possible problem.

These companies often have long standing achievement awards and service awards consistent with the WorldatWork survey which indicated the most common recognition programs continue to be length-of-service (86 per cent) and above and beyond performance (79 per cent) programs. Emerging practices include peer-to-peer recognition programs, which the WorldatWork survey indicated more than four in every 10 companies are encouraging workers to acknowledge the achievements of others.

As recognition penetrates all levels of the organization and impacts more people, an RMI Recognition Assessment can show you the value in people practices and performance measures that recognition has contributed to.

Identifying the Philosophy and Purpose

A big cause of recognition becoming ineffective in companies is how recognition began or how it is directed now. Recognition has often been initiated based on formal recognition for length of service and some annual awards ceremony honoring the best of the best, such as a president’s award. These programs were started out of good intent but never touched all of the employees and never significantly impacted business performance.

Various types of recognition need to be present to be truly effective from everyday recognition which touches more employees more frequently, to informal recognition such as low cost, on-the-spot kinds of awards, all the way up to accumulation of points for merited performance as well as nominated and judged awards.

RMI consultants examine the existing recognition platforms, programs, and practices to ascertain whether a written recognition strategy is present which outlines succinctly the philosophy around recognition and answers the “why” question as to the purpose of recognition. Everyone in the organization, especially those in leadership, needs to know the “why” in order to understand the “how” of recognition giving.

Once the philosophy of beliefs around recognition has been articulated it is easier for a global organization to mandate that recognition programs are centralized around a common vision and purpose even if different programs are administered by the different corporate divisions.

In this way senior leaders can lay out the plans, both short and long-term which flow out of an agreed recognition philosophy. These plans address the strengths and weaknesses identified from the Recognition Assessment and become the very measures which can provide a gauge of how recognition has improved once the goals have been implemented at review time.

Cultural Consistency

One of the important factors RMI consultants zero in on is whether recognition practices are consistent with the organizational culture. Values consistently lived within an organization, guarantee in making recognition an effective tool for top performance because it happens naturally.

In reality, the company values will drive any people practice or competency. With recognition, the values, beliefs and personality of an organization, make recognition either a way of life within a company or simply a place on the bottom rung of the priorities ladder. The ability to live and emulate a recognition giving culture can only help to reinforce the very values espoused by the organization. It becomes a “recognition-culture cycle”. Leaders must show genuine caring and concern for employees who out of necessity focus on producing the business results all stakeholders require of them.

A key benefit of a Recognition Assessment is finding out quantitatively or qualitatively, how your explicitly stated culture versus your hidden, behind-the-scenes culture is making recognition happen or not. There may be a need for working on some internal housekeeping first in order to make recognition giving a more effective and meaningful people skill practice.

Business Strategy Alignment

Having a laid out written recognition strategy can be a rare thing. The WorldatWork survey reported that of those companies that responded, only 48 per cent had a written recognition strategy. Often, recognition is lumped under a “total rewards strategy” and has so much of a reward or compensation focus with bonuses, rewards and incentives that little attention is given to the more intangible side of recognition such as praise and appreciation. Money tends to be spent on the more tangible and formal recognition even though the no or low cost everyday recognition can create a greater recognition return and impact.

Interestingly, 96 per cent of those WorldatWork survey respondents who have a recognition strategy indicated their recognition strategy was aligned with their business strategy. Recognition needs to become a more important tool in the toolbox for assisting organizations with their financial as well as their people strategy plans.

A Recognition Assessment provides you with ways to determine how your current recognition initiatives can be utilized to produce more meaningful business results. RMI will review your business goals and provide suggestions for where recognition could be a fit and the different types of recognition and reward options available to be utilized.

Principle Driven Recommendations

After an RMI Recognition Assessment has been conducted the client receives a detailed written report and executive summary which outlines the full results and findings for every element of the assessment. With scores, best practice comparisons, next practice examples, and how the organizational culture and business strategy fares, you will receive a complete check up report on how your organization is really doing with employee recognition programs and practices. An executive briefing session can also be arranged to present the report findings in person with your executive and recognition team members.

Each Recognition Assessment report contains a list of key recommendations accompanied with explanations for the reasons why and potential next steps to be taken, which RMI clients have found very beneficial. These recommendations are focused on people and principles and not just the programs. Programs are simply vehicles for delivering the recognition, and where refinements can be made, feedback will always be given.

Implementation A Key Outcome

Clients utilizing the RMI Recognition Assessment have also enlisted the supportive consultation services to actually assist with the implementation of the assessment recommendations.

Such actions may include the facilitation and creation of a company recognition strategy in working with key executive and other leaders to formally define and articulate the beliefs, philosophy and direction for effective recognition giving. Other organizations require the development of a learning strategy so that specific learning objectives are determined, followed with the provision of content and delivery of education and training using methodologies best suited to the company’s needs. Some companies may require communication resources review to iron out the communication disconnects currently present and to design and create branded messaging and materials to help reinforce, inform and inspire ongoing recognition practices as well as focusing on the recognition strategy.

Whenever we have a health problem and we receive the assessment results and carry out the doctor’s recommendations, most often we end up feeling better and are able to return to doing what we love best.

When organizations are not performing well and recognition programs are not being well utilized, undergoing an RMI Recognition Assessment may be just what the doctor ordered. By analyzing your current recognition programs and practices and examining your business performance you will find the gaps. Armed with practical and principled recommendations you will be able to help your people become more engaged and produce the results you are best known for.

Giving people real recognition produces real results.

Roy Saunderson is president and founder of the Recognition Management Institute, a recognition consulting and training company and author of GIVING the Real Recognition Way. For more information on the RMI Recognition Assessment email info@RealRecognition.com or call 877-336-9601.