1 / 35

The Power of Global Strategic Recognition

Learn about the importance of global strategic recognition in driving employee engagement and how it can positively impact financial performance. Discover the five tenets of global strategic recognition and how to implement them effectively.

harristhomas
Download Presentation

The Power of Global Strategic Recognition

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Power ofGlobal Strategic Recognition Best Practice Institute On-line Learning Series June 23, 2009 12 p.m. Eastern Time

  2. Who Is Globoforce? What Is Global Strategic Recognition?…

  3. Strategic Recognition Drives Employee Engagement

  4. Employee Engagement Defined An output-based concept describing how aligned and committed employees are to the company, such that they are at their most productive. International School of Human Capital Management Faculty of Employee EngagementLondon, England 2007

  5. X X X X X √ √ √ Employee Engagement Matrix Alignment vs. Commitment High Alignment Low Low High Commitment Adapted from Journal of Applied Human Capital Management Volume 1 No 1 2007

  6. How Engagement Affects Financial Performance A 15% improvement in levels of employee engagement correlates with a 2% improvement in operating margin. -Towers Perrin Companies with HIGH Employee Engagement Companies with LOW Employee Engagement Towers Perrin Global Workforce Study 2007-2008

  7. Recognition ROI “The most successful organizations make engagement an ongoing priority, not a once-a-year event.” -- Blessing White, 2008 Source: 2008: McKinsey and Company; Compensation Roundtable Research

  8. Best Practices: The Five Tenets of Global Strategic Recognition

  9. Tenet 1:CLEAR GLOBAL STRATEGY

  10. Evolution of a Clear Global Strategy Global Strategic Recognition By Geography Europe U.S. Asia By Division

  11. Tenet 2:EXECUTIVE SPONSORSHIPWITH DEFINED GOALS

  12. Executive Sponsorship with Defined Goals “Strategically aligned recognition drives the behaviors, actions and results that lead to business success. At Dow, it is important that everyone understand why recognition is important, know how to recognize employees effectively, and make recognition a part of every day.” “At Amgen, we measure success by our ability to meet challenging business, functional, and individual goals while living the Amgen values. I am enormously proud of the accomplishments of our staff. Bravo! enables Amgen staff members worldwide to nominate others and be recognized for those accomplishments.” Kevin SharerChairman of the BoardPresident & CEO Andrew LiverisPresident & CEO Strategic initiatives demand Operational Excellence processes driven by executive sponsors.

  13. Tenet 3:ALIGNEDWITH COMPANY VALUES

  14. Take the Company Values Off the Wall… … and Bring Them to Life! Manager approves recognition Recipient acknowledged at team meeting Recognitions communicated across company Team member recognizes another for “Integrity”

  15. Aligned Values Reporting

  16. Tenet 4:OPPORTUNITYFOR ALLTO PARTICIPATE

  17. $$$$ Old SchoolIncentives High $$$$ $ InnovativeRecognition $ $ $ $ $ $ $ $ $ Low Maximize Program Impact by Maximizing Participation

  18. Companies with the highest employee satisfaction scores have recognition programs with weeklynominations touching5-8% of employees! This is the tipping point into strategic recognition. Number of nominations as a % of headcount over weeks since launch. Nominations under 1% of employeesper week will not drive engagement, impact strategic issues, or affect employee satisfaction. Strategic Recognition:The Ideal Levels of Participation

  19. Tenet 5:POWER OF INDIVIDUAL CHOICE

  20. Local Recognition Awards Choice Compensation & Cash Rewards Cash Is Not King Memorable & Meaningful Forgettable

  21. Recognizing a Diverse Workforce

  22. Daily Weekly Monthly FREQUENCY OF RECOGNITION Bi-Annual Annual 0 10 20 30 40 50 60 70 80 90 100 PERCENTAGE OF EMPLOYEES RECOGNIZED Not All Recognition Programs Are Created Equally Low ImpactTactical Recognition Low penetration.No values adoptioncompany-wide Strategic Recognition Program Employees engagedCulture of appreciation Strategic Alignment Low ImpactTacticalRecognition Low, infrequent Psychic Incomevalue to participants Prestige Awards Focus on the Elite Little to no impacton company cultureor employee performance

  23. 21st Century Recognition is about:Global, Strategic, Recognition. Best Practices: Clear, Global Strategy Executive Sponsorship Alignment with Corporate Values Opportunity for All to Participate Power of Individual Choice Deliver: • Increased Employee Engagement and Performance • Culture of Appreciation • Global Corporate Insight and Governance

  24. The Power ofStrategic Recognitionin a Recession

  25. Rescue Employee Morale & Productivity

  26. Employee Stimulus Plan

  27. The Critical Role of Recognition in Recessionary Times • “Recognition helps people to be resilient. Businesses right now...they’re trying to survive. And to survive you’ve got to have some psychological resilience. You’ve got to have employees who are positive despite the negative situations around them...I would argue that recognition is even more important in times like this.” -- Jim Harter, Gallup, Oct. 20, 2008

  28. 2009 Globoforce Survey Says...Employee Morale, Productivity Are Dropping What impact do you expect layoffs and reduction or elimination of programs and benefits to have on the following areas?

  29. Realize Savings on Recognition Investment

  30. Consolidate Programs and Save • 50-70% on current investment in multiple disparate programs • 30-40% on shipping and handling • 10-40% on inappropriate, inequitable awards • 100% of international shipping, customs & duties fees

  31. Get the Most Bang for Your Recognition Investment “For the same amount of money, a non-cash incentive created more than twice the performance improvement.” -- University of Chicago Study, 2003 “Paying people a compliment appears to activate the same reward center in the brain as paying them cash.” -- Japanese National Institute for Physiological Sciences, 2008 “Acknowledging staff achievements – praising employees – had the same impact on job satisfaction as a 1% increase in pay.” -- White Water Strategies, 2008

  32. Gain Competitive Advantage

  33. Smart Companies Prepare for the Upturn Now “Companies learned important lessons in previous economic downturns about the importance of talent in creating competitive advantage, and so are reluctant to take actions that could hamper their recovery once the economy improves.” -- December 2008 “Great companies see tough economic times as an opportunity to double down on their investment in people.Gallup’s most recent meta-analysis revealed that compared to the least engaged workgroups in a company, the most engaged workgroups have: • 62% fewer accidents, • 1% less theft and breakage, • 51% lower turnover (for low-turnover firms) • 27% lower absenteeism.” -- November 2008 “Stressed organizations could be in danger of making employee reward decisions that they come to regret if they abandon too readily the principles that underpin their people strategies.” -- December 2008

  34. In Summary Drives Employee Engagement Rescues Employee Morale & Productivity in a Recession Global strategic employee recognition: Has 5 Important Tenets Executive Sponsorship Aligned with Company Values Opportunity for All Power of Individual Choice Clear Global Strategy

  35. Thank you! Any questions? www.globoforce.comwww.globoforce.blogspot.com Special thanks to the Best Practice Institute

More Related