Building a WOW! Recognition Culture

1. www.terryberry.com 800.253.0882 Building a WOW! Recognition Culture Bill Bergstrom National Recognition Manager Terryberry Company

2. Building a Successful WOW! Recognition Culture 1. Employees Needs 2. Recognition Opportunities Recognition Results Recognition Responsibilities

3. 1. Understanding Employees Needs “Yeah I called her up, she gave me a bunch of crap about me not listening to her, or something, I don't know, I wasn't really paying attention.” Jeff Daniels Dumb and Dumber

4. Maslow’s Theory In the Workplace Self Actualization Needs Advancement opportunities Esteem Needs Recognition/Appreciation Belongingness Needs Work culture Safety Needs Health insurance, job security Physiological Needs Food, clothing, shelter (paycheck) A.H. Maslow, ‘Learning and Human Abilities.’

5. 4 Predicators of Overall Job Satisfaction • Morale • Extent to which I enjoy the work itself • Service Quality • Do I have pride in my workplace? • Sense of Belonging • Value of my work and ideas and input • Employee Recognition • Is the system fair in recognition and job promotion? 1HealthStream Research 2008

6. 4 Predicators of Overall Job Satisfaction (Many Years Ago) • Responsibility • Performing well at an interesting & stimulating job • Self Esteem • Engaging in behaviors consistent with self-image • Advancement • Value of my work and ideas and input • Achievement & Recognition • Addressing individual needs & personal growth 1Herzberg, 1968 & Baird, 1976 & Korman 1970

7. Realities of Today’s Recognition Practices • 90% of businesses indicate they recognize their employees. • Only 40 % of employees feel adequately recognized by their supervisor. • 65% of employees say they received no recognition in the last year. 1World At Work, Towers Perin & Gallup

8. 2. Recognition Opportunities “People often say that motivation doesn’t last. Well, neither does bathing- that’s why we recommend it daily.” Zig Ziglar

9. Recognition is a 3-Legged Stool

10. Formal Recognition • Objective Criteria • Structured Recognition • Significant Awards for Significant Achievements

11. Service Recognition Supports a WOW!Recognition Culture MGR’s Attention # of Employees Employee Performance

12. Informal Recognition • Defined Criteria • Casual Structure • Often Supervisor and/or Department Driven

13. Most Commonly Used Award Programs: Service Award Programs: 90% Performance: 87%** Retirement: 51% Sales: 51% Suggestion: 41%** Employee of the Mo/Qtr/Yr: 39% Safety: 33%** Attendance: 22%** “Trends and Best Practices in Employee Recognition”, RPI 2006

14. Day-to-Day Recognition • Combine Subjective & Objective Criteria • Casual Structure • Peer-2-Peer & Manager-2-Peer Driven

15. Recognition Drives Engagement: 35% increase 20% increase ENGAGEMENT LEVEL FREQUENCY Daily Telegraph, March 22, 2008, Ford. (citing findings of David Brown, Director of Hewitt Associates)

16. 4. Recognition Results “The Seven Standards are nothing more than idealistic quotes on walls until employees live them out each day on the job…” Karen Mathews WellStar Health System

17. Discovering yourABCsis key Recognition Underscores the: • Attitudes • Behaviors and • Contributions Your organization values most

18. “A Watson Wyatt Reward Plan Survey of 614 employers with 3.5 million employees showed that the average turnover rate of employers with a clear reward strategy is 13% lower than that of organizations without one.”1 1. Nolan, Paul. (2007, March/April) The Accelerator: Workplace recognition can bridge the gap between where your team is now and where it can be. SalesForce 17-22 .

19. Link Between Employee Satisfaction & Profitability Operating Margin 6.6% 4.1% Best 2.4% 3rd 1.0% 2nd Worst Employees’ Rating “Hard Evidence”, Incentive Magazine, August 2005 p.10

20. Set Expectations & Criteria • Simple • Quantifiable • Challenging • Attainable Don’t:set criteria that conflict with other corporate objectives

21. Awards should… • Have Trophy Value • Exclusivity – “Buzz” Factor • Longevity • Differentiation

22. Make A Meaningful Presentation • Timely • Aligned • Specific • Positive & Personal

23. 4. Recognition Responsibilities “HR is important in good times. It defines a company in bad times.” “…get out of the picnic, birthday card, and insurance forms business.” Jack Welch 2009 National SHRM Conference

24. A research study conducted by The American Management Association identified eight different areas of job satisfaction most often linked to employee motivation. Employee RankingSupervisor Ranking 1 7 2 3 3 1 4 5 5 4 6 8 7 6 8 2 Areas of Job Satisfaction Credit for the work they do; Recognition Interest in work Fair pay with salary increase Understanding and appreciation Promotion on merits Counseling on personal problems Physical working conditions Job security

25. Post-Recession Plans Likely to look for a new job 54% Gen Y 71% Source: Adecco, June 2009

26. Influence Recognition • Leadership • Culture starts @ Top • Management • Make it personal • Relationship with manager is #1 predicator of job satisfaction • Marketing • 11.3

27. HR’s Influence on Recognition • Hire • Train • Accountability • Keep Things Fresh • Recognize “Your job is to raise the quality of the team.” Jack Welch 2009 National SHRM Conference

28. Building a Successful WOW! Recognition Culture 1. Employees Needs 2. Recognition Opportunities Recognition Results Recognition Responsibilities

29. Available at Amazon.com or www.RecognitionUniversity.com • What’s inside: • Real-life recognition stories from top businesses • Training tool for your management teams • Ideas to differentiate your organization’s recognition program

30. Conclusion CONTACT: 616.458.1391 b.bergstrom@terryberry.com www.terryberry.com Bill Bergstrom National Recognition Manager Terryberry Company