STRATEGIC RECOGNITION – THE KEY TO ENGAGEMENT

1. STRATEGIC RECOGNITION – THE KEY TO ENGAGEMENT OCTOBER 15, 2013 HERB bROWN Director, Business Development 540-972-5557 | brownh@mcfvirginia.com www.mcfrecognition.com 1

2. What we will cover today THE REAL PRIZE IS ENGAGEMENT GENERATIONAL DIFFERENCES BUILDING A CULTURE OF RECOGNITION DEVELOPING A STRATEGY 2

3. THE REAL PRIZE IS ENGAGEMENT GENERATIONAL DIFFERENCES BUILDING A CULTURE OF RECOGNITION DEVELOPING A STRATEGY

4. ENGAGED EMPLOYEES ARE CRITICAL Companies with highly engaged employees grew revenues 2.5xmore than others. • EMPLOYEES • Deliver Better Performance • Strive to go above and beyond • Focus on personal growth and long-term goals • Feel strong emotional bonds to the company • Recommend the organization to others Highly Engaged Employees Others 4

5. High performance vs. low performance organizations WHEN COMPARED WITH LOW-ENGAGED WORKFORCES, HIGH-ENGAGED WORKFORCES HAVE… 12%higher customer metrics 18%higher productivity 16% higher profitability 37% lower absenteeism 5

6. HOW ENGAGED ARE EMPLOYEES? 6

7. HOW ENGAGED ARE EMPLOYEES? 7

8. Actively Disengaged Arrive late and leave early Miss more work days Collect a paycheck while complaining Focus on problems Believe the company does not value them 31 $ 8

9. Ambivalent or Not Engaged Arrive on time and leave on time Rarely if ever “go the extra mile” Shy away from lead roles Unlikely to volunteer for assignments The most easily influenced by their co-workers engagement levels 9

10. ACTIVELY ENGAGED Come in early and stay late Help co-workers and other departments Go “above and beyond” Feel a sense of pride in their work The creative force behind everything good that happens 10

11. QUESTION… WHO IS RESPONSIBLE FOR EMPLOYEE ENGAGEMENT? Managers Employees A Combination of Managers & Employees Someone Else 11

12. WHO IS RESPONSIBLE FOR ENGAGEMENT? 12

13. THE TOP 5 ENGAGEMENT DRIVERS • RECOGNITION • Career Development • Direct Supervisor/Manager Leadership Abilities • Freedom to Succeed and Contribute to the Organization’s Success • The Ability to Do What I Do Best - Kevin Sheridan: Building a Magnetic Culture 13

14. Recognition is the highest engagement driver by how much? • 0.5 times • 1.1 time • 5 times • 100 times 14

15. Recognition is the highest engagement driver by how much? • 0.5 times • 1.1 time • 5 TIMES • 100 times 15

16. THE BENEFITS OF RECOGNITION “Organizations with a culture of recognition have employees who are 7xmore likely to stay with the company and11xmore likely to feel completely committed to their jobs.” • KEVIN SHERIDAN • Building a Magnetic Culture 16

17. WHEN WAS THE LAST TIME YOU RECOGNIZED SOMEONE? “Employee engagement increases by 20% if managers recognize their employees weekly instead of monthly and increases by another 35%if managers recognize daily.” • AON HEWITT 17

18. THE REAL PRIZE IS ENGAGEMENT GENERATIONALDIFFERENCES BUILDING A CULTURE OF RECOGNITION DEVELOPING A STRATEGY 18

19. APPRECIATING A MULTIGENERATIONAL WORKFORCE FOR THE FIRST TIME IN HISTORY… WE HAVE 4 GENERATIONS IN THE WORKFORCE 154,316,000 PEOPLEIN THE WORKFORCE

20. SOME CHARACTERISTICS TEAM- ORIENTED SELF- RELIANT TECH- SAVVY Dedicated LOYAL TO:PROFESSION LOYAL TO: FAMILY LOYAL TO: GROUP LOYAL TO: COMPANY

21. WHAT DEFINES THIS GENERATION? Used to instant gratification Tend to be optimistic Tend to be cynical, pessimistic Believes in hard work & sacrifice Often defined by job Comfortable with change Comfortable with multi-tasking Uncomfor-table with change

22. RECOGNITION MESSAGES Connect recognition to their personal and career goals. Talk about their creativity and ability to multi-task. Praise how they can be relied upon to get the job done on their own schedules. This group works to live. Share how their loyalty has helped build a great company. Recognize their experience and insight. Let them know their efforts and expertise have made a difference and their opinions are valued.

23. GENERATION X & Y RECOGNITION “Generations X and Y work hard and they want honest feedback and recognition.” • Kathie PasquarellaDirector of Training & Education, Trinity Health System, (Steubenville, OH) 23

24. THE REAL PRIZE IS ENGAGEMENT GENERATIONAL DIFFERENCES BUILDING A CULTURE OF RECOGNITION DEVELOPING A STRATEGY

25. People & Culture at Southwest Airlines • “…we don’t think of ourselves as a Company of planes. We are a company of People. …transporting you…is what we do. How we do it and who we are, our ‘secret sauce’ is found in our single greatest asset – our People.” GARY KELLY Chairman, President & CEO Southwest Airlines, Sept.2013 25

26. Importance of Culture at Starbucks “…we’ve been able to create this environment that has great universal appeal…The ‘secret sauce’ is the culture and values of our company.” • GARY SCHULTZ • Starbucks CEO, USA Today • article, Sept. 16, 2013 26

27. CAN RECOGNITION HELP RESHAPE A CULTURE? A MULTI-NATIONALORGANIZATION 27

28. A best in class example: Radio flyer VISION To be the world’s most loved children’s brand MISSION To bring smiles to kids of all ages and to create warm memories that last a lifetime VALUES The Little Red Rule 28

29. A best in class example: Radio flyer • THE LITTLE RED RULE • Integrity in all we do • Accountability to ourselves and others • Passion for excellence • “Can Do” attitude • Fast, friendly and effective service • Having fun, spreading smiles 29

30. A best in class example: Radio flyer • Their culture and recognition strategy is built around each item of their vision, mission and values • Their recognition motto… • CELEBRATE WHAT YOU • WANT TO REINFORCE 30

31. THE REAL PRIZE IS ENGAGEMENT GENERATIONAL DIFFERENCES BUILDING A CULTURE OF RECOGNITION DEVELOPING A STRATEGY

32. TODAY’S KEY TAKE AWAY Understand the difference between RECOGNITION and REWARD… Recognize Efforts – Reward Results • Build a strategy to recognize efforts not just results!

33. BUILD ON YOUR VALUES VALUES ARE AN ESSENTIAL CULTURE DRIVER How well do you believe yours are understood and adopted? Consider developing a separate Rewards and Recognition brand to explain your VMV 33

34. ADD IN YOUR CRITICIAL BUSINESS OBJECTIVES THESE TWO ITEMS FORM A SOLID BASE OF A STRATEGY Connect to your values if possible 34

35. EVALUATE & CONNECT WITH EXISTING RECOGNITION INITIATIVES CONSIDER BOTH FORMAL & INFORMAL INITIATIVES THE IDEAL MIX: 70% formal, 30%informal 35

36. AN EVALUATION TOOL Recognition Resources 2013 36

37. AN EVALUATION TOOL Recognition Resources 2013 37

38. AN EVALUATION TOOL Recognition Resources 2013 38

39. AN EVALUATION TOOL Recognition Resources 2013 39

40. AN EVALUATION TOOL Recognition Resources 2013 40

41. CONSIDER YOUR SUCCESS MEASURES SUCCESS CAN BE DIFFERENT THAN YOU THINK “The Campbell Soup Engineering Story” 41

42. APPLICATION: HOW DIFFERENT DOES SUCCESS LOOK IN HR? SUCCESS CAN BE DIFFERENT THAN YOU THINK To a Generalist or a Recruiter A Director or Manager in Compensation or Benefits The HR Executive $ 42

43. Consider “Line of Sight” in your strategy who is the best to notice recognizable efforts “in practice”? Multi-location teams Managers in different locations 43

44. Educate managers & supervisors • Generational education • Recognize rather than criticize • Share successes in managers meetings • Some get it from day-1, others don’t • Practice makes perfect! • Be a resource for ideas 44

45. TRAIN MANAGERS HOW TO RECOGNIZE EFFORTS • THE “SITES” FORMULA (EXPRESSED IN PUNCTUATION) • Sor: • When You “See” Something Worthy of Recognition • Ior? • Next Step “Inquire” or Ask a Question • TEor! • “Thank & Expand” • S or# • “Share” as appropriate Recognition Resources 2013

46. CONSIDER EMPLOYEE PREFERENCES RECOGNIZE IN PRIVATE & IN PUBLIC Ask employees what they would like to be recognized for How they would like to be recognized WHAT? HOW? 46

47. Make recognition an event - not a function DESINGN & COMMUNICATE Develop a launch or re-launch strategy Create fun events in connection with the launch Try something new 47

48. KEYS TO SUCCESS & TAKE AWAYS The key takeaway…Recognize Efforts – Reward Results Match recognition to values & CBI’s Design in flexibility Be a resource – offer ideas and help Make recognition fun for everyone! 48

50. HERB bROWN Director, Business Development 540-972-5557 | brownh@mcfvirginia.com www.mcfrecognition.com