Non-Cash Rewards: Accelerate & Reinforce OBM Strategies

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This presentation was given by Chris Galloway, General Manager for 3Cheers! with Maritz Motivation Solutions and Patrick Carpenter, VP at the Great Game of Business at the 2013 Gathering of the Games Conference. The session promotes adoption of OBM principles using recognition and carefully selected rewards. At this session, you will learn why non-cash rewards increase performance by a 3-to-1 margin over anything cash related, and will be presented with a roadmap of how to implement recognition and rewards at your company.cash rewards programs

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  • Added “with”.. The different types
  • Please help me welcome Chris Galloway, General Manager of 3Cheers at MMS.
  • Non-Cash Rewards: Accelerate & Reinforce OBM Strategies

    1. 1. Non-Cash Rewards are best for accelerating and reinforcing OBM strategies Patrick Carpenter │ GGOB Chris Galloway │ 3Cheers!
    2. 2. The Winner’s Circle • Session Goals – Learn best practices for non cash rewards by the market leader in non-cash rewards – Give you the facts you need to justify increasing your non cash rewards programs – Support for the execution of your MiniGames™
    3. 3. Educate (Think) Empower (Act) Engage (Feel) We are here
    4. 4. Part of a Total Rewards StrategyNon- cashand Cash RewardforPerformance Lever Objective Program Ownership Target % - Annual Pay Recipients (% of Population) Recognition • Recognize and reward excellence • Recruit and retain top performers • Reinforce company values/ core competencies 0.75 – 1.0% of Total Pay  Rewards Incentive Awards • Incentivize achievement of short-term business objectives • Promote specific behaviors/activities • Increase motivation and productivity to well-above expected levels 1 – 2.5% of Total Pay  Performance Comp Incentive Pay • Incentivize achievement of company objectives • Recruit and retain top talent • Link individuals to business goals 9-30% of Total Pay (non-sales)  Salary Base Comp • Pay for performing job duties • Ensure consistency in “meets expectations” for objectives; baseline for performance • Recruit and retain talent 70-100% of Total Pay  Benefits • Security Needs • Work Environment  Non- cashCash
    5. 5. Connecting OBM to Rewards Healthy OBM companies go beyond simple recognition of the power of everyone understanding the numbers. The top OBM companies have locked-in on patterns of non- cash rewards. And when non cash rewards are executed well they reinforce everything good about business – giving purpose to work and connecting us with our fellow team members. Maritz is to rewards and recognition as SRC is to OBM. They practically invented the practice.
    6. 6. Topics 1. Goals of recognition 2. What makes recognition effective? 3. Why non-cash? 4. Measurable value of non-cash rewards 5. How to get started with implementing a program
    7. 7. Why Recognize? “You get a paycheck, isn’t that enough?”
    8. 8. Recognition drives engagement Meaningful recognition causes a 14% increase in employee engagement and productivity. Bersin & Assoc., 2012 When combined with OBM practices, this will result in: • More games played AND won • More profit to invest • Self-funding for employee rewards … resulting in even higher engagement!
    9. 9. Why Recognize? You want: More of a good thing / behavior Consistent best effort – aka care Know that you notice/care Ownership/dedication/loyalty … An Emotional Connection
    10. 10. Effective Recognition Rational AND Emotional Multiple Motivators Individual AND Social PeoplePrinciples
    11. 11. Bottom Line
    12. 12. Effective Recognition It’s not just about the rewards • Purpose, authenticity • Atmosphere for appreciation • Flexibility and style • Personal, in person • Non-cash rewards
    13. 13. Why focus on Rewards? • Significant investment – 90%+ of program cost • Can work against you – Entitlement – Demotivating – Decreasing loyalty Choosing Non-Cash Rewards WILL pay long-term dividends. Why? …
    14. 14. What is a social norm?
    15. 15. Proof Point #1 Source: Heyman and Ariely, 2004. “Effort for Payment: A Tale of Two Markets”
    16. 16. 101 159 168 162 169 168 Source: Heyman and Ariely, 2004. “Effort for Payment: A Tale of Two Markets” Proof Point #1
    17. 17. Proof Point #2 1000 1200 1400 1600 1800 2000 30 60 90 120 150 180 Baseline Cash Bottle Origami Source: University of Zurich 2011. “The Currency of Reciprocity – Gift-Exchange in the workplace” 5% 25% 30% Number of Characters Entered
    18. 18. Proof Point #2 Source: University of Zurich 2011. “The Currency of Reciprocity – Gift-Exchange in the workplace” + =? 5% Market Exchange Low Effort 25% Social Exchange Medium Effort 30% Really??
    19. 19. Proof Point #2 1000 1200 1400 1600 1800 2000 30 60 90 120 150 180 Baseline Choice Bottle Source: University of Zurich 2011. “The Currency of Reciprocity – Gift-Exchange in the workplace” 25% 25% Number of Characters Entered Choice!
    20. 20. Other Findings 1. 2007 presentation by Scott, Jeffrey, Ph.D., entitled “From Art to Science: Why Tangible Non-Cash Rewards are More Rewarding for You and Your Participants,” 2. Jeffrey, S. A., & Adomdza, G. K. (In Press). Incentive Salience And Improved Performance. Human Performance 3. Markham, S. E., Scott, K. D., & McKee, G. H. (2002). Recognizing Good Attendance: A Longitudinal, Quasi-Experimental Field Study. Personnel Psychology, 55(3), 639-660 University of Chicago 2007 (1) • 3X more cash to drive behavior than tangible rewards Human Performance Research 2011 (2) • Non-Cash Awards capture more employee attention Field Study 2002 (3) • 29% - 52% reduction in absenteeism 3-for-1
    21. 21. How to get started Program design goes well beyond providing a tool and access to rewards
    22. 22. Benchmarks • Recognition budgets should be between 0.5% and 3% of payroll • Sales incentive prizes are not included in this budget (contra funds)
    23. 23. Handouts
    24. 24. Thank You for Attending! Non-Cash Rewards are best for accelerating and reinforcing OBM strategies Presented by: Patrick Carpenter and Chris Galloway Please fill out a session evaluation using the paper forms on the table or the conference application on your phone/tablet.

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