Science + math = recognition

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From study to study, satisfaction with recognition is consistently and highly correlated with overall engagement. It is a key indicator of how engaged an employee will be, and thus how productive and loyal. But why can recognition experiences, programs and practices have this type of impact? Some of the latest insights from human science sheds light on why recognition can be so motivating, rewarding and drive behavior. It also offers new insights into how to make Recognition more than just a "thanks," but a powerful cultural, leadership and development tool.

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  • Connection to engagement, and key business metrics.
  • Our Maritz Research Engagement Pollshowed again in 2012 top line engagement scores more than double when an employee is consistently and meaningfully recognized. We are more emotionally committed to our work when well recognized and rewarded
  • Our Maritz Research Engagement Pollshowed again in 2012 top line engagement scores more than double when an employee is consistently and meaningfully recognized. We are more emotionally committed to our work when well recognized and rewarded
  • The study confirmed a strong relationship exists between employees who feel meaningfully recognized and greaterengagement indicators. Statistics include:
  • And when effective structured strategic recognition programs are in place in organizations, here are some numbers worth paying attention to: Companies can enjoy….
  • Why in the world , how could recognition be so influential, highly correlated with these types of personal and business outcomes?
  • Take a look at why? Start with great new insights into human motivation.
  • More Science!Privileged to get to meet and get to know Dr. Cialdini, this is a recent book and he is well known for his study and writing about the science and practice of influence. He has identified 7 principles of influence. They are….
  • In a study of nuns, researchers studied their auto-biographical sketches written in the 1930s. They discovered that 90% of those who expressed the most positive emotions, who wrote about experiences and feelings of happiness and “eager joy” were alive and well at age 85, compared to only 34% of the least cheerful quarter. Launched other studies in positivity.
  • Recognition and reward experiences create opportunities for really positive drops, they create and connect memories of work behaviors and contributions when we are rewarded and recognized for them.
  • In many organizations, engagement surveys include questions that allow for correlating the satisfaction with reward and recognition to overall engagement, but there are other ways to measure the impact. High level measurement framework:Start by baselining what you know, identify some impact metrics you can measure, begin measuring program engagement and activity, then calculate agreed upon impact metrics, including engagement, satisfaction, retention, CSAT, safety, wellness, etc.
  • Let’s just look at retention. Remember SHRM reported orgs could enjoy up 51% greater employee retention when strategic, effective recognition is practiced.
  • Productivity
  • I like how Forbes framed ‘engagement’, which is really becoming an overused term.
  • Science + math = recognition

    1. 1. Michelle Pokorny Solution VP – Employee Engagement and Recognition Maritz Motivation Solutions HCI webcast, March 12, 2013Via ohiiosci.org, Google images Science + Math = Recognition Proprietary and Confidential © 2013 Maritz
    2. 2. Channel Effectiveness Maritz … a People Company Effectiveness Sales ForceCustomer Experience Management Employee Recognition & Engagement We help businesses drive performance by developing more meaningful relationships with their people Proprietary and Confidential © 2013 Maritz 1
    3. 3. Today’s Journey• Impact of Recognition• Why? Insights into Human Motivation – 4-Drive Recognition • What’s Love Got to Do With It? – Understanding Influence – The Value of Experiences• Designing Awesome Recognition• Do the Math Proprietary and Confidential © 2013 Maritz Proprietary and Confidential © 2013 Maritz 2
    4. 4. Why the Focus on Reward and Recognition? Proprietary and Confidential © 2013 Maritz Proprietary and Confidential © 2012 Maritz 3
    5. 5. LOW LEVELSof Engagement Proprietary and Confidential © 2013 Maritz 4
    6. 6. 1- 2012 Maritz Engagement Poll as well as numerous other sources Proprietary and Confidential © 20123Maritz 5
    7. 7. RECOGNITION drives ENGAGEMENT and PERFORMANCE Proprietary and Confidential © 2013 Maritz 6
    8. 8. 1 2012 Maritz Engagement Poll Proprietary and Confidential © 2013 Maritz 7
    9. 9. Impact of Meaningful Reward and Recognition Of those who do feel Of those who do not meaningfully feel meaningfully rewarded & rewarded & recognized recognized 82% would strongly endorse my 27% company to friends and family as a great place to work 82% feel their workplace is a 30% great place to work. 86% would stay with their 44% current company if given the chance to do the same work at the same pay for a different company. 86% feel motivated to go 40% beyond my formal job responsibilities to get theEmployee Insight Study of Over 1000 U.S. Employees job done. Employee Insight Study of Over 1000 U.S. Employees Conducted by Maritz (October 2011)Conducted by Maritz (October 2011) Proprietary and Confidential © 2012 Maritz 8
    10. 10. 1 2012 SHRM2 2011 BlessingWhite Employee Engagement Report3 2011 Aberdeen Group, “The Engagement/Performance Equation” Proprietary and Confidential © 2012 Maritz 9
    11. 11. Why this Impact? Proprietary and Confidential © 2013 Maritz Proprietary and Confidential © 2012 Maritz 10
    12. 12. Insights into Human Motivation Proprietary and Confidential © 2013 Maritz 11 Proprietary and Confidential © 2013 Maritz 11
    13. 13. A bridge between the latesthuman science research and the new normal of today‟s business environment. Proprietary and Confidential © 2013 Maritz Proprietary and Confidential © 2013 Maritz 12
    14. 14. People Principles People are rational and emotional. People are individual and social. People are driven by multiple motivators. Proprietary and Confidential © 2013 Maritz 13
    15. 15. People Are Driven By Multiple Motivators acquire bond Drive to acquire Drive to engage, stuff, status, cooperate, “fit in”rewards, resources to the community choice Drive to defend „what‟s ours‟: Drive to “create”status, stuff, ideas, better self, team, relationships… organization, world defend create Based on the work of Paul Lawrence and Nitin Nohria at Harvard Business School ©2012 The Maritz Institute. All rights reserved. Proprietary and Confidential © 2013 Maritz 14
    16. 16. Employees are People First Proprietary and Confidential © 2012 Maritz 15
    17. 17. Recognition is avehicle for human potential. Proprietary and Confidential © 2013 Maritz 16
    18. 18. Four-Drive Impact of Reward & Recognition acquire bond• Acquire status for • Connect, bond with expertise, others contributions • Shape cultural• Rewards create a norms, „drops‟ memorable, • Teams, Community associative Celebrations experience choice• Fair and equitable • Mirror, see impact program • Strategy, goals and parameters values-alignment• Defend program, • Learning and company, culture, growth relationships, status • Experiences defend create Based on the work of Paul Lawrence andNitin Nohria at Harvard Business School ©2012 The Maritz Institute. All rights reserved. Proprietary and Confidential © 2013 Maritz 17 17
    19. 19. What’s Love Got to Do With It?OxytocinBrain ChemicalThe Trust HormoneThe Love Molecule“… simple peptide (that) allowspeople to have empathy for andsustain trust in those aroundthem.” – “The Neurobiology of Trust”, Dr. Paul Zak - 2008 Scientific American Inc. Proprietary and Confidential © 2013 Maritz 18
    20. 20. Proprietary and Confidential © 2013 MaritzMaritz Engagement Poll - 2012 Proprietary and Confidential © 2013 Maritz 19
    21. 21. “Trust is the platform on whichemployees interact with each other and with clients...” - Dr. Paul Zak, Neuroeconomics and the Firm Proprietary and Confidential © 2013 Maritz Proprietary and Confidential © 2013 Maritz 20
    22. 22. “When trust is low, people focus their energy on their own protection and survival…”“High trust companies have highproductivity and greater stock marketreturns than low trust companies…” “Without trust, organizational goals will literally fall on deaf ears.” Neuroeconomics and the Firm Proprietary and Confidential © 2013 Maritz Proprietary and Confidential © 2013 Maritz 21
    23. 23. PAD-TEAAPraise Transparency Anticipation Empathy Autonomy Delegation Authenticity Proprietary and Confidential © 2013 Maritz 22
    24. 24. Science of InfluencePrinciples of Ethical Influence• Reciprocation• Scarcity• Authority• Consistency and Commitment• Liking (Friendship, Social Proof)• Consensus Proprietary and Confidential © 2013 Maritz 23
    25. 25. Influence Through RecognitionRecognition facilitates…• Liking and Social Proof – which drives behavior• Consensus – through developing cultural norms• Authority and Liking - which supports alignment and purpose Proprietary and Confidential © 2013 Maritz 24
    26. 26. The Value of Positive Experiences Proprietary and Confidential © 2013 Maritz
    27. 27. Proprietary and Confidential © 2013 Maritz
    28. 28. Proprietary and Confidential © 2013 Maritz 27
    29. 29. Fredrickson, 2003 “The Value of Positive Emotions” Proprietary and Confidential © 2013 Maritz
    30. 30. Proprietary and Confidential © 2013 Maritz 29
    31. 31. “I try to come into work everyday and be the person they described me to be…” trulyhumanleadership.com Proprietary and Confidential © 2013 Maritz
    32. 32. andALIGN Proprietary and Confidential © 2011 Maritz
    33. 33. How to Ensure Successful RecognitionMaritz’ Ten Tenets of Enterprise Recognition• Commit from the Top• Empower Managers * Tosti & Jackson 1994• Ensure Meaningful Recognition• Measure Success• Consolidate Efforts• Decentralize Ownership• Recognize Real-Time Contributions• Apply Consistently and Equitably• Continuously Improve• Align With Strategy, Culture Proprietary and Confidential © 2013 Maritz 32
    34. 34. Design Impactful Programs and Experiences• Programs communicate and recognize aligned behaviors• Recognize leadership and trust- building behaviors• Empower employees to give both recognition and reward• Incorporate social strategies, celebrations, experiences• Skills: BET Recognition ModelSM • Behaviors – Recognize behaviors, process, effort • Effect – Express the impact • Thanks – Express sincere, authentic appreciation• Build recognition muscle• Understand preferences• Measure satisfaction Proprietary and Confidential ©© 2013 Maritz Proprietary and Confidential 2013 Maritz 33
    35. 35. Measuring ImpactBaseline, Benchmark, Program Engagement Business Impact Modeling• # employees • Enrollment • Program satisfaction• Average salary • Participation/ and attitudes• Business groups and recognitions • Cultural behavior employee segments • Reward earnings and change• Culture, criteria and redemptions • Employee behaviors • Goal attainment engagement,• Identify target impact • Web activity retention, productivity metrics (engagement, • Training/Learning • Return on Objective retention, productivity, • Call center activity • Return on Investment cSat) • Etc. • Etc.• Participant attitudes and values Proprietary and Confidential © 2013 Maritz 34
    36. 36. Simple Retention Impact Formula1) Estimate Cost of Attrition:Number of employees: 5,000Annual attrition rate: 5%Average salary: $50,000 Investing $3.75M in*Annual attrition cost: $31.25M recognition can*Cost to replace employee 2.5 x salary produce attrition savings of $6.25M,2) Estimate Investment: resulting in a netR&R budget based benefit of $2.5M.on x% of total salaries: 1.5%Investment calculation:$3.75M3) Estimate Retention Benefit:Retention improvement: 20%Calculated benefit: $6.25M Proprietary and Confidential © 2013 Maritz 35
    37. 37. Productivity Benefits1 2 3 What if you are able to improve your employees So how much should you spend on What is your current situation? productivity? employee recognition?How many employees do you have? 15,000 A value can be assigned to employee productivity based on your Set aside 0.5%-3% of annual salaries 1.5% employees overall level of engagement and average salaries.^ for your employee recognitionWhat is their average annual salary? $50,000 Fully Engaged 120% Your employee reward and $11,250,000 Normal Engaged 100% recognition budget should be… Somewhat Disengaged 80% Disengaged 60% By investing $11,250,000 in employee recognition, and generating an additional $37,500,000, your net productivity gains could be $26,250,000. What percent of your employees could Which could be What percent of your employees are…* be… worth… 4 Fully Engaged 10% Fully Engaged 15% $45,000,000 What is your return on investment? Normal Engaged 35% Normal Engaged 45% $75,000,000 $40,000,000Your cost savings Your investment ROI Your $35,000,000 $37,500,000 $37,500,000 $11,250,000 $26,250,000 # Somewhat Disengaged 35% Somewhat Disengaged 25% ($60,000,000) $30,000,000 $11,250,000 # Disengaged 20% Disengaged 15% ($22,500,000) $25,000,000 $26,250,000 $20,000,000 Total 100% Total 100% $15,000,000 By better engaging your employees, $10,000,000 $37,500,000 you could generate an additional… $5,000,000* According to a 2011 BlessingWhite Employee Engagement Report and a Q3-2011Employee Engagement Index, less than 1 in 3 employees worldwide are "engaged" and $0nearly 1 in 5 are "disengaged". ^ http://www.thesocialworkplace.com, 2012 Your cost savings Your investment Your ROI Proprietary and Confidential © 2013 Maritz 36
    38. 38. Proprietary and Confidential © 2012 Maritz 37 37
    39. 39. Recent Article “Engagement is forged with different tools: trust, loyalty, open communication, clearly- articulated goals and expectations, shared values and well- understood reward systems.” Proprietary and Confidential © 2013 Maritz 38
    40. 40. Recognition is more than a nice thing to do, it is an act of leadership, a growth-producing, social interaction that creates both better business and better lives. Proprietary and Confidential © 2013 Maritz 39
    41. 41. Thoughts?Questions? Proprietary and and Confidential2013 Maritz Proprietary Confidential © © 2012 Maritz 40
    42. 42. @michpokowww.maritzmotivation.com/blog Proprietary and Confidential © 2013 Maritz 41

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