This is to be used as a Case Study - UR. There are 3 main tools used to attract and retain employees -Compensation, Benefits and Work Experience. Compensation is the cost of having someone occupy a cube - it does not guarantee results. We all know there are those who are at work just to collect a paycheck and do not exhort any discretionary effort to that would benefit the company. Key Point - anyone can steal your talent by paying more. Example: technical employees in the 90’s. Benefits - are those extras that can assist you in attracting and retaining employees. (Health care, long term disability, 401K match, in-house daycare etc). However these things aren’t linked to corporate goals and require no employee output. They are a giveaway with nothing expected in return. Companies like SAS choose this as their retention strategy by offering benefits galore while knowing that they are not paying people at the top of the industry standards. Work Experience - is the only factor that cannot be immediately duplicated by your competitors. It is proprietary. Many companies are looking at dispersing from their Compensation bubble to other areas to try to attract and retain employees. Tell UR Story - moving bonus monies to non cash awards tied to specific behaviors (safety, Spiffs, Attendance). The reason for this is that mechanics making $25,000 were getting $10,000 bonuses whiteout knowing what they did to receive to bonus. There was no link between what they did and how it impacted the organization and customers.
Recognition plays a key role in driving employee Engagement . Outstanding companies show appreciation, by rewarding employees frequently with non-monetary and monetary recognition for behavior, actions, attitudes and achievements that impact the company’s goals, vision, values and mission.
Earnings per share in publically traded companies were greater 26% greater with engaged employees
72% of those engaged people thought “I can have a positive impact on service.”
84% thought “I can impact our Company’s results.”
68% thought “I can positively impact costs.”
Gallup’s Measurable Benefits from Engagement Include:
Enhanced organizational performance
Greater financial performance
An increase in employee retention
Engagement With Appreciation Towers Perrin Study (2008) * “Opportunity, Trust, Communication and Appreciation ” as Major Contributors to Employee Engagement Conclusion: Appreciation of great work accelerates engagement significantly across cultures, industries and the world-study included; 13 countries and over 10,000 workers Without Appreciation With Appreciation Low-Opportunity Companies 35% 56% High-Opportunity Companies 77% 92% Low-Trust Companies 35% 63% High-Trust Companies 65% 91% Low-Communication Companies 39% 69% High-Communication Companies 68% 92%
Benefits Work Experience Compensation The Work Experience (recognition, work/life balance, culture and environment) is the only factor that cannot be immediately duplicated by your competition. It is proprietary to you—good or bad—and can significantly impact engagement. * From World at Work, the former American Compensation Association
There is a new paradigm emerging in Human Resource Management “ Performance-Based Recognition ”
A “human capital” strategy designed to improve employee engagement and business results by aligning the goals and behaviors of employees with a company’s Vision, Mission and Values.
Stars Performance utilizes a proven process for system/program design and implementation from RPI¹
Management Education and Training
¹ Recognition Professionals International is a non-profit organization at the forefront of strategic global recognition. It was founded in 1998 as The National Association of Employee Recognition (NAER).