How Performance Recognition Impacts Innovation and Employee Engagement
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How Performance Recognition Impacts Innovation and Employee Engagement

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What is a big company without a solid set of employees? How would Google, Microsoft, or Amazon function if they were run by one man behind a computer? The answer might be, they would function quite ...

What is a big company without a solid set of employees? How would Google, Microsoft, or Amazon function if they were run by one man behind a computer? The answer might be, they would function quite well for awhile—after all, that is how most of the biggest companies are started. But what about once they pick up?

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How Performance Recognition Impacts Innovation and Employee Engagement How Performance Recognition Impacts Innovation and Employee Engagement Presentation Transcript

  • HOW PERFORMANCE RECOGNITION Impacts Innovation & Employee Engagement
  • THINK ABOUT THE LAST TIME S O M E O N E YO U WO R K W I T H TO L D YO U , “GREAT JOB!” HOW D I D I T M A K E YO U F E E L?
  • FOR MOST O F US, SINCERE RECOGN ITION CA N B E A POWERFUL MOTIVATOR TO REDOUBLE OUR EFFORTS AND STRIVE FOR EVEN GREATER PERFORMANCE IN THE FUTURE W HET H E R I N SPORTS, AMONG OUR FAMILIES, OR AT WORK.
  • AND AS A RE S ULT, I N FAC T, E MP LOYE E S STUDIES SHOW w ho re ce i ve re co g n ition are m o re l i ke l y to be hi g hl y e ng ag e d. ARE MORE LIKELY TO PERFORM AT THEIR BEST & MO RE LIKE LY TO DE VE LO P INNOVATIVE WAYS TO I MPR OVE THEI R COMPA N Y.
  • WE WIL L LOO K AT T WO DI F F E R E N T TY PES OF P ERFORM A NC E R E CO GN I T I O N: 1 ONGOING EFFORT: Th is i s t yp i c a l l y in fo r m a l, ca s u a l, and more f re q u e nt re co g n it io n , typ ica l l y d e l i ve re d in t h e fo r m o f a w ri t te n n ote, a n e m a il, o r a since re t h a n k you . 2 A BOV E A N D BE YO N D PE R FO R M A N C E : Thi s ty pe o f re co gni ti o n i s ty pi cal l y mo re fo rmal and ti e d to a mo re si gni f i cant achi eve me nt. It i s f re que ntl y acco mpani e d by anno unce me nt to the te am o r co mpany and/o r an award i te m.
  • L ET ’ S EX P LO R E how performance re co g ni ti o n i mp a cts yo u r employee’s engageme nt, i nnovati o n, and o utp ut.
  • ENGAGEMENT
  • I N THE L AST FEW YEARS , A REC URRI NG FOCUS OF DISCUSSIONS O F BUS INE SS PERFORMANCE HAS BEEN INCREASING EMPLOY E E
  • E M PLOY E E E N GAGE M E N T % 6 0 -70 Wh i l e d ef in it ion s o f e ng ag e m e nt abou nd , t h e c r u x o f t he i d e a i s s i m p l e - w h en em p loyees are m o re f ul f i l l e d i n th e ir wor k a n d co m m i t te d to t he i r col l eag u es a n d comp any, t hey ( and th e com p a ny) w ill p e rfo rm b e t te r. 49 - 6 0 >25 9.1 - 24.2 AVG. SHA R E HOLD E R ’S R E T U R N % 200 4 Hewi t t A ss ociates, E mp loyee Enga gem e nt at Double -Digit Growth Co mp an ies
  • AS A RE S U LT co mp a nies are investing heavily in a va rie ty of ways to inc re a se em ployee e nga gem e nt.
  • ONE OF THE MOST EFFECTIVE W AY S T O I N C R E A S E E N G A G E M E N T is simply to recognize employees for their performance, I N BOT H FO R MAL A N D I N FO RM A L WAYS .
  • RECOG N I T I O N AC R OSS FO U R COMPONEN TS OF E NGAGE ME N T: D RI V E & DE T E R MI N AT I O N 89% PERCENT OF EMPLOYEES WHO ARE HIGHLY ENGAGED 44% W H EN COMPANI ES FOCUS ON RECOGN I T I ON W HEN CO M PA N I ES D O N ’ T CA R E
  • RECOG N I T I O N AC R OSS FO U R COMPONEN TS OF E NGAGE ME N T: COM PA N Y CO N N E C T I O N 81% PERCENT OF EMPLOYEES WHO ARE HIGHLY ENGAGED 35% W H EN COMPANI ES FOCUS ON RECOGN I T I ON W HEN CO M PA N I ES D O N ’ T CA R E
  • RECOG N I T I O N AC R OSS FO U R COMPONEN TS OF E NGAGE ME N T: WOR K R E L AT I O N S H I P S 78% PERCENT OF EMPLOYEES WHO ARE HIGHLY ENGAGED 35% W H EN COMPANI ES FOCUS ON RECOGN I T I ON W HEN CO M PA N I ES D O N ’ T CA R E
  • RECOG N I T I O N AC R OSS FO U R COMPONEN TS OF E NGAGE ME N T: P E R S O NAL STA N DI NG 76% PERCENT OF EMPLOYEES WHO ARE HIGHLY ENGAGED 28% W H EN COMPANI ES FOCUS ON RECOGN I T I ON W HEN CO M PA N I ES D O N ’ T CA R E
  • D RIV E & DE TER M I N AT I O N CO MPANY CO N N E C T I O N WO RK RE LAT IO NS H IPS PE RS O NAL STANDING W HE N LOO KI N G AC R OSS THESE FOUR DIMENSIONS, t h e re i s a stark d if feren ce i n the e nga gem e nt levels of t h o s e wh o receive recog n ition with those who do not.
  • M O R E THA N TWICE AS MANY E M P LOYE E S A RE HIGHLY ENGAGED amon g th ose who re ce ive pe rform a nce recog n ition com pa red to those who do not.
  • R ECOG N I T I O N A N D E NGAGE ME N T 78% PERCENT OF EMPLOYEES WHO ARE HIGHLY ENGAGED 34% CO M PANI ES WI TH ST R O NG RE COGN I T I ON CO M PA N I ES W I T H W EA K R ECO GN IT IO N
  • A g ood example of this is se en in th e relation s hip be tween m a na gers an d th ose they direc tly oversee.
  • A MON G THOSE W HO R EC EIV E ST RO NG P ERFORMAN C E R ECOG N I T I ON Great job! A M O N G TH OS E W H O R E C E I V E W E A K P E R F O R M A N C E R E CO G N I TI O N ... 87% 51% say they h ave a st ro n g re lat io n s h ip wi t h t h e i r d i re ct m a n a g e r s say they have a stro ng re l ati o nshi p wi th the i r di re ct manage rs
  • Great job! FREQUENT RECOGNITION IN ADDITION, 82% o f ma na ge rs who re cog n i ze t h ei r em p l oyees ’ pe r fo r m a nce m ore t h an o n ce a mo n t h REPORT HAVING GOOD RELATIONSHIPS WITH THEM.
  • Great job! INFREQUENT RECOGNITION IN CONTRAST, only 63% o f m a na g er s w h o recog n i ze pe r fo r m a nce le ss f req u en t l y REPORT HAVING GOOD RELATIONSHIPS WITH THEM. U NFORT UN ATE LY, 39% O F MANAG E RS RE PO RT T H AT T H E Y INFRE Q U E NT LY RE CO G NIZE T H E IR T E AM ME MB E RS ’ PE RFO RMANCE .
  • While it’s certainly possible that RECOGNITION IS A RESULT OF GOOD RELATIONSHIPS (and good managers), THE OPPOSITE IS CLEARLY ALSO TRUE
  • INCREASED PERFORMANCE RECOGNITION APPEARS TO BE ONE OF THE MOST EFFECTIVE WAYS to improve relationships between managers and employees.
  • > I N FAC T, employees believe eit he r ty p e o f re co g ni ti o n is much more import ant tha n a c ash b o nus.
  • E MPLOYEE/ MANAGER R EL AT I ON SHI P S A R E IM PROVE D BY P ERFOR M A N C E R ECOG N I T I ON EMPLOYEES CHOICE OF WHICH BENEFIT WOULD MOST IMPROVE THEIR RELATIONSHIP WITH THEIR DIRECT MANAGER. 50% 22% 5% SAL ARY B O NUS 28% A B OV E & B E YO N D R E COG N I T I O N O N GO IN G EF F O R T R ECO G N I T I O N
  • P E RFORM A N C E R E CO GNI T I O N F UEL S E M P LOY E E I NNOVAT I O N
  • SO, IF EMPLOYEE ENGAGEMENT ? increases with strong performance recognition, HOW DOES THAT AFFECT EMPLOYEE AND COMPANY PERFORMANCE
  • THE FIRST MAJOR EFFECT THAT RECOGNITION HAS ON PERFORMANCE DR IVIN G INNOVATI ON A top p riority for successful execu tives everywhere.
  • When asked how many new ideas EMPLOYEES GENERATED IN THE LAST MONTH TO IMPROVE THEIR COMPANY’S PRODUCTS, SERVICES, OR SYSTEMS THE RESPONSES WERE COMPELLING.
  • T HE RESP O NS E S? Em pl oyees receiving st ro ng re co g ni ti o n g e ne rate n e ar ly twice as m any innovat i ve i de a s e a c h m o nt h. EMPLOYEES RECEIVING WEAK RECOGNITION EMPLOYEES RECEIVING STRONG RECOGNITION 1.8 NEW IDEAS per month to help improve their company 3 NEW IDEAS per month to help improve their company
  • I N A D DI T I O N , Employees will proactively seek new ways to improve efficiency at their company when they receive strong performance recognition. EMPLOYEES RECEIVING WEAK RECOGNITION EMPLOYEES RECEIVING STRONG RECOGNITION 54% seek new ways to improve efficiency 87% seek new ways to improve efficiency
  • While there are many factors that go into an individual’s or a company’s ability to innovate, We fou n d th at recognition c a n be a p owerf u l d river of continua l im prove m e nt.
  • EMP LOY EE IN N OVAT I ON I S IM PR OVE D BY P ERFORM A N C E R ECOG N I T I ON EMPLOYEES CHOICE OF WHICH BENEFIT WOULD MOST IMPROVE THEIR INNOVATION FOR THE COMPANY. 32% 5% SAL ARY B O NUS 41% 27% A B OV E & B E YO N D R E COG N I T I O N O N GO IN G EF F O R T R ECO G N I T I O N
  • P E RFORM A N C E R E CO GNI T I O N F UEL S E M P LOY E E O U T P U T
  • THE SECOND MAJOR EFFECT THAT RECOGNITION HAS ON PERFORMANCE WO R K IN G AT MAXI MUM CAPACI TY In creasin g emp loyees’ willingne ss to work at their be st.
  • EMP LOYE E & T E A M O U T P U T P E R C E N T O F E MP LOYEES WORKING AT 9 0 % C A PAC I TY OR ABOVE 53% CO M PANI ES WI TH ST R O NG RE COGN I T I ON 40% CO M PA N I ES W I T H W EA K R ECO GN IT IO N
  • E XPECTAT IONS
  • Employees have a wide variety of expectations ABOUT THE FREQUENCY AND NATURE OF RECOGNITION
  • IDEAL PERFORMANCE RECOGNITION FREQUENCY MULTIPLE TIMES A WEEK ONCE A WEEK 9% 11% 19% MULTIPLE TIMES A MONTH 26% ONCE A MONTH 20% ONCE A QUARTER ONCE EVERY 6 MONTHS ONCE A YEAR 7% 9%
  • HOW IS A MANAGER supposed to know how often HE/SHE SHOULD RECOGNIZE HIS/HER EMPLOYEES
  • + T HE A N SW E R t hought fully combi ni ng f re q ue nt a nd informal recognit ion fo r “o ng o i ng e f fo r t ” wit h less frequent b ut mo re me ani ng f ul reco g nit ion of “above and b eyo nd p e r fo r mance.”
  • O N G O IN G E F FORT, esp ecially w h en prov ided frequently and si nce re l y , can be used to recognize little wins an d en cou rag e em ployees to ke ep going.
  • O N THE OTHER HAND, recog n iz in g employees less frequently but w i t h mo re fo r mality for a bove a nd beyond p erforman ce s ets a pa rt the m ost signific a nt ach ievemen ts i n a unique a nd soc ia l way.
  • + RE SE A RC H S H OWS th at bot h t ypes of recogni ti o n a re i mp o r tant a nd s h o u ld be used in deliberate a nd co mp l e me ntar y ways.
  • Source: Cicero 2013, The Effect of Performance Recognition on Employee Engagement