Recognize, Reinforce, and Reward Each Individual's Efforts
Money may attract people to the front door, but something else has to keep
them from going out the back. People have a basic human need to feel
appreciated, and recognition programs help meet that need.
A successful reward and recognition program does not have to be complicated
to be effective. An equipment dealership in Louisville, Kentucky has almost
eliminated turnover by their programs. The employees participate in a
profit-sharing plan that could possibly mean $700,000 upon retirement. Other
incentives and benefits they provide include:
Every year employees celebrate their work anniversary with a cake and receive
$100.00 for each year employed made out in a check to the Snap-On Tool Company.
· Twice a year employees' children receive a $50 savings bond when they bring in
their "all A's" report card. · They reward employees with a "Safety Bonus
Program." Each employee's driving record is screened twice a year. Anyone who
has a citation is removed from the program. Those employees remaining at the end
of the year split $2000.00. · To minimize the "we-they" syndrome, every Friday
employees rotate jobs for one hour. For example, the person in the Parts
Department becomes a service technician. This builds a stronger team, and
improves communication within the company.
Involve Everyone
Exceptional organizations involve the ideas and suggestions of everyone. The
Sony Corporation is well known for its ability to create and manufacture new and
innovative products. In order to foster the exchange of ideas within
departments, Sony's Corporate Research sponsors an annual Idea Exposition.
During the exposition, scientists and engineers display projects and ideas they
are working on. Open only to Sony's employees, the exposition lets individuals
share ideas otherwise protected by departmental walls. This process creates a
healthy climate of innovation and creativity at all levels of the organization.
Develop the Potential of Your Workforce
For many people, learning new skills is just as important as the money they
make. In a study by Linkage, Inc. more than 40 percent of the respondents said
they would consider leaving their present employer for another job with the same
benefits if that job provided better career development and greater challenges.
The National Center on the Educational Quality of the Workforce (EQW) found on
an average, a 10 percent increase in workforce education level led to an 8.6
percent gain in total productivity. On the other hand a 10 percent increase in
the value of equipment only increased productivity 3.4 percent.
Evaluate and Measure Continuously
Someone said, "If you don't know where you are going, any road will lead you
there." That advice did not work for the Titanic, nor will it work for the
business world. Evaluation and measurement must surpass normal accounting
procedures like profit and loss, but include measuring turnover, customer
satisfaction, employee attitudes, and management effectiveness.
La Rosa's Pizza Company completes a cultural audit once a year, which
measures employee's feelings about pay and benefits, care and recognition, etc.
Additionally, all employees evaluate their bosses twice a year using an Internal
Customer Satisfaction Index. (ICSI) The ICSI has only four questions, and asks
the employees to give their managers a letter grade from A to D in four
different categories.
Greg Smith is the "Retention Expert." He shows executives
and business owners how to attract and keep customers and build organizations
that retain and motivate its workforce. He is the author of the book, Here Today
Here Tomorrow: Transforming Your Workforce from High-Turnover to High-Retention.
He speaks at conferences, conducts management training and is the President of a
management consulting firm called Chart Your Course International located in
Conyers, Georgia. Phone him at 770-860-9464. More articles available:
http://www.chartcourse.com.
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