Wednesday, June 11, 2003

Developing a reward and recognition program

Walt Disney World has over 20 reward and incentive programs in place. Recently, people taking a survey on our Web site said reward and recognition was a critical aspect in creating a high retention work environment. Reward and recognition programs do not have to be expensive to be effective.

Reward and recognition programs not only help people feel appreciated, but also help guide and shape human behavior toward organizational goals. Consider the "Plunger" award, an annual award created by a client of ours to reward special acts of achievement for employees who work in a hardware store.

The Plunger award had a humorous beginning. The award itself commemorates a special act of courage by the store's supervisor who had to unstop a clogged toilet.

Because of this person's "heroic" actions employees created the award for any individual going over and beyond the call of duty to fix problems affecting the work environment. No matter what type of program you have or want, the design process is critical to its success.

Step 1: Focus on the desired behavior needed or the goal of the program. Begin with a clear, briefly stated objective. Identify what goal/objective needs to be accomplished, for example: improved attendance, customer service, longevity, reduced accidents, etc. The objectives must be specific, simple, and obtainable.

Step 2: Select an implementation team. Before advancing, select a group of employees to obtain recommendations from the people who actually will be affected by the recognition effort.

It is important to bring people in from all levels of the organization. Use an outside expert, if necessary to facilitate the process. Insure the team helps set the goals, performance factors, and are in a position to report any obstacles toward implementation.

Step 3: Outline a strategy. Build the foundation of the program carefully. Decide on the methodology to be used. Decide the target audience, and focus on how the program will impact on the target audience. Decide if management or will the employees themselves manage the program.

Step 4: Decide on the budget. Insure there are adequate resources available before starting the program. Many simple reward and recognitions do not cost very much and usually require a small investment of time. On the other hand, a bonus program involving sales personnel may cost much more.

Step 5: Set goals. Establish quantifiable and qualitative goals that can be measured. Try to keep it simple as possible. The more complicated, the likely this effort will fail. The goals need to be fair and reachable for the target group.

Step 6: Pick the type of recognition or award. It is important to select the correct type of reward/award. The power and influence over the behavior of others can be affected by the value people place in the incentive. Spend time discussing with the target group and select an award within the budget framework. You may select several types of awards/recognition and allow the winners to choose the one they value the most.

Step 7: Develop a communication strategy. Most programs fail due to poor communication. How will people know about the program? Decide what form(s) of media to use such as a newsletter, e-mail, and a brochure or in new employee orientation materials? Decide how to remind people through the lifecycle of the program.

Step 8: Implement the program. The best programs are those that the employees run themselves. On the other hand, management directed programs usually take more energy and enthusiasm to carry out the program. After a couple months, time requirements are reduced. The target group will need consistent and clear communication on the results and measurement of the targeted behavior and performance.

Step 9: Create a meaningful presentation strategy. The presentation strategy is critical to the programís overall success. The best planning can fail miserably if the presentation strategy is poorly executed. Decide on either a formal or informal presentation. Be creative and award recipients with as much fanfare as possible. Involve top executives in the presentation strategy.

Step 10: Improve and change the program. The implementation teamís job is not over until they evaluate the program. Did it achieve its objectives and goals? Were the participants motivated to change their behavior? All incentive programs have a limited lifetime. Begin planning for the next program.

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Greg Smith is a nationally recognized speaker, author, and business performance consultant. He has written numerous books and has been featured on television programs such as Bloomberg News, PBS television, and in publications including Business Week, Kiplingers, President and CEO, and the Christian Science Monitor. He is the President and "Captain of the Ship" of a management-consulting firm, Chart Your Course International, located in Atlanta, Georgia. Phone him at 770-860-9464. More articles available at www.chartcourse.com.

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