How recognition ACCELERATES employee engagement, retention and performance with Chester Elton @chesterelton
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How recognition ACCELERATES
employee engagement, retention and performance
with Chester Elton @chesterelton
So, what are the characteristics
of a great leader?
The Basic Four • Goal Setting • Communication • Trust
• Accountability
Finding and Engaging
the best people
A Crisis in Business
The Basic Four • Goal Setting • Communication • Trust
• Accountability
6
91%
70%68%
40%
0%10%20%30%40%50%60%70%80%90%100%
Goal Setting: High Favorable Opinion
Goal Setting: Low Favorable Opinion
Recognition: Strong Recognition: Weak
Employee Engagement: Goal Setting
7
Employee Engagement: Communication
92%
69%68%
39%
0%10%20%30%40%50%60%70%80%90%100%
Communication: High Favorable Opinion
Communication: Low Favorable Opinion
Recognition: Strong Recognition: Weak
8
91%
63%65%
35%
0%10%20%30%40%50%60%70%80%90%100%
Trust: High Favorable Opinion
Trust: Low Favorable Opinion
Recognition: Strong Recognition: Weak
Employee Engagement: Trust
9
91%
65%70%
38%
0%10%20%30%40%50%60%70%80%90%100%
Accountability: High Favorable Opinion
Accountability: Low Favorable Opinion
Recognition: Strong Recognition: Weak
Employee Engagement: Accountability
Why Engagement ?
Engagement = GROWTH
Growth with vs Without engagement
Operating Income
$100,000 Best Buy: a 0.1% increase in employee engagement at a store equals a $100,000 increase in the store’s annual operating
income.
Harvard Business Review October 2010
What Drives Employee
Engagement?
Percent of Employees “Completely Sa7sfied” With Their Jobs
By Level of Recogni7on
Percent With “Very High” Desire To Work For Their Employer “One Year”
From Now By Level of Recogni7on
Percent of Employees Who Are “Highly
Engaged” by Level of Recognition
Development & Well-Being
Trust
Pride Organization
Symbol
Employee Engagement
18
Path analysis: Top pre-drivers
Appreciation
Communication
Goal Setting Accountability
Research-Based • One of largest workplace
surveys ever conducted • Focus groups • Interviews
Ah, the Power of a Carrot
• Higher retention, of your good people
• Greater, sustained productivity
• Stronger, more committed employees
• Allows managers to communicate a powerful, lasting way
• And PROFIT!
How Do You
Measure Success?
22
Why Employee Engagement?
• Companies with higher employee engagement deliver higher returns than their peers
• 100 Best Companies with highly engaged employees have consistently outperformed major stock indices. Stock Market Index Fortune 100 Best
25.2%
72.9%
133.8%
Annual List of 100 Best
Companies
Fortune 100 Best vs Stock Market 7 year Cumulative Return
Source: Frank Russell Company
23
The Fortune 100 Best
“As for recognition it is probably the fattest pitch that managers miss. Telling employees they are doing a great job costs nothing but counts big And it is so easy to do more”
Fortune Magazine 100 Best Companies issue
§ Towers Watson study § 26,000 employees in 31 organizations § Commissioned by O.C. Tanner § Conducted by Jackson Organization research firm § ± 0.6% margin of error
§ Analysis of effective recognition to company profitability
§ Data shows recognition has significant impact on business success
Recognition Pays
§ Survey data showed Return on Equity (ROE) is as much as three times higher in firms that effectively recognize their employees
Performance by Quartile on “My organization recognizes excellence.”
Per
cen
tag
e R
etu
rn o
n E
qu
ity
Recognition & ROE
Work Environment
= How People Feel
on the Job
Unhappy Americans
Jan. 2010 The Conference Board
The report based on 5,000 households for The Conference
Board by TNS found that only 45% of those surveys found that they
were satisfied with their jobs, down from 61.1% in 1987.
Why People Stay With a Manager and correlated with:
• Higher Retention
• Higher Productivity
• Higher Customer Satisfaction
• Higher Profits
Recognition ! Praise
Wisdom from the Carrot Patch
This is stuff mom taught you
67% say their moms could run their business better than their boss Parenting Magazine
• Frequent
• Specific
• Timely
Carrot Basics
• Praise Effort
• Reward Results
Praise vs. Rewards
WOW!!!!
• Create informal recognition moments
Wisdom from the Carrot Patch
Informal /Seeds • Letter of praise to family
• Do least favorite task
• Remember special days
• Wash car
• Parking space for a week
• Hand Written Note • Cup of coffee
• Box of chocolate bars • Half day off to spend w/
kids
• Scrapbook of memories
• Tickets to movie, play, game
• Recognition box
• Friday inspirational movie
• A pat on the back
Make powerful presentations!
Wisdom from the Carrot Patch
Dos & Don’ts…
People may forget what you said or even what you did, but they never forget the way
you made them
feel.
Add Impact to Formal VIP • VALUE
• IMPACT
• PERSON • Goal: Bond
employees to your organiza7on
Informal /Seeds • Letter of praise to family
• Do least favorite task
• Remember special days
• Wash car
• Parking space for a week
• Hand Written Note • Cup of coffee
• Box of chocolate bars • Half day off to spend w/
kids
• Scrapbook of memories
• Tickets to movie, play, game
• Recognition box
• Friday inspirational movie
• A pat on the back
• Don’t want to get familiar • I never got any recognition! • What’s in it for me? • Don’t have time • Don’t want to play favorites • They will ask for more money!
Vegephobia Why Managers Don’t Recognize
Not in this economy!
Vegephobia Why Managers Don’t Recognize
What can
you do tomorrow?
You Know how! • The Survey - FREE • Verbal Praise • Thank You Notes • Frequent Specific Timely • Praise Effort / Reward Results • Better presentations / VIP
Do this at
HOME! You will feel great too
Ah, the Power of a Carrot
• Higher retention, of your good people
• Greater, sustained productivity
• Stronger, more committed employees
• Allows managers to communicate a powerful, lasting way
• And PROFIT!
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