The Business Case for Employee Recognition and Rewards

Compensation Cafe

Why do we compensate employees? But compensation professionals (and readers of this blog) know the pay cheque is but one part of a very complex agreement between employer and employee to maximize a mutually beneficial relationship. That’s the essence of employee engagement.

Cafe Classic: Competition Is Good, Except When It’s Not - The Difference between Incentives and Recognition

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Editor's Note: Incentives and Recognition are key elements of a total reward portfolio, but they work in different ways and are better suited to different purposes. I’m often asked, “What’s the difference between incentives and recognition? Incentives/Bonuses Recognitio

Is “Annual Incentive” a Contradiction in Terms?

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Many organizations rely on pay for performance programs to help drive employee behavior. In the best cases, these schemes are designed to differentiate among performance levels, rewarding effort and results with annual merit pay increases and other annual incentives.

The Tricky Business of Incentive Compensation

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The impact of these changes can be felt throughout the organization, from senior leadership teams responsible for successfully planning around those challenges to the front-line employees who adapt their roles and deliver on those plans. Compensation Philosophy Incentives/Bonuses Recognition

Promotions, Bonuses, Raises, Recognition - When They Work (and When They Don't)

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You can’t give all employees promotions, bonuses, or raises. Social recognition, however, can be applied to all. In perhaps a worst-case scenario, promotions are little more than title changes in which the employee’s job duties change little if at all with no pay increase.

Cafe Classic: Choosing the Right Currency for Compensation & Rewards

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If you polled your employees and asked them, “What kind of rewards would you prefer?”, But what employees say they want for rewards, what actually works best to motivate employees, and what employees enjoy as rewards are entirely different things.

Using the Corporate Tax Break to Your Best People Advantage

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That, in addition to the tax break for corporate money repatriated overseas, means many companies are looking for ways to pass the benefits of the cut on to employees. To date, more than 260 companies have announced one-time bonuses for employees out of the expected return.

Including Meaningful Work in the Total Rewards Package

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I’ve been consulting with organizations on how best to structure – and fund – social recognition programs to create a culture of appreciation and gratitude in an organization for a couple of decades now. Recognition needs a different currency. Ah, humans.

3 Reasons Why Metrics Go Wrong

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He is a leader in the WorkHuman movement and the co-author of "The Power of Thanks" and his articles on fostering and managing a culture of appreciation through strategic recognition have been published in Businessweek, Workspan and HR Management.

Why Wait? Timely Rewards Deliver Increased Intrinsic Motivation

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How does this impact the way we think about total rewards in an annual (or even quarterly) bonus structure? Timely rewards indicate to people both of these factors – that the work they are doing is meaningful, valuable, and worthy of recognition. Incentives/Bonuses Total Rewards

4 Keys to Leadership According to Jack Welch

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To be a good leader for your employees, one needs to be rich with your praise, cheer them on, love to watch them grow and be excited about their success. You need to love to give bonuses. Above-and-beyond bonuses available to any level of employee.

3 Innovative Compensation Ideas Ready for Prime Time

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They change employee commitment to their colleagues, their customers, and their company. After completing the 90-day new-hire training period, Zappos needs to know its newest employees are all-in. Compensation Philosophy Incentives/Bonuses Pay for Performance Recognition

Cafe Classic: Celebrating Success. Who Do You Reward?

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It's time to take down the these false barriers to recognition and reward. I’m told this is standard in Pixar movies and one reason they usually include a “secret scene” at the end – to ensure everyone involved in creating their award-winning movies receives the recognition they deserve.

Living Wage vs. Pay for Performance

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Yet in some industries, especially those where labor is perceived as a cost and not an asset, more emphasis is put on incentives or bonus in a pay-for-performance model targeted to the higher order needs before fulfilling the base pay requirements for achieving the security of the foundational needs.

Cafe Classic: Balancing Process and Outcomes – How “Silo” Thinking Can End Up Rewarding the Wrong Thing

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Organizations that implement employee recognition and reward programs usually do so with the best of intentions. Avoiding silo creation and balancing process and outcomes are the two critical areas to always keep in mind in recognition and reward program planning.

Why Appreciating the Labor of Others Matters

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Material incentives like bonuses…quickly lose their punch… When you rely on “stuff” to feel satisfied, you have to keep upping the ante because whatever you get becomes the baseline. Incentives/Bonuses RecognitionThe American holiday of Labor Day fascinates me.

When Irrational Humans Make Good Decisions

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That statement alone could fuel many long conversations, but the simple truth of it is often something we ignore when thinking about how best to support our employees in bringing their own best selves to work every day. In what ways are your employees or colleagues positively irrational?

Cafe Classic: Unions, Recognition and Employee Engagement

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Editor's Note: Today's Classic features Derek Irvine with some data and insights about the importance of employee engagement - even (and some might argue especially) in a union environment. In today’s workplace, unions still have power when they need to step in for employee rights.

Where Have All the Raises Gone?

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Last month The New York Times ran an article bemoaning the loss of pay raises in favor of one-time bonuses and non-monetary rewards. Cited in the article, analyst firm Aon Hewitt calls this a “drastic shift” based on the firm’s annual survey on salaried employee compensation.

Will Keeping SCORE Help You Keep Top Employees?

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How do you measure impact of efforts to improve employee satisfaction, engagement and retention? According to the article, SCORE stands for the primary employee concerns in the engagement and employment contract: Stability, Compensation, Opportunity, Responsibility, Environment.

Fair Pay, Differentiated Rewards

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Let these employees shadow their VP for a day or two including any meetings with clients and top management. This notion was compatible with how businesses operated in the late 20th century -- company performance was dependent on the collective contributions of the mass of employees.

Chasing Best Practices

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It turns out that high performers are more likely to provide pay increases (90% compared to 84%), bonuses (81% compared to 74%), and are also likely to leverage more of a compensation mix.

Is Pay a Critical Part of Culture or Not?

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Employees that took that survey were asked to rate the three most important attributes of workplace culture. The number one answer from 50% of those employees: pay. But for the most part, I am surprised that so many employees point to pay as the most important part of culture.