1. © RPI 2006. In commercial confidence only. 2011 Benchmarking Survey Overview of Results & Key Insights June 22, 2011 Presented By: Ian Citulsky, Carlson Marketing Brian Dodds, The Miller Company

2. © RPI 2006. In commercial confidence only. Agenda 1.Survey Design and Methodology 2.Key Observations 3.Survey Responses by Question Category –“You and Your Company” – Personal & Company Profile –“You and Your Company” – Recognition Program Structures –Responses by Best Practice Standards 1–7 4.Next Steps 5.Questions 2

3. © RPI 2006. In commercial confidence only. Opening Thought… 3

4. © RPI 2006. In commercial confidence only. Survey Design & Methodology  Bi-annual online survey, sent to RPI membership base  Deployed March 4-18 th, 2011  109 Responses (same rate as 2009)  Standardized questions to allow YOY tracking  Aligned to RPI Best Practice Standards  Leverage key insights in CRP curriculum  Share results with membership base 4

5. © RPI 2006. In commercial confidence only. Key Observations  Program measurement is an ongoing pain point for industry –1/3 rd of respondents indicated that determining ROI for recognition programs is the greatest recognition challenge they are facing  Recognition professionals are now more likely to fulfill multiple recognition functions –Only one quarter of respondents indicated that only 100% of their responsibilities are related to recognition  Recognition training is the lowest scoring standard; events and celebration is the highest scoring standard  The challenging economic environment seems to have stunted program evolution for some organizations 5

6. © RPI 2006. In commercial confidence only. “You and Your Company” – Profile  YOY shift in the years of experience with 79% of respondents having 4+ years of experience (vs. 71% in 2009) 6

7. © RPI 2006. In commercial confidence only. “You and Your Company” – Demographics 7

8. © RPI 2006. In commercial confidence only. “You and Your Company” – Program Info 8

9. © RPI 2006. In commercial confidence only. “You and Your Company” – Profile  10% of organizations indicated that they belong to multiple professional organizations 9

10. © RPI 2006. In commercial confidence only. “You and Your Company” – Profile  “Full-time” recognition positions have decreased slightly in 2011 (29% down to 26%) and percentage of respondents indicating that recognition is at least 50% of their responsibilities has dropped by 10%  Significant increase in respondents indicating that recognition is only 25% of their job responsibility 10

11. © RPI 2006. In commercial confidence only. “You and Your Company” – Informal Budget  2011 informal recognition budget has changed significantly from the previous year –Top response continues to be $0-24 (nearly one-third) –Largest YOY increase in $25-49 11

12. © RPI 2006. In commercial confidence only. “You and Your Company” – Formal Budget  As one of the common themes for 2011, overall recognition budgets (at the top end) are decreasing –The $1 Million+ and $250,000-$999,999 categories decreased from 23% to 16% 12

13. © RPI 2006. In commercial confidence only. “You and Your Company” – Formal Programs  Most organizations offer Service and Performance recognition programs  Overall, similar responses YOY on all components 13

14. © RPI 2006. In commercial confidence only. “You and Your Company” – Changes Given the current economic environment, what changes are being implemented to ensure recognition is kept as an organizational priority? (i.e. executive engagement, budgetary, systems)? Selected responses:  “Centralized budget, centralized programs, communication and promotion campaigns, implemented training and consulting”  “Alignment with business strategy”  “…more investment in the portal for new program features and reporting for accountability - who's recognizing, who's not…”  “Training”  “By continuing to tie our recognition program directly to our organizations vision and goals.”  “Executive engagement”  “Current economic environment makes it difficult” 14

15. © RPI 2006. In commercial confidence only. “You and Your Company” – Greatest Challenge  The most significant challenge for recognition programs continues to be the assessment of return on investment  However, lack of senior leadership, lack of funding, and recognition not viewed as strategic all are other barriers that have seen increases  Other challenges reported by organizations include Inactivity and “Not all employees have access to a computer on a regular basis” 15

16. © RPI 2006. In commercial confidence only. “You and Your Company” – Responsibilities  A majority of respondents now fulfill multiple recognition functions for their organization 16

17. © RPI 2006. In commercial confidence only. Standard 1 – Recognition Strategy  All aspects of Recognition Strategy have experienced a slight “average agreement” decline from 2009  The most significant decline is in the area of building continuous improvement into the program (7.6  6.8)  Second significant area of decline is linking recognition to organizational vision, mission, and values Standard #1 - Recognition Strategy Statement 20092011 Avg. % strongly agree % strongly disagree Avg. % strongly agree % strongly disagree The organization links its recognition strategy to the organizational vision, mission, and values. 8.133%0%7.526%4% The organization provides a 3-dimensional approach to recognition, including: day-to-day, informal, and formal systems. 7.930%1%7.634%4% The organization has documented procedures for recognition. 7.623%4%7.223%3% The organization has defined recognition program objectives. 7.524%3%7.121%3% The organization builds continuous improvement into its recognition programs. 7.630%3%6.818%4% 1 = strongly disagree, 10 = strongly agree 17

18. © RPI 2006. In commercial confidence only. Standard 1 – Recognition Strategy  Creating recognition culture, followed by reinforce desired behaviors, and then motivate high performance are the top 3 recognition program objectives for 2011 –The same top 3 were noticed for 2009  Other objectives are: –Increase employee engagement –Service recognition 18

19. © RPI 2006. In commercial confidence only. Standard 2 – Management Responsibility  Scores for all aspects of Management Responsibility have decreased  Most significant decline is in the area of senior management reviewing the recognition program periodically (6.5  5.8) –This is also noticeable from responders strongly disagreeing with the statement increasing from 5% to 7%  It is not surprising that the #1 objective for 2011 is to “Create recognition culture” as management support will be strongest when recognition permeates the organization at all levels 1 = strongly disagree, 10 = strongly agree Standard #2 - Management Responsibility Statement 20092011 Avg. % strongly agree % strongly disagree Avg. % strongly agree % strongly disagree Management has defined and documented its recognition policy. 6.919%3%6.213%8% Senior management identifies and provides adequate resources to manage and maintain the recognition program. 7.415%1%6.312%5% Recognition is part of management reviews and agendas. All managers know that senior management will hold them responsible for participating constructively. 5.66%7%5.34%9% Senior management supports the recognition program, communicates its support to all employees and is personally involved in the program. 7.115%1%6.410%4% Senior management periodically reviews the recognition program to determine effectiveness. 6.58%5%5.85%7% 19

20. © RPI 2006. In commercial confidence only. Standard 3 – Program Measurement  The results seen in the Program Measurement standard indicate that measurement indicators or tools linked to program objectives are weakly established –There has been a slight decline in the documentation of employee and manager satisfaction with recognition programs 1 = strongly disagree, 10 = strongly agree Standard #3 - Recognition Program Measurement Statement 20092011 Avg. % strongly agree % strongly disagree Avg. % strongly agree % strongly disagree The organization establishes measurement indicators or tools linked to program objectives. These measures should be statistically valid, substantive, and include both quantitative and qualitative data. 6.114%12%5.67%5% The organization documents the level of employee and manager participation in recognition programs. 6.417%8%6.215%8% The organization documents the level of employee and manager satisfaction in recognition programs. 6.415%7%5.98% 20

21. © RPI 2006. In commercial confidence only. Standard 3 – Program Measurement  Measuring recognition ROI is a challenge for most organizations and it is also clear that most rely on “easy” methods of measuring program success. –Showing increasing participation rates and employee satisfaction with the program provides quick and easy to understand measurement approaches 21

22. © RPI 2006. In commercial confidence only. Standard 4 – Communication Plan 1 = strongly disagree, 10 = strongly agree Standard #4 - Communication Plan Statement 20092011 Avg. % strongly agree % strongly disagree Avg. % strongly agree % strongly disagree The organization has a strategic communication plan that communicates all aspects of the recognition strategy. The plan outlines methods, frequency and communications content. Recognition communications has its own branding. 6.615%6%6.010%4% A wide variety of communications vehicles are used for recognition communications. 7.420%3%6.915%3%  Slight decline in showing that the organization has a well defined, continuous, and all encompassing communication plan  Most methods of communication are being utilized (see following slide) to a high degree but the use of employee handbooks is least popular 22

23. © RPI 2006. In commercial confidence only. Standard 4 – Communication Plan  Use of traditional print media has seen the largest decrease YOY  Use of traditional electronic channels (e.g. email, intranet) has slightly decreased  Other communication methods include: –Lunches, social media, and word of mouth 23

24. © RPI 2006. In commercial confidence only. Standard 5 – Recognition Training  Recognition Training is consistently the lowest scoring standard. Not only is training not viewed as important but there is a lack of measurement on the impact of training  While most organizations have some form of formal learning, the majority of training is informal or unstructured 1 = strongly disagree, 10 = strongly agree Standard #5 - Recognition Training Statement 20092011 Avg. % strongly agree % strongly disagree Avg. % strongly agree % strongly disagree The organization demonstrates that training is an important element in the overall recognition strategy, and that the organization devotes the necessary resources to make the training program successful. 5.86%8%5.46%9% The organization demonstrates that the recognition training has been effective and has achieved results. 5.15%15%5.04%11% 24

25. © RPI 2006. In commercial confidence only. Standard 5 – Recognition Training  39% of respondents indicate that their organizations have “in-person” training but informal training methods (email, quick meeting) are still a significant means of developing awareness and skill in recognition  30% of respondents indicated that their organization does not provide training at all (up from 17%)  Online and video-based training have seen slight increases  Training continues to be a challenge as time and funding requirements may be acting as significant barriers 25

26. © RPI 2006. In commercial confidence only. Standard 6 – Events & Celebrations  By far, the highest rated standard overall  Most organizations see the importance of public recognition of top achievers and have defined and assigned roles and responsibilities for event planning and execution  However, there have been slight declines in recognition events and celebrations scores, possibly due to the challenging economic environment 1 = strongly disagree, 10 = strongly agree Standard #6 - Recognition Events and Celebrations Statement 20092011 Avg. % strongly agree % strongly disagree Avg. % strongly agree % strongly disagree The organization has demonstrated the process for celebration, event planning, and/or award ceremonies to recognize its employees. 8.645%0%7.627%3% The organization has assigned responsibility for event planning. 8.856%1%7.933%3% Events demonstrate creativity, management involvement, and documentation of the event. 8.646%0%7.732%2% 26

27. © RPI 2006. In commercial confidence only. Standard 7 – Program Change & Flexibility  Most respondents agree that their organizations continually adapt and evolve the recognition programs in order to suit current and future needs 1 = strongly disagree, 10 = strongly agree Standard #7 - Program Change and Flexibility Statement 20092011 Avg. % strongly agree % strongly disagree Avg. % strongly agree % strongly disagree The organization has demonstrated flexibility in its recognition program/process through a regular evaluation process. 7.118%3%6.612%6% The organization adjusts recognition to meet the diverse needs of individuals and teams in the organization. 7.218%4%6.811%6% 27

28. © RPI 2006. In commercial confidence only. Next Steps  Feedback on survey (additional datapoints to collect?)  Incorporate for next deployment  Move to annual survey?  Move the needle on response rate! 28