Recognition for the Generations Louise Anderson, CPIM CEO/President Anderson Performance Improvement Company Presentation Title: ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Bio – Louise Anderson Louise Anderson, President and CEO, Anderson Performance Improvement Company - Award-winning Rewards and Recognition provider.  Named six years running as one of the top 13 providers of employee recognition programs in HRO Today Magazine’s “The Baker’s Dozen.” In 2005, 2009, 2010, and 2011 Incentive Marketing Association (IMA) awarded APIC with the Circle of Excellence Award. ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

The Generations Four Generations Working Together Traditionalist 1925-1945 Baby Boomer 1946-1964 Generation X 1965-1981 Generation Y 1982-2001 Robert Redford – 1936 Cameron Diaz – 1972 Mark Zuckerberg (founder Facebook) – 1984 The trads and BB are more concrete because there was an event which caused them to start and finish. Gen X and Gen Y is more of an estimation. There is a serious new problem in the workplace, and it has nothing to do with downsizing, global competition, pointy-haired bosses, stress or greed. Instead, it is the problem of distinct generations — the Traditionalists, the Baby Boomers, Gen X and Gen Y — working together and often colliding as their paths cross. Individuals with different values, different ideas, different ways of getting things done and different ways of communicating in the workplace have always existed. So, why is this becoming a problem now? Four Generations Working Together ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Total Workforce Participation* 4 Bureau of Labor Statistics* ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Your Experiences and Situations Think of co-workers in your workplace and the generations they represent. How have you interacted with these individuals? Was the outcome favorable? Communication Management Feedback I want you to think about your workplace and your experiences – can you share a situation of working with a different generation than yourself. Were you able to collaborate and work together? Was the outcome favorable? What did you learn about the other generation? If you have a question, please feel free to send your question thru the question tool. Our generation x or y will help field the question. ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Kennedy Example When asked to recall how and where Kennedy died . . 6 When asked to recall how and where Kennedy died . . Traditionalist and Baby Boomers Gunshots in Dallas, Texas Generation X A plane crash near Martha’s Vineyard, Mass Generation Y Which Kennedy? ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

It’s five, I’m out of here! He wants feedback, what the heck is that? Who Said That?? 7 It’s five, I’m out of here! He wants feedback, what the heck is that? They have no work ethic. Each generation needs to fully understand each generation to successfully work together. Generation Y differs from baby boomers in such significant ways that, if not addressed, may have a negative effect on cooperative working relationships. Boomers will be part of the workplace until at least 2015, if not later, and a recent survey indicated that 66 percent plan to work in some capacity after they retire. ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Generation Y – Who Are They? Gen Y encompasses 78 million Americans In their 20’s and just entering the workforce Grew up with technology and rely on it to perform their jobs better Want to have fun - at work or school Innovation is part of life! Natural collaborators Ready to take on the world and make their mark Characteristics: LA Armed with BlackBerrys, laptops, cellphones and other gadgets, Generation Y is plugged-in 24 hours a day, 7 days a week. This generation prefers to communicate through e-mail and text messaging rather than face-to-face contact and prefers webinars and online technology to traditional lecture-based presentations. Willing to trade high pay for fewer billable hours, flexible schedules and a better work/life balance. Nurtured and pampered by parents. Confident, ambitious and achievement-oriented. High expectations of their employers, seek out new challenges and are not afraid to question authority. Wants meaningful work and a solid learning curve. Value teamwork and seek the input and affirmation of others. Craves attention in the forms of feedback and guidance. Grew up receiving prizes and trophies for just showing up at a soccer game or band concert – Now winners or loser’s, just ties ”You are Special!!” Thanks Mom and Dad – can I move home again? Tell me how important I am and TELL ME AGAIN!! A global, civic generation Are positive about their ability to change things Coming of Age Events – some have formed who this generaton is: September 11 attacks The Internet Great Economic Times The Dot Com Boom and Bust Columbine Shootings Princess Di’s Death OJ Trial Fall of the Berlin Wall Generation Y is a unique generation. This tech-savvy, attention-craving, and achievement-orientated group are joining the workforce in high numbers.   Gen Y consists of about 70 million strong and has grown up in a hyper-connected, speedy world. They relate to brands, products, and work in a very different way compared to other generations.  ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Generation X – Who Are They? 9 Gen X encompasses 46 million Americans In their 30’s and early 40’s More ethnically diverse and better educated than the baby boomers Independent, resourceful, and self-sufficient 60% attended college Characteristics: Place a high value on their families and have a “matrix approach” (balanced) to their lives Prefer tactical communications (mostly via electronic means) with “next steps” clearly identified – goals with clear expectations Approach life, work and community much differently than Boomers Prefer to work alone – team work can create some frustration Love instant feedback and prefer to have a hands-off approach when dealing with supervisors and managers Are entrepreneurial and tend to dismiss process and politics of their work Tend to be less trusting of institutions Comfortable with change Can be cynical Coming of Age Events – many of these events have shaped this generation: AIDS MTV Latch-key kids – grew up with working moms and/or single parents Challenger explosion Computers – www launch Stock Market crash in 1987 Fall of the Berlin Wall First Gulf War ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Baby Boomers – Who Are They? 10 76 million Baby Boomers are set to retire in the next decade Predominately in their late 40’s to early 60’s Well-established in their careers and hold positions of power and authority Extremely hardworking Relish long work weeks and define themselves by their professional accomplishments Enjoy the financial rewards of a successful career – took grit, guts, and perseverance Characteristics: Work is an exciting adventure Live to work Forever young – aging is mandatory – growing old is not! Place a high value on the individual and youth Looks for tangible, immediate outcomes – orientated toward the present tense rather than the future Prefer persuasive arguments and tend to be competitive in their own influence Are idealist motivated by values, but tend to be very transactional in their civic and business lives Free Spirited and boisterous – comfortable in the spotlight Very competitive - like to finish first! Coming of age event – many of these events shaped this generation: Television Vietnam Kennedy and King Assassinations First man on the moon Summer of Love Energy crisis Watergate Civil rights and the Women’s Movement ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Traditionalists – Who Are They? 11 In their mid 60’s, 70’s, and 80’s About 95% of this generation is retired Punctual, sharply dressed, proudly conservative, and consider work a privilege Have worked for the same employer their entire life and are less likely to change jobs. Traditionalists are slow to change their work habits. Less technologically adept than the younger generations Characteristics: Less likely to change jobs to advance their careers than younger generations Adaptive – “We Earned It”!!! Past-orientated and history absorbed They believe in logic, not magic Education is a dream, not a birthright Tend to trust large, traditional institutions They are conformers Save first, then spend – more apt to pay with cash They feel they earned the rewards of life by hard work and careful planning “Teaching people to fish” is primary philanthropy target Coming of age events – many of these events shaped this generation: Wall Street Crash New Deal Era Charles Lindbergh files solo across the Atlantic Social Security Act Passes Pearl Harbor attacked WW2 ends Coming of Age Events – many of these events shaped this generation: ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Personal and Lifestyle Characteristics by Generation 12 Traditionalist Baby Boomer Generation X Generation Y Core Values Respect for authority Conformers Discipline Optimism Involvement Skepticism Fun Informality Realism Confidence Extreme fun Social Family Traditional Nuclear Disintegrating Latch-key Kids Merged Families Education A dream A birthright A way to get there An incredible expense Communication Media Rotary Phones One-on-one Write a memo Touch-tone phones Call me anytime Cell phones Call me only at work Internet Picture phones E-mail Dealing with Money Put it away Pay cash Buy now, pay later Cautious Conservative Save, save, save Earn to spend *Data provided by FMU

Personal and Lifestyle Characteristics by Generation 13 Traditionalist Baby Boomer Generation X Generation Y Core Values Respect for authority Conformers Discipline Optimism Involvement Skepticism Fun Informality Realism Confidence Extreme fun Social Family Traditional Nuclear Disintegrating Latch-key Kids Merged Families Education A dream A birthright A way to get there An incredible expense Communication Media Rotary Phones One-on-one Write a memo Touch-tone phones Call me anytime Cell phones Call me only at work Internet Picture phones E-mail Dealing with Money Put it away Pay cash Buy now, pay later Cautious Conservative Save, save, save Earn to spend *Data provided by FMU

Workplace Characteristics 14 Traditionalist Baby Boomer Generation X Generation Y Work Ethic and Values Hard work Respect authority Sacrifice Duty before fun Adhere to rules Workaholics Work efficiently Crusading causes Personal fulfillment Desire quality Question authority Eliminate the task Self-reliance Want structure and direction Skeptical What’s next Multitasking Tenacity Entrepreneurial Tolerant Goal-oriented Work Is . . . An obligation An exciting adventure A difficult challenge A contract A means to an end Fulfillment Leadership Style Directive Command-and-control Consensual Collegial Everyone is the same Challenge others Ask why TBD Interactive Style Individual Team player Loves to have meetings Entrepreneur Participative Communications Formal Memo In person Direct Immediate E-mail Voice mail Feedback and Rewards No news is good news Satisfaction in a job well done Don’t appreciate it Money! Title recognition Sorry to interrupt, but how am I doing? Freedom is the best reward Whenever I want it, at the push of a button Meaningful work Message that Motivates Your experience is respected You are valued You are needed Do it your way Forget the rules You will work with other bright, creative people Work and Family Life Ne’er the twain shall meet No balance Work to live Balance 14

Workplace Characteristics 15 Traditionalist Baby Boomer Generation X Generation Y Work Ethic and Values Hard work Respect authority Sacrifice Duty before fun Adhere to rules Workaholics Work efficiently Crusading causes Personal fulfillment Desire quality Question authority Eliminate the task Self-reliance Want structure and direction Skeptical What’s next Multitasking Tenacity Entrepreneurial Tolerant Goal oriented Work Is . . . An obligation An exciting adventure A difficult challenge A contract A means to an end Fulfillment Leadership Style Directive Command-and-control Consensual Collegial Everyone is the same Challenge others Ask why TBD Interactive Style Individual Team player Loves to have meetings Entrepreneur Participative Communications Formal Memo In person Direct Immediate E-mail Voice mail Feedback and Rewards No news is good news Satisfaction in a job well done Don’t appreciate it Money! Title recognition Sorry to interrupt, but how am I doing? Freedom is the best reward Whenever I want it, at the push of a button Meaningful work Message that Motivates Your experience is respected You are valued You are needed Do it your way Forget the rules You will work with other bright, creative people Work and Family Life Ne’er the twain shall meet No balance Work to live Balance

Workplace Characteristics 16 Traditionalist Baby Boomer Generation X Generation Y Work Ethic and Values Hard work Respect authority Sacrifice Duty before fun Adhere to rules Workaholics Work efficiently Crusading causes Personal fulfillment Desire quality Question authority Eliminate the task Self-reliance Want structure and direction Skeptical What’s next Multitasking Tenacity Entrepreneurial Tolerant Goal oriented Work Is . . . An obligation An exciting adventure A difficult challenge A contract A means to an end Fulfillment Leadership Style Directive Command-and-control Consensual Collegial Everyone is the same Challenge others Ask why TBD Interactive Style Individual Team player Loves to have meetings Entrepreneur Participative Communications Formal Memo In person Direct Immediate E-mail Voice mail Feedback and Rewards No news is good news Satisfaction in a job well done Don’t appreciate it Money! Title recognition Sorry to interrupt, but how am I doing? Freedom is the best reward Whenever I want it, at the push of a button Meaningful work Message that Motivates Your experience is respected You are valued You are needed Do it your way Forget the rules You will work with other bright, creative people Work and Family Life Ne’er the twain shall meet No balance Work to live Balance 16

Generation Y – What Do They Want? Immediate and Frequent Feedback Instant Gratification Empowerment Time Off Frequent Recognition Greater Work-Life Balance Fun at Workplace! ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Generation X – What Do They Want? 18 Freedom! Recognition from Supervisor Bonuses Stock Options Training and Career Development Mentoring ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Baby Boomers – What Do They Want? 19 Money!! Title Formal/Public Recognition Corner Office Promotion Peer Recognition Desire for Subordinates ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Traditionalists – What Do They Want? 20 Money!! Public Recognition Desire to Lead Organizational Loyalty Responsibility Accomplishment Control ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Generational Thoughts on Manager Feedback 21 Traditionalists: “No news is good news.” Baby Boomers: “Feedback once a year, with lots of documentation.” Generation X: “Sorry to interrupt, but how am I doing?” Generation Y: “Feedback whenever I want it at the push of a button.” ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Generational Thoughts on Retention 22 Traditionalists: Job changing carries a stigma. Baby Boomers: Job changing puts you behind. Generation X: Job changing is necessary. Generation Y: Job changing is part of my daily routine. ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Total Rewards Elements Compensation Benefits Work-Life Performance and Recognition Development and Career Opportunities Are you looking at the full picture when motivating your workforce? Each generation prefers different levels of compensation, benefits, work-life, performance and recognition, development and career opportunities. There is a different between compensation and recognition – compensation compensates and recognition communicates Recognition vs. Compensation: Recognition is non-transactional, recognition is non-conditional, and recognition is non-exclusionary ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Recognition Will Impact Your Bottom Line “Organizations that recognize their people outperform other companies who don’t by 30-40%.” The Herman Group ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Recognition Will Impact Employee Retention “Engaged employees are more productive, profitable, customer- focused, and less likely to leave.” – Gallop organization Recognition milestones is not a tool for “keeping” employees – It’s purpose is to effectively communicate “We care about you” which fosters emotional engagement!! ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Recognition Will Impact Employee Engagement Does the recognition or praise you receive at work motivate you to improve performance? 82% replied yes. In the workplace, what type of recognition motivates you to improve your job performance? 69% stated non-monetary,16% stated monetary. The Gallup Organization ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Did You Know? According to the Public Agenda Forum, only one in four American workers are working at full potential. 78% of employees indicated that it was “very” or “extremely” important to be recognized by their managers when they do good work; 73% said they expected that recognition to occur either “immediately” or “soon” thereafter. (Nelson Motivation) Companies with effective incentive programs in place realized a median return to shareholders almost double that of companies that didn’t have ways to recognize employees. (Watson Wyatt)  Retention? According to a Robert Half study, 17% of good employees who quit their jobs do so because of a lack of recognition. ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Recognition Is So Powerful! Recognition is a corporate value, operating at every level. Recognition acts as a form of feedback. Recognition happens informally and formally. Employees who improve are rewarded, not just top performers. Employees choose rewards that are meaningful to them. Best Practices—behaviors and activities that get results—are identified, cloned, and rewarded. In a culture of recognition, just any kind of recognition won’t do. The most effective recognition rewards the right behaviors, right away. Best Practices are well-defined, credible standards that align with and support corporate goals—or in other words—Best Practices are those behaviors and activities exhibited by your top performers. The goal of recognizing these Best Practices is to turn them into Common Practices that extend from your top performers all the way down to your bottom line. ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

This method encourages a focus on lasting improvement. Focus on the Behavior Many companies believe they can change performance by rewarding employees for the final outcome and not the steps it takes to get there. By rewarding only the final results, companies reward the same top performers over and over. By shifting rewards and recognition to behaviors and activities that lead to great results, you recognize top performers and everyone else who shows improvement. This method encourages a focus on lasting improvement. ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company

Thank You! Louise Anderson, CPIM Landerson@AndersonPerformance.com Direct: 651-480-8601 Mobile: 612-386-3900 ©2012 Anderson Performance Improvement Company, LTD. All Rights Reserved. AEIS® (Anderson Enterprise Incentive Solution®) is a registered trademark of Anderson Performance Improvement Company