1. Rewards and Recognition
April 19, 2011
Presented by Nicole Tefft, Asst Director of HR
Metropolitan State University of Denver

2. Agenda Purpose of providing rewards and recognition
Types of Recognition and Rewards
Who should receive them and how?
What types of rewards and recognition can I give?
Discussion

3. What does recognition mean to you?

4. Purpose of Rewards and Recognition
Generally, all employees are eligible, while some recognition options may be appropriate only for specific groups of employees.
Acknowledges employees for significant accomplishments, behaviors or special competencies linked directly to measurable results.
Designed to motivate employees, boost morale, and increase employee engagement creating a more positive and productive workplace.
Informal vs. formal recognition to generate the desired results.

5. Motivation
Motivation is generally defined as the psychological forces that determine the direction of a person’s level of effort, as well as a person’s persistence in the face of obstacles.
Motivation can come from intrinsic or extrinsic sources.

6. Intrinsic vs. Extrinsic Motivation
Intrinsically motivated behaviors are actions performed for their own sake—doing something because it’s believed to be important.
Extrinsically motivated behavior includes actions that are performed to acquire material or social rewards or to avoid punishment—the source of the motivation is the consequences of the behavior, not the behavior itself.
People can be both intrinsically and extrinsically motivated. For example, a senior manager who derives a sense of accomplishment and achievement from managing a large corporation and strives to reach year-end targets in order to obtain a hefty bonus is both intrinsically and extrinsically motivated. Similarly, an employee who enjoys helping customers and is motivated by having a secure job with good benefits has both motivations. Whether employees are intrinsically motivated, extrinsically motivated or both at any point in time depends on a wide variety of factors: (1) the person’s personal characteristics (e.g., personality, abilities, values, attitudes and needs); (2) the nature of the job; and (3) the nature of the organization (e.g., its structure, culture, control systems, human resource management system and the ways in which rewards such as pay are distributed to employees).

7. Purpose of Recognition
Recognition awards support departmental goals and objectives and create a best-fit for the business and employee needs.
Managers and supervisors, as well as employees are encouraged to use recognition awards throughout the year.
Recognition awards do not have to increase or add to an employee’s pay…the goal of recognition is to communicate “I/we value you”.
Bottom line….Recognition of employees impacts attitudes!
It is the responsibility of managers to strive to motivate employees so that they will make valuable contributions to the organization. They most frequently do this by offering rewards to motivate people to share their talents with the company. Managers seek to ensure that people are motivated to contribute important inputs to the organization, that these inputs are put to good use or focused in the direction of high performance and that high performance results in employees obtaining the outcomes that they desire.
Companies have also cited a number of additional reasons for adopting these types of programs, including the following: reducing costs; attracting and retaining key employees; increasing employee productivity, competitiveness, revenues and profitability; improving quality, safety and customer service; and lowering stress, absenteeism and turnover.
Managers need to make sure that their subordinates believe that if they do try hard, they can actually succeed. How do they do this? Through Rewards and Recognition.

8. What Makes a Good Reward? Be SSMART
Supports Organizational Goals and Values
Sincere and Simple
Meaningful
Adaptable
Relevant
Timely
1. Supports Organizational Goals and Values
Any incentives or recognition awards will be most successful when they are congruent with the organization’s stated mission, vision, values and goals. It is important that employees see a clear connection between what management says is important and what is actually rewarded at work.
2. Sincere and Simple
Be sure that the awards are appropriate for your culture and that they are given in a sincere and heartfelt manner. Managers and supervisors often fail to give recognition because “they don’t know what to say.” A simple recipe for recognition can work magic in your organization: thank the employee by name; state what the employee did to earn the recognition; explain how you felt about the employee’s behavior; state how the behavior added value to the company; and thank the employee again by name. Calling the person by name and letting him or her know that you personally value the effort can be as motivating as the actual reward.
3. Meaningful
An employee who completes a two-year project should be rewarded in a more substantial way than an employee who simply does a favor for his or her manager. Beware of “canned” award or incentive programs. Company cultures differ greatly, and what works in one environment may fail woefully in another. The reward must be meaningful to the individual receiving it. Since all of us are different, it is incumbent on the person’s manager to learn enough about his or her subordinates to know what types of things motivate them and what they would find important. Beware, though, of the form letter. One quick thank you note on a manager’s personal stationery will have much more impact than a cup with the company’s logo and a form letter. The way the reward is delivered can make or break the program—people can be more motivated by a single act of personal consideration by their manager than by a large cash bonus that is delivered poorly.
4. Adaptable
In addition, certain groups of employees may not be motivated by all of the company’s incentives. As a result, it is important to offer a variety of incentives and recognition opportunities in order to meet the varying needs of the workforce. For example, Generation X employees (those born between 1966 and 1978 and who have earned a reputation for their lack of commitment to organizations in terms of time and loyalty) are more likely to be motivated by time off than money, while older workers will likely find the bonus incentives more attractive.
5. Relevant
The things that get rewarded are the things that get done. It is critical to decide what behaviors to reward and then to reward them consistently. Be specific as to why the reward is being given—what behavior occurred that is being reinforced?
6. Timely
The reward or recognition should be made as close to the time of the desired behavior as humanly possible in order to strengthen the link between the employee’s action and the result to the company.

9. Types of Recognition Awards
Overall goal – be creative, know what people value most, and be flexible when considering award options.
Cash – specified or predetermined dollar amount.
Non- Cash – rewards that have value and may or may not have a budget impact.
Note: There are potential tax implications for both cash and non-cash awards.

10. Types of Recognition
Gift certificates (e.g., movies, dinner, gas, etc.)
Cash
Office accessories (e.g., pens, mouse pads, business card holders, etc.)
Jewelry (e.g., necklaces, lapel pins, bracelets, etc.)
Household items (e.g., crystal vases, china, etc.)
Watches
Electronics (e.g., cameras, televisions, stereos, etc.)
Travel (e.g., plane tickets, hotel vouchers, etc.)
Debit cards

11. Ways to Motivate Employees With Minimal Expense
Recognition/attention
A visit or from the President saying “thank you”
Letter of recognition in employee’s personnel file and/or mailed to the employee’s home
Article in local/regional/national newspaper regarding employee’s achievement
Highlighting employee in company newsletter or via company intranet
Trophy or plaque
Picture on bulletin board
Flowers
Come-in-late or get-off-early card
Care package to spouse or children of employee
Lottery tickets

12. Ways to Motivate Employees With Minimal Expense (cont.)
Recognition/attention (cont.)
Wash employee’s car
Lunch with senior management
Special parking space
Food
Balloons
Recognition at team meeting
Invitation to a party at the home of a senior manager
Asking a senior manager to attend the staff meeting when employee achievements are recognized
Gift certificate to a restaurant, for gas, for CDs/books, movie tickets, etc.
Mugs, pens, t-shirts, etc. with company logo

13. Non-Monetary Rewards Stretch assignments
Training for career development
Thank you card or
Day off
Afternoon or morning off
Long Lunch hour

14. Ways to Motivate Employees With Minimal Expense (cont.)
Applause (e.g., plaques, trophies, true applause at the end of the day)
One-on-one coaching
Training (allowed to attend seminar of employee’s choice)
Career path
Job titles
Good work environment
On-the-spot praise
Leadership roles
Team spirit

15. Ways to Motivate Employees With Minimal Expense (cont.)
Executive recognition
Social gatherings (celebrate holidays or just regular days with picnics, a catered lunch, an excursion for the department—bowling, sports event, dinner together, etc.)
Casual dress day
Time off with pay and/or alternative work schedules
Outside seminars (choice of seminar in another location, with spouse)

16. Ways to Motivate Employees With Minimal Expense (cont.)
Additional responsibility (new duties)
Theme contests (sports, anniversaries, culture)
Stress management (massages, pedicures/manicures)
Pizza/popcorn/cookie days (food sponsored and paid for by management)
Gags and gimmicks (e.g., plastic whale for a “whale of a performance,” large Tootsie roll for “those on a roll,” special parking place for those who “drive the hardest,” etc.)

17. State of Colorado Guidelines
What Gifts are Covered by Amendment 41?
All gifts or other things of value having either a “fair market value or aggregate actual cost” greater than$50 are covered, including loans, rewards, promises or negotiations of future employment, favors or services, honoraria, travel, entertainment and special discounts, with the following exceptions:
Political campaign contributions as defined by law.
Unsolicited items of trivial value less than $50. This would exempt such items as pens, calendars, plants, books, and similar items;
Unsolicited tokens or awards of appreciation. This includes plaques, trophies, wall mementos and similar items;

18. State of Colorado Guidelines
Admission to and the cost of food or beverages consumed at a reception, meal or meeting by an organization before whom the recipient appears to speak or to answer questions as part ofa scheduled program;
Reasonable expenses paid by a non-profit organization or other state or local government for attendance at a convention, fact-finding mission or trip, or other meeting if the person is scheduled to deliver a speech, make a presentation or participate on a panel or represent the state or local government provided that the sponsoring non-profit organization receives less than 5% of its funding from for-profit organizations or entities. Most non-profit organizations, including chambers of commerce funded by the business community, would not qualify for this exemption;

19. State of Colorado Guidelines
Gifts from a relative or personal friend of the recipient on a “special occasion.” “Special occasion” is not defined in Amendment 41 and, until clarified, should be considered to include only such occasions as birthdays, anniversaries and recognized holidays; and
Compensation paid to the recipient in the normal course of his or her employment.

20. Questions and Discussion
Who’s using formal or informal recognition awards on a regular basis?
Is your department doing enough recognition of their employees or not enough?
Success and/or issues?
What does recognition mean to you?