WF ED 573 Rewards and Recognition Needs Assessment. Michelle Neel. Pennsylvania State University

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1 WF ED 573 Rewards and Recognition Needs Assessment Michelle Neel Pennsylvania State University

2 Organization Profile The organization profiled is a global organization that is seen as a leader in the capital goods sector. (For the purpose of this assignment the company will be referred to as XY Equipment.) The company has a presence in all markets worldwide and is focused on expanding its presence in high growth markets. For the purposes of this needs assessment, the decision was made to focus on a small employee group referred to as the Zena group within the company and its utilization of an employee rewards and recognition program. The Zena employee group is made up of 55 employees including 12 managers. This group became part of the organization during a recent merger. Needs Assessment Topic and Objectives As the employee talent of XY Equipment is key to its expansion and continued success, talent management is a focal point. The employee rewards and recognition program at XY Equipment is one component of talent management. The goal of the current rewards and recognition program is to recognize and reward strong performance. XY Equipment currently has a contract in place with an outside vendor that develops employee recognition and rewards programs. (The vendor has modified the rewards and recognition program specifically for use by XY Equipment.) Research shows that employee recognition can increase motivation and determination as well as improve work relationships and create stronger connections to the organization (Kaufman, Chapman & Allen, 2013). Employees who receive recognition are also more likely to demonstrate increased efficiency and generate innovations (Kaufman, et al., 2013). The human

3 resources managers and the director of training and development for the organization believe in the importance of the current rewards and recognition program. However, the organization has introduced the program two times in the last five years, and still the programs tools have been utilized infrequently by managers within the organization. The needs assessment will accomplish the following; 1. Determine the reasons for the underutilization of the current rewards and recognition program. 2. Provide the best practices for delivery to generate interest and enthusiasm for the program. The costs associated with conducting this needs assessment would involve the time associated with conducting manager interviews, and the time and manpower involved in the data analysis of the interviewees responses. As the organization already has a contract in place with its current vendor who has created the rewards and recognition program, it would be beneficial for the company to utilize the program more effectively. Proposal The human resources representatives at XY Equipment would like to increase the use of the rewards and recognition program by its managers as rewards and recognition has been identified as being a component of high performance culture (Kaufman, et al., 2013). In addition, the HR representatives feel that the current vendor s product is a useful tool to simplify and streamline the rewards and recognition process. A needs assessment surrounding the training needed to increase the use of the rewards and recognition program was chosen in order to help the Zena Group reach its performance goals by increasing the organization s utilization of employee

4 rewards and recognition. Further exploration of the underutilization of the rewards and recognition program was necessary to identify the intervention needed for managers to reward and recognize employees for their achievements with the goal being to increase employee engagement, employee retention, and improve relationships (Towers Perrin, 2003). Concerns Associated with the Current Rewards and Recognition Program and Obtaining Information for the Needs Assessment Some issues to address included how to create business unit manager buy in for a program that was introduced by global HR managers for use throughout the organization. Being that XY Equipment is a hierarchical, global organization made up of many different cultures, managers tend to have different backgrounds and views. In interviewing managers, one area where differing viewpoints showed through was in regards to manager s opinions about when and how employees should be recognized for their efforts. Also, as managers are under time constraints, it can be difficult to get the management group to attend training meetings. Many training classes for various programs have been canceled in the past year due to lack of attendance. The HR manager for training and development estimated that fewer than 50% of managers utilize training opportunities. Furthermore, it was difficult to obtain time with managers in order to interview them about their feelings on the rewards and recognition program. The human resources manager for the Zena Group provided information that there are currently no managers of Zena who have utilized the rewards and recognition program. The Zena HR manager s goal is to have the annual target award level set for 15-20% of the Zena employees to receive a formal reward, and an additional 15-20% of employees to receive an informal reward from July of 2014 to June of A formal award is defined as a monetary award ranging from $ $500.00,

5 and an informal reward is defined as an E Card which includes a note of thanks from the manager. Key Players/Decision Makers The key stakeholders in the rewards and recognition program include the human resources training and development manager, the HR manager for Zena, and the 12 business unit managers of Zena. Strategic Needs Assessment Overview Prior to implementing a training class on the rewards and recognition program for the Zena Group managers it was important to examine the internal and external factors that affected the use of the program within the context of the XY Equipment business strategy. The goal of XY Equipment is to operate as a fully-integrated multinational company able to compete at the highest level. XY Equipment s leadership principles go hand in hand with the organization s goals. Its leadership principles are as follows: We reward employees based upon achievement Leadership is a function of leading change and leading people We embrace and cherish competition We aim to achieve best-in-class performance We deliver what we promise As employee engagement is crucial to an organization s success, and XY Equipment prides itself for rewarding employees based upon achievement, the rewards and recognition program has been identified as one program that will help to create a more positive culture in the organization

6 and help the organization to meet its strategic goal of continuing to be a global leader in the capital goods sector. Data Collection The first step in the data collection process was to conduct an informational interview with the training and development manager for the group that Zena falls under in order to gain an understanding of the background of the rewards and recognition program and to obtain an overview of the organization. The second step involved examining the environment to identify and isolate the factors affecting the participation of the Zena Group in the rewards and recognition program. It was important to understand exactly why the program was being underutilized. Questions to consider included the following: 1) What were the training needs of the Zena managers in regards to both employee rewards and recognition and the specific vendor program used? 2) Due to the fact that Zena had recently merged with XY Equipment, was the underutilization of the rewards and recognition program because Zena had not fully assimilated into the XY Equipment and accepted all of XY s policies and practices? Were the Zena managers fully aware of the rewards and recognition program and its benefits? Next, data was obtained from the Zena human resources business manager in regards to the frequency of use of the rewards and recognition program. It was determined that the Zena managers had not used the rewards and recognition program at any time from February to July of As previously stated the HR training and development manager had set an annual goal for

7 at 15-20% of the Zena employees to receive an informal reward such as an E- Card and for an additional 15-20% of employees to receive a formal reward such as a monetary reward. Also, as previously stated, it was determined that the training and development manager was committed to the use of the vendor s rewards and recognition program as there is a contract in place by the service provider for the program. One issue that stood out to me was that in both instances when the rewards and recognition program was rolled out to managers, it was through an from the vice president of HR and the employee training and development manager, and no further training was provided. According to one vendor of rewards and recognition, O.C.Tanner, there is a 50% increase in employees using recognition when training is involved when rolling out this program (this information was provided by the training and development manger during the needs assessment interview.) In addition, according to the training and development manager, the culture of XY Equipment is also one that is very fast paced and competitive. She is concerned that employees don t feel that they have the time to stop and recognize each other for their efforts, or that going above and beyond is expected behavior that managers don t always see the necessity of stopping to recognize. It was agreed that 12 Zena Group department managers would be interviewed to obtain an understanding of how they felt about the current rewards and recognition program. In interviewing the managers the goal was to determine how to increase the utilization of the program. Semi structured interview questions were created for the Zena managers in order to help understand their feelings about rewards and recognition, and about the current vendor s program being utilized. The questions were also designed to further understand the culture and environment to identify and isolate the additional factors affecting the reasons why the XY

8 Equipment employees have not embraced the use of the vendor s program. The questions asked are located in Appendix A and B. These questions were derived from a study done by Towers Perrin (2003): Working Today: Understanding What Drives Employee Engagement. These questions were designed to assess elements that research has indicated directly contribute to employee engagement. These elements include drive and determination, company connection, work relationships, and personal standing. Research has indicated that higher levels of employee engagement are related to maximum output and innovation (Kaufman et al., 2013). In turn research also shows that employees receiving strong performance recognition are more likely to be engaged in their job (Kaufman et al., 2013). Results: In analyzing the interviews conducted with the Zena managers, recurring themes containing qualitative data were noted, organized into categories, and noted. Recurring themes from the management included the following: The culture of XY Equipment is very fast paced, and when s are sent out they are scanned quickly for relevant information in regards to daily or upcoming tasks. In general the managers remember receiving information about the rewards and recognition program, but acting on the program has been put off due to immediate, pressing needs in daily work. As a group, the Zena managers value praising their employees and recognizing and rewarding them for their efforts. This has typically been done by taking employees aside privately to say thank you or by recognizing employees formally during meetings.

9 Eligibility for recognition and praise has typically been tied into an employee thinking creatively outside the box and solving a problem for the team or organization, persisting in the face of discouragement and setbacks, translating ideas into actions that drive results, and/or for taking the time to serve as a mentor and teacher to others. Managers were interested in receiving training about the use of the vendor s program. However, finding the time to attend training was mentioned as a recurring theme. Conclusion and Recommendations As previously stated, research has demonstrated that performance recognition is important to employee engagement, and therefore an essential component of high performing organization (Kaufman et al., 2003). In addition, performance recognition for ongoing effort, or for going above and beyond in performance has been shown to be a strong motivator and contributing factor to engaging employees (Kaufan et al., 2003). Therefore, I believe that this needs assessment was valuable for the managers and employees of the Zena group within the XY Equipment Group. Now that this needs assessment has been conducted the organization will have the information going forward to know how to best conduct a training session for the Zena managers in regards to the rewards and recognition program. Moving forward, my recommendation is that managers will need training on why performance recognition programs are key to an organization s success, how and when to appropriately reward employees, and how to utilize the program more effectively. I feel that the cost of putting together a training program for managers for performance recognition, and specifically the vendor s rewards and recognition program would be offset by a reduction in turnover and increased productivity.

10 Lessons Learned I feel that one of the most important lessons learned from this project was in regards to the need of obtaining buy in from key players in the project. Time and budget constraints are always at the forefront of the minds of HR and employee managers. It is important to be very well prepared and to have the research documentation to back up the importance of conducting a needs assessment. In addition, careful planning is crucial to the success of any needs assessment. Furthermore, it is important to be able to anticipate problems, questions and concerns, and to adhere to timelines.

11 Appendix A Interview Questions for Manager Participants to Determine Knowledge Regarding the Celebrate Success Program 1) Do you feel that it is important to reward employees when they go above and beyond for their contributions to the organization? 2) How do you as a manager define eligibility for an employee reward or recognition? 2) If you have rewarded an employee in the past year, how many times did you do so? a) Please provide examples in each instance of how you chose to reward your employees in this past year. 3) Are you aware of the current vendor s program? 4) Have you ever utilized the current vendor s program? If so, how many times in the past year have you utilized the program? If not, do you choose to recognize your employees informally, and if this is the case, what methods have you used? 4) If you have visited the current vendor s website, did you find the program to be user friendly? 5) What improvements or suggestions do you have in regards to the current vendor s rewards and recognition program in order to increase its use by managers? Appendix B Interview Questions for Zena Managers to Determine Opinions and Understanding of Best Practices to Improve Engagement via Performance Recognition 1) Do you feel that the culture of XY Equipment supports long-term motivation and performance? If yes, how? If no, why? 2) As a manager, what role do you feel you play in shaping the culture of XY Equipment and of the Zena Group? 3) Do you feel that you have good relationships with those that report to you? 4) Do you feel that employees have good relationships with their peers? 5) Does the Zena group as a division frequently recognize the good work that employees do? 6) Are you proud of Zena and your product? 7) Do managers and employees actively work to achieve the company s goals?

12 8) Are you personally motivated to help the company succeed? 9) Are you willing to put a great deal of effort beyond what is normal? Do you feel that the employees you manage are willing to put a great deal of effort into their jobs? 10) Do you always strive to exceed expectations? Do you feel that your employees always strive to exceed expectations? 11) Do you proactively seek new ways of doing things? Do you feel that your employees proactively seek new ways of doing things?

13 References Kaufman, T., Chapman, T., & Allen, J., (2013). The effect of performance recognition on employee engagement-global findngs. (White paper). Cicero Group. Salt Lake, Utah: Publications/Newsroom. Working today: Understanding what drives employee engagement. The 2003 Towers Perrin Talent Report Retrieved from: