Interdependence between rewards, employee engagement & customer satisfaction. Barry Coltham Oct 2010

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1 Interdependence between rewards, employee engagement & customer satisfaction. Barry Coltham Oct 2010

2 Aim of Presentation To demonstrate linkage between rewards, employee engagement and customer satisfaction: Case histories Theories Human Performance Technology Customer Experience Management Employee Engagement Design Elements

3 Achievement Awards Group at a glance Leading provider of full service incentive marketing, incentive management, human performance improvement (HPI) and consumer initiatives We design & implement behaviour change programs that optimize the potential of people, by applying the art and science of connecting people to Client plans Over 800 Performance Improvement Programs. 30 years Established in 1980 Staff 170 Offices: Cape Town (H/O) 4 Acre Campus, International affiliations [Maritz Inc, ISPI, WorldatWork, PersonaGLOBAL, Incentive Marketing Association (IMA)] 3 of South Africa s 5 Certified Performance Technologists Single source provider IT capacity to run a small bank Project management infrastructure ISO 9001:2000 quality rating.

4 Reward & Recognition > Return on Investment Reward & Recognition Employee Satisfaction (ESI) Employee Satisfaction Employee Engagement Employee Engagement Productivity & Quality Productivity & Quality Customer Satisfaction (CSI) Customer Satisfaction Customer Loyalty Customer Loyalty Business Results

5 Skinner s ABC model Acknowledgement: B F Skinner, Operant Conditioning Model REWARDS & RECOGNITION

6 AAGroup Performance System Adapted from Human Performance Technology (HPT) Model Outline of process for implementing a Performance Improvement Program through four principle phases: Research & Analysis, Design, Implementation, and Evaluation.

7 Case Study 1: Healthcare Recognition & Engagement Program Focus: Improve Patient care rating Gap: Client rated third (last) for patient care Action list from Research: Improve: staff morale, teamwork, communications Retain best staff Create Learning Culture Identify Best practices

8 Case Study 1: Healthcare Recognition & Engagement Program Modules TOTAL REWARDS Sweepstakes Draw - Improve morale & fun element Long service - Employee Retention Continuous Improvement - Improved Patient Care Employee Suggestions Staff Assistance with Home loans Employee Recognition Profit Share / goal achievement - Improved Profitability Staff Assistance with Education loans Partner Doctor Program - Improved service & Profitability

9 Patient - 5yr Average Case Study 1: Healthcare Recognition & Engagement Program OVERALL RESULTS UP: Patient Care Earnings and profits Specialist Doctors Commitment and involvement by doctors Respect between doctor / nursing staff DOWN: staff vacancies and agency staff Correlation: Doctor & Staff satisfaction and Patient care JH CY KS TEXT KI GC CP NC FH MA KH FC GH CL PL RB MG UM PN ST AK OL SA SW VP RC TB LK MU PE MP SN UH UN LM Doctor- 5yr Average

10 No of Teams Case Study 1: Healthcare Patient Care Bell Curve Patient Care Bell Curve The Bell Curve clearly indicates that more teams achieved higher scores. This is regarded as a key metric for staff engagement with customer service initiatives # Teams: Dec # Teams: Feb Score Level

11 Patient - 5yr Average Staff - 5yr Average Patient - 5yr Average Case Study 1: Healthcare Correlations Recognition & Engagement Program Doctor & Staff Staff & Patient +ve correlation ve correlation 0.61 JH KS CY CL FH GH FC SN MA GC CP KI SA MG UM OL UH UN PE NC KH LK MU TB SW AK VP RC MP PL RB PN ST Doctor- 5yr Average LM JH CY KS FC KH CP FH GC GH KI NC MA LM PL MG PN AK RB RC UM ST OL SW SA MU VP TB LK PE CL MP UH SN UN Staff 5yr Average Doctor & Patient +ve correlation 0.69 JH Satisfaction Survey Results (4 yrs data) Staff Surveys (n ~ 9000 per year ) Doctor Surveys (n ~ 1200 per year) Patient care (n~ per month) Hospital Occupancy (monthly figures) KS CY KH FC KI GC CP FH GH NC MA PL RB MG LM UM PN ST AK OL SA SW VP RC TB LK MU CL PE MP SN UH UN Doctor- 5yr Average

12 Patients - 5yr Average Doctor - 5yr Average Staff- 5yr Average Occupancy 5 Year Average Case Study 1: Healthcare Correlations Recognition & Engagement Program Doctor & Occupancy Staff & Occupancy JH RB RC MA FH PL OL AK LK KS VP GC NC CY UN PE -ve correlation CL SN ST KH LM GH SW KI MP FC CP UM TB SA PN MU MG UH JH RB RC +ve correlation 0.61 MA OL PL FH AK LK KS GC VP CY UN NC -ve correlation PE CL GH LM SN KI KH ST SW MP FC CP UM SA TB PN MG UH MU Patient & Occupancy JH +ve correlation 0.69 RB RC MA Occupancy - 5yr Average MOST SENSITIVE PL OL FH KS GC N1 AK VP LK CY PE CL UN -ve correlation KH FC GH CP KI LM MG ST PN SW UM SA TB MU MP SN UH Occupancy - 5yr Average Pearson 5yr Avg ' Occupancy - 5yr Average Doctor Staff Patient Occupancy

13 Case Study 2: Banking Recognition & Engagement Program Focus: Recognise exceptional behaviour Linked to values Using informal, formal & event recognition..to bring the human touch back into our Banking business and ensure that all the good things that happen are not unnoticed (From the handbook)

14 Case Study 2: Banking Recognition & Engagement Program RESULTS 1. Recognition: 85% of staff Thank you s Nominations Make Receive Make Receive Rewards Directors a a a Management a a a a Staff a a a a Total/month

15 Methodology applied: Rewards (Formal & informal) Employee Engagement Recognition

16 AAGroup Performance System Adapted from Human Performance Technology (HPT) Model Outline of process for implementing a Performance Improvement Program through four principle phases: Research & Analysis, Design, Implementation, and Evaluation.

17 7 Best Practice Standards Recognition Professionals International (RPI) 1 Recognition Strategy 2 Management Responsibility 3 Recognition Program Measurement 4 Communication Plan 5 Recognition Training 6 Recognition Events & Celebrations 7 Program Change & Flexibility

18 Launch System Tell me what you want me to do Attention Inspiration Networking & Relationships

19 Communications System Tell me what you want me to do

20 Learning System Tell me how to do it Train the Trainers Campaign orientation Training workshop Training collateral Distance learning (paper or electronic) Communications Forgetting curve - 7 days, 24 hrs, 7 days, 30 days

21 Rewards System WIIFM What s in it for me? Catalogue of Awards Electronic Vouchers and AwardsCard Travel Travel Fulfilment Group Travel Individual Travel Events Services Best Practice Recognition Experience All rights Awards reserved. Subscriptions Wine and Flowers Order Services Music Downloads

22 Informal Rewards (thank you) & Information Technology Analysis Networking Relationships

23 Feedback system Tell me how I am doing Analysis Goal Alignment Participation Quality Feedback Organisational Benchmark Analysis Efficiencies Teams & Individuals Values

24 Rewards Staff & Customer Satisfaction ROI Reward & Recognition Employee Satisfaction (ESI) Employee Satisfaction Employee Engagement Employee Engagement Productivity & Quality Productivity & Quality Customer Satisfaction (CSI) Customer Satisfaction Customer Loyalty Customer Loyalty Business Results

25 Thank You Barry Coltham Director - Human Performance Consulting & Research Achievement Awards Group barryc@awards.co.za