REWARD & RECOGNITION REPORT
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1 REWARD & RECOGNITION REPORT AUSTRALIA & NZ 2012 Key trends & insights to drive your people & business forward.
2 An introduction This latest survey conducted by RedBalloon for Corporate was undertaken to gauge the current trends, attitudes and behaviours around employee reward and recognition (RnR) programs - from the viewpoint of employees, managers and businesses. We surveyed over 4,000 Australian and New Zealander s to see just how well businesses are performing when it comes to showing their appreciation and motivating their people. The results might shock, educate & inspire you.
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4 Managers fail at Recognition % of managers were rated as Very Poor, Poor or just Satisfactory at delivering specific and timely praise. Receiving praise from a manager is a basic expectation for any employee. The golden rules for delivering recognition are TIMING it to as close to the achievement as possible, being very SPECIFIC and keeping it PERSONAL to them. It s simple stuff, but in a managers hectic day often forgotten. Businesses need to make managers accountable and give them the tools and structure. Do all your managers understand and know the golden rules of recognition?
5 Managers stingy with praise Three quarters of employees are starved of praise and only get it monthly, quarterly or once per year. 11% get absolutely nothing and only 14% receive daily praise! It doesn t matter how big the company is, managers are people and we are all the same. 55% in Bigger companies (250+) versus 56% in <250 people; so there is no difference + there are no excuses! A focus for everyone and every manager. Research by Gallup has proven that employees forget a thank you in as little as seven days. The trouble is many managers feel unable to say thanks because they lack the tools. Businesses need to encourage managers to unleash the power of praise - clearly we aren t getting enough! Given the current pressures that have been placed on employees, it is no surprise it has been widely reported that employees are planning on 'jumping ship' once the market improves. What is your businesses doing to empower and educate managers on ways to say thank you more often?
6 Managers don t know their people 44% of employees are convinced their manager doesn t know what motivates them to be more productive. Managers must invest the time to know what inspires and drives their people. How else can you expect to build trust? Employees want to feel that managers take the effort to get to know them, and not just at work. What s important to them in life? What tools or practices do your managers have to ensure this can happen consistently?
7 Employees lose when recognition left to the manager 70% of employees say the level of praise they receive from their manager depends on their manager's style or priority. Only 30% receive praise because it is company policy. 30% say recognition is not a high priority for their manager. Organisations cannot afford to put lip service to this -any acknowledgement needs to be authentic, personal and relevant to a specific activity. Saying thanks and you re a good bloke is not enough. People need to know what they did specifically that contributed to a business result. Does your company provide a structured approach to make it easy for all managers to deliver praise?
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9 Recognition is 10 x more powerful. Q - What s the best part of receiving Reward & Recognition? 4% The Reward Only 46% The Recognition, being noticed & praised 50% Both Reward & Recognition The phrase Reward & Recognition should be flipped around as it is evident that while both elements are vital the most powerful ingredient for employees is to receive the recognition and acknowledgement 10 to 1. The act of recognition does not need to cost a lot, if anything. It s obvious a heartfelt thanks can have a positive impact. Does your RnR program deliver Hulk like results?
10 Who do we want to be recognised by? Recognition means the most from people s direct managers and increasingly it is now evident that we want acknowledgement from our peers and colleagues. Managers need to be empowered to say thanks and given the tools to do so. It has to be part of how we do things around here. Does your RnR program provide the opportunity for peers to nominate and acknowledge each other? (It should)
11 Public vs Private praise 10% Like it publicly (peers or w hole company) 51% Like it privately 39% Like it both w ays The way that someone is acknowledged is as important as the acknowledgement itself. The more relevant and personal the greater the impact the recognition will have. From these stats it s clearly important to have an equal mix of public and private recognition across your business to maximise its positive effect. How do you celebrate your winners and are you making the most of public, private and peer acknowledgement?
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13 Lack of recognition = Lack of employees 77% of employees would consider leaving if they weren t recognised enough for their contribution. And its even MORE important to Gen Y - they demand more recognition. 86% would leave compared to 77% Gen X and 63% Baby Boomers. Retention is one of the biggest issues facing businesses right now and with the cost to replace someone estimated at 150% of their salary - It s a simple calculation to demonstrate the ROI of a successful RnR program. Have you done the maths? Does your CEO and CFO clearly understand the power of a great recognition program to not only engage employees but significantly reduce turnover costs? (Better check, you might be surprised)
14 What the...?!? 42% of businesses DO NOT have a Reward and Recognition program 22% are willing to roll the dice and leave recognition up to manager s discretion 36% have a formal company wide program Wow. So what are companies actually doing to motivate and restore morale if they aren't saying thanks? These businesses are clearly missing a crucial element that can have significant impacts on their bottom line. What side of the fence does your business sit?
15 Businesses need to improve. 57% of companies are providing a substandard Reward and Recognition experience Less than half of businesses were rated as excellent (16%) or good (27%) at providing reward and recognition which means there is a big opportunity for businesses to pull up their socks and deliver a wow experience for their employees. Despite business best intentions, it s important that if you do have a program that you constantly refresh and communicate it. How would you rate your business?
16 The more structure, the better the results. Businesses with formal RnR programs where rated as delivering a considerably more positive (Excellent/Good) RnR experience : 65% Formal Co. Wide Program 51% Adhoc/Mngr discretion 19% Insert commentary None Having a formal company wide approach to RnR benefits everyone managers, employees and businesses. By aligning your program with the company s vision, values, results and desired behaviours it can set clear expectations and moments of recognition. Plus it can maximise the spend that might be happening in an ad hoc, unreported and untracked way. What could your business be doing differently to deliver a better RnR experience?
17 1 in 4 looking for a new job Plus they are 5 times more likely to leave if their business provides a substandard Reward and Recognition experience One in 4 people are currently actively seeking a new job or have checked out and will be doing so in the coming three months. There is a Rubbish Recognition Multiplier which means people are FIVE TIMES more likely to be looking if their business has a poor RnR experience. Clearly a successful RnR program can provide a great solution to improve retention. Take a look around you - is it you or one of the three people next to you?
18 A nation of corporate scrooges? 56% of businesses did not give employees a gift at Christmas last year More than half of us are left with no sign of thanks at Christmas time from their employer. The repercussion for businesses is they can expect their people to be disgruntled and feeling flat at the end of the year and even worse still if they are working over the holiday period. Businesses and managers have the opportunity to reinforce their relationship with their teams, strengthen the bonds and demonstrate their worth by surprising employees with an unexpected gift. What are you doing to celebrate Xmas this year? (or maybe the end of the Financial year?)
19 The secret ingredients for happier, engaged & productive workforce? These are the No#1 things they would change right now. With a bleak economic outlook and tight conditions Pay, Benefits and conditions are a top of the agenda closely followed by a balanced work life, RnR and systems and processes. How are you planning to keep your workforce happier, engaged and productive?
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21 The Most Popular Reward? 1. Experiences - 42% Sharing with family/friends (25%) or Personal (17%) 2. Cash/Visa Card - 31% 3. Time off work - 11% 4. Retail Gift Vouchers (8%) 5. Movie Tickets (3%) 6. Charity Donations (2%) 7. Fuel Vouchers (1%) 8. Flowers (1%) 9. Merchandise (0.4%) If people could choose their own rewards their first preference is experience based rewards that allow employees to spend time with friends or family and ones that they can choose for themselves first. People like to focus on doing things with family or friends, which doesn t add to the material clutter already choking our homes. While the initial thrill of receiving a physical possession often fades quickly, the memory of enjoying an amazing experience lasts forever. More than anything people like doing things with other people that they hold close. Choice is important!
22 Why cash ISN T King Here are some reasons why cash/credit cards aren t always the best option: It gets spent on bills and expenses It gets forgotten and lost in the bank account It becomes expected and blurred with compensation They can t be talked about people aren t able to brag and they don t like to talk about money with colleagues If you keep trying to motivate your employees with cash and you ll soon become all too familiar with a phenomenon that researchers call reward inflation. People become habituated to cash no matter how much you give them. It s then an entitlement, an expectation and blurred with compensation which makes it harder for you each year. Have you got the balance right between cash and non-monetary rewards?
23 About the research 2% Not working currently 37% Gen X 22% Part Time Employee 63% Full Time Employee 5% Senior Management 27% Baby Boomer 3% Self Employed 6% Team Leader/ Supervisor 36% Gen Y The research was an online survey during April and had 4,012 respondents with the demographic breakdown above. Respondent Profile by Company Size (employee no#): 20% (<10); 20% (11-50), 20% (51-250), 15% (251-1,000), 25% (1,000+)
24 About RedBalloon RedBalloon s Corporate services division provides exciting reward and recognition solutions, sales incentives and experiential gifts to ensure businesses keep their employees and customers motivated, rewarded and engaged. RedBalloon have been acknowledged as a Hewitt Best Employer with employee engagement scores >90% three years running, and a BRW Best Place to Work (3 times).
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