Employee Appreciation: Water the Flowers if You Want Them to Grow

Stephen Covey is quoted as saying, “You have to water the
flowers you want to grow.” Covey wasn’t referring to
gardening but rather to employees.

“There’s a big difference between getting people to come
to work and getting them to do their best work.” says Bob
Nelson, the unofficial founder of Employee Appreciation
Day.

Studies by Gallup illustrate that recognition is highly
correlated to improved employee engagement with both the
employee’s work and the organization.

In contrast, business units within organizations with
higher-than-average levels of engagement enjoy higher
productivity, lower turnover, increased profitability, and
increased customer satisfaction.

According to research by Willis Towers Watson,
organizations that have a “culture of recognition” have
employees who report they are:
*Five times more likely to feel valued,

*Six times more likely to invest in the company,

*Seven times more likely to stay with the company, and

*Eleven times more likely to feel completely committed in
their jobs.

HR POINTER: There can be a disconnect between the type of
appreciation employees want and what their managers think
they want.

Managers often rank promotions and cash bonuses as the
two most effective ways of recognizing employee
accomplishments. However, workers say they prefer an
in-person thank-you or having a job well done reported to
senior management.

Using a combination of monetary and non-monetary
recognition programs can be an effective way to recognize
and appreciate employees. For an overview of Monetary and
Non-Monetary Recognition Programs, view the link below:
http://www.yourparttimehrmanager.com/recognition-program/

 

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All’s Fair in Love and Rewards…or Maybe Not

Each of us can answer the question, “Are you rewarded
fairly?” But when asked to clarify why we answered as we
did, it’s likely that our answers will be very different.

From the furor over executive compensation excesses to the
concerns for gender equity, the issue of fairness involves
many interconnected and complex aspects.

Reward fairness is the topic covered in research conducted
by Tom McMullen and Mark Royal, Ph.D. from the Hay Group,
in conjunction with Dow Scott, Ph.D. of Loyola University.

Some of the key findings of this research are outlined
below.

Internal vs. External Equity – The 3 reward areas that
most employees focus on with respect to fairness are
(1) career development, (2) size of base pay, and
(3) increases to base pay. Internal equity concerns
typically outweigh external or market concerns.

Equitable vs. Equal Treatment – Equal is not necessarily
fair. The 3 components of fairness are:
#1 Distribution fairness of who gets what,
#2 Procedural fairness with a clear and consistent reward
methodology, and
#3 Interactional fairness which addresses working
relationships and culture within the company.

Good Communication vs. Transparency – In Finance, “Cash is
king.” In Employee Relations, “Communication is king.”
When it comes to addressing concerns about fairness,
transparency is not enough. Companies need to
aggressively communicate compensation philosophy and
reward principles.

HR POINTER: Compensation and reward fairness is a
complicated issue. Added to this complexity is the fact
that employees have their own ideas of fairness based on
their individual reference points.

Since it is impossible to meet individually-determined
fairness criteria, companies must specifically define and
regularly communicate their compensation and rewards
strategies to better manage employee perceptions of
fairness.

For an overview of the aspects of internal equity in
compensation and reward programs, download our white paper
titled, “A Comprehensive Human Resource Program” at the
link below:
http://www.yourparttimehrmanager.com/human-resource-white-papers/

 

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