Science + math = recognition

Proprietary and Confidential © 2013 Maritz

Science + Math = Recognition

Michelle PokornySolution VP – Employee

Engagement and RecognitionMaritz Motivation Solutions

HCI webcast, March 12, 2013

Via ohiiosci.org, Google images


Maritz … a People Company

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Channel EffectivenessSales Force

Effectiveness

Employee Recognition & EngagementCust

omer

Exp

erie

nce

Man

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ent

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We help businesses drive performance by developing more meaningful relationships with their people

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Today’s Journey• Impact of Recognition• Why? Insights into Human

Motivation – 4-Drive Recognition

• What’s Love Got to Do With It?

– Understanding Influence– The Value of Experiences

• Designing Awesome Recognition• Do the Math


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Why the Focus on Reward and Recognition?

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LOW LEVELS of Engagement

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3 How many of every 10 employees are ‘engaged’ in their work? 1

1- 2012 Maritz Engagement Poll as well as numerous other sources

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RECOGNITION drives ENGAGEMENT and

PERFORMANCE

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1 2012 Maritz Engagement Poll


more engaged when completely satisfied with reward and recognition15-6x

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Impact of Meaningful Reward and Recognition

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Employee Insight Study of Over 1000 U.S. Employees Conducted by Maritz (October 2011)

Of those who do feel meaningfully

rewarded & recognized

Of those who do not feel

meaningfully rewarded & recognized

82% would strongly endorse my company to friends

and family as a great place to work

27%

82% feel their workplace is a great place to work. 30%

86% would stay with their current company if given the chance to do the same work at the same pay for a

different company.

44%

86% feel motivated to go beyond my formal job responsibilities to get

the job done.

40%Employee Insight Study of Over 1000 U.S. Employees Conducted by Maritz (October 2011)

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3.5

% greater employee retention1

% greater shareholder return2

x greater customer retention and revenue growth3

1 2012 SHRM2 2011 BlessingWhite Employee Engagement Report3 2011 Aberdeen Group, “The Engagement/Performance Equation”

63 % greater employee productivity1



Why this Impact?



Insights into Human Motivation


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A bridge between the latesthuman science research and the new normal

of today’s business environment.



People Principles

People are rational and emotional.People are individual and social.People are driven by multiple motivators.

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People Are Driven By Multiple Motivators

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Drive to engage, cooperate, “fit in” to the community

Drive to “create” better self, team,

organization, world

create

bond

defend

Drive to acquirestuff, status,

rewards, resources

Drive to defend ‘what’s ours’:

status, stuff, ideas, relationships…

acquire

Based on the work of Paul Lawrence and Nitin Nohria at Harvard Business School ©2012 The Maritz Institute. All rights reserved.

choice

Employees are People First



Recognition is a vehicle for

human potential.


Four-Drive Impact of Reward & Recognition

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create

bond

defend

acquire

choice

• Acquire status for expertise, contributions

• Rewards create a memorable, associative experience

• Fair and equitable program parameters

• Defend program, company, culture, relationships, status

• Connect, bond with others

• Shape cultural norms, ‘drops’

• Teams, Community Celebrations

• Mirror, see impact

• Strategy, goals and values-alignment

• Learning and growth

• ExperiencesBased on the work of Paul Lawrence andNitin Nohria at Harvard Business School

©2012 The Maritz Institute. All rights reserved.


What’s Love Got to Do With It?

OxytocinBrain ChemicalThe Trust HormoneThe Love Molecule“… simple peptide (that) allows people to have empathy for and sustain trust in those around them.”

– “The Neurobiology of Trust”, Dr. Paul Zak - 2008 Scientific American Inc.

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Only 12% believe

leaders are ethical and

honest

Only 11% strongly agree

that ‘people here trust and

support each other.’

Maritz Engagement Poll - 2012

Only 8% completely trust their co-workers to look

out for their best interests.

Just 7% completely trust

their employer to look out

for their best interests.

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“Trust is the platform on which employees interact with each

other and with clients...”

- Dr. Paul Zak, Neuroeconomics and the Firm


Neuroeconomics and the Firm

“When trust is low, people focus their energy on their own protection and survival…”

“Without trust, organizational goals will literally fall on deaf ears.”

“High trust companies have high productivity and greater stock market returns than low trust companies…”

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PAD-TEAA

Praise

Autonomy

EmpathyTransparency

Delegation

AnticipationAuthenticityProprietary and Confidential © 2013 Maritz 23


Science of Influence

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Principles of Ethical Influence

• Reciprocation

• Scarcity

• Authority

• Consistency and Commitment

• Liking (Friendship, Social Proof)

• Consensus


Influence Through Recognition

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Recognition facilitates…• Liking and Social Proof –

which drives behavior• Consensus – through

developing cultural norms• Authority and Liking - which

supports alignment and purpose


The Value of Positive Experiences



http://images.google.com/url?sa=i&rct=j&q=nuns&source=images&cd=&cad=rja&docid=TDzbggsjW8HGXM&tbnid=AJ8a6zLqRk9v0M:&ved=0CAUQjRw&url=http://commonsenseconspiracy.com/2012/05/even-the-nuns-are-revolting-against-the-catholic-church-vatican-criticizes-nuns-suggests-radical-feminism/&ei=kmY3UarcBaW3ywHV-IG4Bg&bvm=bv.43287494,d.aWc&psig=AFQjCNEwGpq5M-BHuFhLJ3ZSGT-8PdTzmQ&ust=1362671621844924


Fredrickson, 2003 “The Value of Positive Emotions”



“I try to come into work everyday and be the person they described me to be…”

trulyhumanleadership.com


and

ALIGN


How to Ensure Successful Recognition

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Maritz’ Ten Tenets of Enterprise Recognition

• Commit from the Top • Empower Managers • Ensure Meaningful Recognition • Measure Success • Consolidate Efforts• Decentralize Ownership • Recognize Real-Time Contributions• Apply Consistently and Equitably • Continuously Improve• Align With Strategy, Culture

* Tosti & Jackson 1994


Design Impactful Programs and Experiences

• Programs communicate and recognize aligned behaviors

• Recognize leadership and trust- building behaviors

• Empower employees to give both recognition and reward

• Incorporate social strategies, celebrations, experiences

• Skills: BET Recognition ModelSM

• Behaviors – Recognize behaviors, process, effort

• Effect – Express the impact• Thanks – Express sincere,

authentic appreciation

• Build recognition muscle• Understand preferences• Measure satisfaction



Measuring ImpactBaseline,

Benchmark, Modeling

Program Engagement

Business Impact

• # employees• Average salary• Business groups

and employee segments

• Culture, criteria and behaviors

• Identify target impact metrics (engagement, retention, productivity, cSat)

• Participant attitudes and values

• Enrollment• Participation/

recognitions• Reward earnings

and redemptions• Goal attainment• Web activity• Training/Learning• Call center activity• Etc.

• Program satisfaction and attitudes

• Cultural behavior change

• Employee engagement, retention, productivity

• Return on Objective• Return on

Investment• Etc.

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Simple Retention Impact Formula1) Estimate Cost of Attrition:Number of employees: 5,000Annual attrition rate: 5%Average salary: $50,000*Annual attrition cost: $31.25M*Cost to replace employee 2.5 x salary

2) Estimate Investment:R&R budget basedon x% of total salaries: 1.5%Investment calculation: $3.75M

3) Estimate Retention Benefit:Retention improvement: 20%Calculated benefit: $6.25M

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Investing $3.75M in recognition can produce attrition

savings of $6.25M, resulting in a net benefit of $2.5M.


Productivity Benefits

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How many employees do you have? 15,000

What is their average annual salary? $50,000Fully Engaged 120%

Normal Engaged 100%Somewhat Disengaged 80%

Disengaged 60%

Fully Engaged 10% Fully Engaged 15% $45,000,000

Normal Engaged 35% Normal Engaged 45% $75,000,000 Your cost savings Your investmentYour ROI$37,500,000 $26,250,000 #

Somewhat Disengaged 35% Somewhat Disengaged 25% ($60,000,000) $11,250,000 #

Disengaged 20% Disengaged 15% ($22,500,000)

Total 100% Total 100%

http://www.thesocialworkplace.com, 2012

Your employee reward and recognition budget should be… $11,250,000

By better engaging your employees, you could generate an additional… $37,500,000

By investing $11,250,000 in employee recognition, and generating an additional $37,500,000, your net productivity gains could be $26,250,000.

* According to a 2011 BlessingWhite Employee Engagement Report and a Q3-2011 Employee Engagement Index, less than 1 in 3 employees worldwide are "engaged" and nearly 1 in 5 are "disengaged".

What is your current situation? So how much should you spend on employee recognition?

What is your return on investment?

Set aside 0.5%-3% of annual salaries for your employee recognition 1.5%

What if you are able to improve your employees' productivity?

What percent of your employees could be…

Which could be worth…

A value can be assigned to employee productivity based on your employees' overall level of engagement and average salaries.^

What percent of your employees are…*

$37,500,000

$26,250,000

$11,250,000

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Your cost savings Your investment Your ROI

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Recent Article

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“Engagement is forged with different tools: trust, loyalty, open communication, clearly-articulated goals and expectations, shared values and well- understood reward systems.”


Recognition is more than a nice thing to do, it is an act of leadership, a growth-producing, social interaction that creates both better

business and better lives.

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Thoughts?

Questions?


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Thank You!@michpoko

www.maritzmotivation.com/blog

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