Boosting Employee Morale While Maintaining Superior Customer Relations

Chris Rossi

Rewards and Recognition Industry

Proliferation of companies/associations designed to grab a piece of this market.

Awards and Recognition Association www.ara.orgo Return on Performance magazine

Incentive Marketing Association http://www.incentivemarketing.org/ o Recognition Review magazine

Recognition Professionals International http://www.recognition.org/

Incentive Magazine http://www.incentivemag.com/

$76.9 billion Market for Employee

Recognition *2013 Incentive Federation

Incentive Market Survey

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Why Incentive Plans Cannot Work

Alfie Kohn - Harvard Business Review “Rewards do not create a lasting commitment. They merely, and temporarily, change what we do.”

Examine True Costs of Incentive Program1. Pay is not a motivator2. Rewards punish3. Rewards rupture relationships4. Rewards ignore reasons5. Rewards discourage risk-taking6. Rewards undermine interest

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THE PSYCHOLOGY OF MOTIVATION

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How Recognition Works Employee Needs

http://www.forbes.com

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Intrinsic Motivation

• How Motivation Is Drive By Purpose and Not Monetary Incentives

Intrinsic Motivation1. Autonomy – the urge to direct our

own lives.2. Mastery – the desire to get better

and better in something that matters.3. Purpose – the yearning to do what

we do in the service of something larger than ourselves.

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Question: So where

does that leave us?

Answer: Employee

Engagement

Let’s review the research that supports our findings.

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• 70% of American workers are “Not Engaged” or “Actively Disengaged”

Category BreakdownActively Disengaged - 18%

Not Engaged - 52%Engaged - 30%

• Active disengagement costs the United States

$450 billion to $500 billion per year

The Gallup OrganizationStudy released in 2013Over 150,000 U.S workers surveyed

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The Current State of Affairs1 Team = 3 Engaged + 5 Not Engaged + 2 Actively

Disengaged

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Study Findings

Financial ImpactsHigh Employee Engagement Affects Performance Outcomes*• 37% lower absenteeism• 25% lower turnover (in high turnover organizations)• 48% fewer safety incidents• 10% higher customer metrics• 21% higher productivity• 22% higher profitability

*Comparing top quartile in engagement results to the bottom quartile.

Leadership Impacts“Managers who focus on their employees’ strengths can practically eliminate active disengagement and double the average U.S. workers who are engaged nationwide.”

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Study Findings

Employee Impacts• The generation at the beginning (Millennials) and at the end

(Traditionalists) of their careers tend to be more engaged than those in the middle.

• Millennials are most likely of all the generations to say they will leave their job in the next 12 months.

• Women are more engaged than men. • Employees with college degrees are less likely to report having a

positive, engaging workplace experience.• Engagement eclipsed corporate policies and perks.

Customer Impacts• Employees are not prepared to engage customers. Only 41% know

what their company stands for and what makes them different.• Engagement among service employees are among the lowest of any

occupation and continue to decrease.

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Dale Carnegie Training & MSW ResearchStudy released in 2012Sample Size: 1,500 U.S workers

Key Drivers to Employee Engagement

1. Relationship with immediate supervisor

2. Belief in senior leadership3. Pride in working for the

company

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Study Findings

71% of the U.S. workforce is Actively Disengaged or only Partially Engaged

Category Breakdown

Actively Disengaged - 26% Partially Engaged - 45%

Fully Engaged - 29%

Snapshot of Partially or Actively Disengaged Segment

• Middle-aged employee (40-49 years old)

• The most highly educated (ex. post- graduate education)

• Lower-level income employees earning less than $50K

• Newer employees (Less than a year)• Client facing and clerical staffers• Those working in government,

military, education and manufacturing sectors

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By leading in a “Person-centered” way…

Caring Managers and Workplace Environment

Engaged Employees

Employees more committed, dedicated, and motivated to make the organization a success

Customer Engagement

Increase in Sales and Profits

Increase in Stock Price 14

Evolution of An Engaged Employee

Source: Dale Carnegie

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Bain & Company and NetsurveyStudy released in 2012Sample Size: 200,000 employees across 40 companies in 60 countries

Concerning Trends Uncovered Regarding Engagement

1. Engagement scores decline as employee tenure increases.

2. Scores decline at the lowest levels of the organization.

3. Engagement levels are lowest in sales and service functions.

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Study Findings

Common Themes of Successful Engagement Leaders

1. Line supervisors lead the charge.2. Supervisors have the right preparation to hold

candid dialogues with teams.3. Teams rally around the customer.4. Engagement tactics are tailored for different

employee segments.5. It’s all about the dialogue, not the metrics.

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Summary

Research Supports• Intrinsic motivation is the key to an engaged employee.

It’s what will drive the permanent adjustments in behaviors.

• The front line supervisor is pivotal in creating and maintaining a team’s engagement level.

• An highly engaged workforce outperforms an lower engaged workforce. This engagement tends to yield greater financial success.

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