EFFECTIVE GLOBAL RECOGNITION

O.C. Tanner Company White Paper

10CRITICAL

FACTORS for

SUCCESS

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As the global economy continues

to be challenging, the key to

success for multi-nationals will be

further engaging and aligning

employees to the company cause.

In 2011, Aon Hewitt1 found global satisfaction and engagement scores dropped nearly 8 points. With research proving recognition helps engage employees and connect them to their organization, there’s an opportunity to significantly impact engagement levels with an effective global recognition solution.

Why do many organizations hesitate on extending their North American programs worldwide? A WorldatWork2 study found only 39% of global employees participated in the same recognition programs as their North American counterparts. For many there’s the mistaken assumption that recognition is not a global phenomenon or the apparent complexities negate the positive outcomes of implementing a global program. Both of which are not true. In fact, global recognition is easier than it appears. Although specific nuances vary by country, employees around the world all have the same need to work hard and be recognized and appreciated for the difference they make.

Research from the Towers Watson Global Recognition Study 3 shows that employee recognition by supervisors and managers can turbocharge employee engagement, increasing it in some cases by as much as 50%. It [recognition] represents one of management’s most potent tools for focusing employees on what matters to the enterprise and reinforcing the behaviors that contribute most directly to strategic success.

50%INCREASE IN

ENGAGEMENT

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Drawing on recent research from O.C.

Tanner’s International Research Team, focus

groups of employees and interviews with HR

leaders conducted in 13 cities in 9 countries

revealed that there are several things

employees agree on when it comes to

recognition. Similarities you should

understand before reviewing the 10 critical

factors for success in rolling out a global

solution.

International Research

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RECOGNITION IS VALUED BY EVERY EMPLOYEE,

IN EVERY COUNTRY

Sao Paulo, Paris, Sydney, Mumbai – it didn’t matter what city or country, employees wanted to be recognized for their great work. Whether it was for extra effort, high performance on a big project, or career achievements over time, employees wanted to know someone noticed the difference they’ve made. On the surface, the type of work being recognized may appear different: In India it’s based on metrics and productivity; in Australia it’s all about helping out a team mate; in China it’s standing out with the best project or being the best employee. In the end, it comes down to appreciating great work, valuing efforts and results, and showing employees appreciation in a tangible way. Handwritten notes, public recognition in a meeting, an award for completing a major project—thoughtful acknowledgement goes a long way and further builds relationships with managers, leaders, and the organization itself.

FIS, the largest global provider of banking and payment technologies, launched a global recognition solution for its 32,000 employees in October 2010. Eighteen months post-launch FIS realized a 61% increase in employees feeling appreciated and recognized, a 31% increase in the sense that its managers cared about employee’s well-being, 29% increase in pride in the organization and a 16% increase in overall engagement.

“Not being able to have daily interaction with all of our employees, we really have to be able to reach out and show them the difference they’re making each and every day.” — Gary Norcross, President and Chief Operating Officer, FIS

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RECOGNITION BEST PRACTICES APPLY GLOBALLY

Recognize what matters most to your organization by aligning the program to your vision, values, and strategic priorities.

Be inclusive of all employees.

Base it on performance or achievements over time with a clear reason why the recognition is being given.

Present it in a meaningful way, making it a personal and sincere experience for the recipient.

Actively involve management – both the immediate managers and senior leaders.

Create a recognition moment out of the presentation– whether publicly or privately.

Incorporate symbolism, anything from trophies and plaques to emblems and special items that are symbolic to your organization.

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MEMORABLE AWARDS INCREASE THE MEANING

OF A RECOGNITION EXPERIENCE

This is where many people think global recognition is difficult. What do employees in Brazil want as an award, and isn’t it drastically different than what employees want in France? While it’s true that award choices must be culturally relevant and not seen as too U.S.-focused, a broad choice of high-quality, local items is what creates meaningful awards. The key is to include items and experiences that are memorable, reflective of the achievement, and that can be shared. Incorporating symbolism is an easy way to both ensure the award is memorable, but also aligned. This is especially important in India and China, where having an award from your company without the company logo is seen as not acceptable.

LOCAL INVOLVEMENT, EARLY IN THE PROCESS,

IS CRITICAL

This is probably the most important similarity across countries. We found most multi-national companies are creating and finalizing their recognition solutions at corporate headquarters, then simply distributing the relevant information and materials across to their global locations. Local contacts are then stuck with programs that are not culturally relevant, often not translated, and overall not effective in their areas. It is imperative right from the start to involve a representative from all your locations. They will be able to tell you if the solution you are designing is relevant to their people while also giving them a sense of ownership over program implementation and success. This also better ensures local leadership support for your initiatives and allows plenty of time for the necessary work council/local approval processes.

“The certificate or award needs to have my company’s name on it, otherwise it’s meaningless to me.” — Focus group participant in Bangalore, India

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Cultural Nuances: What’s Most Important?

While the same recognition best practices

hold true in every country, the level of

importance of each one is different.

Understanding and adopting these

nuances will better ensure program usage

and effectiveness.

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To give a sense of what these cultural nuances suggest, here are some specific examples from India, Brazil, China and Germany.

IndiaEMPLOYEES SEE RECOGNITION AS A WAY TO HELP

WITH THEIR CAREER GROWTH AND DEVELOPMENT.

In India, while it’s important that recognition is aligned, inclusive, meaningful and has a structure—it’s absolutely crucial that recognition be based on performance, include senior management involvement, be presented publicly, and incorporate symbolism in the award.

PerformanceBased

IMPORTANT

VERY IMPORTANT

CRITICAL

Aligned Inclusive Meaningful Structure SymbolismSenior MgmtInvolvement

Public Presentation

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RECOGNITION PROVIDES EMPLOYEES VISIBILITY WITH

MANAGEMENT AND THEIR PEERS. Award presentations are seen as a big deal, making it important that senior leaders and coworkers are present when recognition is given. EMPLOYEES NEED TO BE RECOGNIZED FOR

PERFORMANCE-BASED ACCOMPLISHMENTS AND

CAREER MILESTONES. These include hitting targets, goals, customer service metrics, efficiency, cost savings, etc…However, India’s explosive economic growth means it’s easy for employees to find new jobs. With most employees staying at a company for only 3-5 years, retention strategies should include the recognition of both performance and career milestones. Investing and enhancing the onboarding experience through orientation, awards at various points, manager training, surveys, and even graduation ceremonies. EMPLOYEES ARE VERY PROUD OF THE ORGANIZATIONS

FOR WHICH THEY WORK.

Incorporating a company’s brand/symbol on an award enhances the meaning and extends the recognition experience. Certificates, trophies and awards should each be personalized. Employees take these awards and display them for their families, coworkers, and future managers and employers to see.

“Being able to give employees challenging work, promotions and recognition is key to retaining employees.” — Focus group participant in Bangalore, India

We actually heard employees say they keep their

recognition certificates in a file to show to their

manager during review time, or to a hiring

manager when they are looking for a new job.

Other key insights included:

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BrazilEMPLOYEES NEED RECOGNITION TO BE MEANINGFUL.

Brazil is similar to India in that employees need recognition to be based on performance and incorporate leadership and symbolism. However, Brazilians see meaning, senior management involvement, and public presentations in front of peers as critical elements of the experience.

RECOGNITION IS SEEN AS A WAY FOR THE COMPANY

TO HELP BRAZILIAN EMPLOYEES IMPROVE THEIR

STANDARD OF LIVING. Recognizing an employee’s great work, along with things like English classes, MBA classes, training and visiting other locations to learn from other employees helps people feel their company cares about them. COMMUNICATING APPRECIATION NEEDS TO BE DONE IN

A PUBLIC WAY THAT DOESN’T FEEL COMMERCIALIZED

OR OVERDONE. There’s a need for peers, team members, and direct and senior leaders to know about the recognition through a public presentation, but it needs to feel genuine and meaningful.

Other key insights included:

PerformanceBased

IMPORTANT

VERY IMPORTANT

CRITICAL

Aligned Inclusive Meaningful Structure SymbolismSenior MgmtInvolvement

Public Presentation

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EMPLOYEES WANT TO BE MEANINGFULLY RECOGNIZED

FOR GOING ABOVE AND BEYOND AS WELL AS CAREER

ACHIEVEMENT. Currently, organizations in Brazil are not recognizing years of service, but employees told us they would like them to. They would also like to be recognized for extra effort and going above and beyond, in addition to just performance metrics and productivity.

“When people stand out, they need to be recognized.” — Focus group participant in Sao Paulo, Brazil

ChinaALL EMPLOYEES WANT TO FEEL VALUED FOR THEIR

GREAT WORK.

In China, recognition is currently given for the “best of” employees (i.e. best project, best salesperson, best team, best employee) and celebrated at annual banquets. There is not much recognition for above and beyond work or extra effort that is not the “best-of-the-best.” While recognition should still be based on performance, it also needs to be inclusive of all employees.

PerformanceBased

IMPORTANT

VERY IMPORTANT

CRITICAL

Aligned Inclusive Meaningful Structure SymbolismSenior MgmtInvolvement

Public Presentation

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GermanyEMPLOYEES WANT THEIR MANAGERS TO KNOW THEM

AS INDIVIDUALS, NOT JUST AS A WORKER.

German employees are often the most misunderstood. For years, we’ve heard that “German employees don’t need recognition.” However, that simply is not true. Daily recognition and saying “thank you” does not happen often. Currently good news means no news, which is why recognition can be a powerful tool for German employees.

AWARDS MUST BE NAME BRAND, HIGH-QUALITY, AND

NOT SEEN AS KNOCK-OFFS. Also include choices for non-traditional awards, such as training and career development opportunities.

WEBSITES, MARKETING, AND TRAINING MATERIALS ALL

SHOULD BE IN CHINESE Even if English is your official company language, it doesn’t mean that all employees know it well. This is especially true in China, where knowing English is a source of pride for employees. Employees do not want to admit they do not know or understand something, especially to their supervisors. If an employee is using a recognition tool or reading a communication email, and he or she does not understand it, they will not ask their manager or complain. They simply will not use the tool.

There are two key pieces to a recognition

structure that will make a program successful:

“If your boss encourages you and says something, you feel great. If no one sees it, you don’t feel great.” — Focus group participant in Beijing, China

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German employees actually want more

appreciation and ways to connect with their

leaders. Key insights included:

“How can a supervisor give me recognition if he doesn’t know me or my work? He needs to know me first, and then give appreciation.” — Focus group participant in Munich, Germany

GERMAN EMPLOYEES TYPICALLY DON’T HAVE A

PERSONAL RELATIONSHIP WITH THEIR MANAGERS,

yet they crave it and seek to be known on an individual level. MEANINGFUL RECOGNITION IS CRUCIAL IN GERMANY, as it shows the manager knows the employee personally. In fact, employees want their managers to choose a recognition award for them, because it shows the manager knows their preferences and personality. They also want a personal email or note from their manager and not a generic letter from the company. RECOGNITION NEEDS TO BE BASED ON PERFORMANCE and aligned to the goals of the organization. German employees want a clear reason and explanation of why someone is recognized, because recognition must be seen as sincere as well as personal.

PerformanceBased

IMPORTANT

VERY IMPORTANT

CRITICAL

Aligned Inclusive Meaningful Structure SymbolismSenior MgmtInvolvement

Public Presentation

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Invite local leadership, Human Resources, and managers as early as possible in the design process. This gives sense of ownership to locations, leadership support and endorsement, and creates recognition champions. If you are having trouble getting local support, position recognition as a business initiative rather than just an HR program. This involvement also helps give you valuable country-specific insights to guide program positioning.

Position your recognition strategy, nuanced by country—before rolling out to non-U.S. locations. Recognition should be positioned as a strategic way to celebrate your mates in Australia, an effective way to recognize performance in a clear and equitable way in Japan and Europe, etc…This will help ensure your recognition initiatives are not seen as “American” programs being implemented in non-U.S. locations. As part of this strategy, make sure you thoroughly review concepts and attributes of new initiatives to ensure they are culturally appropriate (especially true in Germany and France). And don’t underestimate the importance of milestone or career achievement recognition. Employees find recognizing milestones extremely meaningful, yet few countries are doing so consistently.

GLOBAL RECOGNITION: 10 CRITICAL FACTORS FOR SUCCESSWhile there are important cultural nuances in

implementing a global recognition solution, the

similarities across cultures mean it’s easier than

you think. Here’s your checklist to global

adoption and success:

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Design solutions that recognize performance but also acknowledge effort and celebrate career achievements over time. Most countries only reward results, failing to appreciate those critical day-to-day (and often peer-to-peer) efforts. These provide great opportunities to bring individuals, teams and departments together.

Ensure everyone has access to all recognition tools and knows how to use them. Apply recognition consistently across departments, managers and locations to ensure fairness. In Australia and Mexico incorporating team recognition is important. While in Germany, China, India and Japan, it’s more about ensuring the individual stands out.

Translate everything—marketing materials, websites, training—using the local language (even if employees are expected to speak English). Communicate with simple, direct, straightforward language, avoiding jargon or complicated words.

Provide all your contacts with a clear communication and rollout plan before launch. Create information packets/quick guides for managers with both high-level and detailed messaging. Utilize posters and email to communicate, providing constant reminders and reinforcement to managers. Allow 2-3 months for the information to cascade down to employees.

Recruit on-site recognition “champions” to encourage and model the program.

Deliver on-site demos and workshops for managers and employees regarding the importance of recognition and how to do it effectively. This can be done in person or through web-based demos that can be viewed at any time. Continually communicate and send reminders about the program. Managers should have clear expectations on their own use and even be held accountable for their recognition efforts.

Present recognition moments in a way that is appropriate to the culture. In Australia and the United Kingdom, that means without too much hoopla or grandstanding, but still specific and in front of peers. In Japan, Germany and France, presentations should be done in smaller groups or one-to-one. Publicly highlighting individual employees in front of leaders is best in China and Brazil, while celebrating is best received with warmth, song and dance in India and Mexico.

Build in time to get the launch right. Provide local contacts with follow-up and ongoing support calls after launch. Appreciate and recognize your local contacts for the work they’ve put into rolling out your global program.

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Global recognition is easier than you think. If you keep in mind

the similarities, local nuances and 10 success factors, you can

develop a united recognition strategy that impacts all of your

employees, all around the world.

ABOUT O.C. TANNER

O. C. Tanner helps the world appreciate great work. More than 8,000 organizations in 20 languages rely on our solution design, custom software, award fulfillment, bestselling books, leadership training, and measurement to build cultures where people, teams, and profits thrive. We build strategic employee recognition solutions that align with corporate goals and strategies. For more information on this study, detailed findings by country, or effective global recognition solutions, contact your local O.C. Tanner representative or visit us online at octanner.com

METHODOLOGY AND SOURCES

In 2011, focus groups were conducted in 13 cities throughout 9 countries (Mexico, Brazil, UK, France, Germany, India, China, Japan, and Australia). Companies represented a broad range of industries that included financial, services and manufacturing. In total, 54 focus groups consisting of 300 employees and managers, and 17 interviews with HR leadership were conducted.

© 2012 O.C. Tanner. Photocopying or electronic storage, transmission,

or reproduction of any portion of this publication is prohibited without

written consent from O.C. Tanner Co.

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1 Aon Hewitt, 2011 Employee Engagement Database, November 10, 2011.

2 WorldatWork, “Trends in Employee Recognition,” Research report, May 2011.

3 Towers Watson, “Global Recognition Study,” 2008.