What One Industry Can Teach All Others About Employee Recognition And Engagement

WHITE PAPERA PUBLICATION OF MADISON: A GLOBAL LEADER IN SOCIAL RECOGNITION

Madison | 18 East 41st Street, 13th Floor, New York, NY 10017 | 212.758.4385 | marketing@madisonpg.comAs a global leader in Social Recognition, Madison’s business approach encompasses the totality of a company’s performance drivers and focuses on the individuals responsible for ultimate success- employees, sales, and channel partners. Madison harnesses its groundbreaking, highly configurable, cloud-based Social Recognition Technology and leverages scientific priniciples and findings to guide desirable change of human behavior and elevate performance.

Madison | 18 East 41st Street, 13th Floor, New York, NY 10017 | 212.758.4385 | marketing@madisonpg.comAs a global leader in Social Recognition, Madison’s business approach encompasses the totality of a company’s performance drivers and focuses on the individuals responsible for ultimate success- employees, sales, and channel partners. Madison harnesses its groundbreaking, highly configurable, cloud-based Social Recognition Technology and leverages scientific priniciples and findings to guide desirable change of human behavior and elevate performance.

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The professional services industry is not without its employee engagement challenges. The deliverables can be complex and the work environment demanding. Employees are often on the road putting in long hours and they routinely sacrifice their personal balance between home and work life.

Yet, when it comes to engagement numbers, this segment outperforms all others. Their levels are noticeably higher while their share of disengaged workers is well below all other industries.1 Why is that?

High engagement is imperative for any business, but it’s especially important in the professional services space. On any given day, employees are responsible for solving issues and completing projects—on time and on budget—often under challenging circumstances. In this business model people are by definition, the product. Front line personnel (along with back office workers for that matter) represent the firm’s value proposition and the quality of their efforts define the company’s value.

In a talent-driven economy, organizations (regardless of what industry they compete in) must pay close attention to their engagement strategies if they also want to gain a discernible advantage over rivals. Companies that structure and manage employee recognition programs with care and consideration are more likely to enjoy the windfalls that come from engaged workers—advantages that range from increased employee productivity to higher retention levels; to deeper and more profitable customer relationships to better bottom lines. While businesses across many categories have successfully implemented programs that help them do just that, one industry in particular—professional services—has outshined all others. Why is that and what can others learn from their practices?

The reality is that many professional services companies are way ahead of the curve on several fronts. They:

1. Make investments in employee recognition a priority 2. Convert executive support into visible leadership3. Tailor program communications to align individual efforts to the broader mission of the organization4. Use social recognition techniques to involve everyone in the organization This white paper will take a closer look at the implications of each, starting with the benefits of setting budgets.

Why are clear and consistent budget allocations important for a healthy recognition program? Two reasons: The act of budgeting sets aside assets for projects and initiatives. Budgeting also signals to managers what’s important and in the process provides unspoken approval—if not an expectation—that

ENGAGEMENT WITHIN PROFESSIONAL SERVICES

INTRODUCTION

THE DUAL BENEFITS OF BUDGET SETTING

Madison | 18 East 41st Street, 13th Floor, New York, NY 10017 | 212.758.4385 | marketing@madisonpg.comAs a global leader in Social Recognition, Madison’s business approach encompasses the totality of a company’s performance drivers and focuses on the individuals responsible for ultimate success- employees, sales, and channel partners. Madison harnesses its groundbreaking, highly configurable, cloud-based Social Recognition Technology and leverages scientific priniciples and findings to guide desirable change of human behavior and elevate performance.

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they should be utilizing the funds provided for. Professional services firms have long recognized that the implied go-ahead linked to the budget distribution process within an employee recognition program sets the course for the desired level of program utilization throughout the year.

Other companies that are not truly committed to building a culture of appreciation, on the other hand, often take a laissez-faire attitude toward recognition in the workplace. They assume that current activity is enough. But in most cases the amount of recognition events taking place within many business models falls far short of what’s needed. In most cases, managers are under the misguided notion that employees are actually being recognized more than they are and the difference between what’s considered a best practice and what’s actually being done is sizeable.2 The Gallup Organization says that the most productive and engaged employees tend to be recognized about once a week3 (either funded or non-funded). Few businesses come close to approaching that frequency. Low utilization within recognition programs can often be traced back to one thing: the lack of a clear mandate to act as specified by a budget allocation. The absence of definitive guidelines can make managers hesitant to participate, especially when the pressure to cut costs dominates the conversation elsewhere. Nearly 70% of all professional services firms have a budget for employee engagement in place. Here the funding does more than provide the means to reward employees; it communicates that the activity is important and signals it should be a priority for managers throughout the company. Moving forward, professional services firms plan to invest even more (not less) on employee engagement. In a clear endorsement that these programs work and that they will continue to be an important part of their long-term growth strategy, the majority of professional services firms plan to increase investments in their recognition programs over the next 12 months.4

A clear budgetary commitment to employee engagement seems like a fundamental first step, but it’s one that many businesses overlook. The other missed opportunity is converting executive support into visible leadership for the program.

Within the top five engagement drivers for employees the word “leadership” appears in three categories:

1. Leaderships’ commitment to making the job a great place to work2. Trust in leadership to set forth and follow the correct course of action 3. Leaderships’ role in placing a clear value on its people5 Professional services companies understand the connection between executive involvement and engagement more than most and as a result, their senior executives often play a predominate role in program communications.

“Visible” leadership is a dominate trait of employee-focused work environments. We all know the value a manager has on employee engagement, but executive support is also a critical factor for any business looking to achieve and sustain higher levels of engagement. Even though 87% of C-Suite executives say that disengaged employees are one of the biggest threats to their business, very few outside of the professional services space are visibly supportive of programs designed to improve engagement outcomes.6 This is a critical oversight for any executive team looking to leverage the power of their people in today’s knowledge-driven economy.

THE IMPORTANCE OF VISIBLE LEADERSHIP

The Gallup Organization says that the most productive and engaged employees tend to be recognized about once a week (either funded or non-funded). Few businesses come close to approaching that frequency.“

Madison | 18 East 41st Street, 13th Floor, New York, NY 10017 | 212.758.4385 | marketing@madisonpg.comAs a global leader in Social Recognition, Madison’s business approach encompasses the totality of a company’s performance drivers and focuses on the individuals responsible for ultimate success- employees, sales, and channel partners. Madison harnesses its groundbreaking, highly configurable, cloud-based Social Recognition Technology and leverages scientific priniciples and findings to guide desirable change of human behavior and elevate performance.

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ALIGNING THE ORGANIZATION’S

MISSION WITH INDIVIDUAL ROLES

A listing of the “Worst Companies to Work For” illustrates the importance of visible leadership and the related impact it has on the cultural conditions that sustain (or stifle) employee engagement. In companies suffering from lowest levels, the actions (or inactions) of their executives are considered the root cause. Over time these executives have shown a chronic indifference toward publically supporting recognition activities and the results show it. Conversely, companies with higher levels of executive visibility not only perform better, they exhibit the cultural conditions that produce consistent and enduring results year-over-year.7

Smart companies, including progressive professional services firms, have tapped into the power of video. It’s a medium that can help any executive gain a meaningful presence within their program. Video is an effective and efficient method for senior managers to explain the strategic direction of the business, while also underscoring the importance of employee contributions toward that end. Once recorded, follow-up messages can be broadcast to key employee segments based on actual results. That ongoing flexibility is critical to keeping individuals aligned with the organization’s goals.

When employees have a clear sense of their firm’s vision—what it is and what role they play in supporting it—they are more likely to stay connected emotionally and intellectually. Some call this “role clarity” and it’s the pivotal influence in the employee engagement calculation.8 Professional services companies are diligent in using their recognition programs to reiterate what’s important in the big picture while helping employees prioritize and focus their individual efforts accordingly.

To get people to understand what their role in the value chain really means, professional services firms have become particularly skilled at translating brand-defining attributes—terms like innovative, collaborative and customer-focused—into tangible outcomes their people can relate to, understand and act upon. These companies combine communications, meaningful measures and a range of reward possibilities to systematically convert corporate objectives into individual action. They communicate the desired behavior in a context that resonates with each employee, and when employees distinguish themselves, the company leverages social recognition to celebrate the achievement across broader groups of workers.

When it comes to acknowledging behaviors, no program can be considered comprehensive until it involves every employee. Professional services firms know this. While they make it a point to provide manager discretionary rewards as well as peer-to-peer capabilities within their programs, they also make it a point to leverage a wide range of social recognition components.

For employees, those elements could include user-images and badges that make it easier for them to identify and find others with complementary skill sets, and activity streams that give all workers a bigger

SOCIAL RECOGNITION MEANS INVOLVING

EVERYONE

Madison | 18 East 41st Street, 13th Floor, New York, NY 10017 | 212.758.4385 | marketing@madisonpg.comAs a global leader in Social Recognition, Madison’s business approach encompasses the totality of a company’s performance drivers and focuses on the individuals responsible for ultimate success- employees, sales, and channel partners. Madison harnesses its groundbreaking, highly configurable, cloud-based Social Recognition Technology and leverages scientific priniciples and findings to guide desirable change of human behavior and elevate performance.

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Professional services firms have adopted social recognition and are using it as a way to more broadly involve all employees in meaningful ways—an outcome that strengthens and sustains a culture of recognition that distinguishes them and helps to keep their engagement scores at higher levels.“

voice by allowing them to express their gratitude and appreciation to others. For managers, the ability to configure networks of workers within the organization makes it easier to create, save and recognize groups of employees. Across the board, the use of leaderboards helps companies tap into the competitive nature of individuals and groups as they strive to exceed expectations in key performance areas while the ability to apply game mechanics across various performance measures helps to facilitate results. With such an aggressive and comprehensive use of social recognition, it’s no wonder that leaders in the professional services space say it is one of the more critical characteristics of a powerful program.9

No matter what business you are in, employee engagement is important. It cannot be underscored enough within the professional services industry. The work can be demanding and can quickly tax an employee’s ongoing commitment. Yet, when it comes to engagement levels, companies in this industry do far better than any other. Their secrets are worth emulating.

They have made investing in employee engagement a priority and have communicated so through their budgeting process. This signals that recognition is indeed a priority. They also understand the importance of “visible leadership.” Senior leaders (and their messages) are a big part of the continuing communication process. Professional services never lose sight of role clarity. They recognize with a purpose, aligning employee efforts with the greater mission of the organization through the systematic use of offers and rewards. But most of all professional services firms have adopted social recognition and are using it as a way to more broadly involve all employees in meaningful ways—an outcome that strengthens and sustains a culture of recognition that distinguishes them and helps to keep their engagement scores at higher levels.

1 Professional Services Industry Engagement Profile, Quantum Workplace2 The State Of Employee Recognition, Bersin & Associates3 Gallup Q12 Employee Engagement Findings, Gallup Management Journal4 Employee Engagement Drives Client Satisfaction And Employee Success In Professional Services, Aberdeen Group 5 Employee Engagement Trends Report, Quantum Workplace6 Re-Engaging With Engagement, The Economist 7 America’s Worst Companies to Work For, 24/7 Wall St. 8 A New Framework Of Employee Engagement, Castellano, Rutgers University 9 Employee Engagement Drives Client Satisfaction And Employee Success In Professional Services, Aberdeen Group

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