By Isabelle St-Jean, RSW, ACC

To be truly worthwhile, today’s recognition and reward programs need to be innovative, timely, meaningful and responsive to the needs and values of a particular workplace culture. Clearly, the importance of keeping employees well engaged, rewarded and recognized stands out in the minds of leaders and HR professionals—especially as they are often asked to do more with less.

However, just as journalist/author Amanda Lang reminded those gathered for the BC HRMA Conference and Tradeshow 2013, the power of good questions should not be overlooked. We are wise to ponder pertinent questions in the process of planning new rewards and recognition programs.

What kind of program is the best match to a multi-generational and diverse workplace? Which type of rewards will contribute to retention and generate the best ROI?  What is the right balance of intrinsic versus extrinsic rewards and recognition most suitable to a specific team or group of employees?

Intrinsic vs. Extrinsic
Recalling author Daniel Pink’s research and assertions in Drive, there is a distinct contrast between extrinsically (externally) motivated people and those who are driven by intrinsic (internal) values. In short, intrinsically motivated employees come equipped with their own drive. Pink makes a convincing case for the benefits of infusing more autonomy, mastery and purpose into the veins of an organization.

With the trend of growing coaching cultures and doing “business as unusual”, more and more HR professionals and leaders have already integrated such values and practices within their teams. This allows them to empower their employees’ desire to make their own choices, to become increasingly masterful and to connect with the larger purpose of their place of work.  What’s more, fostering intrinsic recognition supports the employee’s pursuit of their own unique potentiality while fuelling the success of the team.

It has been well documented that extrinsic rewards such as money and material goods, don’t always help retention or engagement, especially if working conditions and environment are far from ideal. In some cases, these types of rewards actually have an inverse impact on productivity.

We have all heard someone say, “they could never pay me enough”…to endure the impact of a toxic workplace or to tolerate unfair office politics.  It is interesting to note that following career transitions, it’s not uncommon to hear extrinsically oriented people say that the change may have come with a pay cut, but more directly fulfilled their needs, values and life purpose.

Better Workplaces Built on Trust
Following up on one of CMC president John Wright’s recommendations brought forward in the Build a Better Workplace feature in PeopleTalk’s Spring 2013 issue, transparency it key to the dynamic of effective and honourable recognition.

Transparency does more than help employees connect with the larger purpose; when it comes to recognition, it helps to prevent the perception of leaders “playing favourites”. This is bad leadership habit #14 according to Marshall Goldsmith’s What Got You Here Won’t Get You There—and it is all too common and divisive.

More transparency, input from employees and fairness in recognizing employees throughout an organization will also support any leader’s intention to build trust amongst employees.  There are far too many examples of people going the extra mile or initiating a time/money-saving practice only to find due credit redirected for political reasons: this erodes trust. We must ensure that credit is given where it truly belong. Otherwise, the key finding from the Build a Better Workplace study—that 61 per cent of employees do not trust senior leadership—is unlikely to be positively impacted.

The Velocity of Motivation
According to research, public acknowledgement of an achievement is another way of making your recognitions more effective and empowering.  Presenting praise in peer presence goes a long way, so long as it is timely and relevant.  Although a personalized thank you note can also be truly appreciated, being acknowledged on a collective level meets the deep yearning of employees to feel that they belong and are seen as part of the company’s success.  When managers and HR professionals align with this intrinsic yearning, it tends to produce an élan—a motivating velocity that intensifies one’s desire to perform even better.

A common tendency in organizations is to formally recognize only that which is considered to be an outstanding achievement. A more progressive approach includes more informal recognition and the acknowledgement of smaller steps or milestones along the way to a desirable outcome.

What if a large white board in staff rooms could act as a blank slate of appreciation?  Personalized Twitter-like phrases written there by any employees or supervisor can serve to inspire and generate a passion for celebrating and recognizing those small steps achieved by individuals and teams alike.  Thoughtfully used, such a board could also help to support a peer-to-peer recognition strategy that sustains a high morale and prevents degeneration towards cynicism or other toxic dynamics.
As many organizations already have the equivalent ‘complaint box’, the appreciation board provides a healthy supplement for buoying efforts.

Beware of Effort Reward Imbalance
The health of any organization is contingent upon the health of its employees, and in the absence of proper supports, that health can suffer.
According to one of American psychologist and business management guru Frederick Herzberg’s theories, effort at work is part of a social contract that reciprocates such efforts by rewards. Those rewards consist primarily of money, esteem and career opportunities including job security.  It has been found that when rewards are insufficient the resulting lack of balance is likely to result in chronic stress and ill health.

Rewards and recognitions that diverge from the norm go a long way to maintaining both core culture and the health of any organization.  And while implementing a wellness or fitness program as a reward option can keep the workforce healthy and productive, as well as counter the risks of effort-reward imbalance (ERI), the right rewards are as much a matter of organizational as individual fit.

Professional speaker, author, life and business coach, Isabelle St-Jean, RSW, ACC, brings over 20 years of communication, leadership and personal effectiveness experience to her audiences, readers and clients.

(PeopleTalk Summer 2013)