EMPLOYEE

RECOGNITION
PROGRAMS

byMarkM.Whitney
Morgan,Brown,&Joy,LLP
200StateStreet
Boston,MA02109
617/5236666
mwhitney@morganbrown.com

EMPLOYEERECOGNITIONPROGRAMS
By:MarkM.Whitney

I. Introduction:WhatisanEmployeeRecognitionProgram?

Allemployeesliketoberecognizedandappreciated.Anemployeerecognition
programcanbethekeytomotivatingemployeesandinfusingahealthydoseof
creativityintoanotherwisestalecorporateculture.

Traditionally,recognitionprogramswereviewedasanicethingforcompanies
todo.Today,companiesarethinkingaboutrecognitionmorestrategicallyandaligning
theiremployeerecognitionprogramswiththeirbusinessgoals.Theworldsbest
organizationstreatrecognitionasacriticalbusinessprocess,closelytiedtoimproving
employeeengagement,retentionandperformance.AccordingtoaJune2009surveyby
theAberdeenGroup,closeto80%ofthebestinclassFortune1000employershave
institutedsometypeofemployeerecognitionprogram.Asfurtherproofofitsnascent
import,BobNelson,PresidentofNelsonMotivationInc.andbestsellingauthorof1001
WaystoRewardEmployees,estimatesthattheU.S.incentiveindustryisa$27billion
dollarenterprise.

Inshort,higherlevelsofemployeeengagementbearastrongcorrelationto
superiorlevelsofjobsatisfaction,enhancedemployeeperformance,corresponding
improvementsincustomerserviceandengagement,andultimatelyaquantifiable
returnoninvestment.Aproperlydeveloped,implementedandadministeredemployee
recognitionprogramisasound,strategicinvestment,andnotanexpendablenicety.

II. BenefitsofanEmployeeRecognitionProgramfor
CompanyManagersandExecutives

Thebenefitsofsuchprogramsareoftenreal,demonstrable,andquantifiable.
Benefitsinclude:

1. Increasedemployeeloyaltyandretention;lowerturnover.Employeeswhofeel
appreciatedandrespectedwillbemoreproductiveandmotivated,andarelikely
toremainwiththecompanylonger.
a. Accordingtoatleastoneconsultant,lackofrecognitionisatopreason
employeesleaveajob,rightafterinsufficientcompensationortraining.

b. Moreover,suchrecognitionprogramshavebeenlinkedtoincreased
retentionofmidandhighperformingemployees.
2. Enhancedemployeeproductivity.
a. Amoresatisfiedemployeeisamoreproductiveemployee.Arecent
Galluppollsupportsthisnotion.82%ofemployeesbelievethe
recognitiontheyreceivemotivatestheperformancetheygive.
3. Improvedemployeeengagementandmorale.
a. Employeesoftengoaboveandbeyondwhatisexpectedoftheminmost
cases.Showingyourappreciationcreatesanenvironmentofrespectand
givesemployeesasenseofownershipandbelongingintheirplaceof
work.
4. Quickeridentificationoflowperformers.

Aproperlyadministeredrecognitionprogramiseverybitasimportantifnot
moresoasbusinessescontinuetoemergefromthelatestrecession.Accordingto
Globoforceresearch,duringthemostrecenteconomicdownturn46%ofemployerscut
theirrecognitionprogram.Thosethatdidsoexperienceddramaticreductionsin
employeeengagement.Ontheotherhand,the12%ofemployersthatbolsteredtheir
recognitionprogramtypicallywitnesseddoubledigitimprovementsinemployee
engagement.

Astheeconomycontinuestoemergefromthisdownturn,itbecomesallthe
moreimportanttobolsterjobsatisfaction.Astheeconomycontinuesitsturnaround,
humanresourceconsultantspredictaspikeintheturnoveroftoptalentasworkers,
withnegativeworkexperiencesstillfresh,seeknewandbetteropportunitieswhenthe
jobmarketimproves.Employeerecognitionprogramscanhelpprotectagainsttheloss
ofthistalent.

III. FundamentalsofaSuccessfulEmployeeRecognitionProgram

Priortodevelopingthenuancesofanemployeerecognitionprogram,employers
areadvisedtoconsiderthefollowingfigures:

thetotalnumberofemployees;

thetotalamountofmoneytobeallocatedforrecognitiongiftsandincentive
awards.
o Forcomparisonpurposes,recognitionawardsproviderHindaIncentives
calculatedthatlargeorganizationsallotapproximately1%ofbasepayfor
nonsalesstaffand4%7%ofbasepayforsalesstaff,whichequalsan
averagecostof$100$400peremployeeannually.Smallercompanies
recommendfirstresearchingwhatsimilarlysizedcompaniesintheir
industryarespending.
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Afterengaginginsomerawcalculations,employersmaymovetowardsthemore
creativeaspectsoftheprocessactuallydesigningtheincentiveprogram,andaligning
rewardswithencouragedbehaviors.Employersareencouragedtoconsiderthe
followingwhendevelopinganemployeerecognitionprogram.
A. ProgramObjectives
Itisimperativethattheemployerhasaclearideaofthegoalsithopesto
achievewithitsemployeerecognitionprogram.Specifically,whatdoemployeesneed
todo?Whatemployeeactionswilltheprogramreward?Whatspecificemployee
achievementsshouldbehighlightedandrecognized?Whatoutcomesareyoulooking
for?Andwhatpoliciesandpracticeswilldriveyourrecognitionprogram?

Forexample,oneobjectivearticulatedbymanyemployersistoimprovesafety
performance.Withthisgoalinmind,employeesmayberecognizedbyreceiving
rewardsorincentivesbasedonachievingaspecificdesiredsetofcircumstances,such
as:

1. Asetnumberofdayswithoutrecordableaccidents;
2. Asetnumberofmonthswithoutlosttimeinjuries;
3. Significantdecreasesinworkerscompensationclaims(i.e.,overaspecific
periodoftime,suchasamonthoroneyear).

Anyoftheresultsmentionedabovecanbeachievedinconnectionwithasuccessful
employeerecognitionprogram.Moreover,meetingeachdesiredresultwillyielda
differentimpactonacompanysbottomline.

Employersshouldalsodraftastatementofprogramobjectivestoserveasa
guidewhenmakingdecisionsabouttheprogram.Thisstatementmaybereferenced
whendeterminingtheamountofresourcestoallocatetotheprogram.

Employersmayalsoalternativelychoosetohireanexternalrecognition
consultantorawardssupplier/vendor.
B. ProgramAdministration
Employeerecognitionprogramsaretypicallyadministeredbyonepersoninthe
companyi.e.,aprogramadministratorwhomaybeamanagerormemberofthe
HRdepartment.Theprogramadministratorisentrustedwiththeadministrativeand
technicaldutiesofrunningtheprogram,althoughthispersonusuallyhasother
responsibilitiesunrelatedtotherecognitionprogram.Largeorganizations,suchas
RoyalBankofCanada,havecreatedpositionswhicharesolelyresponsibleforthe
managementoftheseprograms.Midsizecompaniesmaycreaterecognition
departmentswhichareseparatefromhumanresources,andsomemidsizedand
smalleremployershaveestablishedrecognitioncommitteesthatincludeawiderange
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ofemployeerepresentativesfromeachdepartment.
C. ProgramCommunication
Asuccessfulemployeerecognitionprogramisonethatallowsemployeesto
easilyparticipate.Employeesaremorelikelytoparticipateinanemployeerecognition
programiftheyaremadeawareoftheprogramsexistenceattheoutset.Topromote
awarenessofanemployeerecognitionprogramamongitsemployees,anemployer
shouldadvertiseitsprogramdetailsinconspicuousworkplacelocations,suchasinthe
cafeteriaandoncompanybulletinboards.Employersmayalsowishtoincludean
explanationoftheprogramsrulesandproceduresintheorientationpacketsdistributed
tonewemployeesandintheemployeehandbook.
D. ProgramEligibilityandParticipation
Alongwiththeprogramsrulesandprocedures,employersshouldwidely
disseminatetoitsemployeesinformationabouthowtoparticipateintherecognition
program.Regardingeligibilityrequirements,mostemployerspermitallemployee
groups,includingmanagers,toparticipateintheemployeerecognitionprogram,
althoughtoplevelexecutivesanddepartmentheadsandmembersoftheevaluation
committeemaybeexcluded.
E. ProgramDates
Employersneedtoestablishconcretebeginningandenddatesforeachprogram
cycle,eventhougharecognitionprogrammaybeongoing.Forexample,many
companiesboastaSalespersonoftheYearorEmployeeoftheMonthaward.
Employeesachievementsareevaluatedpursuanttoanestablishedperiodoftime(i.e.,
eachmonthtodetermineemployeeofthemonth),buttheincentiveprogramitself
continuesthroughouttheyear(anotheremployeeisrecognizedthefollowingmonth).
F. ProgramAwardsandPublicity
Thereisawidearrayofmethodsatanemployersdisposaltousewhen
rewardingemployeesinconnectionwiththerecognitionprogram.Forexample,
employersmayofferacashreward,agiftcertificatetoalocaldepartmentstoreor
restaurant,oruseapointsystemtoassignvaluetoanemployeessuccessful
participationintheprogram,tailoringtheemployeesrewardaccordingly(SeeSectionII
belowforamoreindepthanalysisofdifferenttypesofawards).However,itis
importanttonotethatcashawardsaretreatedasbonusessubjecttotaxationbythe
InternalRevenueService.Tooffsetanemployeestaxliabilityassociatedwithacash
rewards,someemployershaveincludedanadditionalamountofmoneyaspartofthe
award.

Itisessentialthatawardsareconsistentlyandtimelydistributedtosuccessful
employeestomaintainenthusiasmandhighlevelsofparticipationintherecognition
program.

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Publicityisessentialtogivingemployeestherecognitiontheydeserve,andas
such,shouldbeconsideredanintegralpartofacompanysrecognitionprogram.
Employersmayutilizethefollowingvenuesforpublicizingawardrecipients:

1. CompanyWebsite
a. Externalwebsiteinternet(visibletothepublic)
b. Internalwebsiteintranet(visibletootheremployees)
2. VariousOnlineSocialMediaOutlets(SeeDiscussioninSectionV)
a. Facebook
b. Twitter
c. LinkedIn
d. CompanyBlogs
3. CompanyNewsletter
4. CompanysAnnualReport
5. StaffMeetings
6. DayofAppreciation
7. PhotoDisplayonCompanyBulletinBoards
G. ProgramTrainingforManagers
Someemployersemphasizetheimportanceoftheirrecognitionprogramto
managersbyprovidingtrainingupfrontandbuildingrecognitiondirectlyintothe
supervisortrainingcurricula.
H. ProgramEvaluation
Manyemployershaveformedacommitteetoevaluatethesuccessofthe
employeerecognitionprogram.Toprovideadiversityofviewpoints,itisrecommended
thatthecommitteeincludebothmanagerialandnonmanagerialemployeeswhowill
trackandmeasuretheprogramsoperation.Membersshouldalsoincludeacross
sectionoftheorganizationandincludeemployeesfromthevariousdepartmentsand/or
divisions(i.e.,accounting,mailroom,marketing,engineering,etc.).Employeefeedback
isessential,yetitisalsocriticalthatseniormanagementlevelexecutivessupportthe
programbecausearecognitionculturestartsatthetopwiththeCEOandtricklesdown
totherankandfileemployee.

Measuringthesuccessofarecognitionprogramisnoteasy.Onemeasureof
successusedbyemployersistotalparticipationlevels.Companiesalsoasktheir
employeesaboutrecognitionaspartofanoverallemployeesatisfactionorengagement
survey.Managersmaybeabletoprovideadditionalfeedbackbasedontheir
observations.Anotheroptioninvolvesretaininganindependentcompanyspecializing
inmeasurementprocessesandprogrameffectiveness.
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IV. OtherConsiderations
A. WhatBehaviorsWillBeRewarded?
Therearepotentiallymanydifferenttypesofbehaviorsthatcanberewarded.
Severalmightinclude:

RecognitionforPerformanceinSpecializedArea
o Recognizingindividualhighsales,costreductions,safety,orincreased
profits

RecognitionforLengthofService
o Recognizingemployeecontributionsmadeovertime(notmerelyan
employeestenurewiththecompany)

RecognitionforSuperiorCustomerService

RecognitionforPerfectAttendance

RecognitionforHighQualityWorkProduct

RecognitionforImprovement

B. When&ByWhomWillTheseBehaviorsBeRewarded?
Thereexisttwosourcesthroughwhichrecognitionmaybegiven:(i)supervisor
recognition;(ii)peerrecognition.Someemployersexclusivelyuseoneortheother,
whileothersuseablendofthesetworecognitionsystems.

Thefrequencyofformalrewardrecognitionisanotherconsideration.Shouldthe
desiredbehaviorbyrewardedweekly,monthly,semiannually,oryearly?
C. MatchingIncentiveAwardstoProgramTypeProsandCons
MichaelLeBoeuf,amanagementconsultant,liststenbasiccategoriesofemployee
incentives.Theyincludethefollowing:
1.Cash

6.CareerAdvancement

2.Recognition

7.IncreasedAutonomy

3.TimeOff

8.TrainingandEducation

4.StockOptions

9.PartiesandOtherSocialActivities

5.SpecialAssignments

10.Prizes

Themostpopularandwidelyutilizedincentivesareoutlinedbelow:

i.CashRewards
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(IncludingDebitandCreditCards)

Pros:
1.

Cashrewardsareeasytoadministerandmostpeoplewillnotcomplainif
givencash.
Easytodistribute.
Canbeusedtopurchaseanything.
Noshelflifeitcomesandgoes(sometimesmorequicklythanonewould
expect).

2.
3.
4.

Cons:
1.

Toserveasanincentive,asignificantamountofcashmaybenecessary(one
largecashprizeasopposedtomanysmallercashprizes).
Mustbegivenseparatelynotaspartofanemployeespaycheckorregular
compensation(bonus)
Mayhavetaxconsequences.
Notrophyvaluecannotdisplaythisinanofficeforotheremployeesto
admire.

2.
3.
4.

ii.GiftCards
(ForaSpecificRetailer)

Pros:
1.
2.

Cons:

1.

2.

3.
to

4.

5.
6.
7.

Employeescantreatthemselvestomerchandiseinastore(orlikewisein
arestaurant)theymaynototherwisefrequent.
Easytodistributetoemployees.

Giftcardsoftengounredeemedbecausetheyareforgottenordiscarded.
Maybetreatedlikecashfortaxpurposes.
Manygiftcards(thatareredeemableanywhere)areusedbyemployees
purchasehouseholdnecessities,asopposedtogiftsorothernon
essentialsforthemselves.
Theyarenotalwayseffectiveperformanceenhancersbecausepeopledo
notmakeemotionallyconnectwithcards,asopposedtotravelorother
merchandise.
Recipientscannotandarenotlikelytoshowoffgiftcardstocolleagues.
Giftcardscanexpire(sometimesinaslittleassixmonths).
Giftcardsmayhavehiddenfees.

iii.OtherMerchandiseorTangibleAwards
(i.e.,MoviePasses,ITunesGiftCards)

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Pros:
1.

2.
3.
4.

Employeesmaynothaveotherwisepurchasedthisitemandsotheyfeel
asthoughtheyearnedthisawardthroughhardwork(obviouslythislogic
appliestoawardssuchaselectronics,andnotcompanytshirtsorcoffee
mugs).
Offerlonglastingvalueandservesasaremindertotheemployeeofajob
welldone.
Offerbudgetflexibilityforemployers(itemsmaybeanywherefrom$10
to$1,000)
Catalogawardprogramsorpointbasedincentivescanofferflexibilityfor
bothemployersandemployeesinadministrationandchoiceofaward.

Cons:
1.
2.

iv.Travel

Pros:
1.

2.
3.

Toomanymugs;employeesnolongerdesirepens,watches,clocks,
paperweightsortshirtsbearingthecompanylogo.
Smallergiftsmaynotbeeffectivemotivators(again,employeeswillnot
bemotivatedtoworkhardifalltheycanexpecttogainisacompanyt
shirtormug).

A2005IncentiveFederationstudyalsoidentifiedtravelasagrowingform
ofsalesrecognitionthatoutpacesbothcashandmerchandiseforlasting
impact.
Rewardsrecipientswithmemorableexperiencesratherthanwiththings.
Thiscanbeextendedtoanythingtravelrelated,fromtrainingretreatsto
worksabbaticals.

Cons:
1.

Potentiallyexpensive.

v.TimeOff/FlexTime

Pros:
1.
Cheapandeasy.
2.
Employeescanflexiblyuseattheirownelection.
3.
Fairlyeasytodistribute.

Cons:
1.
Notrophyvalue.
2.
Fromanadministrativestandpoint,potentiallymoredifficulttokeep
trackof.

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vi.Praise

Pros:
1.
2.
3.
4.

Cheapandeasy.
Employeesappreciatepraise.
Ofalltherecognitionincentivelisted,simplepraiseismostlikelytoboost
anemployeesperformanceandselfesteem.
Highvisibility;servesasamessagetootheremployeesthattherecipient
ofsuchpraiseperformedwellandthatsuchhardworkisnoticedand
acknowledged.

Cons:

1.

None

D. TaxTreatmentofAwards
Taximplicationsaboundforindividualsreceivingcashawardsandcash
equivalents(includinggiftcertificates).Taxissuesvarybystateandbytypeofaward
andaresubjecttocomplexfederalregulations.

UndertheTaxReformActof1986,anemployermaydeductthecostof
achievementawardsgiventothesameemployeeupto$400inanyyear.Ifthe
incentiverewardsareawardedaspartofoneormoreoftheemployerswritten,
establishedplansorprograms,the$400deductionlimitationisincreasedto$1,600per
employee.Thismeansthatifanemployerhasaformalsafetyoryearsofservice
incentiveprogram,itcanawardupto$1,600foranindividualemployee,butnomore
than$400peremployeeforallemployees.

TheIRSdefinesanemployeeachievementawardasanitemoftangible
personalpropertytransferredbyanemployertoanemployeeforsafety,achievement
orlengthofservice.Suchanawardmustbepresentedaspartofameaningful
presentationandcannotbedisguisedascompensationtotheemployee.
Tobetaxexempt,anemployeeincentiverewardcannotbeintheformofcash,
charge,credit/debitcardoragiftcertificate.Otheritemsnotcomprisingtangible
personalproperty(andwhicharenottaxexempt)includetravel,vacations,meals,
lodging,ticketstotheaterorsportingeventsandstockcertificates.
Lengthofserviceawardscanbeexcludedfromanemployeesincomeonlyifitis
tangiblepersonalpropertyandisreceivedbytheemployeeafterhisorherfirstfive
yearsofservice.
Giftsbearingthecompanylogothatareunder$4invaluearetaxfree.Anything
withavalueof$4ormoreistaxable,whetherornotitcontainsalogo.

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Awardsforemployeeachievementorinrecognitionofemployeeproductivity
wereeliminatedfromthetaxregulationsunderthe1986TaxReformAct.

V. SuccessfulImplementationStrategiesRelatedto
EmployeeRecognitionPrograms

Incentivesonlyworkiftheyaremeaningfulandifthegoalssetarerealistic,
attainable,andmeasurable.However,toomanyapproachesremainfixatedonexternal
benchmarks,whereamoreholisticviewoftheprogramshouldbeemphasized;focuson
throughputmeasures,andnotsingularlyonsomenarrow,quantifiableend.Inthat
vein,themostsuccessfulincentivesaretailoredinsuchawaysoastoreinforcethe
companysvalues,strategiesandgoals.

Hybridmodels(encompassingabroadbaseofdistinctincentiveprograms)are
usuallyeffectiveandappealtodifferentgroupsofemployees.Mostemployeesdesirea
choiceofrewardsaspartoftheiremployersrecognitionefforts.Frequent
communication,managementsupport,consistency,fairnessandabalancedapproach
withmorevariedawardchoicesarejustsomeoftheessentialingredientsofahealthy
recognitionprogram.

A. BestPractices:RealWorldExamples
BorregoSolar(SanDiego,CA)Thiscompanythatfinances,designsandinstallssolar
electricsystems,hostsinnovationcontestswherebyanyemployeecansubmitanidea.
Attheendofeachquarter,allemployeesvoteonthebestidea.Thewinnergets
$500.00,andtheopportunitytopresenttheideaatthenextcompanywidemeeting.

McKesson(SanFrancisco,CA):Forthe5,000distributioncenteremployeesofa
pharmaceuticalcompanytheMpoweronlineengagementprogramrunbyMotivAction
provides600managersSpotlightRewardspointstoawardtheiremployeesfor
exceedinggoals,participatinginsafetyandtrainingprograms,andexhibitingbehaviors
thatexemplifycompanyprinciples.Pointsareredeemableinacatalogoflifestyle
merchandiseawards,giftcards,andindividualtravelawards.Peerrecognition
capabilitiesandmanagertraininginrecognitionskillsaddtothemix.

HewlettPackard(PaloAlto,CA):TheGoldenBananaAward,originatedwhena
companyengineerburstintohismanagersofficetoannouncehehadfoundthe
solutiontoaproblemthegrouphadbeenstrugglingwithformanyweeks.Themanager
lookedaroundhisdeskforanitemtoacknowledgetheaccomplishmentandendedup
handingtheemployeeabananafromhislunch,sayingWelldone!and
Congratulations!TheGoldenBananaAwardbecameoneofthemostprestigious
honorsbestowedonaninventiveemployee.

AFLAC(Columbus,GA):AFLACrecognizesallemployeesbirthdayswithacardandagift
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oftheirchoicefromavendor.Italsoholdsanemployeeappreciationweekfeaturing
randomdrawingsforprizesandfamilyfriendlyevents(includingmovienight).Division
managersareencouragedtorewardemployeesperformingaboveandbeyondthecall
ofdutywithstockoptions,cashortimeoff.

WaltDisneyWorld(Orlando,FL):TheSpiritofFredaward,namedafteranemployee
calledFred,recognizesexemplaryemployees.WhenFredfirsttransferredfroman
hourlytoasalariedposition,fivepeopletaughthimthevaluesnecessaryforsuccessat
Disney,inspiringtheawardinwhichthenameFredbecameanacronymforfriendly,
resourceful,enthusiastic,anddependable.Eachawardconsistsofacertificate
mountedonaplaque.MultiplerecipientsoftheSpiritofFredawardareeligibleto
receivetheLifetimeFredAward,abronzestatuetteofMickeyMouse.

JustBorn(Bethlehem,PA)
ThecompanythatmakesHotTamalescandyoffereditssalesteamanallexpensespaid
triptoHawaiiifitmetitsannualgoals,andatriptothenation'sarctictundraifitdidn't.
TheJustBornteamdidnotmeetitstargetand,thispastDecember,abouttwodozen
salespeoplegatheredinsidethe19storyRadissonhotelthetallestbuildinginfrozen
Fargo.

BlanchardTrainingandDevelopment(Escondido,CA):Employeesreceivetwomovie
passesontheirbirthday.

MerleNormanCosmetics(LosAngeles,CA):Thecompanypresidentkeepstrackof
everyonesbirthdayandwhenpossible,makesapointofseekingoutpeopletowish
themwellonthatday.Thecompanychefbakesabirthdaycakefortheemployee.

SouthwestAirlines(Dallas,TX):AdministersaHalloweencostumecontest,a
ThanksgivingpoemcontestandadesigncontestfortheDecembernewsletter.

CelestialSeasonings(Boulder,CO):Everyemployeereceivesa$25checkonhisorher
birthday,a$50checkatThanksgivinganda$100checkatChristmas.

CommunicationBriefings/NewstrackCommunicationServices(Blackwood,NJ):Each
employeereceives20couponstodistribute.Whenanemployeeobservesacoworker
doingsomethingextraordinary,heorshesimplyfillsoutacoupon,includingthereason
fortherecognition,andpresentsittothecoworker.Recipientscansaveandredeem
themforspecialawards,including:

1coupon=certificateforafreecarwash

5coupons=$25giftcertificatefordinneratarestaurant

10coupons=$50Macysgiftcertificate

15coupons=onenightstayfortwoinAtlanticCity

20coupons=oneyearmembershiptotheFourSeasonsHealthSpa.
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AT&TUniversalCardServices(Jacksonville,FL):WorldofThanksaward,apadof
coloredpapersshapedlikeaglobewithThankyouwrittenalloveritindifferent
languages.Anyemployeeinthecompanycanwriteamessageofthankstosomeone
elseandsendittothatperson.Infouryears,thecompanyemployeeshadusedmore
than130,000notes.

CyanamindCanada(Canada):KeytoInnovationCampaign,whichencourages
workerstocontributeideasandbecomefrequentinnovators.Forproductivity
enhancingideas,employeesreceiveanywherefrom40to1,000points,redeemablefor
awardsfeaturedinacatalog,includingglassware,radios,televisionsandweekendtrips
fortwo.

TodaysTemporary(Dallas,TX):Givestemporaryemployeeswhohaveworkedduring
theprevioussixmonthsacardwithascratchoffpanelconcealinganamedprize.Prizes
includeadiamondwatch,$50or$100incash,calculators,andsixmonthsoffreelong
distancetelephonecalls.

T.RowePrice(Baltimore,MD):SpotlightonExcellenceprogram,focusingon
employeeswho,inthelongrun,performworkthatembodiesprinciplesandvaluesthe
companywantstoemphasize.Coworkersandmanagersareencouragedtonominate
employeeswhoseworkdemonstratesteamwork,service,leadership,integrityor
initiative.

MercuryInteractiveCorp.(Sunnyvale,CA):Incentiveprogramspurposeistomotivate
fieldstaffwhomaintainandtroubleshootclientscomputersystemsbytravelingoutside
theoffice.Fieldstaffcanaccessthecompanysonlineawardsprogramtoreportholes
theyencounterinexistingclientsystems.Employeesreceivepointsforleadsidentifying
weaknessesandevenmorepointsforleadsthatgeneratebusiness.

Boeing(PugetSound,WA):Pride@Boeingprogram.Includesaninstantawards
programaccessibletoemployeesandmanagers.Fiftyemployeevolunteersserveas
recognitionfocalpoints(focals)andprovidetheircolleagueswithprizes,valuedat$10
orless,touseasspotawards(examplesincludemovietickets,personalfans,
calculators,oravoucherfora10minutemassageavailableonsitewithaservicewith
whomBoeinghascontracted).Focalsprovidetheseprizestoanymanagerorcoworker
whowantstorecognizeacolleague.Administersabookprogram,whichawardsbooks
coveringleisuretimeinterestssuchascooking,travelandrunningtoemployeessharing
theseinterests.

CompanyUnknown
Anemployeefillsoutarecognitioncardandhandsittothepersonthatisbeing
nominated/recognized.Thatindividualthenplacesthecardinthenominationboxand
eachMondayawinner(randomlyselectedfromthecardssubmitted)isselectedtoplay
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thePowerballMachineonFriday.

TheballsinsidethePowerballmachinearecolorcodedtorepresentspecificlevelsof
prizes.OneislabeledP3,whichisworth$500.Theprizesstartatavalueof$25.00and
workupto$500.EachFriday,alloftheemployeestrekdowntothedrawingtoseethe
Powerballevent.

B.21stCenturyIssues:ExtendingRecognitionWithin&BeyondOrganizational
Walls

Publicizingrecognitiononcompanyintranetsites,aswellasvariousothersocial
mediaoutlets,canfurtherreinforcepositivebehaviors,increasebrandrecognition,and
promotepositivepublicity.Themostsuccessfuloftheseprogramsincorporatebothan
internalandexternalrecognitiondimension.

Aninternal,companybasedwebrewardsandrecognitionsolutioncanprovide
themeanstosharerecognitionwiththeentirecompanyusinganewsfeed.Peerto
peerrecognitionallowsemployeestorecognizeoneanother,regardlessoftitleor
department,allthemeanwhilecontributingtoasenseofteamworkandfosteringa
cultureofrecognition.Broadcastingacknowledgmentsinsuchahighlyvisiblemanner
canalsopromoteagreaterawarenessofhowthemanymovingpartsofanorganization
fittogether.

Sharingrecognitionbeyondthecompanywallscanalsogreatlybenefitbusiness.
OnlinesocialnetworkssuchasFacebookandTwitterprovidethemeans.Bygiving
employeestheoptionofsharingtherecognitiontheyvereceivedonsuchmedia,
employerscantapintothevastnetworksthesecommunitiesoffer.

Suchpublicitywouldgreatlybenefitthecompany,whowouldhavefreeaccess
tosomeofthemosttraffickedsitesintheworld.Theupdatescanalsolinkbacktothe
employerssite,whereawebpageprovidesamoredetaileddescriptionofwhythe
employeewasrecognized.Suchapagemightincludeinformationanemployermight
deemrelevanttopotentialcandidates,orotherwisepromotethecompanyinanywayit
seesfit.

Inshort,byincorporatingasocialrecognitioncomponent,anemployercan
potentiallydramaticallyincreasetheefficacyofitsownrecognitionprogramwhile
simultaneouslybuildingitsbrandonline.

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AdditionalResources

Websites

NationalAssociationforEmployeeRecognition
o www.recognition.org

IncentiveMagazine(Twitter)
o http://twitter.com/Incentive_Mag

NelsonMotivationInc.
o www.nelsonmotivation.com

TheBillSimsCompany,Inc.
o www.billsims.com

TheLightGroup
o www.incentivesmotivate.com

Rideau
o http://rideau.com/

MaritzIncentives
o www.maritz.com

Globoforce
o http://www.globoforce.com/

WorkforceManagement
o www.workforce.com

BuildABetterWorkplace
o http://buildabetterworkplace.com/

InternationalPersonnelMgmt.Assn.
o http://www.ipmahr.org/

WorldAtWork
o http://www.worldatwork.org/waw/home/html/home.jsp

IncentiveLogic
o http://www.incentivelogic.com/

14
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VendorWebsites
cardex.com

flooz.com

giftcertificates.com

giftpoint.com

chooseyourgift.com

recognitionplus.com

premierechoiceaward.com

motivationonline.comMotivationOnline

themillercompany.comTheMillerCompany

Books
1001WaystoRewardEmployeesbyBobNelson

1001WaystoEnergizeEmployeesbyBobNelson

Work&RewardsintheVirtualWorkplace:ANewDealforOrganizationsand
EmployeesbyNFredricCrandall,FredricCrandallandMarcWallace

GettingEmployeestoFallinLoveWithYourCompanybyJimHarris

Recognition,Gratitude&CelebrationbyPatrickTownsendandJoanGebhardt

RewardingandRecognizingEmployeesbyJoanKlubnik

101RecognitionSecrets:ToolsforMotivatingandRecognizingTodays
WorkforcebyRosalindJeffries

SecretsofaSuccessfulEmployeeRecognitionSystembyDanielBoyle

WorkplaceRecognition:StepbyStepExamplesofaPositiveReinforcement
StrategybySueGlasscockandKimberlyGram

Rewarding&RecognizingEmployees:IdeasforIndividuals,Teamsand
ManagersbyJoanKlubnik

HowtoRecognizeandRewardEmployeesbyDonnaDeeprose

InnovativeRewardSystemsfortheChangingWorkplacebyThomasWilsonand
RosabethKanter

MaximizingtheImpactofRecognition:AnApproachtoRewardingEmployee
Contributions(BuildingBlocksinTotalCompensation)byDonaldHay

ManagingRewardSystemsbyMichaelArmstrong
15

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This publication, which may be considered advertising under the ethical rules of certain
jurisdictions, should not be construed as legal advice or a legal opinion on any specific facts or
circumstances by Morgan, Brown & Joy, LLP and its attorneys. This newsletter is intended for
general information purposes only and you should consult an attorney concerning any specific
legal questions you may have.

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