Q. Do you think paying out unused vacation time or giving the ability to roll over vacation time is an incentive for employees and which improves productivity?

A. The first priority in designing incentive or recognition award strategies is to fully understand the audience who will be receiving the awards. Many well-intended programs have been seriously derailed when leaders didn’t take the time to view the awards from the recipients’ perspective, such as making certain that they were compelling and commensurate with the effort needed to achieve them, or that the awards were culturally and religiously appropriate.

Years of research from a wide variety of sources have validated that well-designed incentives and recognition lead to improved productivity (and many other corporate goals) if the award options are enticing and engage employees. What actually engages employees is a very personal choice and will vary from organization to organization, and oftentimes even between different business units, departments, or geographies of the same organization. If rolling over, or getting paid for, unused vacation time is something that would delight your employees, then it’s an excellent option to consider as an incentive.

Your question is also a good example of some of the creative solutions that employers have implemented when budgets are tight and additional monies may not be available for traditional awards. The keys to success are selecting what works for your employees, ensuring that the rules for the rollover or payout are communicated clearly, and making sure that the program is implemented fairly across the company. You may want to limit the number of vacation days that can be converted so employees do get some break from work.

—Michelle M. Smith, Vice President of Business Development, O. C. Tanner


Q. I have heard that recognition can make you healthier…Is this true?

A. Scientific research has shown that a chemical messenger called dopamine causes feelings of euphoria and is heavily involved in the brain's reward circuit. Dopamine can be triggered by some very disreputable stimulants like amphetamines and cocaine, which are not so good for you.

Conversely, it can also be triggered by some other stimulants that are very good for you, such as a hobby or physical exercise. The most common positive stimulant is love. But there is one other important stimulant that affects our industry…recognition!

Research has proven that recognition triggers the release of dopamine. This is why recognition is such a powerful motivational tool. People will alter their behavior for recognition because it ultimately triggers the release of dopamine. In fact, recognition has the power to become addictive just like drugs, exercise, and, of course, love!

Research has also shown that dopamine levels can fall if an employee deserves recognition but doesn’t receive it. Dr. Jean-Pierre Brun, a specialist in workplace health and safety, actually puts it more bluntly: “Managers who do not recognize deserving employees are actually hurting them psychologically.”

Brun’s research has proven that the absence of employee recognition in the companies he has studied is the second leading cause of workplace stress and burnout! (The first is workload.)

So the answer is simple: Recognition can make people healthier! Better yet, it is inexpensive and perfectly legal to give to others!

—Peter Hart, President & CEO, Rideau Recognition Solutions


Q. What are current surveys saying about employees’ satisfaction levels given the impact of the economy and layoffs of the past year?

A. A recent article in USA Today (“2010 American job satisfaction falls to record low of 45%,” Jan. 5) quotes a Conference Board study determining that 45 percent of those employed in the country feel satisfied with their work. Folks, that means 55 percent of our workforce is not dedicated to turning around our economy or not delivering great service to us as consumers.

The USA Today article also elaborates on the negative impact this will have on America’s competitiveness and productivity. It could stifle us for years to come.

Going back to the basics of engaging our workforce can help turn things around. Valuing your people is key to engaging their hearts and minds. It is also key that employees view their jobs as interesting or challenging. And it is important that managers spend time with their people, listening to them, understanding their challenges, and engaging them into developing solutions.

All managers need to practice informal day-to-day recognition to let their employees know that they are appreciated and valued for their contributions.

—Kevin Cronin, Consultant, Recognition Consulting


Q. In these difficult economic times, how can we safeguard the recognition programs our organization has implemented?

A. Now, more than ever, organizations are reviewing each initiative from a cost-benefit perspective. Whether a recognition program is designed to enhance productivity, reinforce core values, or honor years of service, it must provide a return on investment (ROI). ROI can manifest itself in higher retention rates, improved employee and customer satisfaction scores, and brand loyalty. The data is out there, but some of the challenges we face are gathering the information and making a compelling business case out of it for C-suite decision-makers.

Recognition Professionals International (RPI) will offer a timely, two-day workshop at its Annual Sharing Conference in Henderson, NV, on April 28 and 29. “Proving the Value of Recognition: Measuring the Application, Impact and Return on Investment for Recognition Programs/Projects” will be presented by ROI expert Jack Phillips. The presentation will provide valuable lessons in many key areas, including:

• How to isolate the effects of recognition programs
• How to convert data to monetary values
• How to calculate the return on investment
• When and how to measure intangibles
• How to present results to senior management
• How to develop and implement an evaluation plan for a specific recognition program in your organization
• How to improve the satisfaction of your stakeholders

To listen to a podcast featuring Dr. Phillips and learn more about the 13th annual Sharing Conference, visit www.recognition.org

—Dee Hansford, CEO, Dee Hansford Consulting

Do you have a question for the recognition experts? E-mail askrpiexpert@recognition.org with your question, and it may appear in a future column.

About the Experts
Dee Hansford, CRP, is CEO of Dee Hansford Consulting. She is a respected authority in leadership development and organizational change resulting in measurable ROI. Her clients have received national recognition for award-winning programs supporting a higher performance work culture.

Peter W. Hart, CRP, is president and CEO of Rideau Recognition Solutions, a global provider of corporate rewards programs. He serves as treasurer on the board of directors of Recognition Professionals International.

Michelle M. Smith, is vice president of business development at O.C. Tanner. She works in every facet of recognition and incentives and serves on the board of directors of Recognition Professionals International.

Kevin J. Cronin is consultant with Recognition Consultants. He is an expert on employee engagement and serves on the board of directors and marketing committee of Recognition Professionals International. This page is protected by Copyright laws. Do Not Copy