Ask the Experts: Your Recognition and Motivation Questions Answered

Each month, Peter Hart, CEO of Rideau Recognition Solutions; Kevin Cronin, president of Recognition Consulting; and Michelle Smith, vice president of business development for O.C. Tanner, answer your questions about incentives, recognition, and motivation in Ask the Experts.


Q. My company’s corporate earnings have risen yet management still wants to cut back on celebrations and rewards. Is this a good idea?

A. Cutting back on celebrations and rewards is not a good idea.

Ninety-five percent of all organizations have been negatively affected by the U.S. and global economic recession. And, like a game of dominos, so went benefit offerings. According to the Society for Human Resource Management’s 2010 Employee Benefits survey, 72 percent of benefit offerings have been negatively affected to a large or to some extent.

But the stock market is having more good days than bad, and corporate earnings are on the rise. Will the benefits come back? Looking at all indicators, you would think the answer is yes, but they are not.

SHRM’s study reports only 47 percent of organizations offer non-cash companywide performance awards, and 6 percent of those companies have plans to reduce or eliminate them within the next 12 months. Ten percent of companies offering holiday parties plan on reducing or eliminating them. Today only 68 percent of organizations are offering milestone rewards, and 6 percent of those are also looking to reduce or eliminate this benefit too.

Major organizations are finding that being socially responsible allows them to become richer rather than poorer, but SHRM’s study reveals that of the 40 percent that offer community volunteer programs, 5 percent are reneging on their community projects as they plan to reduce or eliminate their commitment. Encouraging employees’ social involvement creates an unexpected cultural change for the better.

Organizations will find these reductions may create a cultural change for the worse. Employees want to work for companies that give back to society, that recognize them for their loyalty, that celebrate the holidays as a working family. Employee benefits such as these play huge roles in employee satisfaction. SHRM’s report suggests there may be an approaching wave of employee dissatisfaction.

—Peter Hart, CEO, Rideau Recognition Solutions


Q. We have four generations of employees working at our company. Has the recession changed their views on work?

A. Recent research by staffing firm Robert Half International provides some good insights into the workplace perspectives of the different generations. Here are the generational differences revealed in their research:

- When it comes to post-recession career plans, more Gen Yers (36%) than Gen Xers (30%) and baby boomers (24%) plan to look for new job opportunities outside their firms. Gen Xers want to update their skills and build tenure at their companies; baby boomers plan to stay put

- A greater percentage of baby boomers (54%) than Gen Xers (46%) and Gen Yers (39%) said they will work past the traditional retirement age, and more than one-third said the recession has had a very strong impact on those plans

- More Gen Xers (34%) than baby boomers (27%) have increased their retirement savings since the recession began

- More baby boomers (54%) than Gen Xers (45%) and Gen Yers (35%) identified the greatest challenge when working with multiple generations is differing work ethic and approaches to work-life balance; more Gen Yers attributed difficulties to differing communication styles (29% for Gen Yers versus 16% for both Gen Xers and baby boomers)

- Many employees, particularly Gen Yers, are biding their time in their current jobs and plan to make moves when the economy is on firmer footing. Now is the time for employers to proactively outline career paths for strong performers and review their compensation to ensure that they are competitive, according to the research.

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


Q. We are looking to do an RFI/RFP for our recognition and reward programs. What guidance can you give me?

A. Recogntion.org can be a great starting place to obtain companies that you might want to include on your list of potential suppliers. I encourage you to do your RFI/RFP in a different way than most companies do. Start with the end in mind: What do you want your program to look like? What is your vision? Then, compile a list of 5 to 10 companies that you want to gather further information from.

Involve your extended team in determining what questions are key to ask every supplier? Then, after you complete and score your RFI list, visit your top three potential suppliers. Talk to their clients and truly understand their business model and how they charge you for their services, IT, and awards. Understand the pros and cons of bill on issuance versus bill on redemption.

Make sure you also understand tax implications, as well. Share with them your vision of your program and let them design it for you in the RFP process. You can truly gauge which supplier can not only listen but also execute your vision and your requirements.

—Kevin Cronin, President, Recognition Consulting

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