Wellness Programs A to Z

Looking for recognition ideas that get results?  Here are two keys to success –

The most common characteristics of high-Return On Investment (ROI) recognition programs – regardless of their monentary value – are their spontaneity and perceived value by employees themselves.

In reality, the cost of some of most effective spot awards and bonuses often amount to less than 1% of base pay – and the awards don’t even have to be given in cash.

Less sense of entitlement

Part of the problem with traditional end-of-year or quarterly bonuses (apart from the fact that they cost companys an average of 10% of base pay) is that workers expect to receive them for reaching certain goals.

Sometimes workforce simply expect it no matter what. for  instance, at many firms, an annual holiday bonus is viewed as an entitlement and individuals  inevitably grumble that it’s not high enough. on the flip side, with spontaneous awards and bonuses, workforce are often pleasantly surprised.

Benefits advisor Ken Stahlmann spells out four keys to making the latter type of awards work, even if they’re lower in cost –

1. Creativity is crucial

The most effective programs ordinarily give out awards weekly or monthly.  To avoid over-stretching the budget – and avoid a ho-hum attitude establishing in – creativity is a must.

One way that never gets old –  combining time off with a second, non-cash award. Example –  One firm gives a half-day off in combo with movie passes once a month.

Another, at weekly staff meetings, holds a random drawing for a dinner gift certificate, plus permission to leave work early once.

2. Make it personal

Rewards have more lasting impact when they’re geared to people ’s personal needs or interests. Two examples –

• one firm with many foreign-born, low-wage employees awards a $20 pre-compensated phone card after 90 days of service, and a $100 card for outstanding work, and

• Another company with a lot of sports nuts took several top-performers to a ball game. Managers said it was the best $200 they’ve ever spent as for building ongoing enthusiasm.

3. Add structure

The awards might seem spur of the moment, but top programs have a fixed budget and structure set before anything is handed out. Example –  One retail firm awards “points” for good work. Folks can then trade in their points for store merchandise.

By letting individuals  bank points for additional valuable rewards, the company saw a solid jump in retention.

Other companies prefer to let workers reward each other. for  instance, a small healthcare provider keeps a “goodies box” on-site – compensated for in petty cash and stocked by workers themselves.

When someone spots a peer going the extra mile, he or she pulls out a prize and awards it.

The program is a immense hit –  It’s immediate and personal, yet structured.

4. Don’t let good intentions backfire

Most spot awards go over well. But keep these four issues in mind –

• For most cash or cash-value awards, there are tax implications (just as with traditional bonuses)

• Awards need to be spread around or else resentment can creep in

• Make certain honorees don’t mind being the center of attention (some firms have accidentally alienated people  they tried to reward), and

• Be certain the reward is something people  actually want. One firm that awarded a VIP parking space next to the CEO found no one used it. No one wanted the CEO knowing what time he or she came and left.