Virtually all companies express the sentiment, “Our employees are our most important asset.” That statement is, indeed, true. Principle Three of this series lists employees as the most important group that company. The company needs to ensure that they receive an acceptable return for their time and effort investment. Similarly, Principle Two, “Treat All Individuals with Dignity and Respect,” clearly applies to employees as well as all others. It is hard to argue with any of these statements, and complete adherence to them is a fundamental requirement for the ongoing success of any organization.
However, with all of the above observations readily accepted by managers and employees at all levels, it is easy to simply assume that everyone knows how everyone feels about others in the organization. Unfortunately, often we do not overtly tell others or show gratitude for the commitments that others make. With the almost continuous pressure to produce financial results that meet or exceed the expectations of others, a commonly felt and, unfortunately, often said statement, “You are paid for results, not hard work,” casts a negative shadow on employees, the company’s most important asset.
The solution to this situation does not have to be a “love fest” or relaxing the required business metrics. Instead, simply outwardly recognizing people for their contributions in both public and private forums is all that is required. It is so simple, but for some reason, often neglected. The articles in this chapter, as listed below, offers some suggestions on how to recognize individuals that create the value for the organization. Expressing gratitude for their efforts and the value they provide will, in turn, create even more value and allow the company to succeed in an upward spiral. On the other hand, not adequately recognizing those efforts can easily result in the company proceeding on a downward spiral. The process is simple: take time for people!
Chapter Sections and Summaries
Often in the hectic pace of business, we forget to simply acknowledge others.
Obviously, compensation is important to everyone, but it is often more than money that motivates others.
Everyone needs feedback, both positive and negative, to help them improve.
Employee issues are not like fine wine that gets better with age. Address issues quickly and in a straightforward manner.
Chapter Articles and Summaries
Introduction to Chapter 4.04: Employee Recognition
Showing others you appreciate their efforts will return significant rewards for everyone involved.
Taking time for people and saying thank you can have instant and dramatic positive impacts.
A peer recognition program can be a powerful motivator that can impact the entire organization.
Five to Eight Activities
Company support of employee involvement in outside organizations benefits everyone.
Victories Lost in the Noise
Positive events happen every day; take the time to capture and share them.
Determining the appropriate level of compensation involves far more than salaries.
Keep it Personal
Announcing salary adjustments individually rather than collectively is a major motivation factor.
Make it a Family Affair
Buy a memory with part of the salary increase or bonus you receive.
Fair versus Equal
Treating people fairly is often more difficult, but it is more important than treating them equally.
Variable Compensation Alternatives
Supplementing salaries with variable performance-based programs provides substantial benefits.
Sales Commission Programs
Paying sales reps for achieving sales targets is an accepted practice that requires careful design.
Goals in an MBO program can be crafted for individuals at every level to reward performance.
MBO Goal Comments
Effectiveness of an MBO program is dependent on the establishing of mutual acceptable goals.
MBO Grading Example
Goal performance grading should be a simple exercise to help motivate participants.
MBO Program Mechanics
Implementing and managing an MBO program requires the use of a well-defined process.
Effective Performance Reviews: Hmmm
Provide timely feedback, both positive and negative, to employees as events occur.
Performance Review Comments
Make performance reviews a continuous, thoughtful process for everyone’s benefit.
Performance Review Contents
Using a standard template for performance reviews can greatly improve the review’s effectiveness.
Don’t Plant Poison Ivy by Mistake
Employee perks today can become problems tomorrow as an organization grows.
Put the Fire Out Early
Management needs to quickly address performance issues as soon as they become aware.
Scratch the Itch
Address disappointing results with others in a nonconfrontational way to help resolve the issue.
Duck Out of Water
New positions usually require the use of different skill sets to accommodate the new setting.
Sugarcoating Causes Cavities
Telling people what they like to hear instead of the truth can create damaging misconceptions.
Disagreement versus Contrarian Views
Discussing disagreements leads to effective decisions while contrarian views can be destructive.
Cutting the Cord
Minimize the time between announcement and the departure of an employee.