ONE O . C .
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R E C O G N I T I O N
C O M P A N Y
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u s O Kd Ideas and Information from your Recognition Expert
V o l u m e
5 .
N u m b e r
2
I N
SNAPSHOT
RECOGNITION
when companies had a “family feel,” the days when Larry Tate treated Darrin Stevens more like a brother than an employee. It was a time when employees chose a company and planned to stay for life. Think those days are gone for good? Think again! At the largest insurance company in Puerto Rico (600 employees), employees say loyalty is stronger than ever. These dedicated employees credit the company’s “family” attitude and recognition efforts with their desire to spend their entire careers at Cooperativa de Seguros Múltiples (CSM). Like any large-and-growing business, CSM’s senior management has much more to do than try to keep the close-knit culture intact. But they make every effort to keep it a priority. Everyone takes time to greet each other. They take time to ask, “How’s your family?” “How’s your job?” The company puts a big emphasis on continuing education – making employees feel that their future efforts are as important as their past. They have amazing facilities including one of the world’s finest Puerto Recognition program administrator Evelyn Rican art collections, a full Villafane joins José Mercado and Dr. Hugo Serrano health club, a non-denominain the company’s lush gardens ... just one more part tional chapel, and magnificent their employee-focused culture. gardens – all for employees to enjoy. And the company makes a big deal of Francis handing out praise. Hernandez, The culture starts, says Efrén Irizarry, with personal comSenior munication – and having a sincere interest in people’s lives. secretary Irizarry manages a CSM branch office of 30 for26 years. people. “Everyday I go to their desks and shake their hands, ask them how they’re feeling, ask them about their families,” he explains. When Irizarry gives his employees recognition – formal or informal – (continued on page 3)
P R O G R A M
It’s Still a
TOP TOOL To what extent would you agree/disagree with the following? Recognition helps: Improve morale
13.1%
Increase commitment Reduce turnover
29.1% 0%
25% Agree
S Should Give
SuperRecognition! By Kathe Farris
It’s a bird. It’s a plane. It’s Supermanager. Today, managers have a juggling act to perform. Keeping expenses down and employee morale up while managing their own workloads can make some managers wish they had superpowers. And there are still more balls to toss in the air, particularly when it comes to attracting and keeping good employees. Fortunately, to achieve this goal, superpowers aren’t required. If you think employee retention is a problem now, hold on. It’s estimated that by 2008 there will be an estimated 161 million jobs for 155 million workers. To make things even tougher on managers, a recent Gallup poll of 2 million employees in 700 companies revealed that immediate supervisors are the single largest influence on an employee’s decision to quit. “People leave managers, not companies,” says Marcus Buckingham, (continued on page 2)
P O I N T E R S
Not Sticks!
❖ ❖ ❖ ❖
71.9% 67.4% 50% 75% Strongly Agree
A NAGE M R E P
It’s About Carrots ...
86.0%
26.8%
SU
San Juan, Puerto Rico – If you’ve been in the workforce for a while, you might remember the old days
100%
Source: survey conducted by O.C. Tanner Recognition Co. among 232 HR professionals during Nov.-Dec. 2000.
W O R D S
RS
Culture!
It’s all in the
O T H E R S ’
Ever wish you had more ideas for retaining top talent? Ever wish you had a handbook of recognition ideas? Ever need to justify your recognition budget to your boss? Ever wonder how other companies make their people feel committed?
Authors Adrian Gostick and Chester Elton have the answers to these and many other recognition (cont. on page 2)
TWO
ALL THE BUZZ
Merger Jitters –
recognition can help!
T
he spate of recent mergers may make employees uncomfortable. Recognition can play a valuable role in helping build employee loyalty and confidence during the merger process. Two of your colleagues, whose companies have thrived through recent mega-mergers, share their thoughts on how a recognition program can strengthen the employee loyalty: “The decision was to mold the two companies into one culture, and [the recognition program] is one vehicle, one method of bringing the pre-merger American Stores people to the realization that they’re now part of the Albertson’s company. We’re listed on the NY Stock Exchange as Albertson’s Inc., their 401K is Albertson’s stock, their benefits program is probably called Albertson’s. [While] the name on the outside of the store might be Acme or Jewel, and that’s very important to our customers, [employees] know they’re Albertson’s associates. We haven’t received resistance or complaints [about] awards that say Albertson’s instead of American Stores – they are accepting that change.”
“We’re taking two huge corporations, Exxon and Mobil, with somewhat the same cultures but in many ways very distinct. We’re taking people from both and trying to make them feel a part of one organization. We actually took some of the awards that were offered in both programs and combined them into the new program so [the award selections] were not just exclusively former Exxon or former Mobil – they are now a combination of awards that were offered in both programs. The emblems were [also] redesigned to indicate the ExxonMobil logo. The feedback is very favorable.” Doug Blake, Human Resources Communications & Policies, Exxon Mobil
John Comerford, Human Resource Manager, Albertson’s Inc.
IT’S ABOUT CARROTS ... (continued from page 1)
questions in the stimulating new book, Managing With Carrots: Using Recognition to Attract and Retain the Best People, from Gibbs Smith Publisher. Both Gostick and Elton are wellrespected consultants with O.C. Tanner. “Too many organizations are trying to manage by what we call ‘Bread Alone.’ They offer good pay and benefits – the ‘bread’ – and expect that to make up for other significant shortcomings of their work environments,” say the authors. “While corporate America is desperately slicing the bread thicker and thicker in an effort to satisfy their best employees’ seemingly insatiable demand, these people are literally starving for something ... carrots. And the most powerful corporate carrots are recognition and awards.” Based on years of research focused on the best managers in the best organizations, Managing With Carrots explains how companies can create powerful, bonding recognition experiences. The book includes valuable case studies – some of which originally appeared in Kudos. Additionally, Managing With Adrian Gostick and Chester Elton explain “recognition” is the carrot people crave. Carrots is packed with sound advice on setting strategic recognition goals and offering the right carrots. O.C. Tanner is pleased to recommend this book for all your managers and as an invaluable part of your HR library. Order copies through your favorite bookstore or online through w w w. o c t a n n e r. c o m .
Quick Facts from Managing with Carrots In North America, turnover is at a 10-year high. The average worker stays at a job less than 3.5 years. The cost of replacing a highly skilled professional can often exceed $100,000. 79% of employees who resign cite “perceptions of not being appreciated” as a key reason for leaving. 88% of employees say their biggest complaint about their organization is “not enough acknowledgement of their work.” In the largest study ever conducted on workplace satisfaction, recognition was near the top of the list. Pay and benefits weren’t even in the top 12. Companies with effective recognition programs realized a 109% return to shareholders between 1996 and 1998 vs. a 52% return for companies without such programs.
Volume 5. Number 2
SUPERMANAGERS (continued from page 1)
senior vice president at the Gallup Organization, Princeton, NJ. When it comes to employee recognition programs here’s what managers need: a role and involvement; education and resources; and encouragement and empowerment. For managers, particularly middle managers, a role and involvement in recognition programs or initiatives makes the difference between managing and leading. By identifying areas where managers would have more impact than a program administrator or even a corporate executive, the recognition
S
“People leave managers, not companies.” Marcus Buckingham, Senior Vice President, Gallup Organization, Princeton, NJ.
program increases its credibility and impact. According to a Gallup poll, thirty-nine percent of bottom line performance is tied to employee satisfaction. Thirty-four percent of respondents in a Robert Half International survey cited limited recognition as the most common reason for leaving an employer. That finding is significant – these results are coming straight from the mouths of employees. Managers can’t be expected to know how to recognize. To be effective, they need to be trained, which isn’t always so easy with managers spread so thin. They usually don’t need a lecture about why they should recognize employees. What they need are reminders Kathe Farris is a principal partner and recognition consultant at The Recognition Practice, Inc., Boston, and a founding member of the National Association for Employee Recognition.
and a tool kit of quick, practical recognition ideas, tips, and resources. With their tool kits, managers can concentrate on properly recognizing their employees without having to fret over the details. Training, even on-the-go training, can only help to start the process. Managers also need encouragement and empowerment. Only then does recognition become a practice instead of just a good intention. How do you do that? Develop reminders, resources, and training opportunities for managers. Web sites or intranet pages are one way of providing this information. Sometimes effective communication can be as simple and obvious as saying what you mean and putting yourself in the other person’s shoes (or superhero cape). Be mindful that the meaning is more important than the content. A successful recognition program is the key to a motivated and satisfied workforce. After all, if employees do leave managers and not companies, don’t they also stay because of them? Editor’s note: An effective tool kit to help managers with recognition might include Just-InTime Training, O.C. Tanner’s Internet- and telephone-based interactive training system for award presenters.
THREE employee’s knowledge. Then everybody is anxious to get to the five-year level has a lot more knowledge to help make it meaningful. for the first diamond – it allows me to reflect on who I was, where I am, and Employees from around the company talk about how where I’m going to be.” the personal touch is the basis for their loyalty and success. Gladys Garcia manages the company’s Hato Rey branch. She says that With that foundation, recognition the company provides becomes extremely both day-to-day and formal recognition are crucial tools for keeping her people meaningful, because it isn’t “just a gift” from a nameless corporation; it’s true engaged. “We have a very competitive market and we need people who are recognition from a group of people that have become a second family. motivated. So it’s Francis Hernández, a senior secretary with 26 years, explains “We talk about the person’s achieve- very important for how the friendly culture translates during the recognition experius to recognize ments . . . the people really feel ence. “It’s like a family affair,” she says. “You’ve been here so good because all their peers recog- when a person long, and it’s like a ‘birthday.’ It’s nice because you feel no one does something nize at that moment [the recipihas forgotten you – like management was there for you.” that makes the ent’s] value to the team.” The insurance industry is cutthroat no matter where you are – service extraordiGladys Garcia, Manager, Hato Rey Branch Puerto Rico is no exception. Competitors may call employees with nary.” She offers of higher pay, but CSM’s carefully cultivated culture makes staying explains that service recognition further enhances the feelings of belongwith the organization a no-brainer. ing and motivation, “We talk about the person’s achievements ... the people Migdalia Panell, a 21-year veteran in CSM’s claims department, says she really feel good because all their peers recognize at that moment [the recipiturns down offers from other companies, and that the company’s recognition ent’s] value to the team.” program helps confirm that choice. “I feel a part of Cooperativa de Seguros Because of Cooperativa de Seguros Múltiples’ warm and personal Múltiples,” she notes. “I grew up with this company. In the case of these approach to their people, the employees are genuinely appreciative of their awards celebrating our years, it’s telling us ‘You are a part of us – you are company’s investment in recognition. How can you tell? Take a look around important to us.’” their offices. Employees can be seen sporting CSM rings and pins and ... CSM’s remarkable culture isn’t an accident. It’s a belief started by the orgacustom service awards? That’s right. The company offers a lifestyle choice nization’s past president and the management team he assembled. Today, award program, and many employees choose their emblem as a lapel pin, and Dr. Hugo Serrano is the remaining member of that team, but the fact that so then take it to a jeweler to create their own custom bracelet or ring featuring many employees – including the company’s cur- the company’s logo. Now that’s a mark of true devotion to an employer! rent president René Campos – are long-time “Our people are very proud of our company,” explains Luis Vilaro. “They employees means that support for the culture is have a sense of belonging, and the awards add to that sense of belonging. very strong. People ask them how they got their awards, Dr. Serrano has ensured that new leadership and that gives them an opportunity to continues the legacy of “people-first.” After all, talk about the company and what he says, “if your people are motivated, treated they’ve done for the company. That’s well, and recognized for their excellence and what’s worth it for me.” contributions, they’ll do anything for the comCooperativa de Seguros Múltiples is Migdalia pany. That pride and sense of ownership among an excellent example of maintaining the Francisco Vargas – CSM Panell, thirteen-year veteran insurance your employees goes a long way to creating kind of culture successful companies – 21 year adjuster.. perpetual success.” and motivated employees – thrive on, veteran Luis Vilaro, general service manager for CSM, was one even through tremen– claims of the original developers of the company’s service recognidepartment. dous growth and change. E X E C U T I V E tion program. “We have a general belief that human dignity S U M M A R Y It comes from the top is the most important value for us,” he says. “It has been the down. It is planned for When the company culture is highest, and we want to keep it the highest.” and expected. It right, employees want to be CSM’s director of HR, José Mercado, explains how mancomes from a loyal! agement sees recognition fitting the company’s culture. passionate Culture is built from top man“Recognition is worth it because our company policy for belief that agement down. HR is ‘quality.’ This is one, but not the only benefit, where happy Senior leaders must teach the the company invests in people. It’s a different way to accomemployees culture to future leaders. plish the same goal of ‘quality of life for our people.’” make for Good, personal communication Francisco Vargas is a thirteen-year veteran insurance happy cuson a daily basis is the foundaadjuster with CSM. He explains that his introduction to the tomers. And tion of a culture and of company’s remarkable culture and the power of the recognirecognition. who couldn’t tion started on day one. “The first thing they do with a new use a few “Human Dignity” should be a employee is show him the roots of the company, and how it more of top priority for any company. has grown every year. They explain the importance of the those? Show employees the culture, CULTURE (continued from page 1)
values, and recognition from day one.
Make‘Em See
The summer travel season is just around the corner ... and imagine the ease of spotting these smart red bags at the baggage carousel after taking the red-eye! These bags from trusted maker Swiss Army Brands are among the newest additions to the ESSENTIAL™ Award Collection. They are sure to please your award recipients who enjoy a good trip ... from the Red Sea to the red rocks of southern Utah.
Swiss Army 24” Mobilizer. Great for loading up for a big journey to visit Red Square.
Swiss Army Duffle Bag. Handles large loads for the gym in Red Oak, GA.
Swiss Army Lausanne Backpack. Makes toting loads of stuff to the
Swiss Arny 20” Mobilizer. Compact size is a perfect carry-on for a short trip to
Redwoods, CA., easy.
Red Deer,
Alberta.
RED
ON THE COVER: From the CSM program. Colibri knife, pocket watch, and chain ensemble. Schrade Chip Multi Tool and knife set. 14 K gold chain. The “e” symbol represents how your company’s logo might be included.
Volume 5. Number 2
FOUR O . C .
T A N N E R
R E C O G N I T I O N
C O M P A N Y
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C O R N E R
KU-DOS - It may sound a bit exotic to your ear, but it’s a great word. It’s of Greek origin, and means to acclaim or praise someone for their achievements. Kudos to Alice on her 15 years of service.
Eggs and Diamonds ...No Yolking! In 1938 Fabergé created their first keepsakes of the Olympic Games. Now, for the first time, they’ve returned with exquisite mementos of the 2002 Olympic Winter Games – available exclusively through O.C. Tanner. Additionally, other renowned jewelry houses are coming together to offer timeless jewelry and keepsakes of the Games. O.C. Tanner brings together diverse jewel artiVintage 1938 Fabergé sans from as far away as Europe and as close as the Hopi designs. Nation in this exclusive Olympic collection. The collection first sparked interest last fall when the premier piece, a $20,000 one-of a kind diamond pin crafted by Oscar Heyman and Brothers, sold in only three days. The collection’s momentum has not slowed since. Of historic significance, Fabergé has returned with its own specialty egg pendants to celebrate the Games. They have crafted a unique line of egg pendants that open to unveil a surprise diamond snow crystal dangling from a chain. The collection has expanded to include several other exclusive jewelry lines. Designer David Yurman used orange chalcedony stones to create the Olympic-themed “Fire and Ice” collection. Hopi Indian artist Terry Wadsworth learned the art of silver making at the feet of his father. Today, he crafts into rare pieces using official pictograms of the 2002 Games to tell the legendary story of the Olympics. Each Wadsworth piece is handcrafted and signed. A diverse selection is as important to this collection as it is to your recognition program’s award recipients. Offering something for everyone lets people know their interests, lifestyles and preferences are important. A diverse selection can make recognition moments as lasting as Olympic memories for your employees. V I E W T H E E N T I R E O . C . TA N N E R O LY M P I C C O L L E C T I O N AT w w w. o c t a n n e r. c o m
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Kudos Volume 5. Number 2 Publisher O. C. Tanner Recognition Co. Editor Randall Shirley Contributing Editors Adrian Gostick Mindi Cox Copy Editor Marylu Dadakis Design/Layout Janice Takagi
Phone: 1-800-828-8902 Fax: 1-801-483-8296 E-mail: kudos@octanner.com KUDOS is published by O.C. Tanner Recognition Company, 1930 S. State St., Salt Lake City, UT 84115. Copyright 2001 by O.C. Tanner. All rights reserved. Reproduction in part or whole without written permission is prohibited. Not responsible for unsolicted materials. Second-class US postage paid at Salt Lake City, UT 84101 and additional offices. Postmaster send address changes to above address.
KudOs
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ALL THE BUZZ Merger Mania Recognition can help
PA G E
www.octanner.com
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PROGRAM POINTERS Springtime Means Carrots are Growing
PA G E
4200 Fairview Street Burlington, Ontario L7L4Y8
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IN OTHERS’ WORDS Becoming a Recognition Superhero
PA G E
1930 South State Street Salt Lake City, Utah 84115
PA G E
PA G E
1
COVER STORY Add a little culture to your life
3
ESSENTIAL™ AWARD COLLECTION When they’re red-y to travel ...
Wondering how to improve your company’s “recognition culture?” Take a lesson from sunny San Juan.
Volume 5. Number 2