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Ideas and Information for the Recognition Experience
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Recognition:
A Critical Component of Formal Retention Strategy
MEMPHIS, Tenn. — O.K. Here’s the deal: Deliver over 3.1 million packages a day, log 2.5 million miles a day (the equivalent of 100 trips around the world), connect markets that comprise a large portion of the world’s economic activity within just one to two business days, and by the way — do it safely! FedEx Express is delivering safety . . . on time. Couriers have safety at the top of their priority list because the company has made it a priority. Leadership in the company has created an in-depth safety program where recognition plays a vital role. The overall safety program includes four phases: 1. Hire the right people 2. Train them 3. Create awareness and retention (through recognition) 4. Provide accountability. FedEx Express’s safety award program, co-developed with O.C. Tanner, serves as a constant reminder of the company’s number one priority. “The very nature of the delivery industry creates an active environment where accidents can happen. Therefore, the FedEx couriers Jeff Carter and ability of our employees is paraChristy Wilson with Senior mount,” according to the Safety Corporate Safety Advisor Message on the award program K. Don Tullos website. “Every day, over 2 million customers depend on us to deliver their packages and freight in a timely (continued on page 3)
Mount Clemens General Hospital cures retention woes with a healthy dose of recognition
RECOGNITION SNAPSHOT
Delivers Timely Safety Recognition
AreYou Happy? Ask your manager
Managers have more to do with employee happiness than you think. In a poll of 1,000 HR professionals, 77 percent said communication between employees and management is very important to “workers’ happiness,” followed by recognition by management, 62 percent, and relationship with supervisor, 61 percent. Source: Society for Human Resource Management, Alexandria, VA.: USAToday.com, McLean, Va.
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ure the job market is tight, unemployment is at a nine-year high and it’s Cynthia Parrish, Mount Clemens not unusual General Hospital nurse assistant for you to receive 50 applications for every job you post. But you may be surprised to learn that a new study by the employee performance experts at DDI finds that one-third of employees expect to leave for another job within the next year. What gives? According to DDI (Development Dimensions International), employees who feel neutral or dissatisfied “vote with their feet.” And as the economy starts to recover and the pace of business resumes, that means employees who feel trapped by the economy in an under-appreciated job are likely to search for satisfaction elsewhere. So how do you gauge the satisfaction levels of talented people in your organization? Your best bet is to make sure your organization has a formal retention strategy in place. According to Personnel Today, “Organizations that understand retention and its causes will experience a competitive edge. Every time a position becomes vacant, an organization becomes less capable of meeting its goals.” No one understands the pains a neglected retention strategy can bring to an organization better than Dave Klinger, Vice President of Human Resources for Mount Clemens General Hospital. Klinger and his colleagues at the hospital realized that a focus on pay and benefits was not the answer to reversing a turnover rate hovering above 23 percent in 1999. Instead, Klinger and his team chose to focus on helping employees see the bigger picture and the purpose of their role at the hospital. “We want our leaders to emphasize the purpose of our work and the difference our staff makes in the lives of (continued on page 2)
two P R O G R A M
P O I N T E R S
Orange Coast Medical Center
Capturing Hearts and Minds Tools and training for recognition results FOUNTAIN VALLEY, Calif. — In the battle for the hearts and minds of employees, some companies are pulling out the heavy artillery. And rightfully so. A recent Towers Perrin study would alarm any human resource manager. According to the study published by Forbes, 55 percent of employees feel negative about their workplace and a full third feel “intensely negative.” Surprisingly, the study attributes such negativity to the workplace’s emotional environment. Says Forbes, “In short, people feel bad about work because work makes them feel bad about themselves. A higher salary or quirky benefits like a corporate gym, it turns out, aren’t the real keys to glee.” “[With the For managers like Lorraine Booth of MemorialCare , Orange Recognition Coast Medical Center, figuring out what made her employees feel Toolkit], man- happy about coming to work represented a critical link to improved performance and better customer service. agers have the organizational “It was clear we had a challenge,” says Lorraine. “ After doing tools they need, our annual planning and reviewing employee surveys, improving how employees feel about recognition in the workplace was a critithey know cal objective. In fact, improved recognition was critical to the recognition is future success of our hospital.” important and “The roll-out of our new MemorialCare values brought the perfect opportunity to recognize our employees for demonstrating they know how behaviors that support our values — Accountability, Best Practices, to do it.” Compassion and Synergy,” says Lorraine. “I needed a strategy for Lorraine Booth, Manager, training managers: specifically, I needed them to create a culMemorialCare ture of recognition and to tie recognition to the core values.” In her battle for the hearts and minds of Orange Coast’s employees, Lorraine enlisted some expert help. After meeting with O.C. Tanner recognition consultant Shannon Ashworth, she bought one of O.C. Tanner’s 24-Carrot Manager’s Toolkits for every one of her managers. Lorraine explains, “Fulfilling our objective and training our managers was not a daunting task because of the toolkit. It’s attractive, so people want to open it; it has interesting content so it’s valuable to them. It’s not clumsy or hard to use. You can literally read the 24-Carrot Manager’s book in a waiting room. With the kit, they have the tools they need; they know recognition is important and they know how to do it.” In addition to formal recognition reviews, Orange Coast’s CEO, Marcia Manker, recognizes managers who are doing a great job at recognition each month at the department manager’s meeting. “Managers are recognized with a personalized message in the front cover of The 24Carrot Manager and they receive a carrot-shaped pen,” says Lorraine. “The pen has really become coveted among our management because having it means you’re a manager who takes care of your people.” Organizational and recognition experts alike could not be more thrilled with companies like MemorialCare who consider recognition a serious component of their business strategy. According to a WorkUSA 2000 Survey by Watson Wyatt Worldwide, companies with highly committed workers deliver much higher returns to shareCoworkers gather to honor holders. The survey polled 7,500 workers and found that nurse Melanie Broberg for demonthose who were highly committed to their employers and who strating Synergy — one of MemorialCare ’s core values. have confidence in top management deliver dramatically higher returns (continued on page 4)
Volume 7 Number 2
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MOUNT CLEMENS (continued from page 1)
other people, not money or budgets,” says Klinger. “We are emphasizing our managers’ relationships with their employees and encouraging those managers to formally recognize employees regularly, consistently and publicly.” The MCGH leadership team has Dave Klinger, Vice President of reduced turnover to Human Resources, Mount Clemens a remarkable 7.75 General Hospital percent in just four years by sculpting a comprehensive retention strategy that includes boosting everyday retention efforts through performance recognition. “The key to leadership in our organization rests on infusing people with a sense of purpose and recognizing them,” explains Klinger. “The worst thing we can do is expect our managers to retain people with-
“ The key to leadership in our organization rests on infusing people with a sense of purpose and recognizing them.” Dave Klinger, Vice President of Human Resources, Mount.Clemens General Hospital
out giving them the strategy and tools they need to accomplish that goal.” Klinger turned to O.C. Tanner representative and recognition strategy expert Jim Mulhern for the recognition tools he needed. After evaluating the culture and needs of the hospital and its managers, Mulhern recommended a formal performance award program that would emphasize organizational values and reinforce desired behaviors. “[O.C. Tanner’s Entrada™ performance recognition program], called The Strength of Purpose program at MCGH, is a powerful tool for any organization that wants to align work performance with its values,” says Klinger. “It provides tangible incentives and a structured way for managers to recognize peoples’ accomplishments, and it’s helping us get closer to our objectives. Besides lower turnover, we’ve lowered our vacancy rate to just over three percent — well below the vacancy rate at most other healthcare organizations.” Klinger’s focus on recognition as part of a larger retention strategy is smart say staffing experts. “HR professionals often ... ignore the importance of a cooperative and trusting work environment,” reports Personnel Today. “They also fail to see how much employees value the meaning of the work they do ... HR professionals need to make sure they understand the retention drivers in their [organization].” While Klinger’s efforts to understand what drives retention at Mount Clemens General Hospital have made a difference to the organization’s bottom line, he says the bigger difference is in the satisfaction and care employees give patients. “The sense of purpose that runs through our [performance] recognition program resonates strongly with employees,” says Klinger. “Healthcare can be emotionally draining on a day-in-day-out basis. The program makes it easier to show people that the work they do is important and that it makes a difference.”
three FedEx Express (continued from page 1) and careful manner. Maintaining this esteemed reputation is extremely important, but our number one priority at Federal Express is, and always will be, safety.”
“I’m proud to work for FedEx and wear any emblem they have . . . there’s a real sense of pride here.” Jeff Carter, Long-time safe driver for FedEx That’s some feat, considering that the Federal Occupational Safety and Health Administration (OSHA) reported 5,900 Americans died on the job in 2001 while another 5.2 million suffered work-related injuries or illness. Senior Corporate Safety Advisor Don Tullos, C.D.S., understands this challenge and how to communicate its importance to couriers. Previously employed with a motor carrier company that used recognition effectively to reinforce the importance of safety, Tullos introduced the idea of a strategic safety awards program eight years ago. “The goal of our safety program is to reduce accidents and injuries to our employees and the general public,” says Tullos. “The goal of the award portion of the program is to thank them for doing that and to provide an incentive for continuing that behavior.” Offering incentives that reward employees for safe work also translates into a major boost for the company’s bottom line. In April 2003, Potentials magazine reported on the staggering cost of FedEx courier workplace mishaps, Jeff Carter scans packages “A 2001 Liberty Mutual as he loads his truck for his daily study estimated that worker compenroute in Cordova, Tennessee. sation losses — increased insurance premiums, court costs, and lost production hours — cost U.S. businesses between $155 to $232 billion every year. Interestingly, the same study indicates that 61 percent of executives say they save $3 or more for every $1 their company invests in workplace safety. Yet only 30 percent of businesses nationwide have a comprehensive health and safety program.” When creating the safety recognition program for FedEx, Tullos and his
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team had some specific requirements. “One thing we wanted was to deal with the manufacturer, and we wanted to give the award as quickly as we could to the time the employee earned it,” he says. Tennessee O.C. Tanner recognition consultant, Phil Barbee and his team presented a strategy that met those needs. “In the end, O.C. Tanner won the business,”says Tullos. “The service, quality, attention to detail and the partnership with O.C. Tanner is what makes the system work. I put O.C. Tanner in the same category as FedEx as far as putting people first.” In order to receive an award, couriers must remain accident-free for one year. When the courier completes 36 months of driving without involvement in a preventable accident, the qualification date becomes permanent. This allows the courier to advance to higher year levels and more valuable awards. Over the past eight years, the award program has gone through some significant changes, transitioning from a printed award brochure to an exclusively online program. Recently, Courier Jorge Saade plays an the company added a selec- integral role in providing tion of awards to the valued industry-leading access to more than 210 countries. FedEx gold lapel pin. “Adding a selection made the biggest difference in our program,” says Tullos. “People like the idea that they can choose and they like the online program. A large percentage of employees have web access at home and those who don’t can access the web at work.” FedEx also enjoys the flexibility the website offers. Even the newest selections have gone through a transition. “We’ve made changes to incorporate more award choices for female drivers. From the beginning [of establishing the award program] we’ve involved employees in the process, from criteria to awards.” Long-time safe driver Jeff Carter is excited about the new selections, although he’s happy to keep his lapel pin as well. “I’m proud to work for FedEx and wear any emblem they have,” says Carter. “There’s a real sense of pride to work here. I wear my pin during the winter on my FedEx jacket and I always get comments on it.” Courier Christy Wilson likes the positive reinforcement the award program creates. “They stress safety all the time,” says Wilson. “And with the award program, you get things you normally wouldn’t buy yourself. I wouldn’t normally buy a grandfather clock, but if I can get one, I’m definitely going to.” Tullos credits the long-time employee-centric culture and attention to corporate strategy with the program’s success. “Our company philosophy is people — service — profit,” says Tullos. “People come first in that equation, and they produce the service which results in profit.” Courier Jeff Carter agrees, “This company was built on the P.S.P. philosophy. You take care of the people that take care of you.” “We treat people like they want to be treated,” says Tullos. “We’ve been chosen as one of Fortune’s “100 Best Companies to Work for in America.” Safety is just part of that culture of doing things right. The people are FedEx — we don’t have a product to sell; we sell a service. If we don’t give the service customers require, then they will go elsewhere.” And it’s recognition that helps FedEx employees remember their number one priority.
Synergy Rings
Kudos Volume 7. Number 2 Publisher Editor Managing Editors
O. C. Tanner Recognition Co. Adrian Gostick Mindi Cox Sarah Orellana Marylu Dadakis Janice Takagi Shauna Raso Rick Hayward
Corporations honor employees with new, fashionable ring
Copy Editor Design/Layout Graphic Supervisor Award Photographer
It’s been called “edgy,” “sleek,” even “a new classic.” No matter how it’s described, the
KUDOS is published by O.C. Tanner Recognition Company, 1930 S. State Street, Salt Lake City, UT 84115.
popularity of stainless steel is causing the jewelry industry to sit up and take notice. And so have organizations looking to honor employees with the latest in corporate awards. The new Synergy Ring Collection created by O.C. Tanner, allows corporations to honor employee achievement in style. The rings blend one of the world’s most durable metals, steel, with one its most valuable, gold. Also offered with sterling silver inlay, the rings are a rich, modern way to display corporate pride and achievement. ON THE COVER:
Brighton Leather Ensemble, Bose Wave Radio/CD 18K gold and sterling silver David Wysor necklace
Copyright 2003 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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Volume 7 Number 2
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❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ to shareholders. On average, highly committed workers delivered 112 percent return over the three years studied compared with a 76 percent return by employees with low levels of commitment. And experts agree that training managers about what is expected regarding recognition, as Orange Coast has done, is key to generating higher returns. “Recognition does not come naturally to most managers,” says Scott Christopher, facili“[Managers] of the “24-Carrot Manager” often find them- tator/trainer philosophy. “After all, the ability to reward and selves in posiencourage others is not a trait people are tions of authori- usually promoted for, which is a shame. In most cases, managers are put in place because ty with no idea they are bright, or rich with experience, or how to keep the have seniority. And they find themselves in these positions of authority with no idea how people in their to keep the people in their charge focused, charge focused, engaged and recognized.” Unfortunately, a manager’s awkwardness engaged and with recognition could be costing your organirecognized.” zation more than you know. Scott Christopher As Forbes magazine reports, “People, especially in the United States, tend to use their jobs as a measure of self worth. When they feel bad about their skills and their relevance in the workplace — ‘What difference do I make?’ — they feel lousy about the company and don’t enjoy work.” Naturally, when appropriate recognition is given, recognition that focuses on specific performance that exemplifies company values, those who receive
FACT
Did you know…
“Praise and recognition have been consistently correlated with higher customer satisfaction, employee retention and productivity.”
Did you know…
Gallup Organization research
“ In tough economic times, companies are turning to recognition to boost sagging morale. More than four in 10 companies are doing more to foster employee recognition (in 2003) than they were a year ago.”
1930 South State Street Salt Lake City, Utah 84115 4200 Fairview Street Burlington, Ontario L7L 4Y8
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Wall Street Journal
“ QUOTES
MOTIVATION
the recognition feel better and more committed to their workplace and so do coworkers who witness the recognition. Says Scott Christopher, “In our recognition seminars, we teach managers to better utilize the formal recognition tools in their arsenal — service awards, performance awards, and so on. And we also teach them to develop their own informal recognition ideas — the personalized, every week thank-yous that keep their people moving toward a common goal. We also stress specificity. Most managers don’t realize how specific they must be with Scott Christopher, their verbal praise, and that effective recognition is Recognition Trainer always related back to the corporate or team goals and values.” Lorraine has been surprised by the impact of their focus on recognition at Orange Coast Medical. “The oddest thing is the glow on the managers’ faces when they are recognized for creating and embracing our recognition initiative,” says Lorraine. “Once [managers] feel the impact of recognition and receive the tools they need to help them create recognition experiences for their people, they ‘get it.’ And that makes promoting our core values easy.” Lorraine advises anyone who commits to strengthening their organization through recognition to seek out the right tools. “It’s important to give your people the tools — for us it was the Manager’s Toolkits and training. Without tools, it’s just lip service and your people are left wondering what’s expected,” explains Lorraine. “At Orange Coast now our managers know how to support core values, what to recognize, and how to tie recognition to core values. And that’s huge for our employees, our patients and our success as a hospital.”
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ORANGE COAST MEDICAL (continued from page 2)
“Public recognition serves as a valuable educational mechanism — demonstrating company values and encouraging others to duplicate the actions they see rewarded.” “Encouraging the Heart,” Kouzes & Posner
“A great award presentation should get everyone in attendance asking themselves, ‘What memorable or noteworthy things have I done for the company?’”
“The 24-Carrot Manager,” Gostick and Elton
“In the most innovative companies, there is a significantly higher volume of thank-yous than in companies of low innovation.” Harvard Business School Professor Rosabeth Moss Kanter
FedEx delivers timely safety recognition
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Volume 7 Number 2