ONE O . C . T A N N E R R E C O G N I T I O N C O by chad johnson

ONE 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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u s O Kd Ideas and Information from your Recognition Resource

J a n u a r y

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HIGHERBetter OCTANE... Results

SAN RAMON, CA – If diamonds are a girl’s best friend,

Marilyn Monroe should have worked at Chevron. “We’ve actually had employees say that famous diamond line about our award program,” laughs Peggy DiNocco, Vendor Administrator at Chevron. “If there was ever a question about the importance of offering quality awards, it’s been answered.” Few award programs have ever been changed as drastically as Chevron’s. But several years ago when the CEO challenged the company to attain – no, live by – a new standard, Better than the Best, Peggy DiNocco took the challenge seriously. She took a hard look at the company’s service award program, considered recipient comments that had been collected over the years (especially concerning shifts in the male/female employee ratio), and benchmarked the program against other major oil companies. She recommended Chevron’s program begin recognizing employees on their first and fifth anniversaries rather than waiting until 10 years. She also recommended top quality awards at every level. To make the changes, she requested a substantial increase for the program’s budget. Chevron senior management approved DiNocco’s recommendations. Now, upon completing the first year of service, each employee receives a Cross™ pen with a Chevron emblem. “We award our one-year employees,” DiNocco says,

“because we believe that saying congratulations and thanks after one year helps ensure we’ll be saying it again at five years.” And at five years the program adds diamonds and fourteen-karat gold. “Beginning at five years every recipient sees the quality of the awards in the program brochure,” DiNocco explains. “The emphasis on gold and diamonds is front-and-center – we gave it a full page. We want people to know that this isn’t a piece of brass or even something gold-plated, and that the stones aren’t glass or cubic zirconium. This is the real thing, because Chevron people are the real thing.” “Improving the quality of a program like service awards doesn’t just mean making it nicer,” notes DiNocco, “it includes having a way to measure the results. If you’re not getting a return on E X E C U T I V E S U M M A R Y quality, then it’s not that important.” Quality measurably improves recipient satisfaction To determine if the Gold and diamonds are noticed – and in demand revised program is The presenter should be trained and coached to make a powerful presentation having an impact, Chevron commissioned Seeing quality awards has a positive impact on junior employees a thorough recipient Awards with long-term value create corporate/employee tie

Peggy DiNocco Vendor Administrator, Human Resources, Chevron

SNAPSHOT

RECOGNITION

(continued on page 2)

A L L

WHY THE GOOD GO It’s no surprise: studies continue to show lack of recognition a top reason for changing jobs. LIMITED ADVANCEMENT OPPORTUNITY 41%

LACK OF RECOGNITION INADEQUATE SALARY/BENEFITS UNHAPPY WITH JOB BOREDOM WITH JOB DON’T KNOW/NO ANSWER Source: Robert Half International, Menlo Park, California

25% 15% 10% 5% 4%

T H E

BUZZ

Let’s start at the very beginning . . .

Stick to your job till it sticks to you ...

In today’s workplace, sticking to a job may mean only four or five years with the same employer – or less. It’s not unusual to hear a coworker say, “Wow, can you believe I’ve been here a whole year?” And if they’re saying it, maybe you should be saying, “Yes, we can, and we’d like to congratulate you.” Starting formal recognition early can really boost an employee’s perception of the (continued on page 3)

TWO HIGHER OCTANE (continued from page 1) survey. The

results? Overall program satisfaction at Chevron is 15% above the

national averages. “The award selections we offer in conjunction with the Chevron emblem confirm our dedication to quality, and people have noticed,” DiNocco comments. “Almost 90% of our recipients indicated they are ‘very satisfied’ or ‘satisfied’ with their awards. Of course we’re glad for that. But when we learned that our ‘very satisfied’ group was almost 13% above the national average, we were ecstatic. The difference, without a doubt, is quality. Through our survey, Chevron people have let us know that quality is really important.” Seven-hundred fifty miles away, 20-year employee Walt McNutt is proof that people do notice small details. He is a machine shop supervisor at Chevron’s Salt Lake City refinery. McNutt puts two tie tacks side by side on the table. “Here’s my tie tack from ten years (before the program improvements),” he says. Then he points to the other, “the fifteen year is quite an improvement over the ten year. In fact, I looked at the backs, and the tenyear is ten-karat [gold], this one is fourteen-karat – plus diamonds.” Walt McNutt, Machine Shop Supervisor “I was impressed when I got this with the diamonds at fifteen years,” he says. “It makes a big impression. I wear it to church, and I get a lot of comments about it. It’s good advertising for Chevron, and it’s a quality product.” Now McNutt also owns a 20-year Chevron ring – complete with four diamonds. He notes that he chose the award after seeing a co-worker receive one. McNutt believes there is tremendous value in younger employees seeing long-term employees receive their awards. “It’s impressive to them because often they’ve jumped around to different jobs,” he explains, “[the award] is proof of the stability you can have with one company.” Chevron encourages many types of recognition. In fact, they have a recognition specialist on staff whose job is to help the troops congratulate and reinforce one another on a regular basis. “That’s where we use all sorts of tactics – team lunches, ballgames, coffee mugs, T-shirts – to say ‘great job...you are appreciated,’” DiNocco explains. There’s no question that many forms of recognition are successful. Pamela Sabin is the specialist Peggy mentioned. Across the bay at Chevron’s San Francisco headquarters, Sabin cheerleads for the company’s 34,000 employees. “Although Chevron has always provided a wide variety of avenues for recognizing our peple, it wasn’t Bradly Chapman, Regulatory Coordinator, until the last few years that we’ve Chevron Shipping Co. spent energy coaching on how to recognize. As the people of Chevron have been introduced to behavior concepts and tools, recognition in general has become significantly more meaningful,” Sabin explains. “People are using these same skills to make the service award event meaningful. For instance, the Vice President of Human Resources & Quality sends a personal note to every person in the departY E A R S ment on their service anniversary, and talks about how they are contributing to the company and why it is important.” She also cites the example of an employee who said, “My manager realized that I was much more into the Giants than having lunch with a bunch of managers, so we went to a baseball game with a few co-workers.” That employee is Bradly Chapman, who works as the regulatory coordinator in Chevron Shipping Company’s marine transportation teams. He also happens to be a “recognition volunteer,” and is passionate about helping people feel valued for the work they do each and every day. From his 20th floor office in San Francisco’s financial district, Bradly can Pamela Sabin, see ships as they sail in and out of the Bay. The binoculars he chose (along with Human Resources a lapel pin) for his 10-year service award have become a valued item for watching bay traffic. “The binoculars are a quality item that have long-term, sentimental value,” Bradly explains. He also believes it’s crucial to tie the award to specific accomplishments. “We need to tie things together so there is a long-term memory. We want something that reminds the employee of a great time, or a certain milestone or accomplishment. There is a strong tie between your years of service and the actual award.” “When I get out my binoculars I know Chevron gave them to me,” he notes. “They are really cool, and it’s not likely I would have bought them myself.” “Through our survey, people indicated they want the highest quality awards,” DiNocco says. “And they want awards with lasting value. I suppose the fact that our employees are 10% above the national average on how frequently their awards are used or displayed indicates that we’re succeeding there, too.” Peggy DiNocco explains, “In 1999 it takes many forms of recognition to make a company work and at Chevron, we are getting pretty good at it. I’m especially proud of our service recognition program for the lasting memories and deep-seated emotions a service anniversary can bring to our employees. The anniversary is a time when people stop and say, ‘Wow, I’ve invested years of my life here.’ And when they say that, we want them to also say, ‘It’s been worth it – this company treats me very well, and even though there are 34,000 of us, they’ve taken time to notice me.’ It takes a top quality award presented with the right words of recognition to send that message.” “We have set out to make our service award program Better than the Best,” DiNocco comments. “The results show we are succeeding. Apparently, diamonds are everyone’s friend.”

“There is a strong tie between your years of service and the actual award.”

January 1999

IN OTHERS’ WORDS

TURNOVER

TAKES ITS

TOLLEXIT ENTER Turnover is a good thing only if it involves pastry or a new leaf. In business, turnover represents a huge drain on the bottom-line. A national drug-store chain estimates it costs between $2,000 and two or three times the previous worker’s salary to replace an employee. In today’s tight labor market, finding and keeping good people remain top HR priorities. “When you look at what’s happening in the work force, retention is one of the biggest issues,” says Mary Leavens, director of corporate training at Harford Community College. “So much time and energy go into finding the right people. Losing any of them always causes problems.” So what are companies doing to reduce turnover? According to a survey of 114 senior HR executives by the New-York-based Conference Board, most companies respond to turnover by throwing money at the problem. More than 90% of surveyed companies use compensation as a retention tool. But the strategy isn’t working. More than half of surveyed companies say that turnover has grown worse in the past three years. The survey blames the rise on companies’ (continued on page 4)

Kudos January, 1999 Publisher Editor Managing Editor Copy Editor Design/Layout

O. C. Tanner Recognition Co. Steve Kimball Randall Shirley Marylu Dadakis Janice Takagi

US: 1-800-828-8902 Canada: 1-800-668-7227 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 1999 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

THREE LIFESTYLE PRODUCTS

A L L

S terling &

Gold

A GREAT WAY

T H E

BUZZ

Let’s start at the very beginning . . .

(continued from page 1)

value a company places on him or her. Also, at the early stage, an employee may really be “up” on the company – and recognizing their service may reinforce those positive feelings. That’s why some companies are choosing to recognize as early as one month, followed by one year, three years, and then joining the five-year cycle. Consider your colleagues’ thoughts:

TO RING IN THE

[One-and three-year awards] make them

NEW YEAR

feel they’re part of something, and

hat great holiday dress will look absolutely dazzling with the added accent of a new ring. Or maybe you just need a little sparkler to help you through the winter blahs. Either way, these creations of sterling silver and gold will put a smile on your face that will last long past the first flowers of Spring.

they don’t have to be here 10 years to get their first recognition. It also gives the manager or supervisor a chance to get better acquainted, to congratulate them, and get to know them on a first-name basis. It makes a difference when you build that rapport with your associates. Linda Shimkus, Benefits & Compsensation – Shaw’s Markets

There’s a great

sense of pride about working here – that’s why we recognize employees very early on in their careers. Belinda Jacobs, Manager Compensation & Benefits – Holland America Line-Westours

Fourteen-karat gold ring with bright polished finish, a cultured pearl, and two 2-point diamonds.

Sterling silver ring with domed top and eighteen-karat gold rope accents. Sterling silver mesh-style ring with fourteen-karat gold ribbed “X” accents.

If people are here three years, that’s really very good in this day and age where people no longer work 25, or even two years in a position. So, if someone is here three years,

we appreciate it, and that they’re a very valuable employee.

we really want to show them

Mary Ellen Peck, Human Resources, Episcopal Church Home

ON THE COVER: from Chevron’s program

Seth Thomas Meridian wall clock.

Orrefors “Waterfall” crystal vase.

SP A

L BE

Fourteen-karat gold ring with fluted contrast finish.

G T H E IN G

“I like my work and I never want to give it up.” Milton Garland Frick Co.

Can you beat 78 years?

In the July Kudos, we challenged you to identify North America’s senior employee. It appears that the current holder of the title is Pennsylvanian Milton Garland. Mr. Garland, 103, has been a refrigeration pioneer and engineer at Frick Co. for 78 years. “I like my work and I never want to give it up,” Garland says. “It’s something I will continue to do as long as I am able to do it.” While Mr. Garland was honored by Green Thumb, a mature-worker training program, as 1998’s oldest worker, we congratulate him on his exceptional dedication and effort for one employer through nearly eight decades. If someone at your company has more than 78 years, let us know!

Sources: Knight-Ridder News Service; Green Thumb, Inc.

Puerto Rico

It’s relaxed, yet professional. It’s US corporate professionalism with a little Latin affection. It’s Puerto Rico...and it’s the second most common overseas award destination. Puerto Rican’s are likely to throw a mini-fiesta for a presentation – because in their island culture, recognition is a big deal. People are very proud of their career accomplishments, and are glad to be personally noticed. They’ll appreciate having coworkers and family invited to their presentation – in Puerto Rico, family comes first. All types of awards are welcomed by Puerto Ricans...as long as they are top quality. Brand name watches are very popular, as is jewelry. Recipients generally want valuable items they wouldn’t be able to justify purchasing themselves. Lifestyle award programs for Puerto Rico should include selections for men and women. Items that can be displayed in the home are also appreciated. Many Puerto Rican’s appreciate the opportunity to share the valuable gift with their spouses and families. Grandfather clocks and other large or fragile items should not be included in programs for Puerto Rico, due to high incidence of shipping damage – not to mention higher shipping costs. So, if you have facilities in Puerto Rico, make sure your employees there are getting the recognition they deserve. Offer them top quality awards, a word of felicitaciones ... and if you ever have a chance to attend a Puerto Rican presentation, relax, and prepare for a fiesta. January 1999

FOUR P R O G R A M

P O I N T E R S

2000

Computers Coy about New Year’s Plans One year from now, we’ll turn over a single calendar page and a new century will begin. People all over the world hope their computers join in the celebration. By now, everyone has heard of the Year 2000 problem (a.k.a. the millenium bug, a.k.a. the Y2K Problem – although calling it the Y2K problem is pretty much what got us into this mess in the first place). For a good chunk of the 20th century, shortening dates to two digits seemed like a great idea. Why write 1999 when two keystrokes gave you 99 and everyone knew what you were talking about, including the computer. So what happens when we type 00. If the computer thinks we mean 1900, things might get a little...interesting. That 00 flight reservation could be a dicey proposition. The Wright Brothers first flight took place in 1903, and they weren’t taking reservations. We’ve been working hard to make sure all our systems are year 2000 compatible. It’s important for our computers to know an award is for five years of service, not a hundred and five. We’re confident they will. In fact, most of our systems are already Y2K compliant. All remaining systems will be replaced or upgraded by mid 1999, allowing us to thoroughly test all conversions, systems and equipment well before we break out the party hats and horns. So, Happy New Year! Go ahead and make those party plans. We’ll be shipping awards for your other significant celebrations for decades to come.

failure to develop other crucial strategies including:

(continued from page 2)

TURNOVER

• • • • •

TAKES ITS

TOLL J

Y2K

Offering new opportunities Formal career planning/counseling Recognition Benefits and services Skills training

KudOs

EXIT

ENTER

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. Precisely what recognition is all about, wouldn’t you say? Proper use: “Kudos to Alice on her 15 years with the company.”

Several in the survey said increased recognition could have an impact on their organizations. “Among some HR executives there seems to be an embarrassed, apologetic stance that they are not doing enough in the way of nonmonetary rewards and recognition for employees, even though they believe these are important,” the report says. Sources: The Baltimore Sun, Nov. 10, 1998; HR Wire, Sept. 28, 1998. N

EXIT

Y2K

ENTER

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Inside: Does

Quality Matter?

LIFESTYLE PRODUCTS New rings for a new year.

PA G E

IN OTHERS’ WORDS Recognition’s role in reducing turnover.

PA G E

4200 Fairview Street Burlington, Ontario L7L4Y8

ALL THE BUZZ The earlier, the better.

PA G E

1930 South State Street Salt Lake City, Utah 84115

PA G E

COVER STORY Your program may run better if you fill it up with supreme.

PROGRAM POINTERS Your program’s safe – we’re exterminating the Y2K bug.

BULK RATE US POSTAGE PAID SLC, UTAH PERMIT NO. 3447

January 1999