June, 2006 -by Peter C. Brinckerhoff

This Month's topic: Employee Rewards


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This Month's Topic: Employee Rewards
Each month, this area provides with a number of my favorite and most helpful sites regarding the topic of the month.

Management Tip of the Month

Each issue, I start with a discussion of my management perspective on the month's topic, and give you a few hands-on ideas to consider.

Recommended Publications

Here, I provide you with my recommendations on the  materials available that can help you become more mission-capable in the area of Employee Rewards

Technology

I provide you with some good ideas for uses of tech to better your organization in the area of Employee Rewards

Marketing Tip

So much to say, so little space to say it.....

Next Issue

In July, we'll examine an issue that is very important, very difficult: Saying "No" to Community Needs.


Websites of the Month

Here are my recommendations for websites of interest on this month's topic,  Employee Rewards

www.iscebs.org/PDF/topFiveSurvey_05.pdf Make sure you read this: a Deloitte report on the Top Five Employee Rewards in 2005
philanthropy.com/free/articles/v17/i01/01002901.htm Good article from the Chronicle of Philanthropy
www.managementhelp.org/emp_perf/rewards/rewards.htm Great stuff, as always, from the Free Management Library.

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Management Tip of the Month
Employee Rewards
Here's the deal on employee rewards: done well, they are a good thing. Done badly, the are counterproductive. If you get staff input, design the program correctly, and implement it fairly, you can really improve staff morale and employee retention. If you mess it up, take two giant steps backward.

1. Reward what people in ways that they want, not what they need. This is really a marketing technique, but it goes here since it is the essence of a good program, and the bane of a bad one. I've seen management team give "Employee of the Month" parking spots to a group of employees who mostly take the bus to work; managers give restaurant gift cards for steakhouses to vegetarian employees, organizations give time off to people and then make their teammates make up the work. In general, clueless behavior, because the managers "knew" what the employees wanted but didn't respect the employees enough to ask. So ask. See #2.

2. Get Employee Input. Any good employee rewards program is designed by the employees, not the managers. The managers can certainly set limits (on budgets, frequency, criteria for awards, etc.) but then let the employees figure out the rest. By doing this, you show respect for the line staff, and get much more credible rewards than you would otherwise.

3. The Perception of Fairness is everything. If employees think the system is rigged, then it is. Cut to the chase--take the award/reward decision out of the ED's hands and put it into a group of peers. Or, figure out some way that people believe the results.

Three simple rules: follow them and you'll have a much more rewarding rewards program!


If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

And, remember to take a look at the Mission-Based Management Blog.

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Print Resources

My recommendations for texts on employee rewards are shown below.  Click on the title to be taken to the title's page on Amazon.com. There you can look at the book in more detail.

1001 Ways to Reward Employees, by Ken Blanchard

Make Their Day! Employee Recognition that Works, by Cindy Ventrice

The 1001 Rewards and Recognition Fieldbook, by Bob Nelson and Dean Spitzer

The Compensation Solution: How to Develop an Employee Driven Rewards System, by John Tropman

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Technology Tip 
How can tech help with employee rewards.
Your tech can help in a number of ways as you work toward a valued and effective employee rewards program. Here are some uses.

Polling: You can poll to see what rewards employee value. Use email and HTML surveys to do this, and allow long enough for everyone to vote.

Posting of award criteria, rules, and processes. One of the worst things that can happen in a rewards program is the perception of unfairness. If you post the rules, system, criteria, process, etc on the employee part of your website, it will allow employees to investigate the system on their own, and hopefully cut rumors down in their tracks.

Allowing nominations. Email or anonymous HTML sites allow for nominations for awards from a wide variety of employees or managers, depending on your awards system.

Notify everyone of winners and awards. Whether by email or on your website (or both), let employees know who has won what each reward cycle. Consider posting their picture (if it isn't embarrassing to the employee) as well.

Tech can help the awards process, but not replace the face-time required to develop a great, and effective rewards system.

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

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Training Schedule for Peter Brinckerhoff

Below you'll see the date, location, and topics of public training I'm scheduled to do in the next few months. For more information on a particular speaking engagement, get in touch with the contact person listed in the right hand column, or email me.

For more information on my availability throughout the next 12-18 months, available topics, sample agendas, and fees go to www.missionbased.com/training.htm

Date City Topic Contact
7/16/06 Chicago Board Stewardship Kellogg Executive Education
Ann Cohn Donnelly
a-donnelly@kellogg.northwestern.edu
7/31/06 Chicago Mission-Based Marketing Annual Marketing/PR  Networking Forum
Susan Hassell
susan_hassell@qhr.com
8/03/06 Morgantown, WV Business Development and Marketing West Virginia Association of Rehab Facilities
Craig  Greening
cgreening@wvarf.org
8/8-9/06 Buffalo, NY Business Development NISH
Dave Wessel
dwessell@nish.org
9/06/06 Ballston, VA Readiness for Business Development Workability International
Deborah Atkinson
datkinson@nish.org

Marketing Tip
What can Marketing Do for Employee Rewards?

A lot. Of course, if you read the Management Tip, you already know the key: meet wants not needs, and to find out what employees want, ask. Pretty simple, and it's a mystery to me why more organizations don't do it.

Also, remember to individualize to the extent you can. We are, after all, in an era of what I call MeBranding. To the extent you can, target your rewards to what the employee likes, his or her hobbies, activities, etc.

Finally, stay flexible. If you can offer an array of rewards and let employees choose, you are more likely to hit the sweet spot of a true reward, rather than just something that will sit on the shelf and gather dust.

If you want to see more about this in detail, take a look at more about my book Mission-Based Marketing; Second Edition

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

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Future Topics for
The Mission-Based Management Newsletter....
July Saying "No" to Community Needs
August Board and Non-CEO Relations
September Executive Transition
October Advocacy
November When Boards Fail in their Role
Send me your topic suggestions at peter@missionbased.com

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You asked, so here they are: Past Single-Topic Issues of the Mission-Based Management Newsletter...
2004 2005 2006
January Business Development Strategic Planning Generation Change 
February Fund Raising Leadership Accountability
March Volunteers Core Competencies Ethics and Management
April Financial Management Expanding to New Markets Staff Satisfaction
May On-line Marketing  Endowments  When Boards Cross the Management/Policy Line
June Transparency  Tech and Mission 
July Nonprofit Start-up  Sustainability 
August Governance Ethical Benefits 
September Political Activities Entrepreneurship 
October Attracting and Retaining Younger Staff, Board, and Volunteers Internal Communications  
November Outcome Measurement Board Recruitment 
December  Lifelong Learning Better Budgeting