What’s Your “Waffle House Index” for Success of Your Total Rewards Programs?

What metrics or systems of measurement do you use to understand the impact of your Total Rewards approach? I imagine common success measurements for compensation and benefits plans might be:

1. Comparison to industry averages
2. Employee retention/turnover
3. Employee engagement or satisfaction survey results
4. Employee participation in optional programs such as retirement planning
5. Number of recipients or participants in bonus pools or similar incentives structures

I’m sure there are many more. But today, I wonder what other measures or gauges are currently in place that perhaps we just don’t see. Let me explain by sharing this story on the “Waffle House Index” (an American restaurant chain that serves breakfast all day):

“[Craig] Fugate, [head of the US Federal Emergency Management Agency at the time], observed that Waffle Houses were able to defy the will of nature. He used this curiosity to create a back-of-envelope disaster rating system, one which resonated colloquially, called the ‘Waffle House Index.’  A ‘green’ rating means that the Waffle Houses are open, with full menus, minimal to no damage, and with working power.  A ‘yellow’ rating means that the restaurant is serving a limited menu, indicating low food supplies and/or struggles with power (perhaps the establishment is using a backup generator).  And when the Waffle House is closed?  The Waffle House Index hits a ‘red’ rating.  That’s rare, and, as Fugate noted in a speech (per Christian Science Monitor), ‘that’s really bad. That’s where you go to work.’”

I like the elegance of the Waffle House Index. It’s a good indicator of “if life is normal, then work continues as normal.” Where might we find similar indices in our workplaces regarding HR's ability to meet (and even exceed) the needs of employees to give their best every day?

Here are three:

1. Relationships between employees

Research shows peer relationships are critical to the modern work experience. As we spend more time at work, the relationships we form with colleagues become central to the quality of our lives. Indeed, these work friendships increase commitment to the company. Our engagement, trust in leaders, satisfaction, and intent to stay hinge on having friends at work. The more friends we have, the more committed we become to our companies. (There’s a reason why one of Gallup’s 12 questions to measure employee engagement is “I have a best friend at work.”)

2. Informal gratitude, appreciation and other expressions of recognition

Strong company cultures in which all employees thrive are based on building a Positivity Dominated Workplace where every employee is not just empowered, but actively encouraged to pick their heads up out of their own work to notice and appreciate the excellence happening around them every day. This kind of positive feedback loop feeds on itself. It highlights for everyone what behaviors, contributions and outcomes are most desired by immediate peers and colleagues, the team, and the company as a whole.

3. Voluntarily engagement in outside-of-work activities

A colleague of mine tells stories of company events from her prior career. She refers to these as “forced family fun” events – programs or parties usually planned by HR that people feel obligated to attend, often asking each other, “How long do you think we have to stay before we can slip out?” Alternatively, when employees are planning events for themselves – an after-hours cocktail meet-up at the local pub, a field trip to the local animal shelter to give-back to the community – then you know employees have developed a different level of commitment to each other and, ultimately, the organization.

There are many more similar “Waffle House” metrics we likely see in our organizations that are also a very good indicator of employee engagement, satisfaction, intention to stay or leave, and general willingness to not only advance their own careers, but those of their colleagues (and friends), too.

What alternative metrics do you see in your organization? Are they telling you a good story, or are they indicating an area of concern?

As Globoforce’s Head of Strategic Consulting, Derek Irvine is an internationally minded management professional with over 20 years of experience helping global companies set a higher ambition for global strategic employee recognition, leading workshops, strategy meetings and industry sessions around the world. His articles on fostering and managing a culture of appreciation through strategic recognition have been published in Businessweek, Workspan and HR Management. Derek splits his time between Dublin and Boston. Follow Derek on Twitter at @DerekIrvine.