To Make an Investment Work, Keep it Top of Mind

I’m often fascinated by how quickly certain aspects of our work experiences can fade into the background. It only seems to get worse the busier we get, the faster our organizations change, and as more demands are placed on top of already limited resources. It can take a lot to keep something top of mind.

This is part of the reason why the current trends in performance appraisal have been so interesting: transforming the process from one that is mostly forgotten outside of a couple of times during the year into an ongoing conversation about performance. A similar transformation is needed in the way that companies communicate (and keep top of mind) the value and investments that they make in their employees.

For the sake of argument, I suspect that salary, incentives, and benefits are not top of mind for the typical employee on a frequent basis. Much like traditional performance appraisals, there are certain times of the year when these aspects are at the fore (e.g., open enrollment and the pay discussions within the performance review period). But there are also large portions of the year when these issues rarely rise to the top.

There are exceptions to this argument to be sure: hourly or freelance workers, for example, or those whose total rewards packages are fundamentally lacking. But for most people, the majority of cognitive energy is probably taken up by the work that is immediately in front of them. As a result, employees can easily overlook the investments that a company makes and may even assume there are better opportunities elsewhere.

These dynamics tie into the idea of engagement at a basic level, in that individuals cannot be motivated or engaged by something they are not actively thinking about. It also speaks to the reciprocity when an employee feels that the company values the contributions that are made and is motivated to strengthen those contributions as a result.

The challenge for companies is to find ways to reinforce the investments they are making in their employees, in a way that is much more frequent, to achieve the benefits from this type of increased engagement.

One such approach within the scope of a total rewards portfolio is through social recognition. Social recognition can provide a daily reminder of the value that companies find in the work their employees do. It provides ongoing communication of the investments that a company makes in their employees, through messages of gratitude and appreciation from both managers and peers.

Because recognition is driven by the values-based behaviors that contribute to business success, it can keep pace with the daily life of employees and the way in which the organization is changing and reacting to strategic priorities. In pure value, investments in recognition (typically around 1-2% of payroll) may also go further  and wider than investments in other incentives or salary increases. Complementing the total rewards package, recognition is one investment that a company can make that will remain top of mind.

How else does your company communicate the value it places in employees?

As Globoforce’s Vice President of Client Strategy and 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. He is the co-author of "The Power of Thanks" and 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.

Comments

[Brad]

It would be nice to see some research that supports that position.

[E. James (Jim) Brennan]

Such research exists. Frequent, rapid or continual feedback is highly effective for employee engagement. The most current reports on innovative programs and best practices concur. See http://ceo.usc.edu/articles-performance-management/ and watch for more studies like the one due out soon from Microsoft.