Dear Aaron,
The end of the year is quickly approaching and we are looking for ways, other than a typical cash bonus, to reward our employees. Do you have any good ideas?
Signed,
Rewards Are Good
Dear RAG,
What’s green and goes with everything? Cold hard cash.
I was always under the impression that cash was king, but the longer I work to make money, the more I think that maybe money is making me. There has to be more to our work than a paycheck.
In fact, research done by
Forbes found that companies that scored in the top 20 percent for building a “recognition-rich culture” actually had 31 percent lower voluntary turnover rates. A well-designed recognition program can achieve this result.
Larry Leith, CEO of
Tokyo Joe’s, a fresh, healthy, Asian-inspired fast-casual restaurant brand based in Denver, believes that recognizing the needs and desires of employees is a powerful recipe for success. Founded in 1996, with a focus on creating a menu that the average American Joe could access, the brand has grown from its original location in suburban Denver to 30 restaurants today.
For the past nine years, Leith has brought his restaurant managers and kitchen managers to his home in Maui for a week to reward them for their hard work. Leith pays for the flight and board and the employees spend the week enjoying the beauty of Hawaii and bonding personally and professionally.
“We’ve coined it ‘House of Joe’s,’” Leith said. “Some employees have been coming since the beginning, and the memories that have been built sustain us throughout the year.”
Leith’s wife, Marci, started a program for employees who are parents called “Marci’s Back to School Shopping Event,” in which she hosts three shopping trips for employees with kids ages 5-18. The kids are taken to different stores to get shoes, outfits and a “goodie” bag of school supplies.
The Incentive Research Foundation (yes, there is such a thing) in a research review conducted with the
Incentive Federation challenged the widely held belief that cash incentive awards are always the most effective employee motivator.
Examining a wide variety of studies in various industries, the audit found that non-cash awards can actually capture employees’ imaginations better than cash — thereby motivating them to increase performance. For business executives focused on the bottom line, this study proves extremely valuable and forces the question, “Does your company have the right award mix in place?”
Companies looking for non-cash award ideas can try some of these.
1. Home is where the heart is: Many employees spend more time with their co-workers than their spouses and children. Time off work or flexible hours can be a reward that is greatly appreciated and shows employees that the company respects and encourages family values.
2. Peer-to-peer recognition: Leaders in organizations tend to think that an employee values their recognition the most, but surveys show that employees feel better when they are recognized by their peers, because co-workers know what they are doing on a daily basis. Top-down recognition is often viewed as political, and it rarely reaches the “quiet but critical high-performers” in the company.
3. Surprise! Not everyone loves a surprise, but a boring weekday afternoon can turn into a fun adventure for the entire team with a surprise outing to get everyone out of the office and re-energized.
4. Wall of Fame: Set aside a public space inside your office and place photos of employees who've accomplished something truly special, along with the details of what they did to earn their place on the wall.
5. Valet it: Give the best parking spot for employees who've done something truly worthwhile. If public transportation is the way to go, buy them a cab or limo ride home.
I hope these ideas will help, RAG. Oh, and please don’t forget the two most underused words in corporate America that get the highest ROI.
Thank you,
Aaron
