Title: When you’re ready to grow, I’m the one to know.
1Total Rewards and Motivation Mistakes, Myths
and Whats Working
- Laura Wolfe
- April 27, 2012 - LA SHRM
2Objectives
- Present new information about total rewards and
motivation - Cover body of knowledge required for CE credit
- Provoke you to think in new ways and about new
ideas
3Big Picture
4Total Rewards
- monetary nonmonetary rewards companies use to
attract, motivate and retain employees - more than comp benefits
- a philosophy
5Foundational Stuff
- Behaviorism
- Law of Effect
6Equity
7Equity
- External
- Labor markets
- Market conditions
- Internal
8Org Justice
9Discussion
- Best thing a company has ever done to motivate
you? - Is your company using incentive pay plans?
- How are they working?
- Effective recognition programs?
10Is money the best and ultimate motivator?
11Research
- Teresa Amabile and Steven Kramer
- Book The Progress Principle
- Support workers everyday progress
12Research
- Carol Dweck
- Book Mindset
- Fixed or growth?
13Research
- Dan Pink
- Book Drive
- Autonomy, Mastery, Purpose
14 15Empowerment
- Empowered employees
- Felt worthy, competent, capable
- Performed better, more innovative, more job
satisfaction, greater commitment, more OCB - Related
- flexible work hours
- vacation policies (Netflix)
16Happiness
- Frequency, not intensity, of happy experiences
more important to creating happiness
17Incentives
- Economy a factor
- Shifts
- Technology
18Incentives On-time Behavior
- Timeliness improved through rewards and
recognition program - Computer system to track arrival and departure
times and calculate compensation for arriving
early - Most workers arrived early when additionally
compensated
19Sales Compensation
- Proportion of incentive to base
- Engage others in design process
- Communication
- Technology
- Planning
2010 Sales Incentive Design Mistakes
- Trying to Keep Everybody Happy
- Failing to Separate Novices from Veterans
- Negative Reward on High Productivity
- Targeting Prizes Toward Entire Sales Force
- Planning a Contest with No Sales Force Input
2110 Sales IncentiveDesign Mistakes
- Leaving Top Management Out of the Plan
- Being a Do-Gooder
- Being Inflexible
- Hoping for X While Rewarding Z
- Forgetting that Good Salespeople Always Work for
Their Own Good First - From HR Daily Advisor
22Executive Compensation
- CEO pay and performance
- Significant yet modest relationship
- Executive boards dynamically adjust current pay
according to historical performance
23Executive Compensation
- Top Mgt Team turnover impacted by pay dispersion
- gt the pay differences gt likelihood of turnover
- Market pay levels and cut of total TMT also
influence turnover decisions - NBA example ?
24Merit Pay
- Advantages
- reward key talent
- once or recurring
- nudges poor performers
- Disadvantages
- difficult to measure performance
- good systems take resources
- divisive
- communication
25Before PFP Ask
- What is our philosophy?
- Where do we want to be?
- How does it align?
- Do we have
- high performers?
- a performance culture
- managers able to
- identify high performers
- Communicate
26- Reward Behaviors,
- Not Just Results
27Point-based Rewards
- Medical center example
- Points earned by using shift-scheduling software
and for working shifts
28Recognition
-
- Attention is a powerful nutrient. It amplifies
and accelerates the situations on which it is
focused. - --Martha Beck
29Workplace Recognition Study
- 38 tangible rewards
- 21 opportunities to learn and grow
- 19 verbal or written praise
- 20 nothing
- 65 of ees b/t 18-34 more likely to leave if they
dont feel like they are recognized - Office Team Survey
30Recognition Blunders
- Acknowledging incorrect facts
- Offering token gestures
- Being vague
- Going overboard
- Overlooking contributors
- Office Team Survey
31Praise
- For effort or for ability?
- When not to use it.
32Best practices
- FORTUNE
- 100 Best Companies to Work For
33Best Practices
34Best Practices
- Discovery Communications
- Sprint
35Moving toward Total Rewards
- Meeting with Leaders
- Permission to align rewards with strategy
- Ask for any resources needed to get the project
going
36Good Data
- Data based planning
- Metrics and benchmarking
- The big ?
37Benchmark Metric Data
- SHRM
- Saratoga Institute
- WorldatWork
- Consulting firms
- Mercer, Hewitt, Hay, Towers Perrin, Watson Wyatt
Worldwide - Professional associations
- In-house pay surveys
38HR Metrics for Compensation
39Metric Options for Variable Pay
- Production performance
- Actual change vs. planned change
- Revenue growth
- Return on investment
- Average employee productivity change
- adapted from Mathis and Jackson, Human Resource
Management, 12th edition, Thompson-Southwest
40Metric Options for Variable Pay
- Sales Programs
- Increase in market share
- Customer acquisition rate
- Growth of existing customer sales
- Customer satisfaction
41Metric Options for Variable Pay
- HR Related Program Measures
- Employee satisfaction
- Turnover costs
- Absenteeism cost
- Workers comp claims
- Accident rates
42Cost and ROI of
- Health and wellness benefits
- Wellness programs
- Recognition programs
- EAPs
- Retirement plans
- Time-off programs
- Stock purchase
43Alignment Strategic Goals Objectives
- Compensation is not an HR program
- Org owns compensation
- Appropriate mix of total reward elements
- Profit sharing Nucor Steel
44AlignmentValues
- Employee Value Proposition
- Rewarding what is valued
- Valuesculturestrategy
45Keys
- Communication
- Personalize
- Win over family when possible
46Questions
- ?????????????????????????????????????????????????
??????????????????????????????????????????????????
??????????????????????????????????????????????????
??????????????????????????????????????????????????
??????????????????????????????????????????????
47ResourcesDan Pink
- RSA Animate - Drive The surprising truth about
what motivates us - http//www.youtube.com/watch?vu6XAPnuFjJc
- Drive The Surprising Truth About What Motivates
Us, Riverhead Books, 2009, by Dan Pink - Twitter _at_DanPink
- http//www.danpink.com/
- https//idonethis.com/
48Resourceswebsites blogs
- http//www.zappos.com/index0.zml
- http//www.ioatwork.com/
- http//www.shrm.org
- http//hrdailyadvisor.blr.com/
- http//danariely.com/
- http//www.inc.com/
- http//blogs.hbr.org/
49Resourceswebinar
- SHRM e-learning webinar
- Aligning Your Compensation Strategy with Business
Priorities by Stacey R. Carroll, SPHR, Director
of Customer Service Education, PayScale,
Seattle, Wash. - 1.5 strategic CE credit
50ResourcesThe Startup Daily
- Play to Your Strengths
- http//thestartupdaily.com/2012/02/play-to-your-st
rengths/ - Why Do You Do What You Do?
- http//thestartupdaily.com/2012/02/why-do-you-do-w
hat-you-do/ - The Magic of the Mundane
- http//thestartupdaily.com/2012/02/the-magic-of-th
e-mundane/ - The Cost of Focusing on Results
- http//thestartupdaily.com/2011/09/the-cost-of-foc
using-on-results/ - Benefit from the Success of Others
- http//thestartupdaily.com/2012/02/benefit-from-th
e-success-of-others/
51Resourcesonline articles
- The Secret Document That Transformed China
- http//www.npr.org/blogs/money/2012/01/20/14536044
7/the-secret-document-that-transformed-china - Best Ways to Recognize Employees
- http//www.toiletpaperentrepreneur.com/the-right-a
ctions/ways-give-employee-recognition/ - The Folly of Stretch Goals
- http//blogs.hbr.org/cs/2012/04/the_folly_of_stret
ch_goals.html - How to Set Your Employees Free Reed Hastings
- http//www.businessweek.com/articles/2012-04-12/ho
w-to-set-your-employees-free-reed-hastings
52ResourcesInc. Magazine online
ResourcesInc. Magazine online
- Why Flexible Hours Inspire Performance
- http//www.inc.com/margaret-heffernan/why-flexible
-hours-inspire-achievement.html - Nows a Good Time to Reward Employees
- http//www.inc.com/michael-alter/nows-a-good-time-
to-reward-employees.html - How to Keep a Superstar Employee Happy
- http//www.inc.com/jeff-haden/how-to-keep-a-supers
tar-when-you-have-little-to-offer.html
- Why Flexible Hours Inspire Performance
- http//www.inc.com/margaret-heffernan/why-flexible
-hours-inspire-achievement.html - Nows a Good Time to Reward Employees
- http//www.inc.com/michael-alter/nows-a-good-time-
to-reward-employees.html - How to Keep a Superstar Employee Happy
- http//www.inc.com/jeff-haden/how-to-keep-a-supers
tar-when-you-have-little-to-offer.html
53ResourcesHR Daily Adviser
- 10 Incentive Design Mistakes
- http//compensationdailyadvisor.blr.com/?p2001?so
urceCDAeffort11 - http//compensationdailyadvisor.blr.com/2012/01/10
-dogooder-acts-that-drive-good-salespeople-to-the-
competition/
54Resources100 Best
- FORTUNE (magazine) 100 Best Companies to Work For
- The 100 Best issue comes out every year late
January/early February and includes select data
on each company and an in depth story on the 1
company and at least one other that made the list - http//money.cnn.com/magazines/fortune/best-compan
ies/
55ResourcesHR Magazine
- Fill Those Unpopular Shifts, 4/2009
- Money Matters in the Hiring Process, 9/2009
- Salaries Looking Up, 10/2009
- Treating Employee Like Customers, 10/2009
- At Work in 2020, 1/2010
- No Good Deed Goes Unrewarded, 1/2010
- May the Sales Force Be with You, 9/2010
- All For Incentives, Incentives For All, 1/2011
- Benefits Choices Educating the Consumer, 3/2011
- Make a Deal,1/2012
56ResourcesBooks
- Mindset The New Psychology of Success,
Ballantine Books, 2006, by Carol Dweck - The Progress Principle Using Small Wins to
Ignite Joy, Engagement and Creativity at Work,
Harvard Business Review Press, 2011, by Teresa
Amabile - The 5 Languages of Appreciation in the Workplace
Empowering Organizations by Encouraging People,
by Gary Chapman Paul White, Northfield
Publishing, 2011
57ResourcesBooks
- 1001 Ways to Reward Employees, Workman Pub.,
2005, by Bob Nelson - Instant Influence, How to Get Anyone to Do
Anything FAST, Little Brown, 2011, by Michael
Pantalon - Investing in What Matters Linking Employees to
Business Outcomes, SHRM, 2009, by Scott Mondore
and Shane Douthitt