CLC Bench Marking Reward and Recognition Programs

CORPORATE LEADERSHIP COUNCIL ® MAY 2008
www.clc.executiveboard.com
BENCHMARKING REWARD AND RECOGNITION PROGRAMS

Trends and Practices in Designing, Implementing, and Managing Reward and
Recognition Programs
CORPORATE LEADERSHIP COUNCIL ® PAGE 2
B ENCHMARKI NG R EWARD AND R ECOGNITION P ROGRAMS K EY FINDINGS
ISSUE OVERVIEW
As competition for critical talent increases, organizations look to diversify their employee engagement and retention strategies.
Many organizations realize that an effective reward and recognition (R&R) program is part of a compelling total rewards offering that
engages employees and drives business outcomes. Despite awareness of the importance of R&R, many organizations struggle to
create and implement a successful program. To support members in their efforts to create a more effective program, this report
provides the Council’s key findings on R&R drawn from a membership survey.
D EFINITIONS AND S COPE OF R ESEARCH

Data collection for this report occurred through a survey of 27* member organizations with R&R programs. The table below provides
relevant definitions and outlines the scope of the analysis :
Definitions
Reward Refers to cash, trips, and other gifts given
Refers to acknowledgement via an e-mail, public ceremony,
Recognition
thank you card, plaque, or other means
Refers to situations in which a formal process is used to
Formal R&R reward/recognize, including some level of approval by leadership
(manager and above)
Informal Refers to occasions when an approval process is not needed to
R&R reward/recognize
Scope of Analysis
§ Individual
R&R for Performance § Team
§ Managerial/leadership
§ Cost saving ideas
Included in § Customer satisfaction/service
Report R&R for Contributions to § Embodying company culture
the Organization § Innovation
§ Length-of-service
§ Safety
R&R for Contributions § Commitment to the environment
Outside the Organization § Community service
§ Bonus awards
Not Included Base or Variable
§ Stock grants
in Report Compensation
§ Sales incentives
*Please note that not all organizations responded to every question and that the number of respondents (N) is indicated throughout the report.
Also, where percentages total more than 100%, participants were asked to select all answer choices that apply.
 2008 Corporate Executive Board. All Rights Reserved.

EXECUTIVE S UMMARY
To help members design and implement an R&R program that effectively motivates and engages employees, this page outlines the
Council’s findings regarding the key steps of the process, including designing the program, establishing ownership and allocating
resources, providing training and communicating the program, and measuring and managing the program. The Council used these
steps, which are based on the standard approach to designing, implementing, and managing any program, as the framework for our
work. The following pages provide a more detailed overview and include benchmarking information for each step.
PHASE 1: PROGRAM DESIGN PHASE 2: OWNERSHIP & RESOURCES
Design and implement a program that will effectively engage Establish program ownership and allocate resources
employees and achieve business objectives. to effectively implement and manage the program.
Action Steps and Key Findings Action Steps and Key Findings
þ Select Activities and Behaviors to Reward/Recognize— þ Determine Program Ownership—More organizations house
Organizations most frequently recognize length-of-service and their R&R program within the compensation department than
reward individual excellence in role and innovation. any other department.
þ Incorporate Employee Feedback —Most organizations that þ Allocate Resources—Organizations spend less than 1% of
collect employee f eedback do so via an employee survey . payroll on R&R, and most R&R budget comes either entirely
from the corporate budget or entirely from the line unit or
þ Select R&R Form and Types—Most organizations use all department budget.
forms of R&R (monetary, non-monetary, formal, and informal).
þ Decide Whether or Not to Engage a Vendor—Organizations
þ Address Global Considerations—More than half of most frequently engage a vendor for reward packages and
organizations with global programs incorporate local and/or thank you/recognition cards.
cultural preferences in their programs .
PHASE 4: M ANAGEMENT AND MEASUREMENT PHASE 3: TRAINING AND COMMUNICATION
Ensure employees utilize the program and Maximize program impact and utilization by training
continually assess its effectiveness over time. managers and effectively communicating the program.
Action Steps and Key Findings

Action Steps and Key Findings
þ Select a Method to Ensure That Employees Are
þ Train Managers on the Program—Organizations most
Rewarded/Recognized—Organizations most frequently
frequently train managers on the reasons for the program and
conduct employee surveys to ensure employees are
their role in executing it.
rewarded/recognized, and more than half of organizations track
who is rewarded/recognized. þ Involve Senior Leadership in Communications —
Organizations most often involve leadership in announcing the
þ Measure Program Results—Most organizations that measure
program and award recipients.
the results of their program do so by gauging employee
satisfaction and engagement. þ Decide How Frequently to Send Communications—Most
organizations send employees f ormal messages about their
þ Collect Employee Feedback —Less than half of organizations
R&R program either quarterly or annually.
solicit employee feedback on their R&R program.
þ Select Communication Channels —Organizations leverage
less resource-intensive methods of mass communication to
communicate their program and the presentation of an award.

Ownership & Training & Measurement &

Program Design
Resources Communication Management
Select Activities and Behaviors to Reward/Recognize
Organizations should select activities to reward/recognize that align with program objectives; these activities should encourage
behaviors that drive desired business outcomes. Activities that companies recognize may be different than those they reward.
Organizations Most Frequently Recognize Length-of-Service

Organizations recognize various actitivies and behaviors through their program , but mos t frequently recognize activities that visibly
impact the bottom line, such as loyalty, great ideas, and individual performance; the greatest percentage of organizations recognize
length-of-service (70%), innovation (63%), cost-saving ideas (63%), and individual excellence in role (63%). Meanwhile, fewer
organizations recognize activities that may contribute less directly to the bottom line, such as community service (52%), embodiment of
company culture (48%), commitment to the environment (41%), and safety (33%). Figure 1 below illustrates the prevalence of
recognizing employees for various activities and behaviors.
Figure 1: Prevalence of Recognizing Various Activities and Behaviors (N=27)

Percentage of Organizations
80% 70%
63% 63% 63%
59%
56% 56%
52%
48%
41%
40% 33%
0%
Embodiment
Commitment
Community
Environment
Performance
Innovation
Excellence in
Cost-Saving
of Company
Leadership /
Satisfaction /
Length-of-
Safety
Excellence
Managerial
Customer
Service
Service
Individual
Culture
Service
Ideas
to the
Team
Role
Organizations Most Frequently Reward Individual Excellence in Role and Innovation

Organizations reward various types of actitivies and behaviors, but the greatest percentage reward individual excellence in role (74%)
and innovation (74%). Although companies most often recognize length-of-service, this is not the mos t frequently rewarded activity,
as it does not necessarily correlate with good performance. Similar to recognition, less than half of organizations reward activities that
may not have as direct an impact on the bottom line, such as embodiment of company culture (48%), community service (41%),
commitment to the environment (22%), and safety (19%). Figure 2 below depicts the prevalence of rewarding employees for various
activities and behaviors.
Figure 2: Prevalence of Rewarding Various Activities and Behaviors (N=27)

80% 74% 74%

70% 70%
67%
63%
56%
48%
41%
40%
22%
19%
0%
Embodiment
Commitment
Community
Environment
Performance
Innovation
Excellence in
Cost-Saving
Leadership /
Satisfaction /
Length-of-
Safety
Excellence
Managerial
Company
Customer
Service
Service
Individual
Culture
Service
Ideas
Team
to the
Role


Program Design
Incorporate Employee Feedback
Organizations should incorporate employee feedback in order to reward and recognize in a way that motivates and engages the
employee segments targeted by the program (i.e., non-exempt employees, executives, new hires). Companies may collect employee
data from external sources or through internal surveys and/or focus groups.
Most Organizations Collect Employee Feedback Via an Employee Survey When Designing Their Program
When designing their program, most organizations (85%) solicit some type of employee feedback to understand how employees want
to be rewarded/recognized. The most common method for gathering employee feedback during the design process is conducting an
employee survey, likely because surveys are relatively low-resource methods of collecting actionnable data to guide R&R program
design. Fewer organizations use employee focus groups and advisory groups/committees to gather employee feedback. Figure 3
below illustrates the prevalence of using a certain method (or methods) to solicit employee feedback.
Figure 3: Methods for Collecting Employee

Feedback When Designing an R&R Program (N=23) Collecting Feedback
Because different employee segments have different

78%
80% Other tools used: preferences , organizations should ask employees
§ Feedback already about their preferences for the following:
submitted on the
43% current program § Formal vs. infomal R&R
40% § Market research § Monetary vs. non-monetary R&R
17% 17% § Types of R&R (e.g., length-of-service,
team awards, CEO awards)
§ Activities rewarded/recognized
0% (e.g., comittment to the environment)
Employee Employee Employee Other
§ R&R prizes (e.g., jewelry, trips, plaques)
Survey Focus Advisory
Groups Group / § R&R delivery mechanism (e.g., meeting with
manager, annoucement at ceremony)
Committee
Select R&R Form and Types
Based on the program ’s objectives, employee feedback, and available resources, organizations should select the appropriate R&R form
(i.e., formal, informal, monetary, non-monetary) and type (e.g., service awards, peer awards).
Most Organizations Use All Forms of R&R

Organizations use a combination of formal, informal, monetary, and non-monetary methods to reward/recognize employees.
All organizations use formal methods, and almost all (96%) offer monetary R&R. Slightly fewer organizations leverage non-monetary
methods (85%) and informal R&R (78%). The following figure depicts the prevalence of the four forms of R&R:
Figure 4: Prevalence of R&R Forms (N=27)

Examples of monetary
R&R include cash and
Formal* 100%
gift certificates;
examples of Informal* 78%
non-monetary R&R
Monetary 96%
include plaques and
thank you cards. Non-Monetary 85%
0% 50% 100%
*See page 2 for definitions


Program Design
Select R&R Form and Types (Continued)
Most Organizations Use a Combination of Formal and Informal R&R

Most organizations use both formal and informal methods of R&R, yet vary in degree of use. None of the surveyed organizations use
only informal R&R in their program, and although it would be easiest to ensure that formal R&R is administered consistently across the
organization, only 11% indicate they exclusively use formal R&R. As demonstrated in Figure 5 below, most organizations rely on some
mix of both formal and informal methods of R&R, with the largest percentage (41%), using equal amounts of both. This is likely
because formal R&R is by definition limited to a smaller percentage of high-performing employees, yet organizations realize the
importance of ensuring that all employees feel recognized and appreciated for their contributions.
Figure 5: Extent to Which Organizations’ Programs Use Formal and Informal R&R (N=27)
50%
41%
33%
25%
15%
11%
0%
0%
Entirely Formal Mostly Formal Equal Amounts Mostly Informal Entirely Informal
of Formal and
Informal
Organizations Offer Various Types of R&R

As Figure 6 demonstrates, organizations employ multiple types of R&R, but most frequently offer company celebrations (85%) and spot
awards that require approval from leadership (85%). Few organizations (11%) incorporate a points system in their program in which
employees earn points towards items in a catalogue or spending cards. However, a points system may be a potential solution to the
challenges of ensuring that the program is fair and equitable across locations and that employees are motivated by their prizes. All of
the participants offer at least one of the types of R&R listed below and most offer more than one.
Figure 6: Prevalence of Using Various Types of R&R to Reward/Recognize Employees (N=27)
Participants offer
85% 85% four to five R&R

90% 78%
70% types on average.
56% 52%
45%
15% 11%
0%
Company Spot Awards Ceremonial Ongoing Peer Awards Spot Awards Raffle Prizes Points System
Celebrations that Require Awards Recognition Requiring No
(Annual Parties, Approval from (Dinners, (Birthday Approval
Picnics, etc.) Leadership President’s Celebrations,
(Cash , Tickets, Award, etc.) Thank You
Gifts, etc.) Cards, etc.)


Program Design
Address Global Considerations
International organizations must decide how to administer a program on a global basis. A few major challenges specific to a global
program include deciding whether or not the activities rewarded, the types of R&R offered, and the awards given will be the same
globally. Ensuring that the program is fair and equitable is also difficult, and organizations may consider solutions such as incorporating
local preferences in the program and adjusting monetary awards for different currencies. This section provides benchmark data on how
international organizations approach these challenges.
Challenge #1: Deciding Whether or Not to Reward/Recognize the Same Activities Across All Locations
Organizations with Global Programs Tend to Reward/Recognize Mostly the Same Activities at All of Their Global Locations
As Figure 7 illustrates , 88% of participating organizations reward/recognize mostly the same or entirely the same activities across all of
their global locations . Only 12% of organizations reward/recognize mostly different, or entirely different, activities. In this way,
organizations achieve some level of program consistency across all locations, but may also incorporate any special objectives they
have for particular locations.
Figure 7: Are the Same Activities Rewarded/Recognized All Global Locations? (N=16)
70% 63%
35% 25%
6% 6%
0%
All the Same Mostly the Same Mostly Different All Different
Challenge #2: Deciding Whether or Not to Offer Similar Types of R&R Across All Locations
Organizations with Global Programs Tend to Offer Similar Types of R&R at All of Their Global Locations
Organizations with global programs typically offer the same, or mostly the same, types of R&R (e.g., peer awards) across all of their
global locations . As Figure 8 depicts, 81% of organizations offer mostly the same or entirely the same categories of R&R. Only 19% of
organizations offer categories that are mostly or entirely different. Again, incorporating a few slight differences allows organizations to
ensure their program is globally consistent, yet locally relevant.
Figure 8: Are the Categories of R&R Offered the Same Across All Global Locations? (N=16)
60%
50%
31%
30%
13%
6%
0%


Program Design
Address Global Considerations (Continued)
Challenge #3: Deciding Whether or Not to Give the Same Awards at All Locations
Organizations with Global Programs Tend to Give Similar Awards at All of Their Global Locations
Organizations with global programs typically give the same, or mostly the same, awards across all of their global locations
(i.e., the award given for length-of-service at one location is the same as the award given at another location). As Figure 9 depicts,
69% of organizations give awards that are mostly or entirely the same at all of their global locations. Only 31% of organizations give
awards that are mostly or entirely different. Variation in awards given may be the result of local availability or organizational attempts to
ensure that the program is fair and equitable across locations (i.e., employees in one region and/or country may not value a particular
award as highly as employees in another region and/or country).
Figure 9: Are the Actual Awards Given the Same Across All Global Locations? (N=16)
60%
Percentage of Organization
50%
30% 25%
19%
6%
0%


Program Design
Address Global Considerations (Continued)
Challenge #4: Ensuring the Program is Fair and Equitable Across All Locations
More Than Half of Organizations with Global Programs Incorporate Local and/or Cultural Preferences in Their Programs
Accounting for local and/or cultural preferences not only helps ensure that a global R&R program is fair and equitable across locations,
but also helps ensure that rewards are more personalized, and therefore more meaningful to the recipient. As Figure 10 demonstrates,
most organizations with global programs (69%) incorporate some local and/or cultural preferences in their program. For those
organizations that do, the greatest percentage do so by tailoring the actual award given. Figure 11 below illustrates the prevalence of
incorporating local and/or cultural differences into a portion (or portions) of the R&R program.
Figure 10: Do You Incorporate Local Figure 11: Prevalence of Incorporating Local and/or
and/or Cultural Preferences in Cultural Differences in Different Parts of the R&R Program (N=11)
Your Program? (N=16)
Percentage of Organizations 60% 55%
45%
36%
Yes 27%
30%
69% No
31%
0%
d
tio
n
rde
ve
lec
n
itio
Gi
wa
Se
gn
rd
Re
co
wa
for
ty
Re
lA
tivi
ria
rd/
tua
Ac
ite
wa
Cr
Ac
Re
of
pe
Ty
More Than Half of Organizations Adjust Monetary Awards for Different Currencies
As Figure 12 demonstrates, more than half of organizations with global programs (62%) adjust monetary awards where currencies
differ, helping to ensure the program is fair and equitable across the company. Although many companies do this, a large percentage
(38%) do not adjust monetary awards for different currencies and therefore recipients of the same award receive amounts that are
unequal in value.
Figure 12: Do You Adjust Monetary

Awards for Different Currencies? (N=16)
Yes
No
62%
38%

Program Design & Ownership & Training & Measurement &

Implementation Resources Communication Management
Determine Program Ownership
After deciding what the program should look like, organizations must decide how the program will be managed, which department will
house it, and who will own it to effectively implement the program.
The Majority of Surveyed Organizations Take a Centralized Approach to Managing Their R&R Program
Most organizations (64%) have a program that is managed more by headquarters than by business units or departments; only 20%
have a program managed more at the business unit or department level. This may help organizations ensure that the program is
administered and used consistently across the organization and across all locations. Figure 13 below depicts the prevalence of various
approaches to managing an R&R program.
Figure 13: Approaches to Managing R&R Programs (N=25)

Managing a Global Program
64% of organizations have
50% For those organizations that
44% a program primarily

administered from have a global program (N=16):
20% of organizations have
headquarters a program where decisions § 63% have a program
are made primarily at the primarily administered from
business unit or headquarters
25% 20% department level
16% § 25% have a program where
12% decisions are made primarily
8% at the business unit or
department level
0%
§ 13% have a hybrid model
Centralized Somewhat Hybrid Somewhat Decentralized
Centralized Decentralized
More Organizations House Their R&R Program Within the Compensation Department Than Any Other Department
Half of surveyed organizations (50%) house their R&R program within the compensation department, likely reflecting the view that R&R
is part of the total compensation package. For those that do not, the program is usually housed either within HR more generally, or is
owned by two separate departments. When a program is owned by two departments, one department will likely administer some
portions of the program (e.g., service awards) and another department will administer others (e.g., performance awards). Figure 14
below illustrates the prevalence of ownership by various departments.
Figure 14: Departments Within Which Organizations House Portions of the R&R Program (N=26)
Other functions that may have ownership over

portions of the program:
§ Benefits
60% § Corporate Communications and Marketing
50%
§ Finance
§ Organizational & Staff Development
§ Various Business Units
30%
15%
12% 12%
8%
4%
0%
Compensation HR Compensation Another Compensation HR and
and Another Function and HR Another
Function Function


Determine Program Ownership (Continued)
Most Organizations Have a Position or Team At Headquarters That Manages Their R&R Program
As Figure 15 depicts, most organizations (93%) have a designated position or team at headquarters that owns their program ,
which may help ensure accountability for R&R, as well as program consistency. HR generalists, line managers, and coordinators at the
local or business unit level also have partial ownership over the program at some organizations. For those companies that have more
than one employee at headquarters managing their program , the average number of staff dedicated to that team is 4.85 people.
Moreover, larger organizations do not necessary have larger teams; a few of the smaller organizations in our sample have the greatest
number of employees at headquarters dedicated to R&R.
Figure 15: Prevalence of Some R&R Ownership by Various Parties (N=27)
The average team or staff Other groups that may have ownership
size at headquarters is over portions of the program:
4.85 people (N=10). § Departmental Administrative
Assistants
60% 56%
§ Executive Assistants
§ Local Coordinators
37% § OD Leaders
30% 22%
11% 11%
0%
Designated Designated HR Generalists Line Managers Some Other
Team or Staff Position at That Work with Group
at Headquarters the Line
Headquarters


Allocate Resources
After establishing program ownership, organizations must determine spending levels for the program and decide where the budget for
the program will come from (e.g., corporate budget, department budget, chargeback to department).
Organizations Spend Less Than 1% of Payroll on R&R

Organizations must allocate enough resources to fund the various elements of their program, including awards , administration,
communication, and measurement. On average, surveyed organizations spend 0.62% of payroll on R&R annually. Per employee, they
spend approximately $297.67 annually in U.S. dollars. Those organizations that spend higher amounts on R&R may be leveraging
their program as a larger component of their overall compensation strategy, making tradeoffs between R&R, base pay, bonuses, etc.
Figure 16 below depicts the percent of payroll that several of the participants spend on R&R and also details how much a few of the
participants spend on R&R annually per employee in U.S. dollars.
Figure 16: Resources Spent on R&R Annually
Percent of Payroll Spent

on R&R Total and By Category
Total (N=10) Reward (N=10) Recognition (N=3)
Average: 0.62% Average: 0.50% Average: 0.51%
Range: 0.03%–1.0% Range: 0.03%–1.5% Range: 0.03%–1.0%
Amount Spent on R&R

Per Employee in U.S. Dollars (N=6)
Average: $297.67
Range: $125–$518
Most Organizations’ R&R Budget Comes Either Entirely From the Corporate Budget or Entirely From the Line Unit or
Department Budget
More than half of organizations (59%) indicate that there is not shared budget responsibility for their R&R program; budget comes either
entirely from the corporate budget, or entirely from the line unit or department budget. Such an arrangement may be designed for
convenience, or may reflect differing philosophies on R&R. Although it is less common for organizations to split the budget between the
corporate and department budgets , approximately 28% of organizations split the costs in this way. Figure 17 below illustrates the
prevalence of allocating R&R program budget from different sources at the participating organizations.
Figure 17: Source of R&R Budget at the Participating Organizations (N=22)
40%
32%
27%
20%
14% 14%
9%
5%
0%
Entirely Mostly Half Corporate Mostly Line Unit Entirely Line Mostly or All
Corporate Corporate and Line Unit or or Department Unit or Chargeback to
Department Department Line Unit or
Department


Decide Whether or Not to Engage a Vendor
While assigning program ownership and allocating resources, organizations may decide to engage a vendor to support a portion of their
program. Major challenges with implementing an R&R program that might necessitate the use of a vendor include infrastructure
support (e.g., electronic nomination and tracking software) and providing awards and recognition cards, such as thank you cards.
However, some organizations also use a vendor to design their entire R&R program.
Most Organizations Use a Vendor to Support their R&R Program

Since organizations may not have the proper infrastructure in place to implement an R&R program, and most likely do not produce
employee awards themselves, the majority of surveyed organizations (74%) use a vendor to support some portion of their R&R
program. As Figure 18 demonstrates, approximately one-quarter of organizations (26%) house all aspects of R&R within the
organization. A sample list of the vendors participants use in conjunction with their R&R program is also included below.
Figure 18: Do You Use a Vendor to Support a Vendors Used by Participants for Some Portion of Their R&R Program
Portion of Your R&R Program? (N=27)
§ American Express § Hewitt Associates
§ Birkenstock § Journeymasters
§ Custom Design Marketing § Kreyer Associates
§ Excellence in Motion § OC Tanner
Yes § Geiger Bros. § Rideau Recognition Solutions
No
74% § Giftcertificates.com § Springbok Services
26%
§ Globoforce § Strategic Meetings
§ Grass Roots Solutions
§ Hallmark Insights
Organizations Most Frequently Engage a Vendor for Reward Packages and Thank You/Recognition Cards
Although there is no one step in the process for which the majority of organizations engage a vendor, organizations most frequently
engage a vendor to create reward packages (40%), such as trips or tickets, and thank you/recognition cards (40%), as these are
difficult to create internally, but are likely to be a part of most programs. Although most organizations do not engage a vendor to
develop electronic approval software, a points system, or electronic tracking software, this may be because they are not using these at
all. Figure 19 below depicts the prevalence of engaging a vendor for different portions of the R&R process.
Figure 19: Portions of the Process for Which Organizations Engage a Vendor (N=20)
50%
Organizations may
40% 40% also engage a vendor

35% to provide small gifts.
25% 25% 25% 25%

25% 20%
0%
Reward Thank You / Electronic Electronic Other Points Program Electronic
Packages Recognition Nomination Tracking System Design Approval
Cards Software Software Software


Train Managers on the Program
After determining program ownership and allocating resources, organizations must effectively communicate the program ; even the b est
designed program will have m inimal impact unless it is well communicated. Since managers play a key role in employee
communications, it is important to train them on the program so they can effectively relay messages about the program to employees.
Also, if managers understand the drivers behind the program, they will be more likely to engage employees in the process.
Organizations Most Frequently Train Managers on the Reasons for the Program and Their Role in Executing It
As Figure 20 demonstrates, more than half of organizations (65%) train managers on some aspect of the R&R program. In fact, of
those organizations that provide some type of training, 100% train managers on the reasons for the program. Organizations also
frequently train managers on their role in the program and how to communicate the program. This helps organizations ensure that
managers understand the program and can effectively reinforce and promote it. Figure 21 below depicts the frequency with which
organizations train managers on various aspects of the R&R program .
Figure 20: Do You Train Managers on Some Figure 21: Aspects of the Program for Which
Aspect of Your R&R Program? (N=26) Organizations Provide Managers with Training (N=17)
100%
100% 88%
76%
65%
47%
Yes 50%
No
65%
35%
0%
Reasons for Their Role in How to How to How
the Program the Program Communicate Reward / Frequently to
the Program Recognize Reward /
Effectively Recognize
Involve Senior Leadership in Communications
Involving senior leadership in program communciations demonstrates organizational commitment to the program and reinforces the
importance of engaging in behaviors and activities that are rewarded/recognized.
Leadership is Most Frequently Involved in Program Communications by Announcing the Program and Award Recipients
Eighty-five percent of organizations involve senior leadership in the communication of their R&R program , and of those that do,
leadership is typically involved in announcing the program (74%) and announcing award recipients (70%). Less than half of
organizations (43%) engage senior leadership in reminding employees to use the program , most likely due to the time it would require.
Figure 22 depicts the prevalence of including senior leadership in different parts of the communication process.
Figure 22: Prevalence of Including Senior Leadership

in Different Parts of the Communication Process (N=23)
80% 74%
70% Senior leadership may be
guests of honor at annual
ceremonies or involved in
43% department level programs.
40%
13%
0%
Announcing the Announcing Reminding Other
Program Award Employees to
Recipients Use the Program


Decide How Frequently to Send Communications
When crafting R&R communications, organizations must decide how frequently to send employees messages about the program.
Inconconsisent or infrequent communications may reduce perceived organizational commitment to the program, or fail to remind
employees often enough to foster commitment to the program.
Most Organizations Send Employees Formal Messages About Their R&R Programs Either Quarterly or Annually
Most organizations (80%) send formal messages (e.g., send e-mails, have information sessions) about their program to employees
either quarterly or annually. Those organizations that send messages to employees annually may not be fully leveraging
communications to promote the program and reinforce the behaviors that they seek to encourage. Although organizations should avoid
sending R&R messages so frequently that they are considered spam, they must send communciations frequently enough to
demonstrate commitment to the program. Figure 23 below illustrates the frequency with which organizations send employees formal
messages about their program.
Figure 23: Frequency with Which Organizations Send Employees

Formal Messages About Their R&R Programs (N=20)
80% of organizations send

formal messages either
quarterly or annually
50% 45%
35%
25%
15%
5%
0%
0%
Weekly Monthly Quarterly Annually Varies


Select Communication Channels
Organizations must select the channels they will use to communicate the program and to communicate that an award has been given,
balancing the ease of using technology-based mass communications with the impact of using more personal, live channels.
Organizations Leverage Less Resource-Intensive Mass Communications to Communicate their Program

To communicate their program to employees, organizations rely on less resource-intensive channels that allow for widespread
communications, often involving mass-customizable technology. For example, as Figure 24 demonstrates, organizations most
frequently leverage the company intranet and organization-wide e-mails , which are easily-customized and reach a large number of
employees. Of the written and live channels, organizations most often select those channels that have the widest impact and involve
little resource investment, such as department-led information sessions and the company newsletter.
Figure 24: Prevalence of Using Different Channels to Communicate the Program (N=27)
Live Channels
Manager-Led Information Sessions 30%
Public Announcements at Meetings 33%
Department-Led Information Sessions 44%
Mail 15%
Written Channels
Posters 26%
Notices on Bulletin Boards 37%
Organizations tend to use

Company Newsletter 44%
low -resource channels that reach
the greatest number of employees
to communicate their program,
Technology-Based Channels
such as the company intranet and

company-wide e-mails.
Podcasts 7%
Organization-Wide E-mails 63%
Company Intranet 96%
Other (Combination of Channels or It Varies) 15%
0% 50% 100%


Select Communication Channels (Continued)
Organizations are More Likely to Use Live Channels to Communicate the Presentation of an Award
The most common method for communicating the presentation of an award is the company intranet. However, as Figure 25
demonstrates, other written and technology-based channels are used less frequently during this phase as compared with the initial
program communication (see Figure 24). Relying more heavily on personal, live communication channels to communicate that an
award has been given allows organizations to demonstrate commitment to the program by investing time and resources in it. Personal
interactions also allow for more elaboration on the meaning and influence of recipients’ actions.
Figure 25: Prevalence of Using Different Communication Channels to Communicate That an Award Has Been Given (N=27)
Live Channels
Public Announcements at Meetings 37%

Live channels are used more
frequently to communicate
Department-Led Information Sessions 37% that an award has been
given than during initial
program communication.
Manager-Led Information Sessions 41%
Mail 7%
Written Channels
Posters 7%
Notices on Bulletin Boards 7% Mass communication

channels are used less
frequently to communicate
Company Newsletter 37% that an award has been
given than during initial
program communication.
Technology-Based Channels
Podcasts 0%
Organization-Wide E-mails 33%
Company Intranet 59%
Other (Combination of Channels or It Varies) 30%
0% 30% 60%


Select a Method to Ensure that Employees Are Rewarded/Recognized
Organizations may select a mechanism (e.g., a centralized tracking system) to ensure that the program is properly utilized and that
employees are rewarded/recognized. This is especially appropriate for global organizations where awards are administered at the local
level, or in situations where leadership does not approve and administer all awards.
Organizations Most Frequently Conduct Surveys to Ensure Employees are Figure 26: Do You Have a Mechanism
Rewarded/Recognized for Ensuring that Employees Are
As Figure 26 demonstrates, most organizations (78%) have at least one method of Rewarded/Recognized? (N=27)
ensuring that employees are rewarded/recognized, and most frequently employ an
engagement survey. Such surveys not only indicate the extent of program use, but how
meaningful and effective the program is as well. As Figure 27 demonstrates, other Yes No
common methods for ensuring that employees are rewarded/recognized include asking 78% 22%
managers to share the ways they reward and recognize employees and using a
centralized tracking system.
Figure 27: Methods Used by Organizations to Ensure Employees are Reward/Recognized (N=21)
80% 71%
Other methods used:
62% § HRBPs remind managers
57% § Leadership takes responsibility
§ Track nominations
38%
40%
24%
14%
0%
Conduct an Ask Managers Use a All Dedicated Other R&R is Part of
Engagement to Share How Centralized Funds Must be Managers’
Survey They Reward / Tracking System Used Within a Competencies /
Recognize Certain Amount Performance
of Time Review
More Than Half of Organizations Track Who is Rewarded/Recognized

Although tracking which employees have been rewarded/recognized does not provide Percentage of Workforce
insight into whether the program is achieving objectives, it does help organizations ensure Rewarded/Recognized Annually
that they impact enough employees to make the program meaningful. Since employees
On average, surveyed organizations
must believe that they are eligible for R&R to be engaged in the program, organizations
reward/recognize 34.25% of
should use a tracking mechanism to ensure they reward/recognize enough employees.
employees annually with their
Most organizations (88%, N=26), track which employees have been rewarded/recognized
centrally managed program (N=12).
for at least some of the rewards and recognition they give.


Measure the Results of the Program
To ensure that the program achieves strategic business objectives, organizations should measure the results of their R&R program
using metrics aligned with program objectives. Below is a list of a few program objectives, paired with sample measures of success:
Program Objectives Measures of Success
§ Create a more positive work environment § Employee surveys indicate that the work environment
has become more positive as a result of the program
§ Decrease employee turnover
§ Turnover has decreased since the program’s inception
§ Improve the organization’s reputation in the external
labor market § The organization moved up in “Employer of Choice”
rankings
§ Reinforce the importance of on-the-job s afety
§ There have been fewer on-the-job accidents since the
program’s inception
Most Organizations that Measure the Results of Their Program Gauge Employee Figure 28: Do You Measure the
Satisfaction and Engagement Results of Your R&R Program? (N=27)
As Figure 28 demonstrates, more than half of organizations (63%) measure the results
of their R&R program. Those that do so most frequently measure employee satisfaction
and engagement to gauge program results (94%). Figure 29 below illustrates the
Yes No
prevalence of using a certain method (or methods) to measure the results of the 63% 37%
program. However, as mentioned above, organizations should select and track metrics
that align with program objectives (e.g., employee retention, number of on-the-job
accidents).
Figure 29: Prevalence of Using a Certain Method (or Methods)

to Measure the Results of the Program (N=17)
100% 94%
Other methods used:

§ Employee participation in the
program via number of
nominations
§ Points awarded
50% § Redemption of points for prizes
29%
18%
12%
0%
Employee Employee Employee Other
Satisfaction / Retention Productivity
Engagement


Collect Employee Feedback to Continually Improve the Program
Since employees must be engaged in the R&R program for it to be successful, organizations should continually gather employee
feedback on the program to assess program effectiveness and identify areas for improvement.
Less than Half of Organizations Solicit Employee Feedback on Their R&R Program Figure 30: Do You Solicit Employee
As Figure 30 demonstrates, less than half of organizations (41%) collect employee Feedback on Your R&R Program? (N=27)
feedback on their program. However, such feedback may be leveraged to improve the
program by pinpointing problem areas (e.g., employees do not know enough about the
program, employees are not motivated by the awards themselves, employees would prefer
No Yes
more informal recognition). Organizations may use the following tools to collect employee
59% 41%
feeback:
§ Focus Groups
§ Interviews
§ Surveys

APPENDIX: P ROFILE OF R ESEARCH P ARTICIPANTS
The graphs below depict the industry, revenue size, and employee size of the 27 participants.
Industry of Participating Organizations Regions in Which Participating

Organizations Have an R&R Program
Schools & Educational Telecommunications, Consumer Products, Global, Including

Services, 11% 11% 4%
North America,
Biotechnology, 4% 59%
Retail, 4%
Professional
Services, Energy and Utilities, 4%
4%
Financial
Pharmaceutical, 7% Services, 21%
High-Tech, 19% Health Care, 7% North America

Heavy Manufacturing, Only, 41%
4%
Employee Size of Participating Organizations Revenue Size of Participating Organizations
Over 100,000, 7% Over $10 billion, 33% $500 million–

50,000–100,000, 19%
$2 billion, 11%
2,000–10,000, 30%
$5 billion–$10 billion,
10,000–50,000, 44% 15%
$2 billion–$5 billion,
41%

NOTE TO MEMBERS: This project was researched and written to fulfill the research request of several members of the
Corporate Executive Board and as a result may not satisfy the information needs of all member companies. The
Corporate Executive Board encourages members who have additional questions about this topic to contact their research
manager for further discussion. The views expressed herein by third-party sources do not necessarily reflect the policies
of the organizations they represent.
PROFESSIONAL SERVICES NOTE: The Corporate Leadership Council (CLC®) has worked to ensure the accuracy of
the information it provides to its members. This project relies upon data obtained from many sources, however, and the
CLC cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the CLC is not engaged in
rendering legal, accounting, or other professional services. Its projects should not be construed as professional advice on
any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate
professional. Neither Corporate Executive Board nor its programs are responsible for any claims or losses that may arise
from any errors or omissions in their reports, whether caused by Corporate Executive Board or its sources.

CLC Bench Marking Reward and Recognition Programs

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

CLC Bench Marking Reward and Recognition Programs

Diunggah oleh

Hak Cipta:

Format Tersedia

CORPORATE LEADERSHIP COUNCIL ® MAY 2008

BENCHMARKING REWARD AND RECOGNITION PROGRAMS

D EFINITIONS AND S COPE OF R ESEARCH

 2008 Corporate Executive Board. All Rights Reserved.

PHASE 1: PROGRAM DESIGN PHASE 2: OWNERSHIP & RESOURCES

PHASE 4: M ANAGEMENT AND MEASUREMENT PHASE 3: TRAINING AND COMMUNICATION

Action Steps and Key Findings

 2008 Corporate Executive Board. All Rights Reserved.

Ownership & Training & Measurement &

Select Activities and Behaviors to Reward/Recognize

Organizations Most Frequently Recognize Length-of-Service

Figure 1: Prevalence of Recognizing Various Activities and Behaviors (N=27)

Organizations Most Frequently Reward Individual Excellence in Role and Innovation

Figure 2: Prevalence of Rewarding Various Activities and Behaviors (N=27)

80% 74% 74%

 2008 Corporate Executive Board. All Rights Reserved.

Ownership & Training & Measurement &

Incorporate Employee Feedback

Figure 3: Methods for Collecting Employee

Because different employee segments have different

Select R&R Form and Types

Most Organizations Use All Forms of R&R

Figure 4: Prevalence of R&R Forms (N=27)

 2008 Corporate Executive Board. All Rights Reserved.

Ownership & Training & Measurement &

Select R&R Form and Types (Continued)

Most Organizations Use a Combination of Formal and Informal R&R

Organizations Offer Various Types of R&R

Figure 6: Prevalence of Using Various Types of R&R to Reward/Recognize Employees (N=27)

85% 85% four to five R&R

 2008 Corporate Executive Board. All Rights Reserved.

Ownership & Training & Measurement &

Address Global Considerations

 2008 Corporate Executive Board. All Rights Reserved.

Ownership & Training & Measurement &

Address Global Considerations (Continued)

 2008 Corporate Executive Board. All Rights Reserved.

Ownership & Training & Measurement &

Address Global Considerations (Continued)

Figure 12: Do You Adjust Monetary

 2008 Corporate Executive Board. All Rights Reserved.

Program Design & Ownership & Training & Measurement &

Determine Program Ownership

Figure 13: Approaches to Managing R&R Programs (N=25)

44% a program primarily

Other functions that may have ownership over

 2008 Corporate Executive Board. All Rights Reserved.

Program Design & Ownership & Training & Measurement &

Determine Program Ownership (Continued)

Figure 15: Prevalence of Some R&R Ownership by Various Parties (N=27)

 2008 Corporate Executive Board. All Rights Reserved.

Program Design & Ownership & Training & Measurement &

Organizations Spend Less Than 1% of Payroll on R&R

Figure 16: Resources Spent on R&R Annually

Percent of Payroll Spent

Amount Spent on R&R

Figure 17: Source of R&R Budget at the Participating Organizations (N=22)

 2008 Corporate Executive Board. All Rights Reserved.

Program Design & Ownership & Training & Measurement &

Decide Whether or Not to Engage a Vendor

Most Organizations Use a Vendor to Support their R&R Program

40% 40% also engage a vendor

25% 25% 25% 25%