Total Rewards and Motivation: Mistakes, Myths and What’s Working

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  Total Rewards and Motivation: Mistakes, Myths and What’s Working. Laura Wolfe April 27, 2012 - LA SHRM. Objectives. 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. Big Picture.
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Total Rewards and Motivation: Mistakes, Myths and What’s WorkingLaura WolfeApril 27, 2012 - LA SHRMWhen you’re ready to grow, I’m the one to know.www.CultivateCC.comObjectives
  • 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
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comBig PictureWhen you’re ready to grow, I’m the one to know.www.CultivateCC.comTotal Rewards
  • monetary & nonmonetary rewards companies use to attract, motivate and retain employees
  • more than comp & benefits
  • a philosophy
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comFoundational Stuff
  • Behaviorism
  • Law of Effect
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comEquityInputs/OutcomesWhen you’re ready to grow, I’m the one to know.www.CultivateCC.comEquity
  • External
  • Labor markets
  • Market conditions
  • Internal
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comOrg Justice
  • Distributive
  • Procedural
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comDiscussion
  • Best thing a company has ever done to motivate you?
  • Is your company using incentive pay plans?
  • How are they working?
  • Effective recognition programs?
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comIs money the best and ultimate motivator?When you’re ready to grow, I’m the one to know.www.CultivateCC.comResearch
  • Teresa Amabile and Steven Kramer
  • Book: The Progress Principle
  • Support workers’ everyday progress
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResearch
  • Carol Dweck
  • Book: Mindset
  • Fixed or growth?
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResearch
  • Dan Pink
  • Book: Drive
  • Autonomy, Mastery, Purpose
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comwww.idonethis.comWhen you’re ready to grow, I’m the one to know.www.CultivateCC.comEmpowerment
  • Empowered employees:
  • Felt worthy, competent, capable
  • Performed better, more innovative, more job satisfaction, greater commitment, more OCB
  • Related:
  • flexible work hours
  • vacation policies (Netflix)
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comHappiness
  • Frequency, not intensity, of happy experiences more important to creating happiness
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comIncentives
  • Economy a factor
  • Shifts
  • Technology
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comIncentives & 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
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comSales Compensation
  • Proportion of incentive to base
  • Engage others in design process
  • Communication
  • Technology
  • Planning
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.com10 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
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.com10 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
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comExecutive Compensation
  • CEO pay and performance
  • Significant yet modest relationship
  • Executive boards dynamically adjust current pay according to historical performance
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comExecutive Compensation
  • Top Mgt Team turnover impacted by pay dispersion
  • > the pay differences > likelihood of turnover
  • Market pay levels and “cut” of total TMT also influence turnover decisions
  • NBA example ?
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comMerit Pay
  • Advantages
  • reward key talent
  • once or recurring
  • nudges poor performers
  • Disadvantages
  • difficult to measure performance
  • good systems take resources
  • divisive
  • communication
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comBefore 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
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comReward Behaviors, Not Just ResultsWhen you’re ready to grow, I’m the one to know.www.CultivateCC.comPoint-based Rewards
  • Medical center example
  • Points earned by using shift-scheduling software and for working shifts
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comRecognition “Attention is a powerful nutrient. It amplifies and accelerates the situations on which it is focused.”--Martha BeckWhen you’re ready to grow, I’m the one to know.www.CultivateCC.comWorkplace 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 don’t feel like they are recognized
  • Office Team Survey
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comRecognition Blunders
  • Acknowledging incorrect facts
  • Offering token gestures
  • Being vague
  • Going overboard
  • Overlooking contributors
  • Office Team Survey
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comPraise
  • For effort or for ability?
  • When not to use it.
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comBest practicesFORTUNE 100 Best Companies to Work ForWhen you’re ready to grow, I’m the one to know.www.CultivateCC.comBest PracticesZapposWhen you’re ready to grow, I’m the one to know.www.CultivateCC.comBest Practices
  • Discovery Communications
  • Sprint
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comMoving toward Total Rewards
  • Meeting with Leaders
  • Permission to align rewards with strategy
  • Ask for any resources needed to get the project going
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comGood Data
  • Data based planning
  • Metrics and benchmarking
  • The big ?
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comBenchmark & Metric Data
  • SHRM
  • Saratoga Institute
  • WorldatWork
  • Consulting firms
  • Mercer, Hewitt, Hay, Towers Perrin, Watson Wyatt Worldwide
  • Professional associations
  • In-house pay surveys
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comHR Metrics for CompensationWhen you’re ready to grow, I’m the one to know.www.CultivateCC.comMetric 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 When you’re ready to grow, I’m the one to know.www.CultivateCC.comMetric Options for Variable Pay
  • Sales Programs
  • Increase in market share
  • Customer acquisition rate
  • Growth of existing customer sales
  • Customer satisfaction
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comMetric Options for Variable Pay
  • HR Related Program Measures
  • Employee satisfaction
  • Turnover costs
  • Absenteeism cost
  • Workers’ comp claims
  • Accident rates
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comCost and ROI of
  • Health and wellness benefits
  • Wellness programs
  • Recognition programs
  • EAPs
  • Retirement plans
  • Time-off programs
  • Stock purchase
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comAlignment Strategic Goals & Objectives
  • Compensation is not an HR program
  • Org owns compensation
  • Appropriate mix of total reward elements
  • Profit sharing – Nucor Steel
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comAlignmentValues
  • Employee Value Proposition
  • Rewarding what is valued
  • Values=culture=strategy
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comKeys
  • Communication
  • Personalize
  • Win over family when possible
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comQuestions ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????When you’re ready to grow, I’m the one to know.www.CultivateCC.comResourcesDan Pink
  • RSA Animate - Drive: The surprising truth about what motivates us
  • http://www.youtube.com/watch?v=u6XAPnuFjJc
  • Drive: The Surprising Truth About What Motivates Us, Riverhead Books, 2009, by Dan Pink
  • Twitter: @DanPink
  • http://www.danpink.com/
  • http://idonethis.com/
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResourceswebsites & 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/
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResourceswebinar
  • SHRM e-learning webinar
  • Aligning Your Compensation Strategy with Business Priorities byStacey R. Carroll, SPHR, Director of Customer Service & Education, PayScale, Seattle, Wash.
  • 1.5 strategic CE credit
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResourcesThe Startup Daily
  • Play to Your Strengths
  • http://thestartupdaily.com/2012/02/play-to-your-strengths/
  • Why Do You Do What You Do?
  • http://thestartupdaily.com/2012/02/why-do-you-do-what-you-do/
  • The Magic of the Mundane
  • http://thestartupdaily.com/2012/02/the-magic-of-the-mundane/
  • The Cost of Focusing on Results
  • http://thestartupdaily.com/2011/09/the-cost-of-focusing-on-results/
  • Benefit from the Success of Others
  • http://thestartupdaily.com/2012/02/benefit-from-the-success-of-others/
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResourcesonline articles
  • The Secret Document That Transformed China
  • http://www.npr.org/blogs/money/2012/01/20/145360447/the-secret-document-that-transformed-china
  • Best Ways to Recognize Employees
  • http://www.toiletpaperentrepreneur.com/the-right-actions/ways-give-employee-recognition/
  • The Folly of Stretch Goals
  • http://blogs.hbr.org/cs/2012/04/the_folly_of_stretch_goals.html
  • How to Set Your Employees Free: Reed Hastings
  • http://www.businessweek.com/articles/2012-04-12/how-to-set-your-employees-free-reed-hastings
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResourcesInc. Magazine onlineResourcesInc. Magazine online
  • Why Flexible Hours Inspire Performance
  • http://www.inc.com/margaret-heffernan/why-flexible-hours-inspire-achievement.html
  • Now’s 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-superstar-when-you-have-little-to-offer.html
  • Why Flexible Hours Inspire Performance
  • http://www.inc.com/margaret-heffernan/why-flexible-hours-inspire-achievement.html
  • Now’s 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-superstar-when-you-have-little-to-offer.html
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResourcesHR Daily Adviser
  • 10 Incentive Design Mistakes
  • http://compensationdailyadvisor.blr.com/?p=2001?source=CDA&effort=11
  • http://compensationdailyadvisor.blr.com/2012/01/10-dogooder-acts-that-drive-good-salespeople-to-the-competition/#
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResources100 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-companies/
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResourcesHR 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
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResourcesBooks
  • 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
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.comResourcesBooks
  • 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
  • When you’re ready to grow, I’m the one to know.www.CultivateCC.com
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