7 out of 10 Americans say work unrecognized!

Posted by Curt Denevan:


MAJORITY OF AMERICANS “NOT FEELING THE LOVE” WHEN IT COMES
TO RECOGNITION BY EMPLOYERS, COMMUNITY GROUPS AND OTHERS

GLENVIEW, Ill. (Aug. 20, 2011) – When it comes to getting recognized for
their personal efforts, whether at work, helping others in their community or
volunteering, almost 7 out of 10 Americans say their work goes widely
unrecognized.

According to a 2011 survey of 1,000 Americans, fielded by TNS
Worldwide and the Awards and Recognition Association
(www.recognitionisrewarding.com) this summer, 69 percent of Americans have
not been recognized for personal efforts in the past year—either through work,
civic or volunteer programs.  
“It’s no secret that given the current economy employees are being asked
to do more and more, and community organizations are stretched thin of
volunteers so it’s surprising that companies and groups aren’t taking time to say
“thank you” to those working hard,” said Louise Ristau, executive director of
ARA, the industry organization promoting recognition.

According to Ristau, it doesn’t take a lot of time or money to implement a
recognition program, just a little effort.
“Taking notice of those around us giving extra effort and making a
difference, can be one of the easiest things we can do—from writing a note,
giving a pat on the back, or creating an award,“ she said.
Ristau and the team of experts at Recognition is Rewarding.com, the
Association’s recognition group, recommend starting with simple gestures that
can infuse positive energy and help boost morale.
“Recognition is something we can do regardless of the status of the
economy, which is particularly important when employers aren’t able to provide
staff with raises and bonuses,” she said.

GOOD DEEDS GO UNNOTICED—ADD ONE
Recognize, Reward, Repeat
The ARA has five tips for employers to start their own program to
recognize their employees.  All are designed to develop recognition that is
equally powerful for both the organization and the employee.  Tips include:

1. Make sure all employees must be eligible for the recognition. 
2. Be sure that both employers and employees have specific information about what behaviors or actions are being rewarded or recognized. 
3. Ensure that anyone who performs at the level or standard stated in the criteria receives the award. 
4. Take steps to recognize all honorees as close to the performance of the actions as possible so the recognition reinforces behavior the employer or organization wants to encourage. 
5. Be impartial.  Don’t design a process in which managers “select” the people to recognition.  This type of process will forever be viewed as “favoritism” or talked about as “It’s your turn to get recognized this month.” 

According to Ristau, another key to successful recognition is selecting the
most appropriate kind of award. Tangible, public awards are proven to be the
most effective, better than money or other means, to honor performance and
achievement, she said.
  Questions to ask when considering what type of award to use include:

• Does it represent what was accomplished? 
• Is it attractive enough to wear or keep at home or in the office? 
• Is it consistent with the purpose and image of the organization and/or accomplishment? 
• Is it right for the level of representative of the importance of the  achievement? 
• Is it in line with the budget/effort? 
• Is the award well-crafted from high quality/affordable materials? 

For additional guidelines for award program, visit www.rcbawards.com.

About the Awards and Recognition Association:
The Awards and Recognition Association (www.ara.org), an organization of
nearly 3,000 member companies dedicated to increasing the awareness of the
value and significance of awards and recognition programs.

Trends in Corporate Awards 2012

Posted by Curt Denevan:

Do you have a recognition program in your company? In May of 2011, World At Work-the Total Rewards Association, reported that 86% of companies have recognition programs in place. The average percent of payroll budgeted for recognition is at 2%, down from 2.7% in 2008, but still significant. Recognition programs for these companies boost employee satisfaction (71%), motivation (66%) and engagement (64%).  Awards for length of service are still the most prevalent, but more and more we are seeing companies using awards for “above and beyond” performance recognition (79%). The survey indicates that companies are opting in for programs that can have a more direct impact on their bottom line. That includes consideration of such things as engagement which leads to commitment and loyalty.

Trends in the awards industry show a tendency to continue or strengthen annual or quarterly award programs. There is a tendency toward centralization of awards purchases as buying decisions are increasingly made by the corporate office rather than individual departments.  Demand for awards is increasing according to those in the industry. More companies are working on custom awards, something unique to the marketplace, which only their company will have.  Corporations seem to be ordering more than they have in the past. They want to make sure their employees are recognized. Raises and promotions may not be as prevalent-or even possible. There is a tendency to try to motivate people to do more. When the economy isn’t all that great and sales may be down, recognition tends to be an economical way to boost sales activity.

Another interesting trend is a movement away from plaques and toward glass and crystal awards.  As companies look for something new and exciting to present, they are looking for awards that will be cubicle friendly. Corporate customers are looking for awards that look really classy, are personal in nature, and many cases, let the inscription or etching design carry the award. This allows the artistry of the award designer to become more valuable than the award itself. 

For more information, see RCB Awards.

Call 1-800-929-9110

Guidelines for Award Presenters

Posted by Curt Denevan: 
Do you have to make an award presentation and want some suggestions on how to make a positive impact?

I. Use the following suggestions to help you convey an appropriate message of recognition:

• Be personal; be yourself; be sincere.
• Everybody feels they've contributed something; given a little thought you can bring this out.
• What may seem like a chore can be a very big thing for the recipient; you can make it bigger!

II. Make it a positive, cheerful occasion that evokes a feeling of emotion and acceptance from the recipient:

• Pick a time that avoids unusual stress or time limitations. Be spontaneous.
• Do it in a place away from the operations of the job.
• Invite friends and associates who know the recipient well.
• Talk to the recipient in a personal way that's comfortable for you, yet shows an understanding of the recipients feelings. 

III. Try to include contributions to the immediate department goals such as:

• Suggestions employee made in improving department operation and performance.
• Extra time given to finish a job or keep on top of on-going workload.
• A good attitude that makes fellow workers feel like part of the team.

IV. Talk about things that have happened during the employee's years with the company such as:

• The Company's growth, new products, new equipment, new people.
• The individual's performance as related to skills developed, promotions earned, other awards received.
• Community activities, special events, or growth activities in the community.

V. Use information available within the Company:

• Personnel departments usually have company and community events information you may not have about the recipient.
• Fellow workers might know personal stories about the recipient. You can probably also think of a few ideas from your own personal relationship.
• Family or spouse are good sources of information to off the job interests and activities.

VI. Talk about the future of the individual and company (in a one on one presentation), and how they should continue together:

• Find out the employee's goals and ambitions.
• Talk about how the employee can contribute to company's future growth and development.
• Tell how the recipient can help with future department objectives.

For more information about corporate recognition programs, see the website: Corporate Recognition Programs.

Formal vs Informal Recognition

Research shows companies find a balance of formal and informal recognition is an effective way of keeping employees motivated and happy.  According to Greg Boswell, OC Tanner Recognition Company, the move to make informal recognition part of a corporate recognition strategy has been due in part to companies that are working to improve employee retention. In a study conducted by Robert Half International, 47 percent of executives surveyed said that recognition and praise were the most important factors in keeping an employee satisfied.  However, it’s often through formal programs such as career achievement or employee service awards, management can implement communication tools and effective training with the power to impact the entire company. “Formal recognition has the unique potential to tie every employee’s achievements to a company’s values and business goals,” said Boswell. “With ongoing formal recognition as a foundation, informal programs can be added to encourage spontaneous appreciation."

Regardless of the size of the company and the scope of the work, all employees deserve the chance to be acknowledged for their contribution to the success of a company. It’s clearly a win-win situation for business, when people feel valued, they feel better and they perform better.  Not to mention how good it feels to be the giver.

For more information, contact RCB Awards at 800-929-9110.

Taxes and Incentives: What's the Law?

Taxes and Incentives

Section 274(j) of the Internal Revenue Code, enacted by the Tax Reform Act of 1986, provides, in general, that an employer may deduct the cost of employee achievement awards given to the same employee up to $400.00 in any year.

If the incentive awards are employee achievement awards made under one or established written plans or programs of the employer, the $400 deduction limitation is increased to $1,600.00 per employee.

Under Code section 74(c), however, the same awards are not included in the income of the employee. In addition to being excluded from the employee's taxable income, the employee achievement awards are also excludable for employment tax purposes as well as from the social security benefit base. The employer must report on the employee's form W-2 as wages or compensation any portion of the employee achievement awards that is included in the employee's income. This amount is also treated accordingly for all other tax purposes (including social security tax).

In order to qualify for this favorable tax treatment, an incentive award must be an "employee achievement award," that is, it must be an item of "tangible personal property" transferred by an employer to an employee for safety achievement or length of service. Moreover, the award must be given as part of a meaningful presentation and cannot be the payment of disguised compensation to the employee. Thus, for example, an incentive award will not qualify for favorable tax treatment if it is given at the same time that annual salary adjustments are made, or if it's used as a substitute for a program of awarding cash bonuses. Code section 274(j)(3)(A).

There is very little guidance issued by the Internal Revenue Service ("IRS") on employee achievement (incentive) awards. In the absence of such authority, taxpayers have had to rely on the General Explanation of the Tax Reform Act of 1986, Joint Committee on Taxation (JCS-10-87), commonly referred to as the "Blue Book," and regulations proposed by the IRS on January 9, 1989. These regulations, Prop. Treas. Reg. Section 1.274-8 have not been finalized and are not binding on taxpayers; however, they do provide some insight as to the thinking of the IRS in this area.

The old regulations in effect before the enactment of Code section 274(j), Treas. Reg. Section 1.274-2(d)(1), defined an achievement award as an item of "tangible personal property" given to an employee for length of service, productivity, or safety achievement. New Code section 274(j) does not include awards for productivity in the definition of employee achievement awards. Thus, apparently, an incentive award can be given to employees for safety achievement or length of service only. According to the Blue Book, an award given to an employee for any other purpose, such as exceptional productivity, cannot be excluded from his income. Blue Book at 35, n.14. In view of the change in the law, employers have emphasized incentive awards rewarding length of service and safety achievement and have avoided productivity awards.

The requirement that an employee achievement award must be an item of "tangible personal property" has caused some confusion, because Code section 274(j) does not define the meaning of that term. The proposed regulations do provide some insight into the meaning of "tangible personal property" by defining it to exclude certain items. Accordingly, an incentive award cannot be in the form of cash or a gift certificate (other than a non-negotiable certificate conferring only the right to receive tangible personal property). Any certificate that may be converted to cash is not "tangible personal property" and cannot qualify for preferential tax treatment under Code section 274(j). Other items that are not tangible personal property include travel, vacations, meals, lodging, tickets to theater or sporting events, and stocks, bonds, or other securities. Prop. Treas. Reg. Section 1.274-8(c)(2). As a result, the fair market value of incentive travel awards given to employees is always taxable as additional income to them and deductible by the employer as compensation paid. Many employers, therefore, reimburse employees for the additional tax due as a result of the incentive travel award.

A length of service award can be excluded from an employee's income if it is received by the employee after his first five years of service with the employer making the award, and then only if the employee has not received another length of service award from the employer for at least five years (excluding an award that is not taxable because it is de minimis fringe benefit). Code section 274(j)(4)(B). An award for safety achievement can be excluded from an employee's income only if that employee is a full-time employee (other than a manager, administrator, clerical worker, or other professional employee), and then only if during the taxable year all other employee awards for safety achievement have previously been made to 10% or less of the eligible full-time employee awards for safety employer (excluding awards that are not taxable because they are de minimis fringe benefits). Code section 274(j)(4)(C). Once the 10% limitation is exceeded in any given year, any subsequent awards are not deductible under Code section 274(j).

In general, the employer's maximum deduction for all safety and length of service awards provided to the same employee during the taxable year cannot exceed $400.00, except if the award is made under an established written plan or program. In that case, the maximum deduction is increased to $1,600.00 for the cost of all such awards made to the same employee during the taxable year, whether for length of service or safety achievement. Code section 274(j)(2). The separate $400.00 and $1,600.00 limitations cannot be added together so as to provide a deduction in any year exceeding $1,600 for any one employee. Code section 274(j)(2)(B).

While the maximum deduction is $1,600.00 for any employee if the safety or length of service award is granted under established written plans or programs, the average cost per recipient of all employee achievement awards given pursuant to all of the employer's established written plans during any given year cannot exceed $400.00. Code section 274(j)(3)(B)(ii). For example, let's assume ten employees get awards under one or more established written plans. If one employee receives an award that costs $1,600, five employees each get an award that costs $200.00, and four employees get an award that costs $350.00, all of the employee achievement awards in the aggregate amount of $4,000.00 are deductible. No portion of any of the awards is included in any of the ten employees' income, because the average cost of the awards per recipient is $400.00.

If an award is one of "nominal value," its cost is excluded from the calculation and is the total amount of incentive awards given under established written plans or programs in any year. It is unclear what constitutes nominal value for these purposes. Prop. Treas. Reg. Section 274-8(c)(5)(ii) provides that $50.00 is nominal value, but some aggressive employers take the position that an award of up to $100.00 should be treated as one of nominal value. The IRS has not resolved this matter. Thus, until the IRS adopts final regulations, it should be possible to treat employee achievement awards with a value of no more than $100.00, which are given under established written plans or programs, as having nominal value and to exclude them from the total of award costs under such plans or programs in computing average cost per recipient.

The amount of the award that the employee can exclude from his or her income depends on the employer's adherence to the deduction limitations of Code section 274(j). In other words, if the employer can deduct the full cost of the award, the employee can exclude the full cost of the award for his or her gross income. For example, let's assume an employer awards an employee a crystal bowl as a length of service award (but not under an established written plan or program) and complies with the other relevant criteria for incentive awards. The bowl costs the employer $400.00 and has a retail value of $500.00. Because the bowl did not cost the employer more than $400.00, its full retail value of $500.00 is excludable from the employee's gross income. Blue Book, at 36.

If the employer exceeds the cost limitations for the award and loses a portion of the deduction, the employee's exclusion from income is only preserved in part. In this case, the employee must include in his gross income the greater of (1) an amount equal to the portion of the cost to the employer of the award that was not allowable as a deduction to the employer (not in excess of the fair market value of the award) or (2) the amount by which the fair market value of the award exceeds the maximum dollar amount allowable as a deduction to the employer. Code section 72(c)(2). The remaining portion of the fair market value of the award is not included in the employer's gross income. Blue Book, at 36. For example, let's assume that the crystal bowl described in the last example cost the employer $500.00, rather than $400.0, and its fair market value is $475.00. In this case, the employer's deduction is limited to $40.00 and the amount includible by the employee in his income is $100.00, the greater of (1) the difference between the items fair market value exceeds the deduction limitation ($100.00) or (2) the amount by which the item's fair market value exceeds the deduction limitation ($75.00). If the fair market value had been $600.00, the amount includible in the employee's income would have been $200.00. Blue Book, at 37.

The fact that IRS has not issued any guidance and has not finalized the proposed regulations under Code section 274(j) leaves several unanswered questions regarding employee incentive awards. My conversations with the IRS and Treasury indicate that they consider final regulations in this area to be a low priority item in the current legislative climate. One unfortunate aspect of this lack of action is that travel awards must be treated as nonqualified, taxable cash awards. (This is consistent with the proposed regulations that are still in effect.)

On the other hand, the inaction of the IRS creates tax planning opportunities (as well as risks) for imaginative companies. Since the IRS remains hostile toward the use of employee achievement awards, however, its inaction probably benefits the incentive industry .

by George Delta, Esq., Advisor to IMA

[This information is not presented as advice. Please consult your organization's tax consultant or the IRS for the final word.] For more information, contact RCB Awards at 1-800-929-9110.

Troubled Economy is No Excuse

President, Tailored Label Products Inc.

Industry: Printer of custom labels and related products.

Tailored Label Products Inc., a Menomonee Falls-based printer of custom labels and other products, has won numerous awards for its workplace recognition programs. The company believes the programs build morale, enhance employee buy-in and ultimately play a role in its success. Mike Erwin, president of the company, says companies need to continue with their recognition programs, even during a down economy and lower sales environment.

“Can you remember the first gold star you received in grade school or the blue ribbon you earned for a science fair project? Can you remember your first winning baseball season where everyone on the team received a trophy and a trip to the Dairy Queen?

“Working in an enthusiastic and recognition-based environment sets the engagement bar even higher for business leaders in a tough economy, when finding ways to recognize outstanding performance and achievement is not as easy. Some of my business friends suspended their companies’ reward tool box as a cost-cutting measure during this recession. One said he did not want to take a bunch of flack about providing gift cards for hitting goals after a wage freeze. Another said employee feedback had already prevented her from implementing a new program that was developed prior to the recession.

“Using the troubled economy as an excuse to suspend recognition is the easy way out and may have a bigger impact on causing what I call ‘value decay.’ We set expectations to drive a culture of results and integrate rewards alongside those same expectations. “Recognition needs to be an essential part of: keeping momentum in place; remaining focused on the goals of the business; and staying true to the values and expectations of our customers, suppliers and employees. Rewards need to take on a life of their own. Now is the time to turn up the creative juices to identify clever rewards that offer a meaningful payoff. You think they will come back to work wired for more? You bet!”


Originally published in the BizTimes Milwaukee, February 19, 2010.

The Presentation of the Award: That Magic Moment!

Recognition – It’s a Powerful Tool!

Companies that have an employee recognition program in place have demonstrated that they know how powerful recognition can be as a leadership tool. It makes a statement to the employees about what is important to the business and what is valued by the leaders within the company. It is also one of the most effective ways to reinforce an organizations culture, support its objectives and retain top performers.

An effective recognition program achieves the following:

• Builds self-esteem

• Reinforces desired behaviors

• Helps create an atmosphere of appreciation and trust

• Promotes empowerment and involvement

• Creates loyalty to a company

While recognition is important, the way you choose to recognize an associate plays a key role in the overall success of your program as well.

PREPARING FOR THE MAGIC MOMENT

It’s easy to create a meaningful and memorable event for you and the individual being recognized. You can make the occasion special by following these few simple steps:

• Choose a location for the presentation

• Decide who will be present

• Prepare what you will say

Where will the Presentation take place?

Whether you are planning a formal or more casual presentation, the event is important and can be a powerful management tool toward developing increased commitment to the company’s vision and core values. You can recognize an associate at his or her work place, or, if desired, in a more formal setting such as a banquet hall. Whatever the setting, remember that this should be a special event for the associate and their peer group.

Who should be present?

Imagine training for long hours for a big race and then winning first place, only you aren’t allowed to tell anyone about your victory. Our achievements in life, no matter how small, are more meaningful to us when we share them with others. Keep this in mind when deciding who will be at the presentation. The event will have much more impact if the associate is recognized in front of his/her peers (and senior management and additional guests if a more formal presentation is planned). This generates excitement for others to also strive for the high goals of achievement and recognition.

What will the presenter say?

The most important thing to remember is that the presentation should be personal. Consider the following when preparing what you will say:

• Address the associate by name

• Research important information including years of service, accomplishments and contributions prior to the presentation

• Share a work related short story or anecdote if appropriate. However, avoid embarrassing jokes or other comments that may make the associate uncomfortable

• Communicate that it is an honor for you to have the opportunity to recognize him or her

• Congratulate the associate, say “thank you” and shake his or her hand.

Remember to make the presentation upbeat, fun and to the point. Your preparation will help make the event a memorable Magic Moment for all.

The Role of Longevity Award Programs in a Comprehensive Recognition Strategy

by Steven Geiger, Ph.D., and Doug Kitrell

Longevity awards are still a powerful employee recognition tool, in spite of the culture of uncertainty resulting from such radical change efforts as downsizing and reengineering. Nearly 90 percent of the companies responding to a recent survey said they still offer longevity awards. Only six percent of the respondents have cut or reduced such programs since 1990.

With employee tenure on a downward trend, however, HR professionals are questioning the benefits of longevity awards. As a result, a new recognition model is emerging that focuses less on the awards themselves than on how to make such awards more meaningful to the recipients. In the new model, longevity programs comprise one component of a comprehensive recognition strategy that more effectively addresses the needs of changing organizations.

The purpose of this paper is to examine how companies can measurably increase employees' satisfaction with longevity award programs by integrating these programs with other employee recognition efforts.

Why Longevity Awards Are Still Important
In light of the changing employer-employee contract, employees are encouraged to leverage every activity to add value, to work more productively and flexibly, and to learn continually. (2) Workers are advised not to expect career-long employment, but instead to consider themselves entrepreneurs regardless of who pays them. In fact, the average tenure with a company is now less than five years, according to Bureau of Labor Statistics. (3)
In such an environment, one might think that employee longevity is no longer important, and that longevity awards are no longer as useful as they were in the past. Just the opposite is true, however, for two primary reasons: Employee longevity is critical to organizational success; and a culture of recognition promotes longer employee tenure.
Employee longevity is critical to organizational success.
Employee longevity has never been more important. Among the reasons are these:
• Employee longevity is required in order to learn complex tasks. In a knowledge-based economy with increasingly complex markets, products, and services, employees need time to master their responsibilities. (4)
• Employee longevity leads to customer loyalty and higher profits. A summary of studies examining the relationship between employee tenure and customer loyalty in several industries, concludes with this assertion:
"...in banking, brokering, and auto service, long-term employees create higher customer loyalty. Even in manufacturing, however, where employees rarely meet customers, long-term employees can produce better products, better value for the consumer, and better customer retention." (5)
A culture of recognition promotes longer employee tenure.

Why reward employee longevity? Generally, organizations reward those activities they consider important. By rewarding employee longevity, organizations communicate the value they place on longevity.
Other reasons to reward longevity are related to the fundamental importance of employee recognition in sustaining an organizational culture that employees find desirable. Note that the emphasis is on employees. Longevity awards, like other recognition tools, are only effective if they are meaningful to the recipients.

Here is the culture-related line of reasoning for rewarding longevity:
• Employees are highly interested in corporate culture-even before they are hired. A recent survey asked executives, "Other than base salary and bonuses, what do most applicants ask about during job interviews today?" Corporate culture was second only to benefits (see Table 1). (6)


What Interests Job Applicants
Benefits 36%
Corporate culture 34%
Job security 15%
Equity opportunities 11%
Other 4%
Total 100%

• Positive workplace culture leads to employee loyalty, as expressed in longevity. Recent research describes a complex relationship between workplace culture and employee loyalty, of which longevity is an important element. The relationship can be expressed by this simplified progression:  (7)

• Workers place a high value on a workplace culture in which they feel recognized. A study conducted in 1946, 1981, and 1995, asked 1,000 employees to rank order ten rewards in terms of value. In more than four decades, the results have changed little (see Table 2). "Full appreciation of work done" has stayed at the top of the list, well above pay. (8)
While longevity awards traditionally have not rewarded work quality, the trend now is to consider employees' contributions and make the awards commensurate with performance, i.e., to use these awards as "appreciation for a job well done."

What Motivates Employees?
               1946                                                              1995
1. Full appreciation of work done                    1. Interesting work
2. Feeling of being in on things                         2. Full appreciation of work done
3. Sympathetic help with personal problems     3. Feeling of being in on things
4. Job security                                                 4. Job security
5. Good wages                                                5. Good wages
6. Interesting work                                          6. Promotion and growth in the organization
7. Promotion and growth in the organization     7. Good working conditions
8. Personal loyalty to employees                      8. Personal loyalty to employees
9. Good working conditions                             9. Tactful discipline
10. Tactful discipline                                       10. Sympathetic help with personal problems

A New Approach to Longevity Awards
Many award program administrators, cognizant of the important role recognition can play in enhancing corporate culture, are taking a fresh look at longevity awards. When evaluating a longevity award program, administrators tend to focus on the awards themselves. The perception is that improving the awards will automatically improve the program.
A more effective approach, however, is to consider the outcomes desired from a longevity award program. In most organizations, these can be expressed in terms of two goals: To increase participants' satisfaction with the organization, and to decrease program costs, including the cost of the awards themselves and the cost of administering the program.
Companies that consider program outcomes when redesigning their longevity award programs are ushering in a new paradigm for employee recognition programs.

With this approach, longevity award programs are becoming:

• Integrated. Longevity awards are one component of a comprehensive recognition system.
• Aligned. All recognition efforts, including longevity award programs, are aligned with overall performance improvement strategies.
• Measurable. Participant satisfaction with recognition efforts is measured regularly to ensure that programs accomplish desired outcomes.

An Integrated Approach
A recent Ernst & Young study found that integrating "employee development or process management practices" was key to achieving measurable success with employee initiatives. (9) In contrast, most corporations operate their longevity award programs as stand-alone initiatives separate from other recognition efforts. Each program requires its own separate award media, program communications, participant database, and administrator.
Organizations are finding that it makes sense to combine these efforts for several reasons:
• Participant satisfaction is higher, since employees do not have to contend with redundant communications and rules for several programs.
• Costs are lower, both for the award media and the administrative tasks that would otherwise be replicated for several separate programs.
• Employees are able to accumulate award value across programs, allowing them to select the awards they find most desirable.

An Aligned Approach
Longevity awards are one tool in the culture-shaping toolbox. When integrated with other employee initiatives such as safety, idea systems, wellness, and others, longevity awards can help companies align individual performance with organizational goals, moving corporate culture in a positive direction.

A Measurable Approach
Traditionally, longevity awards have simply awarded tenure. The results of such programs are difficult to measure, since low turnover cannot be correlated directly to employee satisfaction with tenure recognition.
The new approach, however, contends that not all employees who remain at a company for five years should be equally rewarded. After all, why should those who have stayed five years and achieved sales goals, participated in quality initiatives, and generated cost-saving ideas be rewarded identically with employees who have stayed five years but accomplished nothing notable?
By connecting individual performance and participation to longevity, companies can reward employees commensurate with their contributions.

The New Approach vs. the Traditional Approach
While employee motivation is far more complex than rewards and reinforcement, a simplified model has been formulated for performance improvement applications. This model expresses contemporary motivation theory, and specifically the work of Marvin D. Dunnette, (10) in terms of the four major processes necessary for motivation: communications, training, measurement, and awards. First, a task must be communicated, and employees trained to accomplish it. Results are measured to determine progress toward the goal and overall success of the initiative, and awards are given commensurate with the level of success.
Table 3 contrasts the traditional approach to longevity awards with the new approach in these four areas:

• Communications. Traditionally, employees were notified via mail about their impending anniversary date and the opportunity to select a logoed item as an award. Their five-year anniversary might have been the first they heard about the existence of longevity awards. This date typically came and went without any public acknowledgment in the work place.

Now, progressive companies are making the most of these opportunities by choosing a flexible communications vehicle that allows awards to be changed frequently if necessary, to fit a diverse and changing work force. Award choices for several initiatives may be combined, giving participants an opportunity to accumulate award value for items they truly want. Recognition is given publicly, with mention not only of the person's tenure but also of his or her contributions.
Recognition-related communications begin with new-hire orientation. Opportunities for recognition, and what they mean in terms of organizational goals and strategies, are clearly communicated.

• Training. In the past, a supervisor or award program administrator may have handed employees a service award in passing, with an informal verbal acknowledgment. Now, managers are trained to make the recognition more memorable for the employee by publicly acknowledging the individual's accomplishments in a setting appropriate to the individual. The focus is on the person, not on the award.

• Measurement. One administrator traditionally handled service awards, keeping a database separate from other initiatives. Now, however, attention is being given to the efficiency of combining information from several initiatives to cut program administration costs. The same database tracks performance and participation in addition to tenure so that employees are awarded according to their accomplishments and/or contributions.

• Awards. Corporations used to provide awards bearing the corporate logo as prizes for tenure. While these still may be appropriate, many employees would prefer to receive a utility item-something that is meaningful to them and that they can use-rather than a piece of jewelry engraved with the corporate logo. With this in mind, companies now offer a wide selection of award choices, recognizing that limited options will not suit a diverse audience. Employees receive awards commensurate with their contributions.

Furthermore, award selections may be combined with those for other initiatives, giving employees the opportunity to accumulate value across programs. The resulting system is not unlike airline loyalty initiatives, which provide customers a wide variety of opportunities to accumulate travel credits.

Longevity Awards: The Traditional vs. the New Approach

Component Traditional New Approach
Communications Custom award catalog sent to employee's home. Communications do not change to accommodate changes in program. Award selection and presentation often conducted via mail. Communications vehicles flexible to accommodate program changes and support several initiatives. Employee's accomplishments are broadcast throughout organization. Presentation is appropriate to the person and the accomplishment.
Training Employee's supervisors may or may not be informed of employee's anniversary. If award is presented at work, managers receive little or no direction for presenting the award. Managers are engaged and involved in recognition process. They are trained to identify the individual's accomplishments, to select the best venue for presentation of award, and to focus on the person, not the award.

Measurement Program administration supports only longevity awards and may replicate efforts of other initiatives. Award database ties performance and participation to tenure, so that employees are awarded commensurate with their accomplishments/contributions. Same database is used for several recognition programs, saving time and money. Participant satisfaction with the recognition process is measured.

Awards Items are selected based on popularity of past awards. Selection is limited by communications that have already been sent. Employees are given a wide choice of awards, including utility and logoed items. Longevity awards may be integrated with other award opportunities, giving employees the ability to accumulate award value for meaningful awards.

Ten Ways to Maximize Longevity Awards for Performance Improvement
Here are ten recommendations organizations can use to leverage a longevity award program, as a key component of a comprehensive recognition system, for performance improvement:

1. Focus on the satisfaction of participants. Conduct research to determine current attitudes toward employee recognition programs. This provides a baseline measurement against which to gauge future improvements.
2. Make sure each recognition initiative supports corporate strategies. Corporate alignment is key to bringing about positive changes in corporate culture.
3. Target specific, measurable outcomes. While longevity programs are not generally tied to ROI, comprehensive recognition systems can be linked to specific, measurable corporate strategies.
4. Integrate longevity awards with other employee initiatives. This reduces the administrative burden for managers and the communication overload for employees. By combining award opportunities, organizations can offer more award selections and allow employees to accumulate award value for more meaningful awards.
5. Communicate employee recognition throughout the organization. Use internal publications, meetings, and bulletin boards to broadcast people's accomplishments and contributions.
6. Give managers the tools they need to recognize individuals. Managers typically are not comfortable with their ability to give recognition. With some basic training, however, they can create memorable recognition presentations
7. Realize that recognition is part of a larger process. Successful recognition programs involve numerous elements: communications, training, database management, administration (customer service), award selection and fulfillment, and program evaluation, to name a few.
8. Award people commensurate with performance, not based solely on tenure. By doing so, organizations can use longevity awards to drive corporate strategies.
9. Provide a wide selection of tangible awards. Be sure the award selection satisfies the greatest diversity of individuals.
10. Do not wait five years to recognize employees. Begin recognition as soon as employees contribute to the organization. An integrated recognition system makes this easy.

Conclusion
In spite of shorter average job tenures, the importance of longevity awards shows few signs of diminishing. Instead, longevity awards are changing to meet the needs of changing organizations. Longevity award programs remain an important tool for employee recognition. The key is to focus is on the satisfaction of award recipients and on supporting corporate strategies, not on the awards themselves.
By integrating longevity award programs with other recognition efforts, organizations can ensure that all the efforts are aligned to accomplish performance improvement strategies. This new approach to employee recognition can play a primary role in sustaining a positive corporate culture, ensuring it is one in which people will want to work for a long time.

Steven Geiger, Ph.D., a licensed psychologist, is divisional vice president of the Learning Systems Group, the BI Consulting Group, and the Marketing Group at BI Performance Services. He has applied his skills to a broad base of employee issues for the past 16 years. Doug Kitrell is Marketing Manager, Recognition Services, BI Performance Services. For more than 13 years he has developed programs that recognize performance in consumer, distribution, and corporate environments.

Notes
1 American Management Association fax poll for the Wall Street Journal, 1995.
2 Gorman, Tom. Multipreneuring. Fireside, 1996, p. 24.
3 According to the latest figures available, the median tenure of employees in their current jobs in 1991 was 4.5.
4 Potentials in Marketing, August 1994, vol. 27, No. 8, p. 60-63.
5 Reichheld, Frederick F. The Loyalty Effect. Harvard Business School Press, 1996, p. 101.
6 "People and Their Jobs: What's Real, What's Rhetoric?" A 1995 survey by Kepner-Tregoe completed by 611 managers and 905 workers.
7 An extensive bibliography supports this progression. The following are two key sources:
Bolton, R. N. and J. H. Drew. "A longitudinal analysis of the impact of service changes on customer attitudes," Journal of Marketing, Jan. 1991, pp. 1-9.
Mathieu, J. E. and Zajac, D. M. "A review and meta-analysis of the antecedents, correlates and consequences of organizational commitment," Psychological Bulletin, Sept. 1990, 171-94.
8 Kovach, Kenneth A. "Employee motivation: Addressing a crucial factor in your organization's performance," Employment Relations Today, Summer 1995, pp. 93-107.
9 Mavrinac, Sarah C. and Neil R. Jones. Competitive Renewal through Workplace Innovation. Ernst & Young, 1995.
10 Dunnette, Marvin D. Handbook of Industrial and Organizational Psychology. John Wiley & Sons, 1983.

For more information, contact RCB Awards at 800-929-9110.

Developing A Recognition Program

Developing A Recognition Program

Careful planning is the most important part of an effective awards program. In developing yours, you will need to do the following:

Identify the program's purpose and objectives:

Do you want to show gratitude, recognize membership, encourage achievement, or reward accomplishment?
Do you want to create a sense of common belonging, or mark someone for distinction?
Do you want to establish a stronger identity for your organization or match the personality of the recipient?

Answers to questions like these will help you design the right program for your organization.

Decide the kinds of awards you want:

The key to successful recognition is selecting the appropriate kind of award. Tangible awards have proven to be the most effective way - better than money or other means - to say "thank you" or "good job." In deciding whether to give an elegant piece of crystal, a beautifully engraved plaque, a customized lapel pin, a personalized desk accessory, or any other item, keep in mind that an appropriate award is:

• representative of what is accomplished
• attractive enough to wear or keep in the home or office
• consistent with the purpose and image of the organization
• right for the level or importance of the achievement
• in line with the organization's budget
• well crafted with the highest quality materials affordable

Because of their training and experience, the recognition experts at RCB Awards can guide you in choosing the right awards for your organization.

Establish a budget and schedule:
There are many ways to recognize people, and the most expensive are not necessarily the best. We can help you determine how much you should budget to meet your objectives, or how to get the most with the funds you have. We will also help you schedule your orders to get what you want without having to pay rush charges.

Plan for the awards presentation:
Part of what makes an award memorable and appreciated is the way it is presented. Think ahead about how you will give various awards. Membership recognition items are often sent through the mail, so you may not want to give something heavy. Fine crystal becomes even more precious when presented in an attractive gift box. Our awards specialists can show you how to plan for presentations that enhance the perceived value of the item received.

Innovative awards programs for Organizations:
RCB Awards serves hundreds of customers throughout the country. We have a wealth of experience in developing innovative awards programs that more than pay for themselves in the form of increased effort and achievement. Here are some examples of how they can help an organization like yours:
• Service awards - Whether these are for out-going board members, sales leaders, or motivational rewards, awards for service to the organization are important both for recognizing those who contributed and for encouraging other team members to do the same. Our recognition experts can provide you with distinctive plaques, fine crystal, attractive desk accessories, and a variety of other items that will enable you to give treasured symbols of gratitude to those who contribute to the success of your organization.
• Certification - Pins and certificates are standard means of recognizing educational accomplishment in an association or profession. You may also want to consider some of the new plaques designed to add plates or disks as the courses required for certification are completed. Given at the time of enrollment in the certification program, products like these give enrollees something to be proud of and show others even before they complete the program.
• Membership Recognition - Certificates, plaques, decals, nametags and lapel pins are typical means of recognizing membership, rewarding renewals, and encouraging prospective members to join. We can suggest other ideas, too, such as personal calendar books, desk planners and other items members will want to use and keep for a long time. We can also recommend ways to mark member anniversaries that will assist your member retention efforts
• Contests and competitions - One of the best ways to draw attention to your organization is to develop a specific award, like the famous Pulitzer Prize, for outstanding achievement in the field you represent. You'll find that our staff has plenty of ideas for ways to recognize those who excel, or who win various competitions or contests. We are expert in designing custom awards that will become the hallmark of your industry.
• Staff recognition - Recognizing your staff effort is a great way to keep morale and productivity high. Employee of the Month, Top Performer, and Star Achiever are just some awards to consider. Our helpful and friendly staff can recommend a variety of programs and awards to encourage and reward achievement among your staff.