Client Profile: Employee Recognition and Reward Program

Situation: A global technology consultant was undergoing an unprecedented organizational change, one challenging the morale and loyalty of a key group of employees. In a unique, strategic move the consultant partnered one of its practices with a client to form a completely new business entity, one poised for significant growth. To form the new company, nearly 3,000 employees were reassigned from the client organization. But the merger also spelled layoffs for thousands of their former workmates, heightening the stress of getting acclimated to a new environment and meshing with a vastly different company culture.

The disruptive nature of the transition raised the potential for job dissatisfaction and employee defection. At the same time, it was essential that these employees stay on board and make significant contributions in order for the new enterprise to reach its potential.

Solution: The consultant partnered with Loyaltyworks to launch a reward and recognition program designed to foster employee retention and productivity by:

1. Encouraging employee behaviors and activities aligned with organizational objectives
2. Improving morale by recognizing outstanding individual (and team) performance
3. Speeding the acclimation of employees to a new work culture by teaching and reinforcing company values

The program established a set of behaviors and activities that were needed to shape and guide the new organization, and that were closely linked to company core values. Examples of these behaviors and activities included problem solving, creating and improving business processes, embracing and leading change, fostering team spirit, and providing exceptional service. An award value (measured in points) was assigned to each behavior/activity.

Employees now earn points each time a manager recognizes them for performing the desired behaviors and activities. Points are accumulated and then redeemed for rewards from a wide selection of travel and merchandise options. Managers are trained on the program objectives and effective recognition techniques and then allocated a budget of points to use for employee awards.

Extensive internal communications are employed to raise and maintain awareness and participation in the program. Communications include a program Web site, a dedicated program e-newsletter that highlights employee award winners and features compelling reward items, detailed award certificates, manager newsletters that coach managers on effective use of the program, and even a Podcast featuring a manager sharing his experiences and advice for the benefit of his peers.

The program has been running successfully for two years and was recently expanded to include all employees and managers in North America.

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