Motivating Blue Collar Employees – Using the Right Rewards and Recognition System

Motivating Blue Collar Employees – Using the Right Rewards and Recognition System

When it comes to employee motivation and engagement, most companies focus their efforts primarily on appeasing the white-collar members of their workforce. This is due to the fact that an effective white-collar support staff and management team is considered to be one of the most important facets of any business. Sadly, most organizations tend to overlook the fact that their blue-collared employees are equally important as they form the driving force of the company. These employees share the same need for appreciation and acknowledgment from their employers as their white-collar counterparts. Failure to do so is likely to affect their performance efficiency and productivity and hinder the smooth functioning and growth of a business.

What is meant by Blue-Collared Employees?

The workforce of an organization is comprised of different types of professionals specializing in various tasks and niches. However, the entire workforce can broadly be classified into two main categories namely white-collared and blue-collared employees. White-collar employees generally comprise of those members of the workforce who work in professional, supervisory, managerial and administrative roles within an organization. On the other hand, members of the workforce, who work in manual positions and use their hands to perform various tasks are classified as blue-collar employees. These employees are named so, as most of them are required to wear uniforms and coveralls along with protective gear. They generally include skilled workers employed in manufacturing, mining, construction and other such industries, tradespeople and even field officers and workers.

What hinders rewarding and recognizing Blue-Collar Employees?

One of the biggest hindrances in the way of rewarding and recognizing blue-collar employees is the traditional perception of them being inferior to white-collared employees. In fact, until quite recently, the members of the top management within organizations were of the opinion that white-collar workers were in greater need of motivation and engagement by virtue of their more responsible positions and higher education levels. They felt that the blue-collar employees did not have any such needs, especially since a majority of them are tied to union pay and benefits. However, the various employee surveys have made it clear that employees of both these categories have a similar craving for being rewarded and recognized for their hard work and efforts made towards organizational growth.

Creating a suitable Rewards and Recognition Program

The good news is that a majority of business organizations today are understanding the need to acknowledge and appreciate the performance and contribution of their blue-collared employees. However, since their employee motivation needs tend to differ considerably from the more sophisticated members of the workforce, companies need to do some thinking in order to create the best rewards and recognition programs for them. The four main types of rewards that can be considered by organizations to overcome this dilemma effectively are discussed below.

Tangible Rewards

Providing physically tangible rewards to blue-collar employees can go a long way in keeping them motivated and enhancing their engagement levels. Physical things such as gift baskets, company-branded gear, engraved tools and even embroidered vests for field staff can prove to be the most relevant and satisfactory rewards. In fact, handwritten notes of appreciation and gift cards are also highly preferred along with trophies and medallions as they help in sparking conversation and participation.

Monetary Awards

One traditional and highly successful method of acknowledging blue-collar employees is by offering them performance bonuses and a raise in salary. These monetary rewards are known to boost employee motivation levels significantly besides making the employees feel appropriately recognized for their hard work. More recently, other forms of monetary awards including paid lunches, floating holidays, gift cards for their favorite store or restaurant and company store vouchers have also gained much popularity.

Experience Awards

Providing an opportunity of once in a lifetime experience to blue-collar workers is also proving to be an effective way of rewarding them. Rewards like an invitation to company-sponsored events or enjoying a meal with the CEO or Chairman are often well appreciated especially by the employees operating at floor levels in factories. Other similar awards that are generally well-received include fully or partly paid vacations, a short sabbatical from work and special training and skill development that can help enhance the career growth of workers within this category.

Verbal Rewards

Even though most companies and managers no longer acknowledge it as a reward, a few words of praise still hold much value in terms of employee recognition. The very fact that their employers have chosen to single out the employees in a positive way makes them feel valued and appreciated. It assures them of the fact that their efforts and contribution towards organizational growth have not gone unnoticed. Facilitating a culture of peer-to-peer recognition among blue-collar workers can actually prove more beneficial than words of praise offered by line managers and executives.

The above discussion makes it quite clear that the organizations need to work proactively towards understanding job satisfaction and motivational needs of its blue-collar workers and fulfill the same.

How to Reward and Recognize Customer Service Employees?

How to Reward and Recognize Customer Service Employees?

Great customer experience is one of the key requirements for ensuring the success and growth of any business organization. In fact, it is not uncommon for individuals to shift their loyalties to an organization promising to offer better customer experience.   In order to create such an experience, it is important for companies to train and prepare their employees to be customer-centric. However, such training and preparation form only one aspect of ensuring customer satisfaction and happiness. A customer service organization be it a call center,  front-office or delivery function also needs to focus on enhancing the happiness and satisfaction level of its own employees to get the best results. Companies can no longer undermine the fact that the success of their business depends on an ongoing stream of happy customers, which in turn is determined by the happiness level of the employees.

How Employee Happiness Influences Customer Experience

A customer-centric approach does not just focus on efficient communication with customers through a call center or front office but is more about ensuring better brand experience and establishing long term relationships with them. In a customer service environment, the employees handle the responsibility of fostering such experiences and relationships. By empowering the employees and enhancing their engagement and satisfaction levels, companies can ensure a significant improvement in these experiences and relationships. It has been observed that happy employees tend to be self-motivated and work towards delivering better customer experiences. Their commitment and sense of loyalty towards the organizations is significantly enhanced and this is reflected through an increase in their efficiency.

Using Rewards and Recognition to reinforce Customer-Centricity

Just being aware of the critical role played by employees in delivering great customer experience is not enough for a business organization. Rather they need to take the necessary steps to reinforce customer-centric behavior by creating a customer-focused culture. The most important step to be taken in this direction is to integrate employee rewards into the company culture. At the same time, they need to avoid the common pitfalls that can render the reward and recognition program simply useless. In order to ensure the same, the business organization needs to ensure the following.

Focus on the Employee Behaviors that provide Desired Impact

While deciding about the most appropriate rewards and recognition options for employees, business organizations need to focus on identifying and promoting employee behaviors that ensure an enhanced customer experience. For this, they need to first determine the things that really matter to the customers through a thorough analysis of customer data, their preferences, and reviews. The information thus obtained can be then co-ordinated with the various behavioral attributes of employees to learn about the ones that provide the desired results. Having identified the most effective behavior that drives customer satisfaction, the organization should take the necessary steps towards employee motivation to promote this behavior.

Integrate Reward Systems with Customer Experience

Proper alignment of the reward system with employee incentives with respect to the customer experience they create, is essential to create a customer-centric culture. This might require slight modification in the criteria used for deciding formal rewards such as salaries, bonuses, and promotions. The awareness of the fact that being customer-centric can prove beneficial not only in terms of gaining recognition and appreciation but also for ensuring career growth can act as a great motivator. In addition, it also helps in maintaining the credibility of the reward system by ensuring that only the most deserving employees receive them.

Set up Informal Rewards to Encourage Customer Focus

Employee recognition holds greater value than monetary benefits for a large percentage of professionals working in a customer service environment.  Thus by setting up informal rewards, that can remind the employees of their achievements and glory – it tend to prove more effective than just cash rewards. The simple act of posting an image of the top-performing employees for a specific period in the workplace where it is easily visible to other employees and customers can boost the morale and efficiency of the employees quite significantly. In turn, it can create a sense of pride amongst the customers who might have interacted with these employees and strengthen their bond with the company.

Focus on ensuring Better Work-Life Balance

At the end of the day, all employees are individuals with a life outside their profession, which they cannot ignore. No amount of rewards and recognition can replace the happiness that employees gain by spending time with their family and friends. Thus by providing opportunities for a better work-life balance for their employees, companies can enhance their happiness quotient. Happy employees tend to be more attentive and sympathetic towards their customer needs and are more likely to make every effort to ensure their satisfaction and happiness.

A customer service environment can prove to be extremely stressful and exhausting for employees as it requires them to deal with people of diverse natures, opinions and patience levels. The challenge of keeping the employees working in such environments motivated and engaged can only be overcome with an effective reward and recognition program.

Low Budget Employee Recognition and Reward Ideas to Enhance Employee Motivation

Low Budget Employee Recognition and Reward Ideas to Enhance Employee Motivation

Seeking recognition and appreciation for their work is basic human nature and nowhere is this behavioral trait more evident than in professional work environments. In fact, employee recognition and rewards have emerged as the key aspects for creating a highly engaged workforce committed towards business growth. The process is aimed at acknowledging the efforts, hard work and workplace behavior of employees that contribute towards the success of an organization and fulfillment of its objectives.

However, most small and medium business organizations and even larger enterprises tend to feel concerned about the costs involved in implementing a proper employee recognition and rewards program. What such organizations fail to understand is that it is the intent of recognizing and rewarding the employees that matters the most, rather than the money they spend for the same. Business organizations can plan for a recognition system that suits the needs of their employees as well as their budget more efficiently.

Planning a Suitable Rewards and Recognition Program

The most important thing that business organizations need to understand is that the rewards being handed out to employees neither need to be expensive nor in the form of cash. In fact, most employees feel satisfied by the fact that their seniors are aware of their efforts and willing to acknowledge the same. However, employers need to make sure that any non-cash rewards that are chosen should keep the interests of the employees in mind. It has been observed that such rewards are more effective in enhancing employee motivation rather than cash rewards. Discussed below are a few low budget employee recognition and reward ideas that can help enhance employee motivation and engagement levels considerably.

Public Recognition

Acknowledging and appreciating the efforts and hard work of the deserving employees publicly is the most common and cost-effective method. Such public recognition can be made in front of the team members of the selected employee or the entire workforce at an organization level event. In either case, the employees tend to feel a sense of pride and achievement, which motivates them to further improve their performance. Such recognition should ideally include a certificate of merit and a small medallion or trophy which can serve as a constant reminder for the employee.

Workplace Benefits

Another cost-effective way of rewarding the employees is to offer them some desirable benefits at the workplace for a specific time period. The benefits can be extended permanently, in case of repeat achievers, which will also prove inspiring for other employees. These benefits may include flexible work timings, free pickup, and drop facilities for a specific time, upgraded workstation or even paid training for skill enhancement. Such rewards tend to enhance the motivation level of the entire team as the members are able to see the benefits gained by one of their own thanks to their diligent and sincere efforts.

Paid Outing with Family

A majority of employees today struggle hard to create a perfect balance between their work and family life. In addition, the cost of enjoying an outing with a family is often very high, which is why an average employee tends to do it less frequently. Hence, being rewarded with an opportunity to spend quality time with their family without having to worry about the expenses for the same, is something that most employees will find appealing. The venue and type of outing can be decided on the basis of the level of the employee receiving the reward.

Time Off from Work

The highly competitive work environments today often make it impossible for employees to take time off from work. This can lead to their physical and mental exhaustion and can even cause a reduction in their efficiency. One way to avoid this problem and integrating it with employee recognition is to give the employees time off from work. The employees can choose between coming to the office and doing nothing or staying at home to indulge in an activity that helps them to unwind and relax. A couple of days off from work will ensure that the employees feel truly acknowledged for their efforts. It also helps them feel wanted and cared for by their employers and thus helps them develop a stronger bond with the organization.

Formal Meal with Top Management

The idea of enjoying a formal dinner with members of the top management is also a great way of acknowledging and rewarding the employees in a budget-friendly manner. Most junior level employees are in awe of these top-level professionals and sharing a meal with them as a reward for their efforts and hard work often proves to be quite motivating. Moreover, this method of recognition and appreciation also provides the top management to interact with the high performing employees and assess their suitability for enhanced positions within the organization in the future.

All the above options (and many others we can think of) make it possible for business organizations to maintain a relatively low rewards budget without losing out on the benefits of employee recognition and appreciation.

HiFives Team

What’s the best form of employee rewards?

Employee rewards in modern day organizations has been evolving over the years – it has become more of an art than a science. Gone are those days where employees were happy receiving trophies and consumer durables.

Organizations have tried everything from trophies, company branded merchandize, durables, electronics, holiday packages, gift vouchers and even cash.  Many organizations have used training programs and conferences to motivate their high performing employees. A few of these methods have worked, most of them haven’t. What does it mean for organizations? Should they stop experimenting and continue with what they are doing? What is the best method of rewarding employees?

As you might have guessed by now, that there is no single right answer to this question! The answer is ‘it depends’. It depends on a whole host of factors ranging from the industry type to employee seniority level right down to individual employee preferences. Given the complexity of the situation, organizations are faced with the daunting task of choosing the type of reward to give their employees.

However, a couple of options seem to make sense more than others. Rather than deciding on what the employees would want, it would seem better to leave the choice to the employees themselves. Given this, cash, digital currency or popular gift vouchers would make the cut. Employees could use these rewards to purchase that they would want to rather than being locked down to the choices of the HR/ management team. These work out far better than the traditional company branded merchandize or consumer durables.

How do intangible rewards work out? It’s definitely a good idea given the overuse of the other kinds of rewards. Coffee with the CEO, Dinner with the Director, Conferences and Training programs are few of the ideas that be utilized by organizations that do not prefer monetary rewards.  In fact, we believe these types of rewards could actually get into mainstream going forward. Coupled the social recognition from colleagues, employees would find these rewards more meaningful than others.

HiFives Employee Rewards and Recognition

Can Rewards and Recognition drive a culture change in the organization?

The short and sweet answer to this question is an absolute yes! Provided the desired behaviors that should be a part of the organizational culture are mapped correctly and rewards and recognition is used to reinforce them.

Let’s take an example – as an organization if you want to create a culture of honesty and hard work, you might want to formally recognize employees who had the option of not being fully honest in the course of their work by taking the easy way out but decided to stay on the right path even if that meant putting in a lot more effort and maybe even a slight delay in achieving their goals.

Another example could be of an organization which wants to discourage employees from staying in office till late either because they are inefficient or they want to impress their superiors. If the organization recognizes employees who are genuinely efficient – they complete their work on time and leave office on time consistently. While it might be hard to rank and stack employees based on their efficiency, there could be a self-nomination process and the claims of the nominees could be easily validated based on feedback from their managers and the attendance system data.

In fact, our view is that rewards and recognition can play a pivotal role in initiating a change in the organization culture.  It is really basic human nature to gravitate towards behaviors than give them the maximum benefits.  Organizations should include behavior or value based recognition in their employee programs in addition to the general outcome based recognition – that’s our recommendation.

HiFives Employee Rewards and Recognition

Automated Performance Assessment –The Rise of the Machines

April 20, 2018: It’s the Judgement Day today in Sparrow Solutions today – the annual appraisal ratings will be released in the organization today. For most employees, it’s the day when their efforts throughout the year will be recognized and eventually be rewarded through increments, bonuses, and promotions. A few employees fear the worst that they might be asked to leave due to under-performance. Every year the bottom 10% of employees is asked to leave the organization due to poor performance. It’s a tough call but it has to be done. But one wonders why should the organization wait for a whole year to figure that someone is under-performing and corrective action needs to be taken? On the other hand, an employee who is an overachiever needs to wait until the end of the year to be rewarded and given the next level of challenges.

The other big flaw in the system today is that the qualitative assessment of performance leaves a lot of room for biases to creep in. Plus, in most organizations, the HR team and the people managers spend an inordinate amount of time in discussing and debating about the performance ratings. Add to that the time spent in collating and presenting the data. All of this hampers productivity and delays actual action.

In all organizations, there is a big push towards making data-driven decisions even in people matters. The big data approach to performance appraisals could increase efficiency, cut down on the manual effort, reduce bias and the cycle time of performance appraisals. We should be looking at continuous performance assessment and corrective actions.

As employees work in the organization, they leave a trail of data in their everyday work tools be it Project Management System, CRM, ERP, Time and Attendance System, etc. Automated performance management systems of the future will monitor employee performance on a continuous basis, based on the data derived from these systems. These systems will score the employee’s performance based on various parameters linked to business results and suggest corrective actions or even initiate actions itself. Actions could range from playing a motivational video, recommending a training course, connecting with an internal subject matter expert on chat to even recommending a change in job profile of the employee.

The biggest advantage of such systems would be the continuous assessment of employee performance. Corrective actions can be taken immediately, so no need to wait until the appraisal cycle. Be it training, reskilling, role enhancement (read as a promotion) or role change – can be initiated immediately. The system will have predefined thresholds for each action. The system will learn from past experiences of such interventions and their effectiveness, and tweak its algorithm for more effective interventions. The system can also keep track of employee motivation and take corrective action before it starts affecting productivity.

In today’s business environment, every second count. And keeping pace with the business changes is the need of the hour. Hence, such performance measurement and development systems can make employees and organizations more responsive to chances. It will result in higher productivity, greater business impact and higher employee satisfaction. The amount of time spent by the management and HR in the formal appraisal process can be cut down drastically further increasing productivity. Think of start-ups and small companies that are growing rapidly, which need to be extremely responsive to the business environment. But at the same time, they will always be short on HR resources to manage their people and performance. The other advantage is that these systems remove supervisor bias and errors.

While it might take some time before the system can speak out ‘you are promoted’ or ‘you are terminated’ but we are definitely going to see more intelligent learning systems for employee performance management very soon.

 

HiFives Employee Rewards and Recognition