Ensuring Your Team Feels Valued

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Aytekin Tank, founder of JotForm, has crafted a useful column for Fast Company titled, "4 ways to ensure your team feels valued without in-person connections."  Tank acknowledges that it can be very challenging for leaders to make team members feel valued when so many are working remotely, resources are scarce, and the stress is very high.   The article notes that, "A recent Gallup report showed that only one in three U.S. workers 'strongly agreed' they received recognition for their work in the past seven days. Employees who don’t feel recognized are twice as likely to say they’ll quit in the next year."   Given this reality, Tank offers four strategies for ensuring that team members feel valued.  

GIVE YOUR TEAMS THE TOOLS THEY NEED:  What technology, supplies, and other resources do your employees need to work effectively in a remote mode?  Like a good coach, put your team members in the best position to thrive and win.  

MAKE TIME TO LISTEN AND CONNECT:  Keep up the informal check-ins with your employees.  Don't just inform them about what you are doing or what the organization is planning.  Make sure to listen to their concerns, questions, and needs.  Open up about yourself a bit; let them see a different side, perhaps a bit about your personal/family situation.  Letting them see you as human can be very important for connecting with them, and encouraging them to be candid with you.  

INCREASE TRANSPARENCY: Provide regular updates on key initiatives and metrics.  Be honest about the challenges facing the organization.   Let them know exactly where things stand.  If you don't have everything figured out in terms of plans for the coming months, that's ok.  Let them know your decision-making process, how their input will be incorporated, and the criteria you will use to make final choices.  

OFFER TANGIBLE REWARDS: You might not be able to offer bonuses or raises this year.  What can you do to reward your employees?  Tank suggests offering time off in the future (days that they can bank now for future use), or providing new professional development opportunities.  Other forms of recognition and reward might include supporting causes about which the employees care a great deal, or perhaps providing paid time for team members to volunteer in the community.  

The Downside of Employee Recognition Programs

Could there be a potential downside to non-monetary award programs for employees? Management scholars Timothy Gubler, Ian Larkin, Lamar Pierce set out to examine this important question. They collected data from an attendance award program at an industrial laundry plant. The company recognized employees with perfect attendance at an all-hands meeting. From among those recognized, one person's name was randomly selected to receive a $75 gift card. 

The researchers discovered that people did respond positively to the incentive for perfect attendance. However, people also tried to game the system, and their attendance record sagged after they lost eligibility for the recognition. The scholars also found that, "The awards crowded out intrinsic motivation in internally-motivated employees, who were already performing well by coming on time in the absence of rewards. These employees had increased tardiness after the program was implemented and they lost eligibility." In other words, the recognition program caused a drop in motivation among those workers already doing the right thing with regard to attendance.  The drop in internal motivation by these good employees led to a slight drop in productivity in the plant overall. Gubler explained the findings to Science Daily:

"Conscientious internally-motivated employees who were performing well before the award program was introduced felt the program was unfair, as it upset the balance of what was perceived as equitable or fair in the organization. So their performance suffered -- not just in terms of their attendance but also through a motivational spillover that affected other areas of their work -- including productivity."

What's the lesson here?  I do not think we should conclude that organizations should not recognize the good work of their employees.  However, we should think about what precisely we are rewarding, and how it might affect the behavior of our best employees.  They might already be engaging in the behaviors we wish to encourage.  By rewarding people for what our best employees are already doing, we might be demotivating our stars.  

The Dark Side of Employee Awards?

Timothy Gubler, Ian Larkin, Lamar Pierce have conducted a provocative new study regarding employee awards.  They collected data about an attendance award program at a private commercial laundry services company in the Midwestern United States.  One of the company's five plants chose to implement an award for good attendance.   Managers wanted to reduce absences and tardiness.   The other four plants did not institute this program.   The program was rather simple.   All employees without an unexcused absence or tardy in the prior month received recognition before their peers, and they became eligible for a drawing for a $75 gift card.  The program lasted for a bit less than a year.  Senior executives at the company eliminated the program because they felt it rewarded behavior that should be expected of everyone.

The scholars studied this program, and they found that the award produced two important unintended consequences.  Here is an excerpt from the paper's abstract:

First, employees game the program, improving timeliness only when eligible for the award, and strategically calling in sick to retain eligibility. Second, employees with perfect pre-program attendance or high productivity suffered a 6% to 8% productivity decrease after program introduction, suggesting they were demotivated by awards for good behavior they already exhibited. Overall, our results suggest the award program decreased plant productivity by 1.4%, and that positive effects from awards are accompanied by more complex employee responses that limit program effectiveness.

I don't think we should be surprised by these results.  When creating any type of incentive or recognition program, we should remember the law of unintended consequences.   Still the paper documents the phenomenon in a powerful way.   I find it particularly interesting that this award program clearly created a perception of injustice.  People felt that people did not merit recognition for simply showing up when they should anyway.  Perceptions of inequity should be top of mind when creating reward programs. These feelings are likely to trigger discontent and unintended consequences.  

Employee engagement: The importance of public recognition

Many firms expend a great deal of resources on merit review systems these days. Providing employees 360 degree feedback for evaluative and developmental purposes has become standard in large companies. Coaches and mentors provide feedback too. Managers meet one-on-one to provide "constructive feedback" as well. Incentive compensation exists, in some form or another, in most firms. Nevertheless, many company executives fret these days about the low levels of employee engagement in their organizations.

Many reasons exist for the lack of engagement, but let's start with a simple cause. Despite all the "feedback" provided to employees these days, they often feel that they receive little public recognition for their good work. Yes, employees enjoy a bonus or a raise. However, they also value those occasions when a manager or executive praises their efforts and accomplishments publicly. Yet, that public recognition comes very rarely in some firms. Tomorrow's holiday reminds us that a simple "thank you" and "job well done" expressed in front of one's peers can be very motivating.