The Carrot Principle — How the Best Managers Use Recognition to Engage Their Employees, Retain...

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The Carrot Principle — How the Best Managers Use Recognition to Engage Their Employees, Retain

Talent and Drive Performance

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Speaker: Chester EltonAuthorThe Carrot Principle

Moderator: Connie CostiganDirector, Marketing & CommunicationsHalogen Software

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Connie CostiganDirector, Marketing & CommunicationsHalogen Software

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Chester EltonAuthorThe Carrot Principle

How recognition ACCELERATES

employee engagement, retention and performance

with Chester Elton

Who here has worked for a GREAT

leader?

So, what are the characteristics of a

good leader?

The Basic Four

The Basic Four• Goal Setting• Communication• Trust

•Accountability

Accountability

“At first, I think our employees found it hard to believe this was all really happening. Seeing managers being held accountable for employee satisfaction, budgets and training and development is helping to strengthen our organization's employee accountability and to boost overall morale.”

Tim Mulligan, Chief Human Resources Officer

Finding andEngaging

the best people

A Crisis in Business

Why Engagement ?

Managers who ignore their employees have 2% engaged employees and 40% actively disengaged.

“BAF has transformed employee performance management from a once a year chore to an ongoing, year-round process. Managers now provide regular feedback and coaching to employees. This has been instrumental in transforming our entire culture.”

Melanie Rydalch, Regional HR Manager

The Basic Four• Goal Setting• Communication• Trust

•Accountability

GoalsGoal Setting that helps set expectations

“Having employee goals clearly and objectively laid out and the ability to track their progress in real time ensures that there are no surprises during the performance conversation between manager and employee. Employees know what is expected of them and this makes them accountable and the system becomes transparent. This has enabled the Bank to increase employee engagement in the process.”Laura Van Well, HR Officer

70%68%

0%10%20%30%40%50%60%70%80%90%100%

Goal Setting: High Favorable Opinion

Goal Setting: Low Favorable Opinion

Recognition: Strong Recognition: Weak

Employee Engagement:Goal Setting

Employee Engagement:Communication

69%68%

0%10%20%30%40%50%60%70%80%90%100%

Communication: High Favorable Opinion

Communication: Low Favorable Opinion

63%65%

0%10%20%30%40%50%60%70%80%90%100%

Trust: High Favorable Opinion

Trust: Low Favorable Opinion

Employee Engagement:Trust

65%70%

0%10%20%30%40%50%60%70%80%90%100%

Accountability: High Favorable Opinion

Accountability: Low Favorable Opinion

Employee Engagement:Accountability

Why Engagement?

Engagement = GROWTH

Growth with vsWithout engagement

Operating Income

Best Buy: a 0.1% increase in employee engagement at a store equals a $100,000 increase in the store’s annual operating

income.

Harvard Business ReviewOctober 2010

What Drives Employee

Engagement?

Percent of Employees “Completely Satisfied” With Their Jobs

By Level of Recognition

Percent With “Very High” Desire To Work For Their Employer “One Year”

From Now By Level of Recognition

Percent of Employees Who Are “Highly Engaged” by Level of Recognition

Opportunity & Well-Being

Pride in Symbol

Employee Engagement

Top drivers of engagement

Appreciation

Communication

Goal-setting / Accountability

Opportunity

“Turnover rates decreased from 20 per cent to 4 per cent. People feel really good about what they do and what they contribute knowing there are a lot of different promotions and leadership roles that have evolved through our leadership development program, which is part of our performance management and career development approach. 64 per cent of the company's leadership positions are now held by individuals promoted from within.”

Michelle Reid, HR Manager

Develop for the future and employees will be more engaged today!

A Crisis in Business

65% of Workers

are looking around says surveyResponses from 14,000 workers reveal that many are

weighing their options– and employers haven’t caught on.

Research-Based• One of largest workplace

surveys ever conducted• Focus groups• Interviews

HowLARGEwas thestudy?

The Carrot Principle• 10-year study of

200,000 people• 20-year study of

10,000 people• 10,000-year study of

20 people• Half-hour study of

“The Office”

• 10-year study of200,000 people

The Carrot Principle

Ah, the Power of a Carrot• Higher retention, of your good people

• Greater, sustained productivity

• Stronger, more committed employees

• Allows managers to communicate a powerful, lasting way

• And PROFIT!

• It communicates whatmatters most to your organization

Ah, the Power of a Carrot

Appreciate the Family

Personal Recognitiona Coach

Personal Recognition

What Differentiates Your Organization?

How Do You

Measure Success?

Why EmployeeEngagement?

• Companies with higher employee engagement deliver higher returns than their peers

• 100 Best Companies with highly engaged employees have consistently outperformed major stock indices. Stock Market Index Fortune 100 Best

133.8%

Annual List of 100 Best

Companies

Fortune 100 Best vs Stock Market7 year Cumulative Return

Source: Frank Russell Company

The Fortune 100 Best

“As for recognition it is probably the fattest pitch that managers miss. Telling employees they are doing a great job costs nothing but counts big And it is so easy to do more”

Fortune Magazine 100 Best Companies issue

Work Environment

=How People Feel

on the Job

At Work25% Driven to tears by stress50% Place of “verbal abuse” and “yelling”30% Unrealistic deadlines52% 12 hour days1 in 12 complain “chair hurts my butt”

NY TIMES

People join organizations

They leave people!

According to research, what percent of workers cite “lack of acknowledgement” as their top

work issue?

A. 88%B. 67%C. 44%

D. Eleventy-one%

A. 88%

According to research, what percent of workers cite “lack of acknowledgement” as their top

work issue?

Why People Leave a Manager?

Society for Human Resource Management (SHRM) survey

A. A fear of alien abductionB. Unwashed “restroom” hands

C. Body piercing policiesD. A lack of appreciation

☛ 79% leave due to

Society for Human Resource Management (SHRM) survey

D. A lack of appreciation

☛ 79% leave due to

Why People Leave a Manager?

But there are

toxic Managers.What happens when we follow

them…?

That’s

Turnover!

Why People Stay With a Manager

and correlated with:

• Higher Retention

• Higher Productivity

• Higher Customer Satisfaction

• Higher Profits

Recognition Praise

Wisdom from your mom

This is stuff mom taught you

This is stuff MUM taught you

Wisdom from your MUM!

• Frequent

• Specific

• Timely

Recognition Basics

Married? Madly in LOVE?

General Praise has NO

impact.

Praise vs. RewardsDo you know how to ride a bike?

• Praise Effort

• Reward Results

Praise vs. Rewards

Reward RESULTS!

• Create informal recognition moments

Wisdom from the Carrot Patch

Informal /Seeds• Letter of praise to family

• Do least favorite task

• Remember special days

• Wash car

• Parking space for a week

• Hand Written Note• Cup of coffee

• Box of chocolate bars

• Half day off to spend w/ kids

• Scrapbook of memories

• Tickets to movie, play, game

• Recognition box

• Friday inspirational movie

• A pat on the back

Not a slap to the Head!

People may forget what you said or even what you did, but they never forget the way

you made them

Make powerful presentations!

Wisdom from the Carrot Patch

When it comes to recognition,

is everything!

Presentation

Presentation Objectives

1. Show sincere thanks2. Reinforce organizational values3. Set the standard of Excellence4. Motivate

Dos & Don’ts…

Add Impact to FormalVIP• VALUE

• IMPACT

• PERSON

Anybody Know the best American soccer player in

the world?

Clint Dempsey

Add Impact to FormalVIP• VALUE

• IMPACT

• PERSON

And Recipients Will Go Wild!

Informal /Seeds• Letter of praise to family

• Do least favorite task

• Remember special days

• Wash car

• Parking space for a week

• Hand Written Note• Cup of coffee

• Box of chocolate bars

• Half day off to spend w/ kids

• Scrapbook of memories

• Tickets to movie, play, game

• Recognition box

• Friday inspirational movie

• A pat on the back

• Don’t want to get familiar• I never got any recognition!• What’s in it for me?• Don’t have time• Don’t want to play favorites• They will ask for more money!

VegephobiaWhy People Don’t Recognize

Not in this economy!

VegephobiaWhy Managers Don’t Recognize

What can

you do tomorrow?

You Know how!• Verbal Praise• Thank You Notes• Frequent Specific Timely• Praise Effort / Reward Results• Better presentations / VIP

Do this at

HOME! It works there too

Ah, the Power of a Carrot• Higher retention, of your good people

• Greater, sustained productivity

• Stronger, more committed employees

• Allows managers to communicate a powerful, lasting way

• And PROFIT!

Are You Committed?

Thank You!chester@chesterelton.com

@chesterelton

Q&AAdditional questions regarding the content from this webinar? Contact:

Chester Elton - chester@chesterelton.comwww.chesterelton.com

For additional Halogen Software inquiries or to request a personalized demonstration, contact:

Connie Costigan- ccostigan@halogensoftware.comwww.halogensoftware.com

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The Carrot Principle — How the Best Managers Use Recognition to Engage Their Employees, Retain...

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