Management in any company can make a marked difference in its ability to better engage its employees in ways that allow the organization to compete more effectively. Managers can do this by motivating their employees to achieve focused, revised goals that touch all aspects of the business from innovation and cost-cutting ideas, to process improvement and enhanced customer service, to strategies for enhancing sales, referrals, and follow-on services.
While this focus may seem like good management practice that companies should already be doing, not doing these things can make the difference between success and failure for many organizations. For example, Quantum Workplace, a company that tracks employee engagement scores of over 1.5 million employees within 5,000 companies nationwide, has found that 66 percent of the firms they studied saw a decrease in employee engagement in recent years that seemed to be in direct response to the negative circumstances of the recessionary economy. A comparison of those employers who had higher engagement scores with those whose scores had dropped revealed a number of key differentiators, each of which will be addressed in this section.
Today’s employees want to work for organizations that (1) create a clear, compelling direction; (2) have direct, open, and honest communication; (3) involve employees and encourage initiative; (4) grant employees autonomy, flexibility, and support; (5) provide a continued focus on career growth and development; and (6) recognize and reward high performance. “Employers can significantly influence, if not control, how motivated and satisfied their employees are,” says Greg Harris, president of the firm. “A more engaged workforce can act as insulation, a buffer if you will, from the effects of the economic downturn,” concludes Mark D. Hirschfeld, principal of Goldenrod Consulting, Inc.
The starting point of any organizational effort is having a clear and compelling vision for the organization. If employees don’t know, or are not inspired by, what the organization is trying to do, it will be more difficult for them to have the motivation to succeed—especially in tough times. Frances Hesselbein, president of the Leader-to-Leader Foundation, once put it this way: “No matter what business you’re in, everyone in the organization needs to know why.”
Do a reality check and ask employees what the mission and purpose of the organization are. If you get a different answer from each person you ask, it’s a good indication that things have drifted or perhaps have not been clear for some time. Use this opportunity to revisit the purpose of your business group or function. Management guru Peter Drucker used to advocate that management ask three questions: (1) What is our business? (2) Who is our customer? (3) What does our customer consider value? In this way, Drucker helped connect what organizations were trying to achieve with their customers in the marketplace.
Clarifying one’s vision is a useful starting point for deciding what is most important for the organization (or department or team) to focus on to be successful. And the result needs to be a compelling purpose that can inspire everyone. “A vision is not just a picture of what could be, it is an appeal to our better selves, a call to become something more,” says Harvard professor Rosabeth Moss Kanter. From that vision you can shape your “unique competitive advantages,” that is, those aspects that you have to offer your customers that your competition does not. These advantages represent your strengths in the marketplace that you most need to capitalize on to be successful. In changing times, the unique advantages you have to offer and the needs of your customers can shift drastically, so it makes sense to look at this frequently.
Internet retailer Zappos has become famous in part because it has a unique vision of “Creating Happiness” and a simple mission statement that inspires all employees to “deliver WOW.” The core values, derived from a list generated by all employees, focus more on individual attributes to inspire each employee than on the traditional business elements of revenue, profit, and market share:
1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and a Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships with Communication
7. Build a Positive Team and Family Spirit
8. Do More with Less
9. Be Passionate and Determined
10. Be Humble
At the end of their training, to make sure new hires fit into the Zappos culture and truly want the job, each person is offered $3,000 to quit. That’s right, $3,000 if they agree not to come back. The new hires talk about the offer with their friends and significant others, and most decide they would rather have the job and opportunity than the extra money.
Ken Jones, CEO, believes in connecting with employees to set goals for individuals and for the company. He hosts an annual meeting with a leadership team to analyze company goals, discuss what the competition is doing, and look at the company performance both past and future. The head of each department also gets the opportunity to present ideas based on predetermined common themes. The themes are the company’s goals for the year and serve as a template for senior staff meetings. The company has found that by including all employees—from managers down—implementing new processes and revised goals is much easier. At Zappos, goals are based on employee input, rather than being solely created by top management and relayed to employees from the top. One very important thing that Jones has realized in this process is that employees know the ins and outs of their department better than he does. He values their experience and expertise to help set attainable and substantial goals, which in turn sparks a drive in employees to deliver and meet those goals.
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Visual Marketing, based in Chicago, makes decals for various commercial purposes and decided to focus just on the basics when it came to revising their goals. The company shifted its focus to innovation with increased employee involvement and empowerment. So, rather than focusing solely on output, employees were the ones considered to make the difference, and because of this, each employee went through teamwork training and was regularly surveyed for suggestions on process improvements. The company also revised its mission statement and then had each employee sign it. Doing so signified an understanding of and commitment to the company’s goals, which served to increase employee focus and motivation.
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Excelon, one of the nation’s largest power generation and distribution companies, makes an extra effort to develop organizational culture and positive attitudes. First, the company created a vision document that outlines goals and values. Then, it created a strategic direction document that exists to protect company values and to grow long-term value. These two documents are the foundation of everything Excelon does. From goal setting to business decisions, the company relies upon the contents of these documents for guidance. This is also how its employees’ performance, potential, and forward thinking are measured.
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The CEO of Huron Consulting Group, a health care consulting firm based in Chicago, has developed a program by which all 3,000 employees participate in a goal-setting meeting with their manager each year. At the end of the year, it is easy to identify the top performers. Those who have achieved their goals are rewarded, and those who have failed to do so not only miss out on rewards but are also moved to the front of the line if and when layoffs become necessary. Huron’s CEO makes it very clear to all employees that not following through on the goals they have helped set for themselves does not serve them well. The company prides itself on having employees who give 110 percent, for themselves and for the business, so the process of setting and achieving goals is extremely important to their overall success. The response from employees has been largely positive: Because Huron offers a positive work environment, and generously rewards employees who perform well, all the company’s employees know that working hard will pay off in the long run.
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Robert Polet, CEO of Gucci, has helped develop a performance review process that is based on previously established behaviors he most values in employees. This has helped managers at Gucci better identify individuals who show leadership promise, and identify employees who can be handpicked for strategic tasks or roles when revisions to the business or mission become necessary. As a result, Polet has found that during downtimes, it’s much easier to quickly choose employees who are needed to step in to help work through a particular challenge or serve on a special project group. The benefits are twofold: The employee is given an opportunity to further develop his or her skills and experience new levels of responsibility, while the company is assured of having the best people involved in a crucial task.
The need to know what is going on is pervasive throughout one’s job. People want to know not just the information needed to do the work they are assigned, but what others are doing and how the organization is doing, as well. It is important to communicate to employees information about the organization’s mission and purpose, its products and services, strategies for success in the marketplace, and even what’s going on with the competition. I was intrigued to learn while working with FedEx Corporation, for example, that the most popular column in the company’s internal employee newsletter was information about the latest developments at UPS and what that company was doing in the marketplace.
In my research, the highest-ranking variable that 65 percent of employees most want from their managers is to be provided with information they need to do a good job at work, which has a degree of significance that places it in a category of its own. These research findings correlate with recent research from Accountemps that found communication to be the leading variable that 48 percent of executives reported could best affect low morale in their organization.
One of the most common errors many organizations and managers make in challenging times is not sharing adequate information with employees. Sometimes this is the case because management itself is uncertain about the constantly changing competitive landscape. In other instances, management tries to “protect” employees from fears regarding the potential of losing their jobs or the ability of senior management to effectively handle a crisis. More often, these well-intended actions to “protect” employees backfire. Closed-door meetings and hushed hallway conversations create a sense of unease among employees and lead to speculation, heightened fear, and worst-case-scenario rumors.
Employees want and need to know what is going on within an organization, even if the information is not always positive. There’s nothing wrong with being honest with employees when a firm is struggling. Doing so will almost always lead to an increase in teamwork and dedication, especially if delivery of the bad news is also used as an opportunity to brainstorm and communicate with employees about ideas and plans for turning things around. Bringing employees into the loop during the downtimes can instill a greater sense of involvement and responsibility that ultimately increases feelings of value and trust.
When discussing major issues, such as organizational changes, communication should come in the form of a dialogue, rather than a lecture, and questions should always be encouraged. Employees must be made to feel as though they have the freedom to express their fears and concerns, and that they will receive honest and informative responses. Feedback sessions, departmental meetings, or companywide gatherings should ideally serve two purposes. First, to gather feedback, and second, to provide information.
When Best Buy began experiencing financial strains, CEO Brian Dunn decided to take a look at the employee discount program. After careful consideration, a change was made that would save the company close to $15 million. A small change was centered on store-brand products and wasn’t well accepted by employees primarily because it was introduced out of the blue and caught everyone by surprise. Best Buy’s social networking site became the primary forum for employees to vent their frustrations. Dunn set aside time to review the site and read the feedback from his employees, and eventually reversed his decision. Dunn’s major error? Not discussing the idea with employees before making the change.
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Allied Steel faced communication challenges because its employees were located in five separate office buildings. President and cofounder Mike Lassner got together with employees and developed the following systems for accurately communicating information across the organization:
• Continually repeated information to reinforce their messages
• Frequently hosted events or meetings where employees from all offices were in attendance, creating a sense of community
• Developed newsletters with feature stories or clips from each office
• Didn’t isolate great ideas to one office, which promotes competition rather than teamwork
• Prepared, planned, and strategized
• Didn’t mistake daily casual conversations for effective communication, and instead had an agenda and schedule
• Remained flexible and open to change, and didn’t lose sight of their goal
Communication cannot be successful if it is approached piecemeal. Preferably, develop a communication plan that takes a longer-term view of the activity. Thinking through possible challenges and developing systems to communicate effectively can better prepare both management and employees when miscommunication does arise, which it will.
Engineering firm MWH takes informal polls of its employees to determine which colleagues they rely upon most for help and support. In an effort to reveal communication gaps and strongholds, executives use this information to develop a roadmap of connections among employees. Often a very-little-known bit of information within companies, this understanding of employees’ communication connections has helped MWH develop a more solid and complete communication strategy and improve productivity. Some organizations have adopted similar practices, known as a social network analysis, with much success.
In addition to fostering collaboration, the technique has helped companies such as Computer Sciences Corporation improve customer service and support and aided a lobbying group in pinpointing weaknesses in its networking. When MWH began using social network analysis, the primary goal was to reduce costs by improving communication among its technology centers. For example, the center in Denver and the center in Pasadena each created programs that would track address changes among employees. Yet neither location communicated the effort, resulting in a duplicate expenditure of time and resources.
In today’s dynamic, fast-paced workforce, enlightened companies recognize that employees want an environment that encourages a constant dialogue between employer and employee. Today employees want and need continuous performance feedback. They want to be recognized and rewarded for their accomplishments, and at the same time, most employees want feedback if their performance is missing the mark so they can make changes as appropriate. “Men and women want to do a good job, a creative job, and if they are provided the proper environment they will do so,” says Bill Hewlett, cofounder of Hewlett-Packard.
Employees want to know how they’re performing and they want—and need—to know more frequently than annually. Continuous, supportive communication from managers, supervisors, and associates is too often underemphasized—yet it is a major motivator. After all, a motivated workforce, willing to take initiative when they see the opportunity, is a powerful advantage for a company.
Communicating with employees varies depending upon the situation. Group settings require different interaction than does one-on-one communication. Following are some suggestions for best handling individuals and groups:
INDIVIDUALS
• Periodic “one-on-one” meetings with each employee
• Personal support and reassurances, especially for your most valued employees
• “Open door” accessibility to management
• Inviting employees to write anonymous letters to top management about concerns and other matters
GROUPS
• Town hall meetings
• CEO breakfasts
• Brown-bag lunches
• 24-hour “news desk” on the company intranet
• Periodic “state of the union” updates on the business
• Being open and honest in explaining the current situation and upcoming challenges
• Taking questions and providing answers
MEETINGS
• Taking questions in advance of the meeting or allowing them to be written anonymously on index cards
• Recording staff meetings and distributing to those who couldn’t attend the meeting
• Creating a question-and-answer section in your internal newsletter or company website
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Joe Zimmerman, CEO of KB Homes, carves time out of his day to spend time with his employees. Except he doesn’t just take the time to be a physical presence, he actually listens to what they have to say. His open door policy applies even when his door isn’t open. Every member of his organization is encouraged to drop in and share their ideas, no matter how premature they might be. When employees present concepts in the early stages of development, Zimmerman has still managed to find nuggets of value. He even walks the hallways soliciting ideas and exchanging information. In his eyes, an idea coming from the rank and file does not diminish its potential for being a good idea.
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Winchester (MA) Hospital, a 178-bed facility recently named by The Boston Globe as a top place to work in the state, gives employees the same personal attention that patients receive. Executive leaders continually communicate with employees to understand how they like to be recognized for good work. They make regular “rounds” during day and night shifts to get patient and staff feedback, and keep index cards listing employee preferences. Managers frequently give “spot awards,” small gifts worth up to $25.
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At Subaru’s Illinois manufacturing plant, employees requested information about new models the company was planning to market, which helped them serve as ambassadors for the products.
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Oregon-based Flying Pie Pizzeria restaurants formed a committee called The C-Team that plans parties and special events. It meets weekly, alternating between two restaurant locations, and is run by managers and long-time employees. However, all employees are invited to sit in, participate, and give their own ideas. Rewards conceived at C-Team meetings have included improving stereos for restaurants and attending concerts together. The company also created an Odd Duck form. When employees see an “odd” problem, they fill out the form to let management know that attention is needed to prevent something from falling through the “quacks.”
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When Nancy Quasarano, supervisor in training for Best Buy in Kalamazoo, MI, led her department meeting on improving performance, she used the Dumbo movie as an analogy to improve her coworkers’ attitudes. Dumbo was an elephant that was born to fly, but didn’t have enough faith in himself to try. It was only after he was given a magic feather that he started to fly. When he lost the feather, he realized that he’d had the power in him all along. Nancy gave each person a feather and made a poster that read “Today I made a choice. Today I chose my attitude. Every day is another chance to turn it all around and make the most of the time I have.” She encouraged her employees and told them that once they knew they didn’t need the feather, they could tape the feather to the poster board. By the end of the week, all feathers were attached to the board and department performance started to improve.
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Jim Dixon, building services director at Keepsake Village assisted living center near Syracuse, NY, makes a point to tell every new employee, “There’s no task that I’d ask you to do that I wouldn’t do myself.”
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In just one year, Rare Method Interactive Corp., an interactive marketing firm based in Calgary, Alberta, cut its staff from about 100 to 50 employees. Realizing that some of his best employees were choosing to leave, President Tom Short held one-on-one chats with top performers, reiterating his vision for the business and how their contributions tied to overall company goals. He sought their input about their jobs, decision making, management, and the company itself. They became more engaged and contributed great ideas for changing and streamlining processes. “It’s about re-earning trust,” Mr. Short says. “You want to retain your good people, because they are the ones who can always get a job anywhere.” The payoff: The company is more optimistic, seeing increased excitement from employees.
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When company sales dropped, instead of jeopardizing respect and trust by firing staff or reducing pay, Robert Meggy, president of Great Little Box Co. of Richmond, British Columbia, found other ways to cut expenses. When employees retired or took maternity leave, for example, the firm chose not to replace them. The firm cut back on social events and held several brainstorming sessions with employees to get money-saving ideas. Sharing corporate and financial information with employees created a sense of trust and transparency; everyone knew where the company stood and why decisions were made. “If employees trust that you have their best interests at heart,” Meggy says, “they’ll stay committed to the organization.”
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At Johnson Inc., a St. John’s, Newfoundland, insurance broker with over 50 offices and several hundred employees across Canada, CEO Ken Bennett, hosts frequent employee lunches and “up close and personal” sessions, giving staff company news and updates and fielding questions ranging from issues about the company’s growth to his vacation plans. Bennett says, “Our people drive our business. So, we have an absolute passion in doing the right thing so they feel proud to work here.”
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Pioneer/Eclipse, a manufacturer in Sparta, NC, takes customers to meet line workers who have had a part in developing their products. Workers love to tell customers about their ideas and listen to what is needed.
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At Ivanhoe Cambridge Inc., a shopping center company based in Quebec province, managers hold “10 plus 10” meetings: They have ten minutes to give staff a business update, and employees have ten minutes to ask questions and give feedback, which is relayed to senior management. Sessions are held at least quarterly.
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Cargill, Inc., the U.S.’s largest private corporation and agribusiness giant based in Wayzata, MN, received a 2007 Best Practice Award from Recognition Professionals International (RPI) for its outstanding employee recognition strategy, management ownership, and events and celebrations. “Cargill management is very involved in making their recognition program a success,” said Christi Gibson, executive director of RPI. “Getting management onboard early and continually [involved] is a key factor in every highly functioning recognition program.”
Communicating better with employees is the first step in empowering them to act in the best interests of the organization. But that’s just the beginning. Once employees are armed with more frequent and relevant information, they’ll be more likely to act on that information in ways that can best help the organization. The act of honest and open communication shows both trust and respect that management has for its employees. Adding to that the explicit request and encouragement for employees to get involved in helping the company can lead to profound results.
According to a survey I conducted of employees in a variety of industries, 50 percent of employees want their managers to ask for their opinion and ideas at work, and more than 50 percent want their managers to involve them in decisions that are made at work. The average American worker makes 1.1 suggestions per year where they work today-one of the lowest rates of any industrialized nation. Contrast that average with 116 per employee made each year by the average Japanese worker and you can see the potential that exists if only you can find a way to tap into it.
Managers and workers are entering into a new kind of partnership that is forming the basis of a new joint focus in the workplace. Today’s managers are discovering that they have to create an environment that encourages employees to contribute their best ideas and work, to help seek out new opportunities, such as new sources of revenue, and to overcome obstacles facing the company, such as cutting costs, wherever possible. Workers are discovering that, if they expect to survive the constant waves of change sweeping across the global business marketplace—as well as hold on to their current job—they have to join together with other employees to contribute to their organizations in ways that they have never before been called upon to do.
Although I’ve yet to see an organization that didn’t have an open door policy in which employees were encouraged to speak to their manager about any concerns, ideas, or suggestions they had, in practice this policy often doesn’t work very well. Solicitation of ideas needs to extend beyond the traditional scope of employee involvement. Anonymous surveys and casual questions at the tail end of a meeting are not enough to accomplish the task ahead during a recession. After initial cost-savings measures are put into place, it’s time to talk seriously about how best to move forward in an economical yet productive manner to make the changes stick. Policies and procedures need to be revised to reinforce the company’s effort to do things smarter, cheaper, and better.
In order to maximize buy-in as well as motivation, employees need to be challenged for identifying ways to improve. Employees need to understand that you need their efforts now more than ever before. Once this has been communicated, it’s time to create new mechanisms that inspire employee involvement. Would you like to get more ideas from your employees? Ideas for saving money, improving customer service, streamlining processes, and so forth? What business manager or owner wouldn’t?
Although they will vary from organization to organization, here are some typical areas of employee focus that can yield benefits to the organization:
Revenue-Generating Ideas: How can the company generate additional income? Whether it’s new fees, cross-selling, or up-selling, what new ideas could be tried?
Cost-Saving Suggestions: How can costs be trimmed, delayed, or eliminated? What are critical expenses, versus optional ones that could at least temporarily be cut?
Process Improvements: What steps in the organization’s processes can be streamlined, saving time, resources, and money along the way?
Customer Needs & Requests: How can employees help others in the company who are focused on customer needs and requests? How can customer needs be further explored?
New Products or Services: What ideas exist for new products or services? How could those ideas be better developed and implemented?
Morale & Teambuilding: Who would be interested in helping to improve employee teamwork and morale? In what ways could this be done at little cost?
I’m convinced that every employee has at least one $50,000 idea on the tip of his or her tongue. The trick is to find a way to let it out. Yet I find most companies do little if anything to get ideas from their employees. Or if they do decide to take action, it’s in the form of a “suggestion box” that is placed in the lunchroom with (for some reason) a lock on it. The first dozen or so employees who submit suggestions, if they hear back at all, often receive a form letter months later that more or less states, “Here’s why we’re not using your silly idea...” The result? The suggestion program grinds to a halt. In fact, I recently heard of one company that ended their dead suggestion program because, they announced, the company had gotten all the ideas. Right. How convenient.
They don’t feel that’s the case at AT&T Universal Card Services in Jacksonville, FL, where they get some 1,200 ideas per month from employees, month after month. They don’t feel that way at Valeo, a French automaker that in a recent year received 250,000 ideas for improvement from employees.
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Pelican Products, a Los Angeles–based designer and manufacturer of advanced lighting systems and cases, encourages idea sharing through a group called the “Blue Sky Committee,” in which representatives from each department provide suggestions on how to enhance business. Anyone in the company can bring ideas to them, whether as a sketch, a sample, or simply a concept.
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At Café Natura in the Sault Ste. Marie (Ontario) Elgin Integral Health Centre, the best source to tap to save money is the employees’ suggestions. Once a week after lunch, they discuss how to reduce costs. “They have come up with many good ideas,” says owner Kelly Burton, who provides them with free lunch every day and trains them for all roles from food preparation to handling cash.
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Analytical Graphics Inc., an aerospace and defense company based in Exton, PA, solicits employee ideas through annual surveys and quarterly town hall meetings. Every Friday, the company hosts “Storytime,” when employees talk about their projects and work. Likewise, the staff at Bailard, Inc., a private investment firm based in Foster City, CA, meets every Monday shortly after 9:00 A.M. to discuss company news, investment markets, and internal projects and to introduce new employees.
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Dorchester Hotel in London, UK, uses a graffiti board to collect employee suggestions. Ideas employees have recommended and that have been implemented include uniting with other organizations to raise money for charity, replacing showers in staff changing rooms, and producing an annual employee yearbook—detailing staff parties and grand openings, photos of newborn babies, and annual financial data.
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Shell Oil sought the advice of its “pride builders,” otherwise known as the top supervisors, on how to improve the performance of one of its plants in Texas. Believing that these individuals were the most in tune with the other employees, the company turned to them to learn how to best motivate employees and instill in them the drive to help improve plant operations. The result of Shell’s program was a vast improvement in overall morale, a better idea of what it takes to develop more top supervisors, and a 30 percent reduction in avoidable maintenance.
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Texas Commerce Bank holds focus groups with employees to determine what procedures most frustrate employees and customers. Acting on the feedback, the bank nearly doubled its $50 million cost-savings goal.
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American Strap in Diamond City, AK, found that employees became more and more creative after their suggestion system was launched. Just finding that their suggestions were being taken seriously changed the workers’ attitudes, and they became even more willing to find ways to help the company improve.
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Hospira Inc., a global pharmaceutical company based in Lake Forest, IL, uses an employee engagement survey to find out what employees think and need. They also encourage employees to “just come forward with ideas.” In response to recent surveys, the company now provides female employees with more opportunities for networking, mentoring, leadership development, and charitable work. They also created the Ignite program, which allows employees to submit grant applications for ideas to help improve employee effectiveness. To make the point that employees are being heard, managers use a stamp, “Your Ideas in Action,” when they announce changes as a result of employee feedback. All employees are highly engaged in achieving the firm’s goals on a daily basis. They do this through “huddles,” the initial 10 to 15 minutes each work group shares every morning in which all employee-owners describe their number one priority for the day and any barriers to achieving that priority. They all vote on the top priority, and then their manager passes their collective number one on to a second-level huddle that is held immediately following the first one. At the second huddle, the same process is repeated, along with a review of the previous day’s metrics. The manager groups can choose to resolve any or all of the barriers that arise, and then they, too, vote on the number one priority, which is passed on to the executive team for that group’s meeting, which is up next.
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On Fridays, The SCOOTER Store breaks its “meeting rhythm,” as they call it, for “IQs,” that is, “Ideas or Questions” that every employee has for achieving that quarter’s overarching goals, which they refer to as “Rocks.”
Only 41 percent of surveyed employees believe the typical company listens to employees’ ideas. One of the best ways to involve employees in an organization and to energize them in the process is soliciting their ideas and opinions. Real motivation comes from within. People have to be given the freedom to voice their opinions and make suggestions. Various systems and programs—known by a wide variety of names, including total quality management, continuous improvement, or simply the good old suggestion box—seek employees’ opinions and encourage them to make suggestions. It is important for employees to know that their suggestions are taken seriously and that they can make a big difference. By carefully reviewing employee suggestions and quickly implementing those that have merit, management sends a message to employees that they are valued.
When implementing employee suggestion programs, it is important to keep in mind a few key points:
• Encourage employees to make suggestions for improving either the workplace or service to your customers.
• Encourage any idea, no matter how small. Sometimes you have to get through simple suggestions before employees begin offering more significant ones.
• Publicly acknowledge the individuals who make suggestions and the improvements that result.
Numerous companies have found innovative ways to make employee suggestions programs work. For example, an oil refinery in Texas City, TX, uses a program that has saved millions of dollars in two years. The plant awards gift certificates to suggesters in front of their fellow workers during lunch breaks, publicizing them on the refinery’s internal TV system and in local newspapers, and entering them in contests for Employee of the Month or Year. Winners garner gifts like pen-and-pencil sets and weeklong vacations, which are presented by the plant manager at plantwide dinners.
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TAKING INITIATIVE AT BOARDROOM, INC.
Boardroom, Inc., a newsletter and book publisher based in Greenwich, CT, expects every employee—from receptionist to chairman—to submit at least two ideas every week for improvements. Initially established to encourage cost savings, the Boardroom, Inc., program is called “I Power,” and they credit the suggestion program with a fivefold increase in revenues, as well as untold benefit to the morale, energy, and retention of their employees. All the suggestions are evaluated the same week by an employee volunteer. For many of the suggestions, the evaluator says “What a great idea!” and then returns the idea to the person who suggested it with the implicit permission to proceed to implement the idea.
As Martin Edelston, chairman and CEO of Boardroom, says, “Sometimes the best idea can come from the newest, least experienced person on your staff.” Like the hourly paid shipping clerk who suggested that the company consider trimming the paper size of one of its books in order to get under the four-pound postal rate and save money on postage. The company made the change and did indeed save some postage: half a million dollars the first year and several years since. Explains Marty: “I had been working in mail-order for over 20 years and never realized there was a four-pound shipping rate. But the person who was doing the job knew it, as do most employees know how their jobs can be improved.”
During the first year of the program, suggestions were limited to one’s own job, until employees got the idea that the intention was less to complain about things than it was to try to think of how they could improve things. The company even now has group meetings just to brainstorm and share ideas about specific issues or functions in the company.
And the benefits of the suggestions are not limited to saving money. Says Antoinette Baugh, director of personnel, “People love working here because they know they can be a part of a system where they can make a contribution.” Adds Lisa Castonguay, renewals and billing manager: “My first couple of weeks I was kind of taken aback because everyone was smiling and everyone was open.” She recalls her first day of work, in which she was pulled into a group meeting and within 30 minutes of walking in the front door was asked, “What do you think we should do about this problem?”
Lisa almost fell on the floor. Why? Because she had just come from a company where she had worked for eight years and no one had ever asked her opinion about anything. Once she got over the initial shock, it felt pretty good to have her opinions and ideas sought after and valued by those she worked with. As a result it was easy for her to want to think of additional ways to help the company.
The impact is both positive and contagious. “People became agents of their own change,” says Marty. “There’s so much inside of all of us and we don’t even know it’s there until someone asks about it. And in the process it just builds and builds.” Adds Brian Kurtz, vice president of marketing: “It’s a constant flow of communication. People are not sitting in a cubicle, totally insulated from one another.”
Everyone Counts is a program at Black & Decker, headquartered in Towson, MD, that has used teams to brainstorm and develop ideas about training, communication, administration, and rewards. People from different departments were grouped into 39 teams, and two evaluation committees for managerial personnel were named to receive ideas and judge their merit. The evaluation teams also noted leadership potential in some employees when they made their presentations. A total of 200 ideas were submitted and 59 approved. The first 12 ideas to be implemented dealt mostly with improved operations that resulted in cost savings. One $700,000 idea concerned the substitution of new material in one of the company’s product lines. The program also improved upward lines of communication in the company.
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At Eastman Kodak in Rochester, NY, an employee whose suggestion is implemented receives 15 percent of the outof-pocket savings achieved in the first two years of use. If a suggestion results in a new product, the award is equal to 3 percent of the sales achieved in the first year. Kodak has given awards—averaging $3 million annually—to more than 30,000 people.
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Employees at Levi Strauss, based in San Francisco, nominate one another for the firm’s Koshland Award for showing initiative, taking risks, generating cost-saving measures, coming up with creative ideas for promoting products at the retail level—anything that puts the company at a competitive advantage. Winners receive a plaque at an annual awards ceremony and a cash prize.
One of the most significant organizational strategy activities that energizes employees is encouraging the freedom to take initiative. Taking initiative at work is a key ingredient in making improvements, solving problems, dealing with change, and providing customers with service that far exceeds their expectations. And it’s the employees doing the jobs who are in the best position to do their job better, to resolve problems as they arise, and to benefit the most from their actions. A poll of executives asked: “What do you feel is the single best way for employees to earn a promotion and/or raise?” Topping the list for 82 percent of respondents was “Ask for more work and responsibility.”
Too often, however, employees are reluctant to take the initiative they need to excel, in part because they don’t feel it’s what the manager really wants. According to a Gallup survey of 1,200 U.S. workers, for example, 66 percent of respondents say their managers have asked them to get involved in decision making, but only 14 percent feel they have been empowered to make those decisions; that is, they are not given the authority, resources, and support necessary to be successful.
The more supportive and encouraging the environment, the more willing employees will be to take initiative that organizations need to compete and excel. “How a company deals with mistakes suggests how well it will ring out the best ideas and talents of its people, and how effectively it will respond to change,” says Bill Gates, chairman and former CEO of Microsoft Corporation. “When employees know that mistakes won’t lead to retribution, it creates an atmosphere in which people are willing to come up with ideas and suggest changes. This is important to a company’s long-term success.”
There are a variety of ways organizations can produce a work environment in which employees feel charged—almost compelled—to be creative. For example, at 3M in St. Paul, MN, employees are encouraged to develop and create new products. Professional staff members whose ideas are given the nod by management can receive funding to build their own businesses within the company. Those who are successful in their efforts are given promotions and pay raises. There is no penalty for those who are not successful. Employees are motivated by the opportunity to see their ideas come to fruition, and a significant portion of the company’s revenue now comes from products introduced through this program.
TOP TEN WAYS TO TAKE INITIATIVE AT WORK
In today’s fast-moving, constantly changing business environment, the need for employees to take initiative and do what needs to be done without waiting to be told is greater than ever. In addition to helping your organization save money, improve processes, or delight customers, taking initiative makes your job more exciting—you are able to make things happen and get a reputation for doing so. Here, then, are top ways you can take initiative and make a difference at work.
1. THINK HOW THINGS COULD BE IMPROVED. It’s the person who does a job that knows best how it can be done better. Ask silly questions such as “Why do we do it this way?” A secretary at Johnsonville foods asked why the company didn’t sell directly to customers and was soon put in charge of what became a multimillion-dollar direct-sales division.
2. THINK LIKE A CUSTOMER. Look at the business from your customers’ perspective, asking what would make it easier to do business with your company. An employee at Kacey’s Fine Furniture in Denver suggested changing the store’s operating hours to times that were more convenient for working customers, and sales instantly rose by 15 percent.
3. TRACK YOUR OWN PERFORMANCE. Track activity in your own job to build a case for possible improvements. An assembler for United Electric Controls who tracked his numbers was able to devise a simpler way to inventory parts that saved the company much money.
4. TAKE ACTION ON YOUR IDEAS. Having ideas is good, but don’t just plop them on the table and expect others to run with them. Be an advocate for your ideas. An employee at Starbucks pushed a frosty new coffee drink she believed in, and with time the Frappuccino became a $100 million product for the company.
5. DO YOUR HOMEWORK. Think your ideas through. Decide what steps need to be taken, what the costs and benefits are, and collect supporting data. A part-time employee of the State of Massachusetts independently researched the state’s Medicaid rules on her own time and was able to uncover an accounting glitch. As a result, the state was able to obtain higher reimbursements. She received a cash award and special thanks from the governor.
6. BUILD CONSENSUS. Start with those who will most likely be interested in your idea to get them involved in supporting it. In the early days of the Internet, an IBM employee sent an internal memo to employees urging them to “get connected” and a list of actions they could take. He immediately got support for his initiative from others about the vision he saw for the future. He was later named chief technology officer.
7. SPEAK UP AT MEETINGS. We’ve all been in meetings that have gotten sidetracked or bogged down. Be the person who speaks up to say, “It may just be me, but have we been over this ground before? Perhaps we should summarize the choices and take a vote for how we want to proceed.” Others will appreciate your intervention, and you will help move the group closer to its goals.
8. VOLUNTEER FOR NEW ASSIGNMENTS. Whether it is a pressing problem, a special task force, or someone else in the department that needs help, be the person to step forward to help out. A new employee at the Gap in Toronto, who noticed that the company’s policy manual didn’t cover half the issues that came up in the store, drafted a concise training manual that is now used throughout the country.
9. MANAGE YOUR MANAGER. Try to understand your manager’s priorities and fit your ideas into those. Tell your manager what you need in order to do the best job for him or her. An employee at a company in San Jose told her manager that she wanted to meet once a month to review her work and get feedback about her progress. These short meetings kept her manager informed of her needs and successes—and reenergized her.
10. STICK WITH YOUR IDEAS; PERSEVERE. It’s very infrequent that ideas are met with open arms. Stay the course with the ideas you most believe in that will help the business. When management nixed one employee’s idea for a flextime work schedule, she simply waited until a new manager came on board to propose the idea again, which was then accepted.
To spur their creativity, researchers at electronics manufacturer Hewlett-Packard, headquartered in Palo Alto, CA, are given access to 24-hour laboratories and are urged to devote 10 percent of their time to personal pet projects.
Most business decisions in organizations come from the top down, but is that always the best direction? No one knows jobs or departments better than the people who live and breathe them every day—doesn’t it make more sense to start there? If you’re looking for a way to cut back on office supplies, talk to the person responsible for ordering them or managing inventory. If a reporting process is ineffective or costly, talk to the individual responsible for managing the process. A perfect example of this can be found in a receptionist at Champion Solutions Group in Florida who received expense reports from field sales representatives via overnight delivery. When her suggestion that the reports be faxed instead of shipped was implemented, the company saw a 40 percent reduction in postage costs. This led to company leaders seeking the advice of employees for other ways in which cost savings could be realized.
When employees believe they have a say in a decision, companywide buy-in and participation is much easier to obtain. If the general consensus among staff is that decisions will be made with or without their input, the likelihood of anyone providing open and honest feedback is quite small. In fact, in one survey conducted by Gallup, 66 percent of respondents say their managers have asked them to get involved in decision making, but only 14 percent feel they have been empowered to make those decisions. Asking employees for their input on decisions shows that you have respect for and trust in them, and this will likely increase the quality of the decisions being made. Ultimately, however, the responsibility still remains with the manager.
Employees who offer solutions that result in cost savings should not go unrecognized. Incentives, such as bonuses, trips, or gift cards will not only reward the employee but inspire others to develop cost-saving ideas of their own. Make the process fun and rewarding. Hold contests, departmental competitions, or other organized events to increase involvement and interaction. Managers need to ensure that employees are given the opportunity to be involved in the decision-making process.
“If you ride a horse, sit close and tight. If you ride a man, sit easy and light.”
This sage advice from Poor Richard’s Almanac is relevant today for managers trying to get the most from their employees.
Ranked as one of the top motivators for employees in their jobs today is the notion of autonomy and authority: having a say in how they do their work and the ability, power, and support to do what is necessary to get the job done. In my research employees ranked the following items as very or extremely important: “being allowed to decide how best to do one’s work” (89 percent), “being given increased job autonomy” (87 percent), and “being given increased authority in the job” (85 percent).
Autonomy and authority create the foundation of trust and respect that today’s employees so highly value. It provides them with a sense of independence and a freedom to bring their own imprint to their work. This freedom is important for fostering employee creativity, resourcefulness, and best efforts, which in turn lead to higher performance and increased employee satisfaction and fulfillment at work. With autonomy and authority, employees feel more confident in taking initiative with their work and more competent that the initiative they take will pay off, leading to better results and an enhanced ability to take on greater assignments and responsibilities.
No one likes to work for a micromanager, although in the book My Way or the Highway, by Harry Chambers, it’s reported that four out of five workers say they have done just that—and one out of three workers has even changed jobs because of it. To tap into the wellspring of potential every employee has to offer, you need to give them more room and encourage them to take responsibility—and recognize them when they do.
Every employee needs to have a say in how they do their work to make it more meaningful. When employees find their work to be meaningful, they become more engaged and effective. In tough times the need for employees to become engaged in their jobs is amplified. It is critical that they go beyond their job descriptions to do whatever they can to make a difference in their jobs, as well as for the greater good of the company.
Once employees have been enlisted to get involved and make suggestions and improvements, they need to be encouraged to run with their ideas, take responsibility, and champion those ideas through to closure and completion. Managers can encourage this increase in autonomy by the way they delegate assignments and provide flexibility to employees—including whom employees can approach for help, and authority to use resources and take necessary actions to get the work done. To the extent that managers or the organization is able to provide those motivators for employees, it can greatly impact their morale and performance in having them do their best work possible.
The vast majority of employees prefer to be assigned a task and allowed the freedom to develop a work plan that suits them. No one likes to be micromanaged. Roles and responsibilities may be previously defined, but they are customized based on the individual who occupies the position. Here is where truly knowing your employees becomes important: Understanding their strengths and weaknesses allows a manager to properly assign projects and tasks. Take it a step further by allowing employees to pick and choose the projects and responsibilities they can work on.
Companies today cannot afford to stifle themselves in a culture of entitlement. To be able to respond quickly and effectively to advances in technology, competitive threats, and the changing workplace in general, employees must be committed and devoted to making a difference in their organizations. They must want to make a contribution... and thrive because of it.
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Chip Conley, owner of Joie de Vivre Hospitality, a chain of 20 eclectic “boutique hotels” in California, used the work of psychologist Abraham Maslow to help his company survive the recent economic recession. Conley sought a systematic way to satisfy people’s higher needs. First, he convinced salaried employees to accept a two-year salary freeze so he could avoid layoffs among his 800 hourly employees. Then he upgraded the company’s recognition programs, handing out prizes to employees who went above and beyond, and making sure executive meetings ended with each member nominating an employee who deserved special recognition. Conley created meaning for all employees by giving them more freedom to choose how they do their jobs, including them in annual strategy retreats, devising a two-word mantra, “create joy,” describing their shared purpose, and involving them in JdV’s philanthropic activities. He designed similar needs frameworks for customers and investors. Between 2001 and 2005, JdV tripled in size and has since doubled its number of properties.
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Anthony Wilder Design/Build, a home-remodeling firm based in Cabin John, MD, teaches financial management to its employees. Employees are expected to understand how their work and their department’s work affect the bottom line and to seek efficiencies on the job. The company also altered its bonus system so employees get a set portion of net quarterly profits, rather than bonuses based on individual performance. In monthly companywide breakfast meetings, all employees discuss company finances. Employees are asked to speak up about what types of issues they’re facing on the job and brainstorm ways to save or generate more revenue. Ideas enacted have ranged from cutting text-messaging service on company cell phones to taking on smaller-scale remodeling projects. When the economy got really bad, senior managers asked employees to take pay cuts. Most took cuts of 20 to 30 percent, while the owners took 50 percent. “Having employees fully understand the financial situation—and seeing the founders make a bigger sacrifice—helped garner support for the cuts,” Elizabeth Wilder said. As the economy recovered, the company gave out back pay.
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Management at Phelps County Bank in Rolla, MO, formed the Problem Busters committee to give employees the authority to make decisions and encourage them to solve their own problems.
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Employees at Microsoft in Redmond, WA, are given great latitude in deciding how to do their jobs.
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Reference International Software in San Francisco allows customer service representatives one day a week to work on any project they choose. Some results have been better systems and salable products—and really great employee morale.
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When the supervisor of the membership development department of the Girl Scouts of Santa Clara County, CA, left the organization, chief executive Nancy Fox declined to fill the vacancy and, instead, handed over responsibility of all department duties to its staff. Department employees set their own work schedules and determine how they will do their jobs. Says Fox, “Individuals on the team tell me they feel more responsible and connected to what they do.”
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Carolina Safety Associates, a fire protection company in Gastonia, NC, shared financial results with employees and gave them freedom to make changes that had a positive impact on the bottom line. Employees reported increased job satisfaction and formed several off-line, problem-solving task forces on their own.
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At Genentech, the San Francisco–based founder of the biotechnology industry, employees pursue their own projects, and hierarchy is kept to a minimum in an atmosphere of “casual intensity.”
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At Hitachi’s Tokyo, Japan, headquarters, the appliance manufacturer has removed formal titles, somber suits, and morning calisthenics. The goal is to promote individuality and innovation. Company spokeswoman Emi Takase says employees are being urged to wear polo shirts and slacks, hoping that more casual clothing will bring out people’s personalities and stimulate creativity, which will in turn lead to new ideas on how to improve the company. Workers are no longer required to address supervisors by formal titles and may use personal names.
One significant motivation for today’s employees is increased flexibility in their work schedules. Depending upon the type of work, flexibility could increase the efficiency of getting the work done. Companies that have enacted policies regarding working from home or flexible schedules have reported the following results:
• 34 percent reduction in absenteeism
• One-third fewer sick days used
• Overall decrease in cholesterol and blood pressure among employees
• 93 percent of employees feel as though the company cares about the work they do
• 91 percent of employees care about the company, not just their jobs
For example, at one point I managed a work group that experimented with having employees work from home on certain projects. Everyone logged their hours and was available as needed to discuss work issues, etc. Not counting the commute time that was saved, we found employees to be twice as efficient in what work they could accomplish. There was less socializing and there were fewer interruptions, so employees could better focus on the work at hand.
Many employees struggle with how to effectively maintain a work–life balance without compromising their success as employees, parents, or spouses. Research has shown that involvement in activities outside work can serve as a stress reducer and creates a better, well-rounded employee. Companies can help employees achieve a better balance in their lives by implementing policies that promote a life outside the workplace. There are many options for increasing flexibility, including alternate hours (arrive early and leave early or vice versa), four-day work weeks in which longer hours are worked on fewer days, telecommuting, job sharing, or even just the ability to allow an employee to leave work early, when necessary, or time off to compensate for extra hours they had worked.
Many companies have found that by giving employees the option of a flexible schedule, or telecommuting, morale and productivity are increased. For some, the attractions are a reduction in the amount of time spent each week in a car and saving money on gas or mileage. Others may find it beneficial to limit child care expenses, or simply to have the opportunity to spend more time with their children. Whatever the motivation, employees appreciate the option of being able to have some control over their own schedules and, as a result, feel as though the company has their best interest in mind.
Employees are looking for ways to better integrate the demands of their personal lives with their roles at work. Technology has helped create a work environment where communication is more streamlined, companies are better integrated, and most work can be completed from virtually anywhere. Tapping into some of these resources and finding the ways they best work within a company can do wonders for alleviating stress, which makes for much happier, more productive employees.
Employco USA, based in Westmont, IL, offers flexible work hours and time off to take care of children and aging parents. At Holmes Corp., a company based in Eagan, MN, that designs, markets, and distributes educational materials for professional associations, employees can leave work early to watch their children’s sports games or work from home to assist elderly parents. Boston Consulting Group, the Boston-based management consulting firm, gives employees the flexibility to work from home and to modify how their work is scheduled—as long as they get the work done.
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At Railroad Associates Corp., a Hershey, PA, railroad engineering and contracting firm, employees have flexible schedules. A few years ago, the young daughter of Brian Hiltz, a truck driver for the company, needed back surgery in Philadelphia. Rather than dock his vacation or sick time, company president Michael Kennedy told him to take off all the time he needed. “He covered for me that entire week while I was off,” Hiltz says. “How often is the president of the company going to jump in and run a tractor trailer for a week?” The exemplary employee relations, empowerment, and accountability seem to work. Kennedy estimates that the company saves $500,000 annually in salaries and other overhead costs.
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Hi-Tech Hose, a flexible hose and ducting products maker in Newburyport, MA, lumps all vacation time, holidays, and sick days into a single account. Employees can take time off whenever they need it and for whatever personal reasons. ZocDoc, an online doctor-locating service recently listed in Crain’s New York Business as the “best place to work in New York City,” lets its employees take as much vacation time as they need. It’s part of its flexible-rules culture. “Some people wear suits to work, others don’t even wear shoes,” says chief executive Cyrus Massoumi. “They’re just happy that they’re a part of something growing, rather than thinking their company is not in its best year or worrying about their job.”
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Cygna Group, an engineering and consulting group based in Oakland, CA, uses a “Take the Rest of the Day Off and Do” reward when employees finish a big project.
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JS Communications gives its employees two free “I Don’t Want to Get Out of Bed” days. “You don’t have to worry about seeing your boss later in the day,” says Alissa Pinck, general manager and vice president of the New York office. “The day is yours, and you can do whatever you want with it.” Employees can use the gift on any day when they do not have a meeting or conference call scheduled.
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Brigate Trading, a New York trading firm, works hard from 9:30 A.M. to 4 P.M., but the rest of the day is spent having fun: going to the movies, playing tennis, and visiting their kids.
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Minneapolis-based advertising agency Carmichael Lynch offered “Summer Time Off,” an additional seven paid days to enjoy the outdoors. Deland, Gibson Insurance Associates, Inc., of Wellesley Hills, MA, rewards employees with summer hours from Memorial Day to Labor Day. Everyone takes 15 fewer minutes at lunch four days a week and leaves an hour early on Fridays. Employees say they appreciate it.
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Brainstorm Marketing in Des Moines, IA, gives employees a paid day off on their birthdays. Marlene Herman, owner of two Aamco Transmission & Complete Car Care franchises in the Cleveland, OH, area, gives her ten employees a half day off with pay.
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Hedy Ratner, copresident of the Women’s Business Development Center, a nonprofit organization that assists women with business development and expansion, walks the walk. The center, based in Chicago, has 24 full-time staff members who have the choice of flexible hours for personal and educational purposes and generous time off. The result, Ratner says, is “happy and productive employees.” Many former employees have started their own businesses and have returned to the center to provide consulting services.
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Sun Microsystems allows employees to telecommute as their work permits it. Result: Those employees who averaged 2.5 days at home each week saved $1,700 a year in gas and vehicle wear-and-tear.
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The core of Home Shopping Network’s (HSN) operations are their call centers. At a time when the trend in call centers leans toward outsourcing, often overseas, HSN decided to try something different: They sent their reps home. While competitors, and other companies, field complaints about the quality of their customer service experience with overseas call centers, HSN put a stop to some of their outsourced work in the Philippines and stepped up staffing efforts in the U.S.
HSN currently employs close to 1,500 part-time and full-time workers and of those, close to 900 are equipped to work from home. Whereas most call centers fail at their attempts to allow employees to work from home, HSN has seen a tremendous success on many levels. Many applicants placed working from home above earning a higher salary on their list of desirable traits in a new job that broadened HSN’s network of potential employees quite drastically. Currently the majority of HSN’s reps are drawn from infrequently tapped markets such as retirees or disabled customers. Not only were these candidates given an opportunity to have a schedule that accommodated their needs, they were given an opportunity, period.
HSN reports that employing people who work from home is more costly than some of the alternatives, but that the cost is more than made up for in the improving attrition rates: Once at a whopping 120 percent a year, employee turnover is now down to around 35 percent. The popularity of their flexible scheduling has been a huge attraction for job candidates.
What has this done for customer satisfaction ratings? They’ve improved quite a bit. As has sales performance.
The most difficult part of implementing a work-from-home program at any company is trusting that employees will keep up with their responsibilities and not become too isolated. HSN takes the following precautions that have aided in their success:
• Take the time to carefully screen new applicants.
• Develop a training program that can closely monitor employees’ comfort level and determine their readiness to be independent.
• Establish a “home base” where work-from-home employees can go to reconnect with their team and other coworkers.
• Ensure that employees have regular, face-to-face meetings with supervisors.
• Host frequent events on-site to maintain employees’ connection to the corporate culture.
• Encourage social networking among work-from-home employees to foster a sense of camaraderie and support.
Employee development pays important dividends for both organizations and employees. Many organizations have created comprehensive training programs to ensure that their employees have the chance to improve their work skills and to prepare them for advancement within the organization. While some of the programs are highly structured, others allow employees to identify their own training opportunities. In a recent study of workforce practices, it was found that companies that invest in their employees find it well worth it. According to the study, firms that invest in employee development have significantly higher market values than those that don’t, and firms that actively encourage employee development and offer opportunities for employee involvement make much larger gains in productivity than those that didn’t.
Most employee development occurs on the job, with existing opportunities to take on new challenges and assignments and, in the process, learn new skills. Managers need to support their employees in the learning of new skills and allow them to participate in special assignments, problem-oriented initiatives, and various other learning activities. They should develop learning goals with each employee, for the year and even for specific projects, and discuss what was learned in the debriefing of any completed project. Periodically, managers should also hold career development discussions with each employee, perhaps as part of his or her annual performance review, to go over career options and potential career paths.
Instead of laying off employees when markets for certain products decline, Motorola in Schaumburg, IL, has a policy of retraining them. This commitment has led to the development of one of the most extensive and successful training efforts of any corporation. It’s Motorola’s policy that every worker has the right to retraining and, if the worker fails the retraining, he still has a right to a job at Motorola. Eventually, a fit will be found for the employee.
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At Lowe’s Companies, the second-largest U.S. building supply retailer, headquartered in North Wilkesboro, NC, all vice presidents and managers are required to work in one of the retail stores for a week. Not only does this give managers a better appreciation for what life is like on the front line of the business, but it also gives headquarters staff the chance to get to know regular employees—making the organization a better place to work for managers and workers alike.
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Jim Baka, president of CERAC, a specialty chemical maker in Milwaukee, cross-trains employees to ensure that they understand how their work fits into the overall operation. According to Baka, the results speak for themselves: “Thanks to cross-training, we’ve been able to push sales up 15 to 20 percent per year, while maintaining a high-quality product, delivering performance, and providing technical customer service.”
Before assigning new responsibilities, managers must first take stock of their employees to determine who has the interest, capacity, and ability to take on new responsibilities and assignments. If you haven’t already done so, take time to meet with all your employees to discuss their job interests and ambitions and create an “inventory of readiness” for your staff. Who has skills that aren’t currently being utilized in the department? Who is interested in learning more about other areas of the business, its clients, processes, products, or services? Who wants to get into a management position someday? What does everyone want to be doing five years from now? With this initial baseline of information about your team, you will be able to evaluate who might fit emerging needs. Navigating through a recession is an ideal time to tap the hidden talents of all employees and expand traditional roles to help move the organization forward.
While development opportunities are traditional motivators to most employees, during crunch times such opportunities take on a new sense of urgency. A needed position is frozen or another position is terminated: How can that work best get completed? A new project emerges: Who in the group is ready to help out? New leaders need to come forward in all levels of the organization: Who has the interest and ability to step up to the plate?
As organizational needs arise ask, “Who can best benefit from that opportunity?” and approach that individual. American Express developed a teaching concept called “Label and Link” that they trained all managers to use. As a development opportunity arose, a manager would label the task as an opportunity and link it to something that was important to the employee. For example, instead of dumping a work assignment on an already overloaded employee, a manager might say, “Gary, we are forming a new client task force to deal with a new market opportunity and I immediately thought of you for the team since I know from our past conversations how interested you are in working more directly with our clients. I also know that you’ve got a lot on your plate right now, so if you feel you are too busy to take this on I won’t hold it against you—there will be other opportunities in the future. But if you are interested, let me know, because I’ll take whatever time is necessary to help you with the assignment. In fact, it might even take more of my time than if I just joined the task force myself, but I’m willing to make that investment in you because of what I’ve seen in your potential on our team. Let me know what you decide and thanks.”
More often than not, “Gary” doesn’t need to think it over further and immediately accepts the assignment. To some people this might seem like a trick, but it’s the essence of motivation and you can tap into that energy—as long as you are sincere and truly do have the best interests of the employee at heart.
Employees are the most important asset a company can have, for without them, a business simply cannot succeed. Employees can make or break a company, so developing their skills is extremely important. Their strengths can be the determining factor in how or if a company is able to remain a step ahead of the competition. One of the best ways to keep your workforce strong is through training.
The Container Store has been selected numerous times by Fortune magazine as one of the 100 Best Companies to Work For. Not only do they pay their employees above-average salaries, they strongly believe that their employee training programs are one of the major factors in their high staff retention rate and overall success. During their first year of employment, new employees can expect to receive 185 hours of training, about 26 percent more than any other retailer in the industry. Such practices have helped the Container Store continually grow at a level of almost 20 percent per year over the past two decades.
Though the temptation is great, cutting back on employee training should be one of the last things employers do. Bernie Marcus, the Home Depot founder, holds fast to the belief that training is the key to establishing initiative and drive among employees. In fact, he attributes the success of his company to the long-standing practice of continuous training and rewarding for results.
According to a survey I conducted among employees working in industries across the nation, more than half the respondents stated a strong desire for managers to support their learning of new skills. Doing so lets employees know that their development and career advancement are important and that they’re not in it alone. Pursuing additional training is decidedly difficult without the support of managers. Whether training is internal or external, employees are looking for guidance as to what training programs to pursue and as to working them into their schedules, especially if time out of the workday is required.
One of the primary concerns managers have regarding training is the massive travel expense often associated with it. Organizations are looking for ways to continue with training and development without breaking the bank. Over the last decade a large portion of training has been made available online or through other technological venues. Hours dedicated to technology-based training options have more than doubled in recent years as online options are becoming more and more popular, typically taking place as “webinars” or other modes of online presentation.
To keep costs down, some companies have embraced the idea of in-house training led by senior management or top executives. All employees can benefit from career development, and learning from those who know them and their roles the best is an ideal training situation. Programs can be a combination of general topics as well as topics that are company specific. Developing employees is much more than practical, on-the-job experience; it is imparting the wisdom of those who are more experienced, as well as reinforcing the company’s goals and values.
• When training budgets are reduced, innovation is required. If space and dollars are limited, select top performers to participate in the training you provide. When times are tough, those with the most potential tend to shine even brighter and should be the first to be developed.
• Review existing training programs and evaluate which proved to be the most valuable and engendered the most return on investment. Cut those that have the least amount of benefits.
• Take into consideration the effectiveness of current programs. Are they truly necessary and making the most of employees’ time? Perhaps, rather than holding yet another sales program, find a more innovative topic that can help performance, such as time management, organizational skills, networking, and so on.
Like most airlines, Southwest Airlines faced economic struggles after the events of September 11. With changes being made throughout the entire industry, the airline decided that all employees had to increase their ability to adapt to internal and external changes. So, rather than slash training, as was the norm in the industry at the time, Southwest increased it.
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Canon USA, Inc., recently established Canon Academy in hopes of expanding leadership development. Utilizing the Internet and online courses, new managers have access to top-notch training geared toward strategic decision making.
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Philips Electronics offers a training program called Inspire, reserved for carefully selected employees who show the greatest potential. Employees who are selected are placed in groups and assigned a business-related project.
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The tax and advisory firm KPMG offers training and educational programs to employees and, more recently, webinars on financial planning and surviving a down economy. They have also added two seminars on stress and weight management, with personal coaches to help employees establish goals and stick to them. The cost of keeping these programs operating is exceptionally low, especially considering the tremendous benefit to the employees and the company. Employees were extremely appreciative of the forward thinking exhibited by the company regarding their health and well-being, and as a result, productivity and positive attitudes increased drastically.
Cross-trained employees combat boredom and complacency while benefitting the company. If staff size is slim, employees who are versed in multiple roles can help in times of layoffs or other reductions. Make the most of your employees; take time to explore their other interests within the company. For example, a member of the technology department could have had a former career in marketing or sales and vice versa. Or they could simply have a strong interest in another part of the company. Utilize managers to provide or discover this information and use it to develop effective cross-training programs.
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USAA began a cross-training program for call center reps in 2007. Agents who previously specialized in and handled only financial inquiries are now trained in insurance-related matters and can effectively handle both sets of customers. Previously, transferring calls between agents increased the operating costs of their call centers and had a negative impact on productivity.
Also, by cross-training their reps, USAA greatly increased productivity and improved customer service by reducing wait times. What’s more, when the economic crisis hit, along with Hurricane Ike, USAA was able to continue operating without increasing staff, something most of its competitors found inevitable.
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Charles Schwab assembled a group of employees from all departments within the organization and dubbed them the “Flex Force.” When market activity was high, so was Schwab’s call volume. This team of employees was on hand to field the additional calls and was provided adequate training to do so. Likewise, JW Marriott cross-trains administrative assistants to double as banquet servers when they are short staffed. In both cases, the companies have seen an increase in productivity and performance, as well as significant cost savings. In short, employees are often the most underutilized resources in a company yet are also one of the best options during a downturn.
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The Glass Doctor in Florida encourages its salespeople to make in-person calls on customers rather than sit on the phone all day. Most salespeople are specialized in a certain type of glass: residential, auto, or commercial. The company developed a program at its training facility to train its salespeople on all of the products. Role-playing sessions designed to provide realistic sales scenarios also helped give the employees honest feedback on their approach and sales strategies.
The goal of the program was to position the company in the marketplace as a comprehensive distributor in the glass industry, sharpen customer service, and increase sales. The result was an added insight into untapped leads and a polished sales force that has helped the company increase sales and revenue.
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During the recession of 2001–2003, Toyota shut down a plant for ten months but kept all employees and trained them. Toyota discovered that once it reopened, that plant had the highest global productivity and quality ratings, which helped secure a higher market share.
Cross-trained employees benefit the company as well as its employees, in good times and in bad. Toyota’s unique approach of using a downturn to develop employees helped them establish procedures that aided even when things turned around. Not only that, employees found that they had acquired new skills that could help them in their current jobs and that they could use in other roles as well.
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Debbie Stutts, customer service manager for Spectrum Chemicals & Laboratory Products in Gardena, CA, has sales representatives take turns working in other departments to learn, firsthand, the journey of an order through the company.
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AT&T has a program called “Resource Link” that lets employees from diverse backgrounds and with varied management, technical, or professional skills “sell” their abilities to different departments for short-term assignments. It has greatly increased retention and employee satisfaction.
Another unique approach is to give employees an opportunity to experience different roles. For example, networking company 3Com believes that allowing those who work behind the scenes—especially engineers—to get out and sell to or visit customers gives them a greater appreciation for the value of the work they do. Salespeople especially are constantly on the front lines—they see how customers use products and hear firsthand what they need, what they think can be improved, and what simply isn’t working. Those on the development side receive the information second- or thirdhand and rarely, if ever, have the opportunity to sit down with a customer and get the whole story. It’s beneficial for them to engage in a dialogue that will help them do their job better and not feel as though they are operating in the dark with piecemeal information. Furthermore, when positive customer feedback is passed along, it means much more when it is conveyed in person and in greater detail.
Identifying experienced employees and allowing them the opportunity to assume different or additional roles shows trust, confidence, and interest in your employees. Changes in the business necessitate changes in the roles and responsibilities of all employees. Reaching out to existing employees and giving them the first option to take on new tasks, needs, and opportunities benefits the company as well as the employees.
Employees like to increase their level of worth to the organization. In addition, current employees already have an understanding of the company culture, know policies and procedures, and have established relationships, so they can have a greater impact faster in achieving what needs to be done.
Before merging with PanEnergy and the Cinergy Corporation, Duke Power, the energy company based in Charlotte, NC, let employees—who were doing well but feeling bored with their jobs—post a message on the company’s electronic bulletin board. If another employee with comparable pay and work skills wanted the job, the two employees could, with their supervisors’ approval, swap jobs.
Involving employees from the very beginning of a project is important to building morale. Rather than bring employees into a project once the plan is fully formed, seek their input during the planning stages to help enhance their motivation and increase the chances that the projects will be successful and seen through to completion. When employees are empowered by their managers, the tendency is to work harder, better, and longer.
Hiring and training a new employee can take up to a year and costs anywhere from 20 to 40 percent of the person’s salary. So you can see why reassigning employees or expanding their responsibilities, if possible, is the better option. Employees view a company that makes the effort to reassign workers as one that truly values its employees, which is likely to have a positive impact on low morale or commitment—a critical component of turning an organization around. When employees are trusted with new roles and responsibilities, their sense of commitment and ownership increases—as does their positive view of the company and those in charge.
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Recently the state of Massachusetts dealt budget cuts that threatened its welfare-to-work program. Rather than lay off nearly 40 career counselors, the state reassigned them to call centers in need of additional clerks to help with the onslaught of unemployment claims being filed. They were all transferred at the same pay rate they earned in their previous job. The state benefitted because even though a month of training was required, the counselors were familiar with the system and had experience in working with the unemployed. The job itself was stressful, but the existing employees were well versed in handling the pressures. Whereas five employees hired from the outside quit within a few months, the reassigned workers remained.
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Located in Lexington, KY, VistaPrint has made a practice of reassigning employees even when business is good. Their primary goal was to help employees better understand the business as it was rapidly growing. When hiring slowed but the need for more employees did not, the company focused on reassigning employees to roles that would directly benefit their bottom line. Recruiters were trained in sales and now work directly with potential customers. As a result, VistaPrint has been able to sustain its growth, increase revenue, and expand its hold on the marketplace. The reassigned employees were left with a sense of helping the company as well as an opportunity to grow professionally.
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Luxury Retreats in Montreal, Quebec, has decided to take advantage of its existing employees to fill gaps in staffing rather than endure the expense of hiring from the outside. Some employees have been reassigned, while others are paid their regular salary, although their hours have been cut, to help in emergencies or to take classes further developing their skills. Offering career and development training to existing employees greatly reduces the need for, and cost of, future hiring efforts. By reinforcing the employees you have on hand and tapping into their skills and abilities, you are able to develop a workforce that is ready and able to step up to the plate when times get tough.
Providing mentorship programs, or simply encouraging employees to assume a mentorship role, allows employees who have grown within the company or who have significant career experience to pass on their learnings to other employees. Many times, individuals in entry-level or mid-level roles are promising or aspiring leaders, they only lack the guidance and direction to achieve their goals. Employees with a desire to further develop their skills and career path are eager to learn and welcome new opportunities, something that serves any company well, especially in a downturn.
PCL Construction ranked 28 on the 2009 100 Best Companies to Work For list for two very important reasons: their training program and their promote-from-within policy. The company has developed a “Pre-Con Boot Camp” that is designed to train employees in creating and maintaining strong customer relationships. The program is offered once a year to employees who have a desire to move into the preconstruction services area. PCL promotes a culture of employee ownership within the company and does so by focusing on promoting existing employees. In fact, in just one year close to 10 percent of employees were moved into higher-ranking positions. In an effort to make promoted employees successful in their new positions, PCL encourages mentoring by senior managers.
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S. C. Johnson has developed a Mentoring Steering Committee responsible for pairing mentors and mentees according to similarities in work experience, interest, and skills. Over a period of 18 months, pairs contribute a total of 45 hours to the commitment. All participants in the program, mentors and mentees alike, have reported a positive experience that left them with a sense of personal and professional growth.
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Newly graduated nurses often face culture shock when moving into a full-time role in a hospital environment. To ease this transition, and ensure the success of newly hired nurses, some hospitals have made adjustments to their entry programs, many of which can be modified to fit nearly any industry or company. Here are some of their ideas:
• Provide online evaluation systems to track progress.
• Establish regular meetings with a mentor to discuss the evaluation.
• Develop an easily accessible curriculum program.
• Select individuals from various departments to conduct training so that newly hired employees establish relationships outside those with people with whom they work directly.
• Recruit volunteers, especially previous or retired employees, to serve as mentors if existing employees cannot afford to take the time.
Hospitals that adopted all or some of the above strategies for ensuring success have reported exceedingly positive results. These include a drastic reduction in new-hire turnover, a reported increase in on-the-job confidence among new nurses, and an ability to attract qualified applicants from the outside because of their employer’s growing reputation in the industry.
The learning and development team at Banner Health works alongside the executive office to develop mentorship programs for leaders. The result has been two effective programs that have produced hundreds of leaders:
1. NEW LEADER EXPERIENCE: Every month, this three-day seminar is held at the company’s headquarters and introduces new managers to the company’s overall goals. In addition, the managers are presented with resources on how to guide employees effectively.
2. LEADERSHIP SYMPOSIUMS: These weeklong development programs give leaders the chance to renew their skills and interact with other leaders in the organization.
Stronger managers can help move a company from middle of the road to great, and they can be even more beneficial when a sweeping recovery is needed. Investing in programs that provide leadership development is an effective strategy in the long and short term. If cuts to training budgets are necessary, concentrate on eliminating training for skills that can be attained through other means and concentrate specifically on leadership.
In addition to or instead of mentorship programs, some companies have developed internship programs for employees. Especially in a large company, where options for a career path are numerous, allowing employees the ability to experience a behind-the-scenes look at a new role or department can help guide them in their development. For a predetermined period of time, allow employees who have expressed interest in moving to another role or division the opportunity to work alongside someone who is currently in the desired position or department. During this period they do not relinquish their existing jobs and are assured of being able to return to their original roles when the internship is complete. Even if an opening does not exist, or the specific role is currently occupied, when vacancies do occur the employee who has completed an internship and acquired the necessary skills and knowledge is likely to emerge as a prime internal candidate. This saves the company time and money in conducting an external search to fill open positions.
MITRE, ranked 66 on the 2009 100 Best Companies to Work For list, has taken a concentrated approach to its internship program. Known within the company as “shadowing,” the program is open primarily to women who are interested in growing their career. Throughout the program, MITRE’s female employees meet regularly with their shadow and participate in select meetings to which they otherwise would not have been invited.
Shadowing programs can be particularly effective in the development of unlikely relationships among employees. Companies that already have such programs in place have reported a relationship among shadows/shadowers that extends beyond the duration of the program. These connections, especially when spread across departments, do tremendous things for morale, communication, and commitment to the company. Employees no longer feel isolated in their roles or departments and begin to develop a greater sense of belonging.
Young employees in particular are ideal candidates for shadowing or mentoring programs, especially if their current role does not match their education or desired career path. Many times, young employees or new graduates will pursue an opportunity with a company in the hopes of moving up or on to a job or department that better suits their background and interest. This approach has been particularly successful in companies or organizations that must deal with frequent shortages of adequately skilled candidates.
Development of managers, or development of employees to become managers, is best achieved by combining personal and professional development. Each person should be focused on key factors of their personal life, as well as their career, including how they have contributed to their environments, how they interact with individuals they encounter, what their values and beliefs are, and what they need to acquire in order to get where they would like to be. Yet the motivation to explore and expand on each of these has to start with a goal and a targeted focus.
Training shouldn’t end at job-related tasks and knowledge. At a time when employees will become more interested in the financial health of the company, it is important for them to understand the information being presented. Making additional training available to all employees regarding financial matters will not only aid in their understanding of the company’s financial situation, but will help encourage a commitment to turning things around. If employees feel as though they are a part of the process by understanding how their jobs contribute to the overall performance of the company, they are far more likely to jump aboard and work that much harder to contribute.
GlaxoSmithKline offers a seminar focused on personal resilience to teach employees ways to prevent stress and succeed in their jobs. A group of employees is assigned the task of pointing out work-related pressures within their departments and presenting suggestions as to how they might be combated. The aim of the program is to address life pressures as well, with the belief that for employees to be successful they must be happy, which has to begin at home. Since its inception, GSK’s stress management program has reduced work-related and stress-induced illnesses in employees by nearly 60 percent, which also resulted in a 29 percent decrease in absenteeism for health reasons.
Similarly, the financial services company Ernst & Young has offered stress management programs to employees for nearly 20 years. Known as EY/Assist, the program has been responsible for the development of policies such as allowing employees to take their children along on business trips and offering company-provided consultation services. Most recently, sponsors of the program developed a blog wherein employees can exchange tips for effective stress management. Among Ernst & Young employees, 76 percent reported stress levels at moderate to great before taking advantage of the stress management program. The same employees were surveyed again after enrolling in the program, and 50 percent stated that they had seen a marked improvement in their stress levels, with 62 percent feeling their productivity had improved.
The best learning cultures promote learning of all types, not just job-specific training. Offering programs that speak to employees’ emotional and mental well-being is one way of showing you have their best interests at heart. For example, if company financial goals are being revised, chances are that employees’ personal finances will be impacted, as well. Providing access to information (webcasts, online seminars, and so on) regarding financial management or investments is a great way to help employees plan for their future, as well as be more open to changes within the company. Helping employees learn how to properly manage their finances will help reduce stress levels and teach financial planning skills that can help them at work, especially when financial restructuring is necessary.
Offering such programs to employees can aid them in sorting out worries that are most likely at the forefront of their minds: investments, insurance, and general retirement planning. A better understanding of their financial situation can help employees focus more on long-term plans for their career. These days, employees are no longer relying on their 401(k)s for retirement savings and are looking for alternate means by which their future can be secured. Taking steps to ease such worries is beneficial to the company, and it requires very little cost or effort.
MetLife, one of the largest providers of employee benefits, offers retirement education seminars in various companies. The workshops are free and are presented by Certified Financial Planners offering advice and instruction for employees of all ages on financing retirement. At the end of each seminar, close to half of the attendees chose to take advantage of the opportunity to meet with a retirement specialist.
Assuming an active role in helping employees plan for the future shows a company’s concern for all aspects of its employees’ lives. Frequently, seminars can include discussions that go beyond financing retirement to planning activities when work is no longer part of the daily routine. An opportunity for employees to ask questions that they might not get answered elsewhere can set the wheels in motion for proper goal setting.
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Fidelity Investments offers Web-based seminars that allow employees to participate from their office or computer. Or, if their work schedules do not allow, they can access an online tutorial at their convenience. Fidelity has found that of all attendees at its seminars, half make some kind of change to their retirement goals within a couple of weeks. A concentration on education and making it simple for employees to revise their goals and plans has made programs such as these very successful in the workplace.
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New York City–based advertising agency ID Media offers monthly hour-long training programs on industry issues, and another New York City–based firm, Rand Engineering & Architecture, provides in-house professional-education programs. Heavy Construction Systems Specialists (HCSS), a Houston-area software developer based in Sugar Land, TX, occasionally brings in experts to teach employees important life skills, such as personal finance and public speaking.
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Based in Foster City, CA, Bailard, Inc., a private investment firm, pays for employee development and encourages junior staffers to create ideas and pursue projects that have personal interest, resulting in an average employee tenure of 13 years.
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Technical employees at 3M, the St. Paul, MN, science-based products company, spend an average of 15 percent of their time pursuing ideas of their own.
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The Health Alliance, a hospital consortium (and the second-largest employer) in Cincinnati, OH, uses a scavenger hunt to orient new employees. During the hunt, they meet and learn about others in their department and what they do. Then they fill out specific information about their coworkers and share their findings in the weekly staff meeting. Mercer Management Consulting, headquartered in New York City, uses a scavenger hunt to orient team members who travel to new cities. They are asked to visit client offices, large hotels, and the convention center when they arrive, bringing back “proof” of their visits to each location.
In 2007 at the age of 74, J. W. (Bill) Marriott Jr. started a blog to create a direct line of communication with both customers and employees. “More than anything else, a blog is a way to put a personal face on the company,” he explains. “They’re coming to the blog to find out what you think. They want to know about you as a person. That’s why I talk about my golden retriever, my grandchildren, and so many fun things we do as a family.” Personal anecdotes have helped to make his blog, Marriott on the Move, a big hit with employees and customers.
The blog exemplifies Marriott’s dedication to the personal growth and development he seeks from and inspires in every one of the 150,000+ associates working at more than 3,000 Marriott properties in over 60 countries around the world.
“Many of our senior managers and general managers have come up the ranks,” he shares with pride. “Our head of North American lodging operations—with more than 2,000 hotels—started as a waiter. The head of all international hotels started as a security guard. I started working in the kitchen in Salt Lake City for four years. Almost all our senior people have gone through the trenches. So, opportunity is very important; innovation is very important to us. You can’t just rest on your laurels. You really have to be looking for a better way.
“People feel the same around the world: They want to be recognized, they want to be taken care of, they want to get fair pay, they want an opportunity. We provide opportunities for people to grow. There are very few core values, and the most important one is that we do our best to take care of our people. If we take care of our customers, they come back. It’s very simple, easily translated, and it’s really become very global.”
Perhaps the most important value to Marriott is opportunity. “We’ve employed literally hundreds of thousands of people. Everywhere I go I meet people who have worked for us, somewhere, sometime, someplace. And we give people the opportunity to learn. Giving people these opportunities has just been wonderful, and to continue to do that makes me feel that we have really contributed to their lives, their livelihood, and helped them advance and grow.”
According to a study conducted by the Greensboro, NC–based Center for Creative Leadership, a nonprofit institution that does research and training on the topic of leadership, there are five ways to create new challenges for your employees without assigning them to entirely new jobs.
1. Assign small projects and start-ups that require learning new tasks, working under time pressure, and dealing with new groups of people.
2. Assign small-scope jumps and fix-its that emphasize team building, individual responsibility, dealing with the boss, encouraging subordinates, and managing time pressures.
3. Make small, strategic assignments that emphasize presentation and analytical skills.
4. Have your employees do course work and/or take on coaching assignments that require learning something new and are intellectually challenging, both of which can lead to heightened self-awareness.
5. Have your employees undertake activities away from work that emphasize individual leadership skills, working with new people, and learning to influence and persuade.
At AIPSO, a 400-employee nonprofit in the auto insurance industry and based in Johnston, RI, there is a “buddy” program through which new hires get a mentor in the company. AIPSO has found that mentoring eliminates the period of new-employee awkwardness and engenders loyalty from the start. AIPSO reports that 40 percent of its employees were positively affected by the recognition program.
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The Cleveland, OH, office of accounting firm KPMG rolled out a senior leadership mentor program. Senior leaders meet with mentees once a month to allay career stability concerns and build partnerships. KPMG also gave each employee a box of thank-you notes to use and send to fellow workers to recognize good work.
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As part of a commitment to groom leaders at every level of the organization, the Ontario (Canada) Municipal Employees Retirement System (OMERS) strengthened its staff development programs—by mentoring, for example—so that when career opportunities arrive, the individual is ready for it. Elisa Freedman, a team leader in the pension accounting group, joined OMERS in 2003 and was proud of her employer and excited by future opportunities. OMERS provided her with an education-assistance package that paid tuition for the Certified Management Accountant accreditation and allowed her study time. The right opportunity arrived for Freedman when she was promoted to manager of pension accounting. “I’ve been able to advance and I’ve been nurtured in a way that I appreciate,” she says.
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At Cox Financial Corporation, based in Cincinnati, employees are encouraged to set their own goals. The goal-setting process begins with identifying what employees want to achieve in their personal lives, and then specifically how to achieve them. Cox examines their motivators further by having them rate certain achievements such as prestige, money, power, self-esteem, and helping others. “If goals originate from those personal priorities and then spiral outward, commitment is automatic,” says Phillip R. Cox, president and CEO. “I can’t make the goals for them or they’re artificial.” Employees are encouraged to enlist coworkers and family members as personal accountability partners. Cox posts everyone’s results in the office, which often triggers self-correction. Rewards are personalized by pulling from the priorities on which each employee initially based their goals.
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Woodmeister Master Builders, Inc., a family owned high-end residential construction business based in Holden, MA, promotes people based on talent and ambition, not birthright. The company launched an intense leadership-training initiative to assess and develop the leadership abilities of its staff. It spends about $60,000 annually—or $6,000 a participant—to put ten employees from a cross section of the company through its Next Level Leadership program. Employees nominate others or themselves and are selected by the company president and a leadership committee. They work one-on-one with a leadership coach, and all participants meet together monthly to discuss progress toward leadership goals. Says founder and CEO Ted Goodnow, who officially calls himself Chief Eternal Optimist, “We’re not going to have this company run by our kids unless they decide they want to be actively involved and [our employees] think they are good leaders.”
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With more than 1,000 branches and 50,000 staffers in Canada, the large size of TD Bank helps the organization and employees adapt to change. “We get to offer the chance to do different and challenging things over a long career,” says Peter McAdam, vice president of employee experience, “whereas a lot of companies think you just go in and that’s your job.” No changes, just routine. So thought Joanne Choi, manager of a branch in northern Toronto. Choi started in 1977 and, with opportunities, has worked almost every position in retail banking. Her peers—TD’s longest-serving employees—report they get the greatest sense of accomplishment from their work. TD offers policies and programs to support development at every stage in a career. Choi has a district vice president as a mentor and takes pride in performing that role for staff at her branch.
Each TD employee also has opportunities for training and has a personal development plan that formalizes goals and spells out what needs to be done. “I’ve been a manager for a long time, and I’m still learning,” she says. “At the end of every day, I think, ‘What did I learn today?’ There’s always something to learn.”
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To encourage front-line initiative and decision making, Railroad Associates Corp., a railroad engineering and contracting firm based in Hershey, PA, provides extensive onthe-job training to new employees, along with on-site mentoring and various courses. Employees access job budgets and scheduling information by laptop via the company intranet. The company offers employee stock-ownership, through which nonmanagement employees own about 40 percent of company stock. Employees are eligible for an annual individual bonus capped at 50 percent of their pay, based on customer feedback, safety records, and meeting deadlines. The exemplary employee relations, empowerment, and accountability seem to work. Company president Michael Kennedy estimates that the company saves $500,000 annually in salaries and other overhead costs.
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HOK, an international architectural design firm in St. Louis, MO, offers extensive training to its employees. Employees are compensated for the time they spend in training. Staff members are asked to complete 40 hours of additional training in a calendar year.
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Showing you care about where an employee’s career is headed shows a long-term respect for the individual. Managing Personal Growth, an employee development program created by Princeton, NJ–based organizational development firm Blessing/White, helps employees take responsibility for their own job satisfaction, job performance, and career development. Each employee and his or her manager define the employee’s job responsibilities and the skills required, and they chart a development plan, including several formal check-in meetings. The program has been highly successful for motivating employees, versus more traditional performance evaluation programs, because employees have a stake in the results.
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The U.S. Army offers a mentoring program for its civilian employees.
The final strategy for increasing engagement with employees today is the overall topic of this book: recognition and rewards. The most proven driver of desired behavior and performance known to mankind is the concept of positive reinforcement, simply stated as “You get what you reward.” As a manager in any organization, you will get more of the desired performance you want from your employees by taking the time to notice, recognize, and reward them when they excel in their work.
In my research I’ve found that it’s almost universal that today’s employees want and expect to be recognized when they do good work, although very few (12 percent) report that they are consistently recognized in ways that are important to them and three times as many (34 percent) are not recognized in ways they find meaningful. Some 85 percent of employees say they feel overworked and underappreciated where they work today.
Driving performance of any kind is a function of its consequences, and positive consequences such as employee recognition are needed to systematically reinforce successes and desired behavior when they occur. Positive consequences bring about positive results, and what you do doesn’t have to cost a lot of money to be effective. When budgets don’t allow for lavish celebrations, incentive trips, or expensive rewards, you can still find meaningful ways to recognize employees.
In fact, during challenging times the need for employees to feel valued increases greatly, and timely, sincere, and specific forms of appreciation should be more frequently expressed for a job well done. Managers need to increase their focus on employee recognition, exploring more ways to get creative in showing employees that what they do matters. More than anything, employees need to feel valued in today’s business climate, and they tend to be more responsive to intangible and interpersonal recognition with little, if any, financial cost.
When cash flows freely, many companies don’t hold back on the rewards, incentives, and perks for employees. During the good times, such rewards are often an essential retention and motivation strategy. However, during challenging times, many companies have found that they can’t afford to reward employees as they did before, but they also can’t afford not to reward them. Research by Accountemps found that 19 percent of its clientele reported that “recognition programs” served as one of the best remedies for low employee morale. Thirteen percent of executives reported that offering financial rewards was an important strategy for improving employee morale in tough times, followed closely by “unexpected rewards.”
Organizations can successfully create a culture of recognition by freely and readily recognizing employees’ contributions. They must make employees feel trusted, respected, and excited about their own successes and the successes of others in the organization. In return, they will get employees who are accountable for their actions and committed to making a difference.
Sometimes the money simply isn’t there for cash rewards or high-dollar items. That doesn’t mean that there aren’t still options for showing employees that their time and work is valued and appreciated. Even something as simple as an ice-cream social, company-sponsored lunch on site, or doughnuts in the morning can make employees feel valued.
Here are a few categories to consider when you next want to thank your employees:
LOW-END REWARDS
This can include such items as gift cards from Starbucks or Amazon.com, gas cards, car wash or discount restaurant coupons, gift certificates, a pizza, or even a bouquet of flowers. For example, Jeanette Pagliaro, co-owner of Visiting Angels, an elder-care service, often receives positive feedback from clients or supervisors about her employees. Employees who receive such pointed recognition are given “Angel Bucks,” which can be used to buy prizes at an auction sponsored by the company.
SYMBOLIC RECOGNITION
This can be tokens, pins, ribbons, a certificate or plaque that has special meaning. Core Creative in Milwaukee was recognized by The Business Journal as one of the Best Places to Work. At the end of every summer, the company sets aside time to find some creative way in which to recognize exceptional employees. From those who are simply performing well, to those who have gone above and beyond for clients, employees are celebrated and rewarded. Another company in the Midwest consistently distributes personal notes from vice presidents and managers, as well as posting feature articles on the intranet highlighting outstanding employees.
TIME OFF
Time itself can be used as an award, for instance, in the form of a voucher for a long lunch, an afternoon, or an additional day off. At Greenough Communications in Boston, high-performing employees are rewarded by being able to leave at 3 P.M. on Friday. The Corcoran Group, a top real estate agency in New York City, takes a unique approach to its policies during slow times. Founder Barbara Corcoran instituted a practice of giving salespeople an extra few weeks of vacation when sales are down. With not much going on, it’s easier to be short staffed and allow employees some time to restore morale and alleviate stress. So far, this practice has been effective in that salespeople return refreshed with a renewed and positive attitude.
EMPLOYEE PERKS
Simple low-cost benefits that are available to all employees, such as soft drinks, coffee, bottled water, snacks, or the use of a company fitness room, are great for company morale. Best, Best and Krieger, a law firm in Los Angeles and Washington, DC, has held fast to simple employee perks such as “Bagel and Donut Friday” and retained the holiday party as a way to bring employees together in a social setting. Another California-based company, public relations firm Kiner Communications, continued to enjoy baskets of fresh fruit, attended a company-sponsored holiday party, and didn’t miss out on bonuses.
Google, topping the list of Fortune’s 100 Best Companies to Work For, is the gold standard for employee perks. Employees get three free meals each day, and are able to save time and money by staying on site when they take a break to eat. Eating at the company cafeteria allows employees to interact with one another, which can create a sense of community and idea sharing. Washing cars and changing the oil are things everyone must do, and many times employees spend their lunch hours or take time away from work to do so. Providing these services on-site to employees allows them to scratch one item off their to-do list without disrupting the workday or weekend. The added benefit of stress reduction also makes employees that much more productive and less distracted.