Awards Tactics

A distributor and I recently had a discussion during a trade show which brought me to analyze the relationship between distributors and end-users with regards to recognition based programs…

The distributor informed me he was calling on a customer who had a dilemma. The customer wanted to find a way to enhance the company’s performance and motivate its employees, but did not know which method of incentive strategy he should use.

The distributor proposed implementing a goal-based recognition program. He explained this would develop employee loyalty, boost morale and provide the company’s employees incentive.

His customer wanted validation that this program would produce results, versus using other incentive strategies.

I automatically thought of a study I had just read that linked corporate performance to recognition-based awards programs. This study was preformed by the Forum for People Performance Management and Measurement in 2005.

The study was conducted using a survey approach with 235 self-identified managers who reported being “users of reward and recognition services.” The sample frame was based on managers who attended one of four award/motivation-oriented events.

The effectiveness of reward/recognition tactics for motivating employees was tested on a scale ranging from 1=Very Ineffective to 5=Very Effective. The respondents first rated the effectiveness of 12 different reward/recognition tactics for motivating employees. This group included employee recognition, gift certificates, cash rewards, merchandise awards, worklife benefits, special events, individual travel, variable pay, training programs, group travel, e-mail/print communication and sweepstakes. The mean scores for each tactic were then calculated and the results concluded employee recognition was the Most Effective of all motivation tactics and generally superior for achieving the majority of specific organizational objectives!

The research concluded, “While it is generally known that employee recognition is a key tool in the award manager’s arsenal, this is the one award that seems to be universal. Managers report employee recognition almost always works, and it works in almost all situations and within almost all corporate cultures. Thus, it would seem employee recognition should be a key element in every employee award program going forward.

"The culture and values of the organization can be impacted by employee award programs. In fact, most managers report great success in impacting or reinforcing organizational cultures or supporting corporate values with award programs.”

This kind of statistical information is what the distributor needed to validate the effectiveness of the recognition program he had proposed. The customer implemented the strategy and the distributor has repeat business.