Category Archives: Interesting Numbers

One by One

By naomisimson | Published: July 29, 2010

One person at a time RedBalloon is changing gifting in Australia and New Zealand forever. It is a simple purpose that continues to drive me every day. I love knowing that people get to experience things that they have always wanted to do as a result of what our team does... and that a gift from RedBalloon is an opportunity for people to have great shared experiences with the people who are important to them. Today is an exciting day. We just passed a major milestone as we chase 2million people by 2015 to have had a RedBalloon experience... we just passed 777,777 which is a very lucky number

Lucky number on the BHAG scoreboard

Another big milestone will be released on Saturday.... version 7 of the website. A massive week for everyone at RedBalloon... and you can be assured we will celebrate in style... what an amazing effort from all concerned.

Thank you to the team, our customers, suppliers and everyone who believes in what we are doing. And for giving us a go.. it is so much appreciated.

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Where are the women…

By naomisimson | Published: May 26, 2010

I was speaking this week at the ADC Future Summit in Melbourne and there was quite some discussion on the fact that Australia is fast going backwards when it comes to women in leadership roles.

My simple very non-theoretical answer when challenged on ‘why’ was simply ‘why not’. The reality is that one by one women make a choice about the role they want to play and the contribution they wish to make. More and more women choose to do ‘it’ for themselves – and run their own show.

Interesting the new figures from the latest (March quarter) Sensis Business Index report tell me that I want more women in senior roles everywhere in businesses in Australia. Women bring not just different qualities but also a different outlook.

Women business operators are more positive about their prospects heading into 2011 and more likely to be aiming for significant business growth than their male counterparts. (that sounds like a plan.)

The analysis also shows that business women are more successful with accessing credit and more optimistic about the future of their business and the economy.

Key research findings

  • 62 per cent of women who own or run businesses hold stronger expectations for sales in a year’s time compared to 57 per cent of businesses run by men
  • 87 per cent of businesses operated by women that had applied for finance reported success with their applications compared with 59 per cent of businesses run by men
  • 54 per cent of women believe the economy will also perform better in a year’s time, compared to 48 per cent of men
  • 10 per cent of women were aiming for significant growth, compared to six per cent of men.

I cannot stress enough that it is important for women to let others around them -  see what they are up to. We need more role models. A great way to make sure women get noticed is to nominate a woman for the Telstra Business Women’s Awards which is a wonderful vehicle for profiling women’s achievements.

  • Nominations and entries are still open (closing June 21st).
  • The entry website is: www.telstrabusinesswomensawards.com
  • The Awards recognise the individual achievement of women in the community from a diverse range of areas including business, education, health, science, government, sport and community work, and have been going for 16 years.

Who do you know a woman who is doing great things in her chosen field? Nominate her right now… We need more role models – and in so doing we will start a movement that will become our culture of women in leadership.

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Let the numbers speak for themselves.

By naomisimson | Published: November 19, 2009

We've finished the report from our recent survey and we heard from 3,053 employees on how well their managers and companies perform when it comes to recognizing and rewarding them, and what the impacts are. We also uncover the secret to what employees really want.

It might be worth downloading the full report

Below are some of the key findings... But the biggest outcome I got from reading the results - is we are not finished yet. There is so much work to be done. Engagement is a journey that many organizations are just starting - and have a long and rocky road ahead of them. We need to support managers with tools, training and strategic imperative.. to make recognition as important as commercial rigor - they are of course one in the same thing. 

Key Findings:

Praise is not frequent enough - One in five employees does not receive any praise at all or at best, it only happens once per year. And 62% of managers are rated as "Poor" or just "Satisfactory" at delivering specific and timely praise.

Managers are driving employees away - 52% of employees say not receiving recognition would contribute to them leaving a company.

Managers don't know their people - two thirds of employees are convinced their managers don't know what motivates them to be more productive.

Recognition means the most from the manager - Close to half of employees surveyed want to be recognised directly by their manager on a one-on-one basis.

Only one in three companies were rated as being "Excellent" or "Good" at rewarding and recognising their employees.

Employees want to receive rewards that involve spending time doing activities and sharing experiences with friends or family (55%).
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Managers are driving employees away

By naomisimson | Published: November 10, 2009

Naomi_Roneel I was just listening to an interview with  Aubrey Daniels who was commenting on Daniel Pinks TED presentation
He says that human nature has not changed for 1000s of years.

A few weeks ago we received the survey results back. More than 3000 people gave us feedback on the current state of Reward and Recognition in businesses in Australia and New Zealand.

The basic premise - 'Managers are driving employees away'. 70% of an employees engagement is determined by their immediate supervisor according to Hay Group. The RedBalloon research wanted to establish why this is the case.

It appears managers have missed the point when it comes to acknowledging and appreciating their employees for their hard work and contribution and this will cause employees to jump ship. Managers are in the spotlight after 62 percent of employees have rated them as 'not good' at delivering specific and timely praise.

52% of the respondents said that, not receiving any recognition would be a contributing factor in their decision to leave their organizations, and 28 percent would leave if they were not receiving any recognition at all.

There is a fundamental requirement for people to feel that they belong and that the organization notices what they contribute. People have a choice - and they would rather work with a direct manager who appreciates them. Otherwise they will go elsewhere and find a manager who will.

The study found that managers do not know their people. Two thirds across all generations are convinced their managers don't know what motivates them.

Without a formal recognition program in place, recognition is left up to the direct manager, - and respondents tell us that that means that recognition doesn't happen. Recognition has become subjective, only if the manager remembers. This is not good enough.

Recognition is a powerful driver.

As leaders we need to support managers, with resources, training, information on WHY recognition is such a critical part of commercial results - but also give them the tools on HOW to make people feel great.

Managers need to be empowered to say thanks, and given the tools to do it. It has to be part of 'how we do things around here.'

For a copy of the full survey results

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Six Cities in Six Days

By naomisimson | Published: September 9, 2009

Not quite six days but this week I've been in Perth, Brisbane, Melbourne then home to Sydney, last week Hobart and next week I go to Adelaide - Lot's of people wanting to hear about employee engagement.

It is a happy message that I share, people are left knowing that a few simple things will make a massive difference to them in their businesses.

One CEO on my travels announced “Recognition is the cheapest way I know to deliver on the plan.”

I presented to a group of CFO's, I shared that Gallup stated 'If you improve employee satisfaction by 20% - then on average organizations get a 42% improvement to the bottom line.'  One CFO commented - “well that seems a no brainer.” 

So why is it that only 36% of Australian organisations have a formal reward and recognition program then?

There is a mood of optimism around the country. Though there is a sense of foreboding for many HR practitioners - 'we've had a year of relative stability in employment and there was more great talent around, this is about to come to a screaming halt.'

One statistic being bandied around is that more than 50% of employees have waited until the down turn was over and are planning to leave their present employer within the next 12 months.  This is scary.

Over the past 18 months employers have been asking for discretionary effort from their teams - some people have given it, some have been acknowledged for it. But those who are not recognising their people are about to be caught up in a mass exodus.

According to Hayes Consulting 70% of employee engagement is determined by the persons immediate manager. (we know that a third of people leave an organisation because of their direct manager) so that is another 40% who are hanging around not engaged and un-productive.

I cannot stress enough the urgency to act now. We are about to have a massive long term talent shortage. Look after, love and notice the contribution of those who do work with you and there is a chance that you will be able to improve your efficiencies, your competitiveness and your profitability - and keep your number one asset, the team.

If you already have a recognition program, are you keeping it fresh, exciting and interesting? Is it the tool to deliver authentic acknowledgment? Is the program delivering the commercial returns?

I'm so pleased that people around the country are interested in the RedBalloon employee engagement story  - and this rejuvenated interest is coinciding with peoples optimistic economic views.

Get the people thing right and we will have long term commercial returns - and really be living in the lucky country.

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Restoring Trust

By naomisimson | Published: July 16, 2009

A few months ago it was reported that trust in business has plummeted, yet trust is considered a key determinant to success. This should be alarming to business leaders. Given that more than ever they are asking employees for discretionary effort – and to pull them through tough times.

    “Data from the 10th Edelman Trust Barometer was launched recently at the World Economic Forum in Davos. The Trust Barometer surveys 4500 high-income, tertiary-educated people in 20 countries, and now includes data from Australia.

    Three-quarters of Australians surveyed say they trust companies far less today than they did a year ago, with only 43 per cent saying they trust business to do what is right.

    And just 19 per cent have faith in CEOs of our major companies.”

I remember my father saying to me as a child 'Do as I say, not what I do.' He kind of said it in jest. But I was always left somewhat confused. You can't pick and choose the times you want to live by values and those you don't. It is in everything that you do, say or the way you behave. Only after a long, consistent approach is trust built. And it can be taken away in a moment.

Which might be why the Australian public has voiced its opinion so dramatically.

What can leaders do to build trust back into the business an the community around it? It won't happen over night. It may take years, it is a journey not an activity. It is an ongoing relentless program of authenticity. And that, for most seems like hard work.

Leadership teams throughout the country are making some of the hardest business decisions they've ever made during their careers which may be contributing to  this decline in trust – or is it simply how tough messages are being communicated?

Stuff happens in business, including the GFC, loss of contracts or new regulations. The point is how much do we share with our people – will it scare them if we are too open so they begin to think 'I best look for something else' or do they think 'we best pull together on this one'.

I argue if you treat your people like children (and insulate them from the real business issues) then they will act like kids. We must be real, yet reassuring, consistent and pragmatic. Simply we must do what we say we are going to do. All day every day, over and over and then there will be trust.

 

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Are we being un-Australian about the GFC?

By naomisimson | Published: June 12, 2009

Every couple of months RedBalloon sends a survey to it's customers on how employees are feeling about a particular workplace issue. We've dubbed it the Pleasure Survey. This time we wanted to put aside all the doom and gloom in the news and ask workers of all ages their view of the GFC

Well our latest survey looked at what employees think it takes for Corporate Australia to remain resilient throughout the GFC, and the findings revealed some relieving results for those who have been waiting for some optimism.

Here are the main findings:

  • Apparently half of Australian's have confidence in Corporate Australia remaining resilient throughout the GFC. Gen X respondents have the most faith at 55 percent, followed by Gen Y 47 percent and Baby Boomers at 30 percent.
     
  • The mentality “we're all in this together” is present in 65 percent of Aussie workplaces, with the majority believing 'Mateship' will equip Aussie businesses against the GFC.
     
  • The values that are important to Aussie employees were in the following order:
  1. Mateship
  2. Guts & Resilience
  3. 'A Fair Go'
  4. 'Giving a pat on the back'
  • Fostering an atmosphere that values Mateship and implicit trust is key in this climate. People thrive when they feel 'part of something' and are respected for their part by their peers.
     
  • It's worth noting that while 'Guts and Resilience' was nominated as the second most powerful quality for workplaces to have in the current climate, it had the least presence in Aussie workplaces.
  • It's time to reassure our people and strengthen your teams. It takes guts to take risks in a downturn, it's so easy to stick to what you know and put new ideas on hold until you've weathered the storm but t's not going to put you ahead when the sun comes out
     
  • Interestingly in order to keep their jobs, 73 percent of respondents would rather sacrifice a promotion and nearly half of Aussies (47 percent) would opt to sacrifice a proportion of their pay. The results show ultimately, above career progression and pay, Aussies do not want to give up their happiness at work (only 15 percent) and not many more would sacrifice their work life balance (24 percent)
     
  • The good news for employers who are tightening their budgets is that out of all the ways to motivate employees to be more productive, 62 percent say acknowledgment and recognition for our contribution is enough.  Yet only 44 percent of respondents said this 'Pat on the Back' culture exists in their workplace.

A simple thank you has always been free and this is the one thing employers have complete control over. Recognition frequency should not decline in a downturn, just because budgets are in decline too. The message for managers is simply not to forget to say thanks and acknowledge their people throughout the downturn

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Apparently Mum is recession proof.

By naomisimson | Published: May 7, 2009

From time to time the RedBalloon marketing team put a survey out to our customers... We wanted to know more about what people do for their Mums on Mother's Day.

Well apparently people are defying economic uncertainty and pressures to tighten spending, Respondents have vowed not to forget Mum this Mother's Day – but our Valentines aren't so lucky! (Perhaps we should rename the Rudd initiative the Mums stimulus package?)

We had more than 2,400 responses to the survey, 60 percent admit their other half would be the first to draw the short straw in tough times – whereas 75 percent intend on showering Mum with the attention she deserves this Mother's Day, despite the current economic climate.

We have been bombarded with recession gloom and doom lately, but it's comforting to see these challenging economic times have not lessened our resolve to celebrate Mum. (Mums have worked just as hard this year as every other year... so important to show how much we care.

Whilst 70 percent admit to spending cut backs due to the global financial crisis, half of those surveyed have budgeted a generous $51-$100 for this year's Mother's Day gift. However, the 1,200 Mum respondents warn buyers beware – no more chocolates and flowers!

An overwhelming 43 percent of Mums surveyed would prefer quality time with their loved ones this Mother's Day, as opposed to only six percent who would be happy with flowers or chocolates. And Mum is trying to tell us the best gift we can give her is our time – spending special, quality moments with her that mean something more.

That's the reason I started RedBalloon eight years ago. We recognise people talk about their experiences much more than their possessions and live and relive these experiences with friends and family. Mum does not want to add to the clutter on the planet (because like as not she will be the one who has to dust it....)

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Where is the opportunity for 2009

By naomisimson | Published: April 29, 2009

According to a survey by Ernst & Young – presented by Jon Dobell Managing partner, Strategic Growth Markets…

CEO's see growth coming in 2009 from:

  • 45.4%     Expand into new geographies
  • 36.3%     Target one particular market segment
  • 27%        New acquisitions
  • 18%        Drive recurring income
  • 18%        Cross selling.

The four key decisions to make that drive sustainable growth

  1. People
  2. Strategy
  3. Execution
  4. Cash.

I'm thinking of all the things that we are doing to prepare for the upturn….

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New year ? New plans – New Fun – New Challenges

By naomisimson | Published: January 14, 2009

There is lot's of speculation about what 2009 will look like. Some are saying 'how can we plan – if we have no idea what the economy will be doing?'

The question I ask is would you rather be a driver of your destiny, or take what you are given?

We run on line surveys on the home page www.redballoon.com.au and we asked the question this week “Do you have a New Years Resolution?” The results were as you would expect:

    • Be more healthy 39%
    • Spend more time with family/friends 16%
    • Get more organised 15%
    • Do more, eat more, rest more 11%
    • New Years Resolutions are made to be broken 16%

   
I wonder what the answer would be if we asked business type questions… say

    • Be more profitable?
    • Spend more time understanding my people?
    • Get more organised  - and manage more efficiently?
    • Do more with less and get a better result?
    • Plans are made to be broken?

Each year at 11.00 am on the 31st of December my husband and I sit and outline our plan for the year; (it is a date in the diary) what we want to achieve professionally, personally and as a family.

This year I have set some challenging tasks for myself from learning mediation to developing a new business initiative. So even though we have no idea what the world might look like at the end of the decade. I plan to be in the driving seat. For me plans are the road map – so I know where I'm going and more importantly I remind myself why I'm doing it.

Have a wonderful time creating 2009.

 

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