Category Archives: Interesting Numbers

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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‘Sickies’ will kill Australian businesses in the downturn.

By naomisimson | Published: December 18, 2008

In troubled times business must do more with less.  There may be less people in your business, less customers, less capital, less cash….  But one thing you do want less of is people 'Chucking a Sicky'

As a result there a some simple options available to doing more with less:

  1. Whinge to anyone who might still be interested in listening
  2. Innovate – find new ways of doing things
  3. Mazimise your return on what you do have… that is 'how engaged is the team?'

I have blogged regularly about employees discretionary effort… but Gallup have just given me a sneak look at this years Australian Employee Engagement results.

“For every engaged person there is a disengaged person” Gallup Organization.

Actively disengaged (these are people who hate going to work) has increased (at the expense of engaged employees) significantly.

The scary thing is that in tough times – people are also less likely to leave you (that means the bad ones are staying too). Of those disengaged employees only 45% are planning to look for a new job in 2009… even worse some 24% are planning to stay with their employer for the rest of their working life. I suppose that is the real definition of love/hate relationship.

Engaged employees (know what they are there to do and are busy getting on with it) has gone down from 21% in 2006 to 18% in 2008.

These figures were just completed in November… and says to me that people are more confused now and they are not getting clear messages from the leadership of their organisations… a 3% swing in only 2 years is massive. This will cost Australia dearly.

Not engaged employees are those who show up – but don't do anything extra – this is the group which has a lot of discretionary effort to give. And in the study in both 2008 & 2006 it remains unchanged at 61%

The scary thing is that Actively Disengaged employees are growing in big numbers. Ie these people will work against what their co workers or managers are trying to achieve. From 18% in 2006 up to 21% now.
This is really hurting business – and is simply untenable in such extreme economic times. The estimate of what it is costing Australia in lost productivity is:

  • Australia -  $33.5b – $42.1b  (2006 = $32.7b)
  • New Zealand $5.6b - $5.96b (2006 = $3.7b)

If the bottom line is not enough to get you thinking about how aligned your team is to what you are doing to reward and recognise them for their contribution, here's some more evidence:

Funny how if you don't like what you do – you are more likely to get sick.. The 'Australian Sickie' has got to go. And if people are simply recognised for what they contribute, they are far less likely to take a sick day.

Number of Work Days missed through sickness in the passed 12 months

  • Engaged = 3
  • Not engaged = 5
  • Actively disengaged = 8

Also those who like you, engaged employees will stay. 89% plan to be with the same employer for the next 12 months. (Not only are they the top performers, but they also cost less in recruitment/replacement costs)

The investment in people is essential… it just makes so much bottom line sense.

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Psychological Recession

By naomisimson | Published: November 24, 2008

I don't know about you but I'm pretty confused... some days all the news reports are great 'Australia is robust and will weather the storm' other days it is all gloom and doom.

The reality is that no one really knows - how deep, how far and for how long. The only thing we know is that our financial systems are about to change - forever.

The way financial institutions historically have incentivized people with massive bonuses for structuring and closing deals has almost been part of the problem. Simply put, pre February 2008 was a time of unprecedented risk taking. However, the pendulum has now swung to the most extreme - we now see absolute risk aversion. People putting off decisions, not even considering what are sound opportunities 'just in case' because no one has any idea what is coming down the line.

Australia has four of the worlds 20 AA rated banks, we still have reasonably high interest rates, good employment, even retail trade if you dig deeper than top line is still good. NSW is a whole different issue... the state has been floundering for two decades... this current crisis just exacerbates this.

All this waiting and watching is not productive. In fact bad times will come for sure if business stops doing things. It is up to us as business leaders to ensure that what we have invested in over a long period of time we continue on with our plans.

So far we have a wide spread 'psychological recession'. (Remember drama sells newspapers.) According to Judith M. Bardwick out of the US. “This is an emotional state in which people feel extremely vulnerable and afraid for their futures. Chronically fearful people are too exhausted to be creative and innovative. They expect the worst to happen, so they see no reason to give their all.'

In other words all this gloom and doom is wearing people down. They wonder what is the point of working hard with talk of job cuts and a downturn.

Towers Perrins - in a global work force study recently completed, reported that four out of five workers are not performing at their optimal level, with two out of five 'checked out'. The impact on company performance is massive. Companies with high employee engagement show a 19.2% increase in operating income will low engagement companies show a drop of 32.7% With a potential 50% differential in operating income on the line engaging employees is critical for company success. If a company is struggling - I really hope that you have invested in employee engagement - because that is what will get you through the tough times. Now is not the time to give up on employees. Now is the time to look after them. They are gold! and the key to your financial future.

Of course if job cuts are inevitable - and restructuring of businesses will have to take place... then still do not give up on employee engagement. According to Globoforce. “Those who make it through layoffs are often the most talented high performers - and companies want to keep them. However once the market recovers - and it will, Those employees will remember how the company treated them and their less fortunate colleagues and may be the first to consider leaving for a more appreciative work culture.”

Strategic Recognition is critical to engagement. In fact contrary to common beliefs Bill Cotlette author contented cows says “It seems likely that an ailing economy will cause many organizations to 'lean down' their spending in the traditional compensation and benefits areas for a while. We will be more reticent than usual to add to the fixed cost structure. With growing acceptance that a focused, fired up workforce really does lead to improved outcomes, we will however, likely see enhanced focus on performance -based recognition and reward programs.”

There are some things that we as business owners must keep spending on for our long term success. And a great place to start is people. You will find other ways to cut back - but the employee experience is critical to your on going success.

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