Category Archives: Reward & Recognition

Thoughts from a RedBalloon veteran

Fun at WorkOn Friday it was time to farewell an original RedBallooner - Sarah was with us in the very early days - and has seen the business grow from 9 people to its present 50. She has caught the entrepreneurial bug and started her own show a named ‘Lady Bug’ as a fully fledged interior designer. As I listened to Sarah’s farewell words, I felt so very very fortunate, knowing that every person at RedBalloon is what makes our culture. We have lot's of laughs - but have also worked so hard and achieve much (we still have so much to do... of course - we are not 'there yet').

Sarah described what RedBalloon was like in the early days, how she met me for her interview at the local pub and joined the tiny chaotic team. This little group was set on creating a house hold name, focusing on being ‘a little dog with a big dog attitude’ – playing bigger than we really were.

Sarah then went on to manage our Customer Experience Team (formerly known as our Pleasure Relations Team as coined by Sarah). She played such a part in shaping the culture at RedBalloon, living our value of sense of humour and fun by running weekly trivia’s. Even on her last day Sarah arranged for three RedBallooners James, Thi and Kate to come across a riddle they had to solve on Monday. The riddle involved hidden clues to find a gift Sarah had hidden for them somewhere within the building. When they finally cracked the riddles (which kept them entertained for an hour) they found handwritten notes from Sarah. It’s good to see on her final day she kept the culture of personalised recognition and appreciation going!

The most rewarding thing for me to hear was when Sarah explained that she has been living her dreams for the past 5 years at RedBalloon. She described how proud she is to have been a part of the RedBalloon journey for so long, from a business that was relatively unknown, to meeting people and hearing them say “RedBalloon – what a fantastic place to work” to even seeing us listed as the ninth Best Place to Work in Australia by BRW (for the second year in a row).

Sarah’s story reinforces that trust is the foundation of a Best Place to work. Trust in the leadership and colleagues. No matter the challenges, whether it be difference of opinion, new ideas versus old experiences of the brand – it’s about believing that you support each other, work together and stay true to the overall purpose of the business.

To be continued...

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A big end of financial year blunder

Many businesses are busily planning for the new financial year. We are no different. We have our heads down, reviewing our performance, gathering data and imagining what next year will be like. And the team of course is who we are counting on to deliver the plan. (Business is a people sport after all.)

As an employer of choice our people plan is a critical part to the success of RedBalloon. I urge business leaders to make sure that they review their employee recognition strategies too. The people who supported us as we tightened the belt, got our heads down and did the work. There might not be budget for salary reviews or bonuses – but those who are engaged simply must be recognized for their contribution – or they will leave.

While many organisations treat employee recognition as an investment and an essential part of business strategy, a significant number of employers continue to overlook employee recognition – it is simply short sighted.

The latest Hewitt Best Employers study involving 37,000 employees in Australia and New Zealand reveals organisations that genuinely acknowledged and recognised their employees throughout 2009 achieved double the growth in revenue (22 percent) than other organisations (11 percent).  The numbers speak for themselves

However in reality, a large proportion of Australia’s working population feel ignored and undervalued by their employer. Only 44 percent of employees believe they receive appropriate recognition beyond pay for their contributions and accomplishments.

In addition, only 37 percent believe the reward and recognition in their organisation enables them to produce the results they want. This demonstrates the direct impact of reward and recognition on employee performance and productivity, two vital elements that produce financial return for any business.

We as CEOs cannot do it on our own we need people around us who are truly committed to the organisation – and managers that are also recognising those around them.  A formal recognition program makes recognition engrained within your culture. It is about teaching senior leaders, managers and employees to notice the contribution of those around them. Budget must be dedicated to this and recognition programs must be measured and tracked. Recognition is simple, yet so often completely overlooked.

John Millican Managing Director at Recruitercritic.com, a free service to HR and hiring managers that finds, assesses and recommends recruiters to fill job vacancies, has seen an increase in clients wishing to replace high performing employees following a resignation.

Millican offers, “In recent times disenfranchised staff have traded remuneration and benefits for job security. Senior leaders asked their staff to help them ride out the GFC. Highly valued employees agreed to salary freezes, cuts to soft benefits, bonuses and training whilst tolerating an increase in workload due to the redundancies of colleagues.

“Senior leaders must be commercially prudent and now acknowledge the contribution and loyalty of their staff during the tough times or suffer a rising cost of turnover.”

Perhaps an end of financial year gift would be good to recognize and thank the team. Don't make the simple blunder of ignoring your people... if recognition has been slim this year... best make up for it now.

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Super Saver….

My colleague Sarah joined RedBalloon on April Fools Day in 2004 – she is fast approaching her five year anniversary. With any special occasion it gives us a moment to reflect. I’m sure Sarah could share much better than I about the changes she has experienced at RedBalloon…and the ones she has championed. She was the RedBallooner who coined the name ‘Pleasure Relations’ for instance.

One thing that has not changed at RedBalloon is our values and how we celebrate them. Sarah executes the corporate programs for our clients – and took on rolling out the RedHot Rewards program internally as well, with the same creativity and dedication.

In our points based programs clients may have many thousands of participants and we see two different characteristics in all programs. There are those that spend points as soon as possible. And there are those who create a Wishlist and save towards something big. Sarah herself is a ‘saver’.

So it is with great delight that she shared the below photos of the culmination of many years of being acknowledged as a great contributor to RedBalloon. She selected Trekking Everest Base Camp

Sarah sent me a wee note “I wanted to share with you my photos from my incredible trip to Nepal – thanks to my RedHot Reward points.  It is almost a year ago that I took this unforgettable experience and it still lives with me daily.  So just wanted to say THANKS AGAIN!”

Thank you Sarah for sharing the pictures and the stories; wonderful to know that a year later and into the future we gave you an experience that will always be with you… cheers

PS Wonderful to see our branding even in Nepal... Love that Brand Connection ;)

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Heroes of Humanity

I was coming back from holidays in late January – sitting on an aircraft from Hong Kong to Sydney and the flight attendant handed me an A4 envelope. As I opened the package – my son asked me ‘Do you know everyone on the planet?’ – ‘Not quite’ said I. I had been asked to be a panelist for the eXcel ‘Peoples Choice’ awards at Qantas. The package delivered was a dossier of the final citations ie the letters from customers excluding any details that might identify the person.

As I opened the envelope I thought ‘oh well, I guess I’m back at work already’. I began to read the 25-page document. My frame of mind altered quickly – this was in no way work – I had been given the privilege of looking inside another world.  A world of ‘heroes to humanity’. As I read, I laughed out loud at some letters, held my husbands hand for others, shed more than one tear. But I was truly touched by the actions and love that individuals and teams show to support other human beings. These employees do represent Qantas – but it also demonstrated to me that there are hero’s everywhere that are supporting others as they go about business.

The review process was thorough  - each of the panelists was given the dossier and asked to assess each citation based on four criteria. – Energy, Responsibility, Intuitiveness and Caring. As panelists we came together in a formal process to anonymously have the scores tabulated and discuss each citations. The panelists were all frequent travelers from different walks of life.

photo by Shane O'Neill - www.oneillphotographics.com.au

Arriving for the Red Carpet eXcel Award winners dinner at Taronga Park Zoo

I stood before the eXcel winners last Monday night – asked to speak to the winners of the eXcel awards and their partners.

I simply said:

“On behalf of the 75,000 customers that you carried today, on behalf of the 4500 customers who put pen to paper in the last year to thank you for how you assisted them, on behalf of all frequent travelers who you help every day do business effectively and reconnect with family and friend, on behalf of my fellow panelists. We thank you.

We thank you for getting us where we need to go ‘safely and on time’. We thank you for noticing us and making our day, we know that it is not always easy, that every day you show up to help Australia be a better place. We thank you for all that you do in supporting us.

You are our Heroes to Humanity.”

I have such a great personal belief in the power of noticing others. An authentic thank you from a customer can truly make some ones day. Who could you thank right now for supporting you… perhaps it is the barrista who makes your day every day – by delivering you a coffee just right. When was the last time you put pen to paper to write a note of appreciation?

Photo courtesy of Shane O'Neill

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Teaching an Old Dog new tricks.

This week I was presenting at the Marcus Evans HR Summit on the Gold Coast – and I shared some of what I believe has created an engaged team at RedBalloon. I was very quick to let the audience know that I am not an HR professional, but a marketer passionate about a brand… who knows that people and relationships make a brand. So engagement is an obvious priority for me.

I also said that ‘we tried a lot of stuff at RedBalloon, we got lot’s wrong, but other things worked’ so really what I was sharing was the theory of what we did, after we did it. We did not start with a white board and design and engagement program, it just evolved over time, knowing that if we always think of employees as customers something will happen.

I got a great question after my presentation.. ‘well that is alright for you – with your 50+ employees but what about massive organizations?’ Of course I mentioned the Zappo’s, Apple and Google examples of strong vision and leadership. The question remains where are the case in an Australian large businesses? (Dimension Data & Express Data were fellow Hewitt Best Employers for 2009.)

The other observation is that we built RedBalloon from the ground up always believing in our people – so it is just 'the way we do things around here', we didn’t try to change. We are also a professional, mostly young, un-unionised workforce.

Dexter 'old dog' on duty at RedBalloon - Mic's mate

Dexter 'old dog' on duty at RedBalloon - Mic's mate

So let me digress for a moment. At Redballoon we have used TNT as our courier company for many years, every day at the same time, the same courier Mic, cheerfully arrives at our office and picks up the parcels, having a little hello to everyone, patting Dexter the dog. And off he goes with a skip in his step. Quite the jolly fellow. I have never really thought about this, but he represents TNT so well. I just thought we had a ‘good one.’ And he has been with us for years.

So back to the Marcus Evans event. The speaker after me was Susan Davies, Director – HR, Administration & Customer Service, TNT Express. Unlike all the other presentation’s, which are full of power point and lots of theory, Susan let her people tell the story of engagement. She had taken video of people out in the field, in the depots, and asked them about what engagement meant to them.

This is a very impressive story, because when she arrived to the role, the company had just announced a loss of $79million. She (and the other leaders) believed that only through employees could they turn this number around. She said 'we simply got out of our offices, went to the depots around the country and got to know our people. We listened to what was important to them… we learned that instead of providing them with fruit boxes as part of a well being program, what they really wanted was pies and coke. It was all about being in their world.'

TNT employs 1000s of people in Australia and has a 87% employee engagement score. Not only that, in just one year they turned the business around to a $10million profit. She said ‘We are all in this together.’  Proving that employee engagement is a profitable pursuit.

The TNT story is not an internet start up on a crusade or an IT business, it is an old established business, with a ‘blue collar’ unionised workforce, which reinforces the idea that ‘as the leadership team goes – so goes the rest of the organization.’

Congratulations to Susan and her team… it was refreshing and a delight to hear the story. And I know from first hand experience – knowing Mic – that it was absolutely authentic.

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Recognition Every Day… (RED)

At RedBalloon we talk about recognition all the time, not only what we do at work, but what we are learning from our clients. Matt the RedBalloon head of corporate has put 52 recognition ideas into a handy little business card size piece. It is really quite fun – filled with great suggestions of how easy it is to make people feel great at work. Picture 6

I’m in Auckland visiting clients today with our Kiwi Manager, Laurel, and I met one of the finalists in the Unlimited / JRA Best places to work awards for 2009, Kerry from PAKnSAVE Henderson. (PAKnSAVE is a discount supermarket franchise group – Henderson is the suburb) – with more than 150 staff he was pretty pleased to be named as a finalist; up there with the big global brands, that you’d expect to see at these awards.

We asked him what’s the key… he outlined that he was making a considerable investment in training, that people liked to hang out together, and they had done a fair bit of work on their ‘values’, that is, what they stand for as a business in the community. He also talked about what he does to recognize exemplary contribution from his team.

Laurel spoke of some of the fun things that Matt had put in the 52 ideas piece - #3 'have the boss give up his car space'. Kerry chuckled and said one of his fellow managers had done that and even extended to recognition to include not just the car space for the week, but the bosses BMW 740 to go with it.

The winner was a storeman, who starts work every morning at 4.am…. So as the storeman was proudly driving to work one day in the BMW (dressed in his work attire of stubbies and singlet, ‘looking pretty rough’) the police pulled him over asking to explain who owned the car. The storeman announced it was his bosses and he had been given the use of it for a week because he was the employee of the month… the Police didn’t believe him. So the police made the appropriate calls (getting the boss out of bed) to verify that he was actually telling the truth and the car was not stolen…

I don’t know what the storeman thought of being pulled over, but he sure has told everyone about it… the experience and the story created, means this story has become part of the ‘folk law’ in that business. And that business is now ‘known’ as one that recognizes it’s people.

BMW740

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What does disengagement look like

Thank you to Bruce Morton of Talent2 for this very illustrative image of disengagement. Loved it. Gallup tells us that it takes six engaged employees to fix up the mess made by disengaged staff.  In some instances it is clearly more.

Disengagement

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Better out than in.

I was chatting with a friend this morning who said that he had three of his team resign in the last week. He asked ‘That’s not good is it?’

On the surface we look at the cost of replacing them and all the history and experience that they depart with, and of course we say - ‘you’re right, this is not good’.

The first question I asked was ‘are they avoidable or unavoidable leavers?’ ‘What do you mean by that?’ he queried. This might be common terminology for HR professional - but most business owners (including myself until I was enlightened by the RedBalloon employee experience manager about a year ago) will be unfamiliar with the concept.

Unavoidable Leavers: are those who are leaving because the circumstances of their departure are determined for reasons external to the organization. For example we had a designer who wanted to go to South America and build an orphanage and travel the world. There is nothing the business could do to support him in following his passion. He was a great contributor, highly engaged, produced great work.... but RedBalloon was not where his next life experience was going to come from.

Avoidable Leavers: are primarily when the organization has let that person down, either recruiting the wrong person for the role, or not having the next career step for them. They might be engaged whilst employed, they may not. If they are not engaged, then the organization has let them down in some way. Right person, right role, right values and management.

I questioned my friend further about why he had three employee leaving at once. I asked him to describe the circumstances of their resignation. Numbers can be deceptive without understanding.

I hear people talk about ‘churn’ rates, or retention rates - judging the effectiveness of a management team based on this. As far as I’m concerned the much more interesting conversation is about engagement. Did they play full out while they were employed.

Resignations provide an opportunity to review roles, adjust them, recruit new people with fresh enthusiasm and other life experiences into the organization.

I’m very clear that as an employer RedBalloon is part of our peoples journey, it is not the destination. There are a lot of things that people want to do in life, our challenge is to make sure that they love what they do while they’re with us, and that when they do leave, they go with great stories to share about this chapter of their story.

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Defining Employee Engagement

image0011

It all depends on how you view the world... at least we know where getting somewhere when the conversation becomes mainstream.

Love it.

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I’m accused of leading a ‘Namby-Pamby’ management revolution

I received the email below yesterday, just after RedBalloon for Corporate  hosted a Webinar on Employee Engagement for 250 people. I didn't receive the email until after the event. But I assume that this person was commenting on the session.

Alas the email was not signed and was sent from an unknown email... so I guess the best thing to do is to respond here.

Date: 10/27/09 15:50:00

“Naomi Simson, WAKE UP ! People go to work TO BE PAID, VERY few ( 'cept maybe some women) want ANY so called 'thanks' for doing what they are paid to do. OH! I forgot, we are now in the 21st (oops, the 'touchy-feely, namby-pamby') century. THIS attitude is one of the major problems in the world today. Management have THEIR job, also. That does NOT include holding the hands of people with self esteem problems. If the employee's WEREN'T doing a good job, they'd get fired! I suggest you find a job that has some meaning.”

Firstly thank-you to the author (and I will for the sake of writing refer to this person as a him given the reference to women) for letting me know your thoughts. Without taking the time to write, I would naively go along my merry way thinking that the whole planet is in harmony when it comes to managing and engaging people this century.

People go to work to be paid for performing certain tasks. This of course is the basis of western economies. A person has skills and time which they sell to an organization in return for a salary. People must be paid for what they do. It puts Wheeties on the table, keeps children in school shoes and all the essential things that we have because we work.

The thing is that those people selling their skills and time ie employees -  have a choice. In-fact they have many choices:

  •     Do I choose to work here - or work somewhere else for the same money (or in some cases less) because I feel better about myself and what I achieve at the place. Does my employer notice what I do?
  •     Do I work hard when I'm at work and use my initiative or do I do the bare minimum?
  •     Do I want to fit in and assist those around me - or make life hard for others?
  •     Do I tell people outside of the organization about what a good company I work for - or that I hate my boss?
  •     Do I recommend it as a great place to work - or am I asking my friends if its better at their work?
  •     Do I want to continue to learn, grow and develop so I can add more for my employer and in return myself or do I do the minimum I can get away with?

This is fundamentally the question of discretionary effort. An employee can either choose to participate fully or not. They can simply go to work - do what they are told and go home without thinking about it - or thinking they will be fired. Or they can use their 'discretionary' effort for the good of the whole business and ultimately its profitability.

A can assure you sir, that I am wide awake. I am listening, learning and alert, listening to business leaders and HR directors. All wanting and needing to do more with less. As Ann Sherry noted at the recent HR Leader awards - if you  mention the word 'productivity' then you are really talking about 'people' they are in fact one in the same thing - people doing things to improve, innovate, and grow a business.

This is simply a question of commercial return. I really like the people I work with; the RedBallooners, I am interested in what drives them, what they are passionate about, I love discovering what journey they are on and what is important to them. This cannot be faked. I like people.

The first step to being an effective manager is to like people.  And be truly interested in them. If you're a manager and don't like people, perhaps you're in the wrong job. Business is a people game.

Sir, thank you for your contribution, it is greatly appreciated. To see that there are people who are still well entrenched in the past. Your business may well thrive without the 'namby pamby touchy feely' acknowledgment of people. But I am not alone in seeing great commercial returns from listening to my team, and responding in the same way I do with customers. I leave you with some powerful statistics - let the numbers speak for themselves:

    Companies that raise employee satisfaction by 20% will increase financial performance by more than 42%.
    Global Study by David Maister, Practice What You Preach: What Managers Must Do to Create a High Achievement Culture (2001). Sourced from www.vault.com December 2008

    A detailed study of 40 global companies found that firms with the highest percentage of engaged employees collectively increased operating income 19% and earnings per share 28% year-to-year. Those companies with the lowest percentage of engaged employees showed year-to-year declines of 33% in operating income and 11% in earnings per share.
    Towers Perrin Global Workforce Study. Sourced from  www.humanresourcesmagazine.com.au December 2008

    “Companies that utilised an effective employee recognition program enjoyed a 109% three-year median return to shareholders vs. a 52% return for those companies that did not.”
    Watson Wyatt Study of 3 million employees, as quoted  in Forbes magazine (2004)

    Hays Group research shows that 70% of engagement is determined by the employee's direct manager.
    The Hays Group, www.hayscompanies.com (2008)

     

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