Employee of the Month incentive

Elle · July 2004

Hello everyone out there! I'm trying to start an Employee of the Month incentive plan. Our organization has never done anything like that in the past and I think since we just had to let an ee go due to an RIF, it might be a good time.

Well, I have done some reading and it sounds as if it isn't a real motivator and really doesn't lead to many good results. But at the same time, I think it could be fun and boost morale a little in the office.

Does anyone have advice to give on how to go about this w/o it becoming a popularity contest or something negative?

My boss thought it was a great idea but now that I have presented it, I am doubting it a little (too late, I have to do it now).

Any input would be great on setting up some simple guidelines/perimeters and still make it fun.

Thanks to all!

ray a · July 2004

We use the Employee of the Month as a reward for those who best exemplify our "values". Dept managers submit nominations to me, then I review with the VP with a recommendation on who to choose. We try to pick primarily from the mfg associates - recognize the "little guy", but throw in the occasional indirect ee, too. We used to have and EE of the Quarter chosen by popular vote - that was a big fiasco. We get the claims of unfairness and favoritism, but when I tried to stop the program I found out the majority liked the idea and we kept it. We acknowledge the recipient in an "All Hands" meeting and give them a $50 gift certificate to the establishment of their choice and a nice polo shirt with the company logo.

Elle · July 2004

ray a: That is what we are going to do, have everyone vote, oh no, now I'm really worried! Everyone gets to vote, manager to employee or vice versa. I though by letting everyone vote and briefly stating a reason why (it has to be work related) that it would be fair.

Thanks for your post.

Mike Maslanka · July 2004

Don't do it. While I recognize that morale can be a problem after a RIF, an employee of the month award is not the way to improve it. It will make matters worse,not better. After a RIF, many employees feel guilty that they survived and their friends did not, A EOM only serves to worsen that feeling.
Here is a more useful tool: give the employees a better story to believe on what the rif means and how it can be a positive. For help on this get a copy of "The Story Factor" by Annette Simmons, which has an illustration of how to do just that in a rif situation. Good luck. Mike Maslanka

Paul in Cannon Beach · July 2004

Elle,

I have lots of thoughts on EOM programs. Tell us a little more about your organization, size, what you do, and any pertinent information you feel would be helpful.

EOMs are tricky because they can be so subjective.

How much can you spend on the award per month? Will the awards be generic like a free clock with the company logo or personalized to the employee?

When would you give out the award? Would you create a wall that lists EOM winners and a photo?

Who would nominate EOM candidates? Who would make the selection? Is anyone eligible? Would you exempt top line managers? What criteria would you use to judge?

Elle · July 2004

Well we only have 26 ees and everyone will be able to vote at all levels except our VP. He isn't eligible to win and the only time he can vote will be if there is ever a tie in the votes.

The award, a $50 gift certificate will be awarded once a month w/all the ee gathered together for something sweet and a small break.

The ballots ask for a brief, objective reason to why that person is being voted on.

ray a · July 2004

The voting process may work out better for you in your smaller organization. Where the voting process fell apart for us was when departments competed against each other and the ee's would vote in a block for "their" own coworkers. The biggest department aways won, hence the unfairness. The last time we used the voting method, 7 out of about 250 ee's actually participated. Since you have so few ee's, you may want to consider doing it just once a quarter. Assuming a low turnover, you will have given everyone the honor in about 2 years, whether deserved or not. Or, if the same person starts getting it multiple times, others will lose interest. Doing it less often with a small group may make it more meaningful.

sonny · July 2004

I agree with Ray. With so few employees, I think once a month is too often. I am not a big fan of these programs, but we did have a program at my last place of employment. We had a small committee that reviewed the nominations. Nominations could be made by anyone. There was specific criteria they used to evaluate the nomination.

Here, we have a employee of the year. Nominations are made by Directors. A small comittee reviews those as well.

Pricehcs · July 2004

A lawyer's contrarian point of view, from this very website...

[url]http://www.hrhero.com/hl/072304-ct-praise.shtml?home[/url]

#1 thing a consultant shouldn't say: "I could tell you the answer right now, but we're committed to a three month project..." #-o

Elle · July 2004

Yes, I have already read that article. I have read many that are for and against EOM plans. I feel that the difference with ours is that there isn't a formal committee or a structural guideline. The employee's and manager's vote for whome ever they want and that way it is fair. There vote wins not just managements.

sonny · July 2004

Voting for whomever you want does not, in my opinion, neccessarily make it fair and could make it nothing more than a popularity contest. Having some criteria can aid some in increasing objectivity. Good luck with your project!

Down_the_Middle · July 2004

While I disagree with the current "legal opinions" that are surfacing on EOM awards many large labor firms in the midwest are now advising employers to go lightly on employee recognition programs. These programs allegedly become the achilles heel with terminating individuals who have previously been awarded this recognition. The argument falls back on the employer to prove with absolute clarity that the discharge was appropriate, etc.... I'm keeping our program and believe the advantages outweigh the conservative legal opinions. Just offering you a little of the 'other side of the issue".

Elle · July 2004

That is how I feel that advantages are greater than the legal opinions and the "what if" fear factor.

Considering the history of our organization, I think it will be fun and good. It really isn't going to be a great motivator to increase productivity but I do think it will increase morale in the office since a lot has happened here.

Well, good luck and thanks for the post.

ScorpioHR · July 2004

We did away with the EOM program a few months back-Mostly for the same reasons others have stated here. It became a popularity contest, ee's who weren't nominated stopped talking to their co-workers-It was pretty ugly there for a while-We came up with a new Employee Incentive Program that so far is working out well-We call it "Trendsetters" this is the blurb that introduced it:

(Company name) believes that the employees are the driving force that makes our company successful, and when employees go above and beyond their duty, (Company name) would like to recognize them. Trendsetters was established with this in mind.

We then have a paragraph that tells them
"How it works"
"How to nominate (and who can nominate)
"Recognition and Rewards"

The Directors have a meeting and we review the nominations.

Like I said, it is working just fine so far!!! On fridays all ee's who have won a trendsetter nomination can wear their trendsetter t-shirts. For some strange reason, they LOVE those t-shirts!!

Elle · July 2004

I love that idea! That sounds very productive and fun! Thanks for the input, I will try a similar model.

ScorpioHR · July 2004

Elle, If you mean Trendsetters, send me an e-mail and I will copy you on the criteria.

dixied · July 2004

Elle,

I have worked with EOM programs in the past. They can be effective for a short time, but then seem to become more of a popularity contest.
I would suggest looking for ways to include more of your employees.
Look at possible ways to improve your work place without adding too much cost, such as offering flex hours, having pot luck dinners, drawings for movie passes or gift certificate to a local restaurant those with perfect attendance for the month. Have you talked with your employees and get their ideas?
You may already be doing much of the above, but just food for thought.

Good luck.
dd

Elle · July 2004

That would be great, you can e-mail it to [email]hr@rses.org[/email].

Thanks a lot.

marc · July 2004

Calling in trendsetters instead of EOM is not a substantive change. To the extent you are for or against these types of programs should not be changed just because you called a daisy a rose.

It is difficult for this type of a program to last in a small organization. If you have a normal distribution of EE types in your company, you will find that 5 or 6 of them are far and away better performers than the balance. If you are truly objective, these 5 or 6 will always win and the balance will never win, and they may not even care.

Just have a monthly staff pizza party and you may get better results.

sonny · July 2004

marc and dixi provide excellent point/suggestions, IMHO

Crout · July 2004

You mean you proposed the idea and THEN did your homework? I hope one of the lessons you take from this is that shoot-ready-aim is never a good practice.

Elle · July 2004

No, I did my homework first (somewhat), I just started doubting it too late into the process. I can find 50 articles supporting an EOM program and 50 against it.

I just have to improve it now.

ScorpioHR · July 2004

Good Luck
xhugs
Be firm whatever you set-up and...then duck!!!

Employee of the Month incentive

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