How to Create an Employee Retention, Recognition & Reward Program (2018)

By Wayne Fonseca

THE INDUSTRY

1. $46 billion industry Incentives and other cash rewards which have doubled in the last 10 years. U.S. organization spent over $77 billion annually on them.

UNFORESEEN COST

2. Company Intangible Assets are knowledge, reputation and human talent.

3. The cost to replace employees is high and turnover rate has been increasing. Not to mention the time to hire due to the talent war has a huge impact on hiring.

4. Job satisfaction measured between 1987 to 2018 is at 61% meaning we are coming close to half of the employees that are unhappy at work.

"The average retention today, where employees spend is around 2 years 2 months in a company"

MIND THE GENERATION GAP

5. How to bring Millennials effectively into the workforce is a major question that many CEOs and business leaders have

Traditionalists or Silent Generation: Born 1945 and before

Baby Boomers: Born 1946 to 1964

Generation X: Born 1965 to 1976

Millennials or Gen Y: Born 1977 to 1995

Gen Z, iGen, or Centennials: Born 1996 and later

EMPLOYEE ARCHETYPES

6. 4 Human Drivers or archetypes in any organization.

The Hoarder: Collects resources and typically has the most incentives.

The Socialist: builds and fosters relationships.

The Contender: motivated to defend what is theirs.

The Seeker: desire to contribute to something bigger in creative ways.

EMPLOYEE RETENTION ROADMAP

7. Feedback Loop to listen, capture survey data to uncover insights and trends and take data-driven action and mentorship enabled.

8. Components of the survey should entail questions that tailored to the following parameters: empowerment, management, innovation, reward, collaboration, communication, purpose, leadership, culture and on-boarding experience.

"Gallup survey found 51% of the workforce is not engaged. What's more, 51% of workers are looking to leave their current jobs."

9. Reward points system based on the company goals and employee value proposition for innovation, patents, ideas for improvements or successful on-time & on-budget projects delivery.

10. One Technology Platform to help you gamify, manage On-boarding, Rewards, Incentives and Loyalty Programs seamlessly and fosters collaboration in the community.

11. Key Metrics to Measure:

Top Talent Referral

Employee Turnover

Retention

Absenteeism

Time to fill Open positions

Cost of Hire

12. Senior Management Team and HR has to be on the same page with a clear understanding on the key metrics that bridges the gap between talent management and business strategy by contextualizing employees' work ad reward around a company's vision and goals.

IS THIS ALL I KNOW?

I have only scratched the surface on what it takes to make a successful ecosystem within an organization, continuously seeking great methodology, systems, tools and platform that adds a strategic high-value proposition in the marketplace.

Wayne Fonseca a technologist enthusiast to constantly find the best practices, methodology, and systems to enhance and automate your life. If you are interested in finding out more, connect with me at   Connect with me on LinkedIn