The Daily Perk

The Biggest Incentive Program Ever

In this industry, we like to say 'cash doesn't work,' and for a variety of reasons, among them the concern that an employee given a check for doing a great job will sign it over to his or her gas utility, thereby gutting the trophy value of the award.

Of course, if you’re reading this blog, you already know that. But it bears repeating as congress put the finishing touches on what will likely be the largest single short-term incentive program ever launched. A few minutes ago, the U.S. Senate’s leadership announced they would pass the same economic stimulus bill passed last week by the House, giving married households a check of $1,200 or more (if they have children) in what at its core a $170 billion program designed to incentivize spooked consumers to start spending money on consumer goods again.

A Secret Garden

When it comes to personal recommendations, no country is as full of little must-see or must-stay places as France. When putting together February's France feature "Vive la France!", we had no choice but to narrow it down to three outstanding destinations. Still there are other secret places worth mentioning, one of them being Le Prieuré d'Orsan.

Located in the heart of France, in the Berry region of the Loire Valley, Le Prieuré d'Orsan is a lovely monastic garden and luxury hotel destination, a part of Relais & Chateux. Founded in the early 12th century, the gardens have been maintained to reflect their original purpose in the Middle Ages, which was to serve as an image of Paradise. Based on the images on their site www.prieuredorsan.com, it seems like a very credible depiction.


As for the rooms, La Maison d'Orsan has but seven. Two have private gardens. As for meals, there are several dining-rooms and one restaurant called La Table d'Orsan. Meals are cooked using the very herbs, fruits and vegetables that are grown in the gardens, including homemade jams. For groups who book the entire hotel, cooking workshops can be organized.




 

Familiar Faces

Today Fortune published its annual 100 Best Companies to Work For list and it was good to see some familiar faces from some of Incentive's recent profiles. Aflac, our cover subject from last September is in at number 30 for their generous compensation package and work/life initiatives. We would also include the company's Spot Awards program, honors clubs, and grand Employee Appreciation Week. Up at number 13 is Portland, Oregon's Umpqua Bank, whose executive vice president Barbara Baker was on our cover the month after Aflac (and whose company I'd never heard of at the time). Though we profiled Umpqua with the comparatively-huge banks Wachovia, Commerce, and Bank of America, this smaller company stood out for its more personal approach to its employees, and, as it happens, its customers.

Congratulations to all those that made the list this year for demonstrating how putting the focus on employees helps reap valuable rewards company-wide. Expect to see more of these models of best practices in future issues.

Of Unions and Incentives

In February's issue of Incentive magazine, you'll find a Legal Ease column in which Incentive Federation General Counsel George Delta looks at the ins and outs of running safety incentives. Among these issues, you'll read, is that these programs often cover unionized workforces, and unions often frown upon incentive programs.

Specifically, George says: 'unions do not like award programs, because they differentiate among workers. Unions want all employees treated the same.'

And while there's a lot more to it than that, as you'll read, I was reminded of this today when I ran across an article on Google News in which it was reported that the NYPD's union, the Patrolmen's Benevolent Association is attempting to stop a private foundation from offering an incentive program designed to help recruit new officers—a program necessitated when the (union-negotiated) contract created a ludicrously low starting salary for rookie NYPD officers: slightly more than $25,000, which in New York City virtually requires moving back in with parents.

Help Them Help You

Companies that give employees the tools and resources they need to do their jobs well are likely to perform better financially, according to a report released today by the Economist Intelligence Unit, and sponsored by Microsoft. Surveying 1,351 senior executives worldwide, the research found a positive association between 'employee enablement'—giving workers the organizational structure and technological tools they need to help contribute to the company's growth and success—and the company's profitability, revenue growth, and other indicators of financial success. In other words, allow your employees help you succeed and you are likely to succeed.

This seems like something any company would agree on, but in its practical application, many are falling short in enabling their workers. Only half of those surveyed felt they had the necessary IT tools or access to the information they needed to do their job. Only 17 percent felt their organizations had enough employees with the necessary skills for the job and just 10 percent feel there is enough money in the budget to enable employees to complete their duties.

So why aren't companies helping workers to help them? My suspicion is that it comes down to a lack of communication: company leadership is not working with employees to figure out what exactly their goals are and how these can be facilitated; and workers are not reaching out to their bosses with suggestions for how their needs can be better met. Employees could even be incentivized to ask for what they need with rewards or recognition. As this report indicates, companies get what they want if they give employees what they want.

Money Isn't Everything

When Incentive's February issue comes out in a few weeks, you'll see a case study I wrote about The Weitz Company, a general contracting firm specializing in large construction projects.

In an industry where qualified employees are getting harder to find —the U.S. has been turning out fewer engineers for decades, and there is a broad trend of fewer young Americans going into the construction trades in general—Weitz puts a lot of thought into retaining the employees it has and motivating the Boomers looking at retirement to share their expertise with the next generation.

One of the company’s main strategies in this regard is to empower employees to make decisions and reward and recognize them when they get it right. Says Weitz Chairman Glen De Stigter: “That fits into a basic need to add value and contribute,” he says. “Most people want to make a difference.”

I though of this policy earlier this week while reading a story in the New York Times about large law firms, which are bleeding 20 percent or more of their young staff lawyers a year.

If you give a tech geek an iPod...

So after over two and a half years of writing about an industry that I've never had any personal use for, I actually found myself at a Mexican restaurant suggesting to a family friend, the head of a very small, but successful tech company, that he give his employee something more personal than a cash bonus.

This friend was quick to respond that cash is what his employee wants, his employee is a young guy with a family. Even though he's extremely valued and well-paid a cash bonus is just what everybody wants.

'What I've heard,' I ventured to tell him candidly, 'is that people say they want cash but studies have been done that show that merchandise makes them happier. Also, chances are, a cash bonus will be used for daily expenses and won't have much of an impact on him.'

'Well what should I get him then?'

'Does he have an iPod?'

'No.'

'Is he into movies and music?'

'Yeah, he's a really hip, cool guy.'

'Well maybe you should get him an iPod. They're engravable too.'

'Yeah, I know.'

At Christmas, I was astounded to hear that this family friend took my advice and gave his employee an iPod, with an engraving that thanked him for a year of great service with the company. I've never put the theory of incentives to practice and was very, very, anxious to know if they really matter. His employee was extremely touched and replied with an email expressing how great it is to work there. As for the iPod, it's like clay in the hands of an artist. Apparently tech guys know how to customize these devices in ways that go way beyond creating a special playlist for the gym. Now this family friend wants to make all of his employee bonuses tech-themed incentives because he says, even if it's something that's mainly for personal enjoyment, in their business it can also be used for work.

'Really? Even an iPod?'

'Hell yeah--even an iPod!'

Sluggish at Work? Add a Soundtrack

Dopey and Sneezy were on to something. Whistling, or at least listening to, music at work is a great way to improve productivity, according to Professor Richard McGregor of the University of Cumbria. The Scotsman reported on Saturday that Professor McGregor's research on workplace behavior has found that the usual office soundtrack of keyboards typing, phones ringing, or silence, is more likely to put workers on edge than help them focus. But an upbeat Beatles or Prince song will raise spirits and energy levels.

Of course, choosing the right music is key. A mopey Morrissey song or Swedish death metal track would probably change the office atmosphere for the worse, so McGregor recommends sticking with pleasant, cheerful tunes to ensure toe-tapping from workers. He also suggests encouraging employees to plug in their headphones to listen to their own CD or mp3 playlist, to avoid bothering anyone who doesn't like the chosen song, or creating opportunities for any distracting inter-office DJ battles.

For some, McGregor's findings may come as little surprise. When I need to really focus, I'm used to putting on Sufjan Stevens or the Flaming Lips to help keep my work humming along while blocking out distractions. And, now and then, some Swedish death metal does the trick.

Do you have a favorite song or artist that helps your workday fly by? Let us know.