Rethinking Employee Rewards, Part 1

I surveyed ten of my colleagues from different high-tech companies about the state of employee rewards programs at their company. One colleague told me about the outstanding reward programs where he works. The other nine colleagues told me something much different. Their feedback is easily summarized as follows: “Our reward programs are pathetic!”

What’s the difference in the thinking by managers at the company with the effective reward program and the managers at the companies with the pathetic reward programs?

The managers with the effective programs reward people with something that is meaningful to the recipient. The manager knows the recipient well enough to to pick a meaningful reward for them.

The managers with pathetic programs reward a person with something that is meaningful to the giver, the manager. The manager doesn’t know the reward recipient well enough to pick a meaningful reward for them. The giver chooses the reward based on what they would like.

For instance, Barry, a vice-president, awards Jerry a Rolex watch for his contribution to the development of a new product. Jerry, the product’s architect, worked seemingly every day for over a year to deliver the product. Barry believes that a Rolex watch is great award for anyone. Who wouldn’t like a Rolex? Answer, Jerry. He is allergic to metal. If he wears the Rolex, he will break out in hives.

A manager who invests time learning about Jerry would discover that he loves classic photographic prints. If Barry had contacted Jerry’s spouse, Margaret, he would have discovered that Jerry has always wanted a high-quality reproduction of Dorothea Lang’s Migrant Mother photograph. Corbis offers a high-quality print for under $1,000, which is thousands of dollars less than the Rolex watch. Jerry would have been ecstatic about receiving the photograph.

A manager in a company with an effective award program goes the extra mile to reward an employee with something the employee will like. The extra effort does take time. And the extra effort pays dividends.

People who have experienced thoughtful recognition, know its power. If you haven’t had the experience, you can help create it for someone else. As the saying goes, “What goes around, comes around.”

I have much more to say on this neglected topic. This is the first of three installments; here is the second; and here is the third.

Tell me about the state of your company’s reward program.