Global Rewards & Recognition Program White Paper
January 2006
Version 3.1
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1. Introduction
1.1. Purpose:
The purpose of this document is to demonstrate the link between employee engagement
and recognition programs, evaluate programs and their successes in comparable
organizational settings, and propose launch of an investigation and conceptual design of
a company-wide, global recognition program for Accenture.
1.2. Scope:
The proposed program would establish a globally-branded recognition framework,
which would be locally relevant across workforce profiles, cultures, performance
categories, and generational segments. The program is intended to apply to all
employees of the organization and its wholly-owned subsidiaries and would be based
on behaviors and/or attributes directly linked to organizational objectives.
2. The Case for Recognition
2.1. Employee Engagement
Employee Engagement is the state of emotional and intellectual commitment to an
organization or group. It is a by-product of an organizational climate that promotes
shared assumptions, values, visions and beliefs about an enterprise and its function in
the marketplace. It produces behavior that will help fulfill an organization’s promises to
customers, and in so doing, improve business results. It is related, but not equal to,
employee satisfaction and commitment to stay.
Engagement is highly correlated with key business metrics, including productivity,
retention, sales growth, customer satisfaction, and Total Shareholder Return. Improving
Engagement has direct, positive impacts on business metrics.
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2.2. The Engagement Model:
3
2
1
STRIVE
STAY
SAY
Consistently speak
positively about the
organization to coworkers,
potential employees, and
customers.
Have an intense
desire to be a
member of the
organization.
Exert extra effort
and engage in
behaviors that
contribute to
business success.
*3 step Engagement Model developed by Hewitt Associates
2.3. Drivers of Engagement:
In studies of over 1,700 companies, Hewitt has categorized impacts on Engagement into
6 categories. Every organization has unique drivers and patterns for the greatest
drivers of employee engagement, but trends show that Career Opportunities tends to be
one of the top 3 drivers having a positive impact on Engagement in a vast majority of the
companies studied. By the same token, Work Tasks and Intrinsic Motivation are cited as
two of the top 3 drivers having a negative impact on Engagement in over 90% of the
companies studied.
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Hewitt’s Employee Engagement Framework
People
Work
Status
Total Compensation
Opportunities
Engagement
Impact
Company
Procedures
Quality of Life
Red:
These drivers have remained consistent over time
Blue:
Black:
Specific to
Executives
Below Executive
All
Hewitt research has shown that employers with an Engagement score of >60% enjoy a
Total Shareholder return of 24%, those with Engagement scores between 40%-60% have
a Total Shareholder return of 9%, and those with a score below 40% have a Total
Shareholder Return of -3.4%. Overall Accenture engagement is measured at 38%.
2.4. Accenture Engagement Drivers:
Sensitive data removed
2.5. Recognition’s Link to Engagement:
Recognition is a direct positive driver to employee engagement as identified by the MCA
analysis. Recognition has also been shown to engender affiliation/inclusion and
perceptions of senior leadership’s commitment, thus indirectly influencing the top
positive driver and top negative engagement driver indirectly.
3. What is Recognition?
Recognition ranges from informal programs to formalized strategies that identify and
reward behavior or attributes. Effective recognition programs translate corporate goals
into individual employee action and in the process reinforce and align values and
priorities. The most successful strategies are clearly linked to known organizational
goals, are easily understood, visible, and involve a mix of types of recognition.
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Recognition programs range from simple verbal or written praise to exclusive, high-value
awards for demonstrated performance.
3.1. Types of Recognition
Social: reinforcing behavior verbally or through intangible actions. The use of social
recognition can extend to publish accounts (on a company website) that elevate the
degree of recognition, reinforce the desired behavior across the constituency, provide role
models for the organization, and in the process promote and reinforce best practices.
Symbolic: acknowledgement of achievement through a physical reward that is
personalized to the recipient.
Tangible: rewarding achievement through the use of physical rewards or a selection of
physical rewards that they can share with others.
3.2. Recognition Spend
Recognition programs are usually administered in addition to total rewards plans (base
and incentive pay). They are not successfully used to compensate for inadequate or
uncompetitive base reward strategies. Research indicates that typical spend on
recognition programs range from .5-3% of payroll, with most companies surveyed
spending between $200-700 per person.
3.3. Benefits of Recognition
Pervasive, Relevant and Continual
Aside from its impact on employee engagement, recognition serves the purpose of
compounding a performance culture through its inclusive and continual nature.
Recognition programs can be highly relevant and personalized, focusing on specific
segments of the performance spectrum, motivating different behaviors from and within
each group, e.g., retention focused on top performers and discretionary performance from
average performers. Continual allocation and utilization throughout the year keeps the
employee value proposition and total reward package top of mind and also reiterates that
performance is valued day to day, not just at annual review time.
Flexible—Implementation and Phasing
Recognition programs can be as simple as defining desired behaviors/attributes and
enabling a culture of recognition through verbal or written praise. Once the culture of
recognition is in place and the organization is enabled through technology and training,
more sophisticated and higher cost/reward programs are layered onto the existing
framework.
Simple
Recognition programs can be easily enabled and reinforced through simple tools and
technology, generating the most effective utilization. The tools also support diagnostics
and analytics, allowing continual tracking and reporting of key metrics.
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Customizable
Once the behaviors have been identified for recognition, the recognition component can
be customized to be locally relevant across employee groups, cultures, demographic
segments while supported through the same branded framework and infrastructure.
Retentive
A recent Robert Half International study indicates that lack of recognition was cited as
the second most prevalent reason for leaving an organization, after limited chances for
advancement. Numerous studies have proven that people don’t leave companies, they
leave their direct managers. Effective programs provide are an additional tool for
managers to more effectively train, inspire and nurture others.
Motivational
Recognition programs help focus an employee’s inherent motivation by reinforcing
desired behavior and rewarding discretionary performance. Recognition also
communicates the standards of performance and creates visible role models.
4. Types of Rewards
Tangible rewards can be broadly categorized into cash and non-cash rewards. While
employee surveys typically suggest that cash rewards would be most valued, postimplementation studies reveal that non-cash rewards of equal or lesser equivalent value
had the most impact on motivation and were more memorable and therefore had more
enduring value.
4.1. Cash vs. Non Cash:
A Northwestern University study indicates that non-cash awards are perceived as more
effective motivational tools for reinforcing organizational values/culture and motivating
specific behaviors by companies. Non cash programs are shown to have greater visibility
and staying power (i.e., an employee remembers the award that might have otherwise
been lost in a paycheck).
Employees perceive non-cash rewards as separate and distinct from cash pay. Redeeming
non-cash awards does not compete with his/her sense of economic responsibility and
requires no justification. As a result the earning event is more pleasurable, has greater
positive impact and results in personal trophy value. These psychological triggers result
in a higher motivational impact for the sponsoring company. The same or greater impact
on engagement can often be achieved at a lower cost to the organization. Cash awards,
on the other hand, tend to be perceived as “what was due” rather than “what was earned.”
(2002 Incentive Federation Survey on Incentive Practices)
5. Recognition Programs Best Practices
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In a survey of recipients of the Malcolm Baldrige National Quality Awards, the
Corporate Leadership Council noted several commonalities among world class
companies, in that their recognition programs:
 Link to business strategy, vision and quality
 Focus on employee input and peer recognition
 Use multi-layered programs within a system
 Recognize both individuals and teams
 Reward results rather than activity
 Link rewards to performance
 Use a strategic blend of tangible and intangible rewards
 Utilize an intensive and personalized communications strategy
 Include measurement and accountability
 Track utilization within the organization
5.1. Defining Rewards
5.1.1. Flexible
Workforce demographic changes such as the increase in diversity, reflected in
nationalities and ethnicities, the rise in alternative household structures and the rise in
generational diversity requires a reward and recognition strategy that is not a one size
fits all. Rewards need to be flexible enough to appeal to different employee generations
and geographies.
5.1.2. Relevant
Maritz Incentives conducted a survey in September 2004 and of the 1,002 respondents,
73 percent agree that they prefer to choose from a variety of awards rather than receive a
pre-selected item. The most successful programs have reward offerings that are:





Immediate
Proportional to the achievement
Desirable to the recipient
Visible
Personally Meaningful
5.1.3. Enabled
Successful recognition programs not only align behaviors with organizational goals and
deliver rewards for that performance, they are also enabled through the use of
technology, communications and branding strategy, and training on what behaviors to
recognize and how to best deliver recognition that is personally meaningful.
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6. Case Studies
In the research conducted on competitor and client companies who have implemented
such programs, the following results were achieved:
Company
Objective of Program
Impact
Global High-Tech
Create a culture of
 56% participation
engagement and
 Employee “Attitude
recognition
Survey” scores improved
an average of 30%
Improve loyalty and
increase employee
satisfaction scores
Utility
Increase employee
 ROI of program 5.25:1
satisfaction and change
corporate culture
Financial Services
Increase employee
 Reduction in turnover and
satisfaction
recruiting costs of $1.7 m
for a pilot population of
1500
7. Existing Recognition Programs at Accenture
Sensitive data removed
8. Recognition at Accenture
8.1. Driving Engagement
The first step to designing a reward and recognition program is to start with the end in
mind. In order to design an effective rewards and recognition program, we need to
identify the measure we want to drive. In this case, we can address several needs
through recognition.
1. Institutionalize performance factors and instill them as a part of the culture
Through continual reinforcement, we can convert behaviors that are measured once
a year into day to day ones that drive company performance. We can also leverage
this focus on performance factors throughout the year to quickly on-board new
managers in high-growth markets.
2. Move middle performers
Our total reward strategy rewards and recognizes the top 30%. Through
recognition, we can encourage average performers to give discretionary effort and
act as top performers in achieving more short-term goals and reinforcing top
performance behaviors.
3. Employee Engagement
As stated above, recognition has a positive impact on overall employee engagement.
4. Retention and connection
Studies also demonstrate that when employees feel recognized for their
achievements, retention is positively impacted. At Accenture, engagement has been
distilled to 4 characteristics of work that employees feel positively about: Careers,
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Connection, Compensation, and Balance. We know that employees do not leave
companies, they leave managers; recognition gives managers and leadership a
powerful tool to help employees feel positively about their relationships with their
direct managers and that their contributions are recognized, engendering a sense of
connection.
8.2. Defining Behavior
Secondly, we need to identify the behaviors that we are recognizing. These should be
aligned with organizational values, be easily understood and recognized by the targeted
segments, and widely communicated. They should also align with workforce profiles
and be applicable across employee demographics. In order to underscore the
performance culture and reiterate the importance of the success factors that we have
identified as critical to organizational performance, we recommend utilizing
Performance Factors by workforce and level as behaviors for recognition.
8.3. Rewarding Achievement
We propose recognizing the desired behavior through a framework of recognition tools.
At the most inclusive level, a technology solution is created to enable 360 degree
recognition. The system allows any employee to access and send a recognition card to
another employee, with a copy to his/her manager or career counselor recognizing
demonstration of one or more of the desired behaviors. We would expect an 80%
participation rate at this level.
At the more exclusive level, managers are allocated points which they can award for
achieved behaviors to their direct reports or indirect reports, which the recipient can
redeem for tangible rewards. We expect recipient rate to be 60% at this level.
Finally, a third tier of recognition can be layered on to create visible role models in the
organization. This mechanism for rewards would be higher cost and exclusive,
applicable to less than 2% of the eligible population.
8.4. Branding and Communications Strategy
Roll-out and pre-communications are an important part of the program launch, not only
building enthusiasm, but also overcoming employee skepticism about reward programs
that have not delivered on expectations in the past. An important element in the prelaunch communications is demonstrating leadership’s commitment to recognition as a
part of our everyday performance culture.
The successful launch of a recognition program will involve a branding and
communications strategy that clearly communicates what the program offers, why we
are committed to recognition, how to participate in the program, and how we will
measure its success.
Launching the program is only the first phase in what must be a comprehensive
strategy. Regular communications will be integrated in the on-going maintenance of the
program to drive utilization and further instill the performance mentality through
pervasive communications of the performance criteria. A Maritz 2004 study concluded
that 66% of participants who received weekly communications were happy with their
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programs, compared with only 33% who received communications at the launch of the
program. Communication mechanisms that are highly targeted, personalized and event
driven have the greatest aggregate impact and are key components to sustaining
awareness and utilization. Additionally, feedback communication loops will be built
into the program to pulse survey and collect employee response.
8.5. Training
As part of the launch and on-going communications strategy, we will develop a training
module to instruct managers on the importance of recognition, how to give recognition
both inside and outside the program, and how to utilize the tools and analytical
capability of the program to motivate teams and individuals. Web based tutorials that
give managers an opportunity to review both the strategic purpose and administrative
mechanics of the program at their own pace and on a just-in-time basis are more
effective in driving immediate adoption, ongoing utilization and long term satisfaction.
8.6. Technology
A recognition portal will manage, track, and enable the giving and receiving of
recognition awards. It will facilitate redemption of awards, as well as provide
management and leadership analytics and diagnostic tools to measure the utilization
and distribution of recognition awards.
8.7. Design
Design of a recognition program will involve a cross-representational steering
committees and project team. Development of the design will be in conjunction and
with the input of the People Advocates. The project resource estimates are as follows:
Program Sponsor: Ellyn Shook
Role
Program Lead
Program Manager
Program Resource HR
Marketing &
Communications
Manager
CIO Manager
Vendor Team
People Advocates
Function
Responsible for overall program design and
implementation
Responsible for overall work plan, vendor
relations and coordinating cross-functional team
Aids in the design and implementation of the
program
Responsible for overseeing communications and
branding of the program
FTE
.5
Responsible for integration of technical platforms
and standards
Responsible for the design, specifications, and
build of the program and technical infrastructure
Responsible for representing employee input to
the process
.2
.75
.5
.2
3
As
needed
8.8. Implementation
A phased implementation would begin with enablement of an inclusive, 360 degree
recognition mechanism in late FY06, followed by the implementation of a reward point
system in Q2FY07. A third phase of the implementation would introduce an exclusive
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award for fewer than 2% of the population, involving a retreat or career development
opportunity with senior leadership in FY08.
8.9. Funding and Cost of Set Up
Sensitive data removed
8.10. Measuring Success and Return on Investment
Sensitive data removed
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9. Project Proposal and Timing
Q2 FY06
Project
Establishment/
Due Diligence


Identify and engage
vendor
Benchmark/Research
(best practice, empirical


evidence, academic studies,
internal program survey)



Build business case
(business imperative,
economic impact, ROI)
Define program
drivers (engagement,
behaviors, cost/benefit)
Acquire approval (HR
Establish
Governance/Project
teams (Steering
Committee and Project
Team – tax, legal,
geographic, operating
entity)

Q4 FY06
Program Design
Build Portal/
Program Rollout
Define scope
(eligibility, range of
design, timing)
Establish budget
(funding, constraints,


timing, interdependencies,
costing models)


Determine metrics
(establish baseline,
evaluation methodology,
program evaluation)

Construct program
(flexibility, cost,
effectiveness, award
mechanisms)
leadership, leadership
sponsorship)

Q3 FY06


Test concept with
focus groups
Make necessary
adjustments
Establish Stakeholder
and Input Groups and
Feedback Channels
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
Work with vendor and
technology to establish
capability
Develop communication
plan (branding, channels,
audience, frequency)
Pre Launch/Phased
Launch of program
Ongoing program
evaluation/measurement
(tracking, measuring efficacy,
impacts on behavior, cost
effectiveness/ROI)