Strategic Recognition and the “Economics of Humanity”

The Forum for People Performance Management and Measurement (FPPMM) issued a summary white paper on “The Economics of Humanity in Business.” Considering factors such as the Brookings Institutes' assessment that 85% of a company’s expenses may be related to the intangible capital in its people and the challenge posed by the fact that people are no longer willing to accept unpleasant work for a good salary, companies need to adjust to this “pull economy” in employee management and optimization.

One new opportunity FPPMM identified is in performance evaluation:

"Creating an effective evaluation and recognition program that seeks feedback from everyone involved is essential. Some of the more successful programs link individual goals with overall business objectives, … involving employees in recognition programs and events. To assure employees understand and improve organizational performance, employee evaluations and measurements must integrate goals for the organization’s strategy and success. Many companies find it difficult to quantitatively evaluate employee performance because of the difficulty in linking employee behaviors to organizational performance. However, a company that uses the appropriate measurement tools will have a definite advantage over its competitors on many levels, including profits, customer satisfaction, and employee retention."

Globoforce’s innovative method of linking all recognition and rewards to company values and strategy provide precisely this measurement tool that can lead to business advantage. Not only does this method provide a direct link between employee behaviors/performance and reward, but it also effectively and constantly communicates the company strategy and values throughout the organization.

The FPPMM report goes on to say, “Well-designed programs connect to an employee’s personal goals, career objectives, and lifestyle requirements, and, most importantly, to organizational objectives.”

I couldn’t agree more. What about you? Do you have any kind of employee recognition program in place? Is it truly strategic in that it reinforces organizational objectives?