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Jeannette

Are CEOs Good at Rewarding Employees?

No doubt, employee morale is low at companies that are downsizing. So I sent a note to several people whose opinions I respect with the question: “Do you feel that CEOs acknowledge the value employees bring to the success of their companies? Can you share a personal experience you’ve had working for a company and how the company recognized and rewarded employees?” Here are several thoughtful answers (edited for space).  I start with an executive recruiter who is in a position to know what a lot of CEOs are doing to reward their people.

Stacy Lauren Musi, Managing Director
Chadick Ellig Executive Search

http://www.chadickellig.com

There have always been both many types of CEOs and leaders. The highly regarded leaders, whether CEO or a business or functional head, recognize the vital importance of their employees, and recognize and reward them … the paradigm for successful leadership in Corporate America continues to move away from the old-school “command and control” approach to an inclusive, consensus-driven, team-oriented model.

Well-regarded leaders acknowledge the contribution of their employees and seek to recognize and reward their top performers accordingly. Historically, this has been done with promotions and monetary gains. But, particularly given the current economy where money is tight and stock options are under water, CEOs and others have to be more creative in the reward systems.

So, in addition to the traditional salary increases, bonuses and equity grants, today, I am seeing other types of rewards:

• Public recognition in front of peers and colleagues. Being given an official company performance award or even just being acknowledged publicly can be motivating to the honored employee as well as to others who would want to be selected for future recognition.

• Particularly to the up-and coming generation that is hard working and ambitious, career growth opportunities go a long way towards keeping them engaged. This reward can include: being selected for a special task force; having the opportunity to participate in an off-site; being given a coveted developmental assignment; or simply being chosen to be mentored and groomed by a well-regarded leader.

• Lastly, I am seeing that more and more, rewards include a wide variety of special privileges or perks. This can include time away from the office (whether it be additional vacation time or the opportunity to work from home); a trip; a complimentary dinner or gift card, etc. This can be particularly effective with middle or lower management, and these perks often include the entire staff. For instance, one leader shared that after a successful quarter, she took her team bowling, and another leader, who was on a tight budget, closed the office at 2:00 on a Friday and threw a wine and cheese party for her staff to thank them for a good job and to encourage a team spirit.

***

Amy Dean

http://www.deanpublicrelations.com

I once had the managing director at a PR agency lavish me with a big bonus when I saved a key client. I really felt that he valued and empowered me. But the trust was eroded when he lied about me to the same client months later. He didn’t want to work with the client anymore, so he blamed it on me, saying that I wasn’t happy working on the account, and his duty was to keep me happy.  It wasn’t true. When he found out I refuted his statement to the client, he gave me a tongue-lashing.  He wasn’t consistent in his support of me, so I never trusted him again.

***

Bea Fields

http://beafields.com

I think that most CEOs do a pretty good job on the front of acknowledging their employees. One company I have worked with offers what is known as a “Visa Bucks” program. With the program, when an employee accomplishes something that has a positive impact on the company, they are given $50 or $100.00 Visa bucks to spend at partnering local retailers. The announcement of the “Visa Bucks” winner also receives quite a bit of public/verbal acknowledgement which, at the end of the day, is what most employees want to know…that their boss recognized their great work.

Another idea which I have recently learned from a senior pastor is an acknowledgement program known as the “Barnabas Pack.” This is actually a peer-to-peer acknowledgement program where the entire leadership team votes on the one employee who really gave 110% during the month. The award is given at the first of the month at a staff meeting and once again, is great, because it is coming from the entire team, which makes the award meaningful.

***

Nina East
Founder, www.PersonalGrowthProfessionals.com

Some CEOs do acknowledge the value their employees bring to the success of their companies. I have a feeling this happens more often, or more visibly, in smaller companies. CEOs who recognize the value contributions, and communicate this, not only have greater business/financial success (from Megatrends 2010), but they also create a much more loyal employee team –critical in the current economic climate.

The challenge seems to be when money gets tight, revenues are down, or the CEO’s own behavior or contributions are being called into question. In those situations, which I’ve seen far too often, the leader will sacrifice another employee in order to save face or solidify their own position.

***

Miriam Battson, Marketing & Sales Director
The Pettibon System, The Pettibon Institute
www.pettibonsystem.com

Enlightened CEO’s DO acknowledge the value the employees bring to the success of their companies.  You can also feel it when you walk through the front door.  Employees have a sense of ownership and taking pride in your work.  There is a company in Seattle that has a gym, numerous classroom/conference room for their own “university” classes, full blown cafeteria, wine bar, fitness classes, etc. , all at no charge to the employees.

In Gig Harbor, the owners of The Pettibon System have been encouraging the employees to read “the Great Game of Business” by Jack Stack.  What it’s doing is showing the way to a mindset shift of employees taking ownership in the outcome of the organization and specifically in their work.  As we begin to implement the game within the company it’s been fun to watch the communication lines open even more.  The net result is engaged and happy employees who are being proactive with customer service related issues. They are feeling empowered to do the right thing and help create the future.  As an employee, I feel very blessed.

Twitter Fatigue

Are you tired of tweeting? I find a fatigue factor is setting in. I have fewer than 200 people I’m following (carefully chosen) and their posts are just whizzing by. It doesn’t help that Twitter has been moving at the speed of a pig stuck in mud when I try to catch up with them.

I also find – to my surprise and dismay – that some of the most famous social media gurus write really dull tweets. Do I need to get a blow-by-blow account of who is winning the NBA semi-final? If I am a rabid fan it’s likely that I’m actually watching the game on TV or following it online. This brings up the point of why we Tweet. Is it to pass the time of day by recounting your every meal and when you went to bed? Or is there a more serious purpose of sharing information about social media and reporting breaking news about a new company product – or product recall. I’m guilty myself of some pretty lame tweets. A good friend reported she had returned from the evening ballet performance and I one-upped her by saying I had already been to the afternoon performance. As the King of Siam said in the musical “The King and I” — is a puzzlement.

Write to http://twitter.com/jepaladino if you’d like to express your thoughts, or add a comment below. Why do you Twitter?

The Shrinking Resume

At this week’s Social Media Success Summit 2009 the social networking maven Gary Vaynerchuk told a listener who made his living writing resumes that he might want to seek other work.  Gary, who never minces words about anything, thinks that the old fashioned resume is destined for the junk heap.

Why?  Because potential employers can find everything they want by Googling you, and checking out your Facebook and LinkedIn profiles.

Not so fast, Gary.  I was at a networking reception last evening and good friend and colleague and I began to chat.  She’s in the job market.  But instead of whipping out a resume (actually she would never be so gauche as to do that in good company), she pulled out her “business card.”   She doesn’t believe in the old fashioned resume, either.  What she had done was turn her business card into her resume.  It was quite ingenious.  The business card had two-folds and each of the three little sections had everything included about her professional experience, volunteer activities and education.  She even had room on the first page for her color photo.

After leaving with her card, I had another thought:  if I ever was in the job market again I could do the same thing.  All those years of experience summarized in a 3-1/2” x 2” card.  Actually, it’s a little depressing to realize that my accomplishments can be summarized in so few words.  Next thing you know, companies will be asking candidates to send their resumes in a Tweet.  I feel myself growing smaller and smaller.

Where Did the Employees Go?

The 2008 corporate annual reports have rolled off the presses and are on view on company websites.   I flipped through some of them online and, as usual, they are the same old dullards.  A letter from the president, a few words about the past year and what the future holds, followed by the financial results.

But you know what?  Several of the very largest Fortune 500 companies had not a single photo or story about an employee.  None. Aren’t employees the ones who make the company successful?  Where did they go?  It is a little shocking to think that they merit so little recognition.  Granted many companies have had layoffs.  Maybe they think that if they don’t highlight the employees who are left people will forget about the ones who are gone.  Or maybe it’s something else.

In a recent column, David Brooks, an op-ed writer for The New York Times cited a study “Which C.E.O. Characteristics and Abilities Matter,” by Steven Kaplan, Mark Klebanov and Morten Sorensen.  What they learned, says Brooks, is that “strong people skills…and being a great communicator…correlate loosely or not at all with being a good C.E.O….what mattered were execution and organizational skills.”  Their findings apparently were consistent with other research on the subject of successful C.E.O.’s.
Maybe that’s why employees are so little recognized in the most successful companies.  The C.E.O.’s need to be a good communicator isn’t as important as sweating the small stuff, like being attentive to detail.  OK, not all C.E.O.s think team building and communications with employees are unimportant.

But it does make one pause and wonder if companies just don’t value their employees as much as in the old cradle-to-grave days when an employee lived out his entire work life with one company.  Maybe employees are fungible.  That’s it.  Employees come.  Employees go.  Welcome to the new world.

Problems Without Solutions

I don’t like to pick on companies that are no doubt providing valuable services.  But I cringe as if hearing chalk on a blackboard when companies advertise that they provide solutions.  Solutions is one of the most overused useless words. Solution is defined as the act of solving a problem. How does a real company that named itself  “Company Solutions” fix my specific problem? They claim, “To provide our clients with the highest level of service at the best price. Our clients are the cornerstone of our business and we always welcome the opportunity to service them.”   I still don’t know what they are selling.  And I would certainly expect the company to provide excellent service at a good price.

Here are a couple of more notable examples:  “Welcome to Innovation Solutions. The Right People in a People Business.”  Really?  Finally we’re getting someplace with “Tire Company Solutions.” At least we know they’re in the tire business.  Or I think they are.  But specifically what problems do they solve?

There are four basic measures of performance:  Quality: how the service is performed.  Quantity: how much you get.  Time: how long it takes.  Price: what it costs.  You no doubt can’t get all these attributes into one company name or tagline.  But I sure do understand what I get from these companies:  Best Buy Liquor and Rock Bottom Air Fares.  I think I’ll give them a call.

CEO as Chief Communications Officer

The CEO has a great opportunity to become the company’s Chief Communications Officer.  This isn’t in addition to his or her regular duties.  This is the essence of the CEO’s job.
Social networks like Twitter and Facebook have the power to profoundly advance or ruin a company’s reputation.  It’s the Wild West out there with lots of misinformation flying across the web.  That’s why the CEO must be communicating regularly to employees, customers, regulators and other stakeholders with the real story.
First, there is the company’s own internal communication programs.  And, as I’ve stated before, speed is of the essence in communicating important news to employees.  If you don’t tell them they will turn to the web for the latest dirt on the company and share it with each other.  Instead, turn them into ambassadors to spread word about the good things happening in their company.
That’s why the CEO has to be talking directly to the company’s stakeholders regularly with quick takes on new developments.  Many CEOs are turning to Twitter and posting their own tweets – such as George F. Colony, CEO of Forrester Research, who is giving advice to his peers about social communities and wrote a blog “How can CEOs understand social technologies?”   If the tweets are authentic and genuinely represent the CEOs own voice, the followers will come, especially the company’s own employees.  Who would have thought just a few short years ago that the company’s chief communications channel could be Twitter!  But if that’s what it takes to get the message out, then that’s what CEOs should be doing.
A few tips for the CEO as Chief Communications Officer:
•    Write the updates in your own voice.  A 140-word Tweet that links back to the company’s own website with more information is golden.  You should be writing them yourself and not someone from the PR Department.
•    Speed is of the essence.  If something dramatic happens (think of Domino’s employees contaminating a pizza) get out there right away with a Tweet or write a blog for the company’s website.  Now, this minute.  Getting the PR department to write a press release that needs to be vetted by 10 lawyers is too late.
•    Write often. Be out there every day, if possible.  When you’re checking your Blackberry one last time before going to bed, think about something good that happened for the company and put out a 140-word Tweet.  It will take less time than brushing your teeth.
•    Encourage feedback.   That’s what so great about the social communities.  There’s two-way communication.  You can get instant feedback from customers and employees.  They will tell you if they don’t think they are getting the straight story.  So be authentic.
This is the time for CEOs to be bold and brave.  Trust your employees, customers and other stakeholders to believe you.  Be a good leader and they will follow.

Connecting With Strangers

I’ve been haunted by the term, “stranger network,” which I came across in the transcript of a recent PRSA digital conference. Tom Smith, Founder and Director at Trendstream, a digital consulting firm based in London, was the author of the a presentation he gave called “How Did We Come to Trust Strangers?”  You can listen to an audio of the presentation athttp://bit.ly/18nh7l.  But his remarks led to an “a ha” that made me want to share them with others. In his new perspective on the world:

1) We trust total and complete strangers
2) Strangers drive our knowledge, ideas and decisions

Just think about that a minute and examine your own recent relationships.  How did you connect?  Have you met them?  I’m now taking a 12-week webinar course led by a woman I have never met, who was recommended by a colleague who has never met her.  I’ve never met the consultant who works with me on my website/blog.  Yet they both have become important people in my life.  Another consultant friend works with a virtual assistant half way across the country — they were working together for 10 years and had never met.  Then the VA planned a trip to New York and they finally sat down face to face.  Guess what?  It was a totally awkward conversation and they found they had almost nothing to say to each other outside of their virtual connection.

Who are the strangers you trust?  Do you exchange meaningful information?  Have you ever been let down, disappointed, betrayed?

That Sound You Hear is the Crash of Advertising

I remember the days when ad people looked down at PR types.  They had the big bucks budgets while the PR people toiled away on the leftovers writing press releases, arranging company events and the like.

Advertising sells!  Well, maybe not so much anymore.  Even the American Association of Advertising Agencies acknowledges the new power of public relations.  At its recent annual meeting, the group rebranded itself the 4A’s, for one reason because so many of their agencies are discovering that PR pays

A story about a company in a prestigious newspaper like The New York Times has always been more valued more than an ad in the same paper – that old third-party endorsement.  The shrinking newspaper and magazine landscape is evidence that advertisers are gravitating to other communication channels.  And what they are doing is not called advertising.  They are reaching out to their customers through direct feeds, webinars, blogs, Twitter, Facebook and MySpace.  Increasingly, they want to interact with their customers at company-sponsored events, product samplings, and through community service.

Funny thing.  It’s the PR people who are leading the way.  They are writing the blogs, articles and opinion pieces.  They are the ones creating community relations programs – like they always have – but now these communities are more often than not reached online.  These are the company’s primary activities and not just an adjunct to advertising.

Here’s another thought:  maybe the terms advertising, public relations, publicity, promotion and direct response should be consigned to the compactor.  Those words just don’t seem to work in the new online communities that are forming like runaway amoebas.

How about new terms like collaborators, community builders, prophets, enablers?  Or maybe one word that summarizes everything we are:  communicators.

Advertising?  That’s so 20th century.

What if the CEO Died of Swine Flu?

Schools are closing and the World Health Organization (WHO) raised its global flu pandemic level.  So far, the outbreak of swine flu has killed relatively few people and many experts feel the risk maybe overstated.

But just maybe, maybe one of those statistics could be the CEO of your company.  Does your company have a crisis communications plan in place specifically addressing a global pandemic?  Not likely.  The last scare was the Avian flu outbreak a couple of years ago.  According to a Deloitte & Touche survey of 100 companies in the U.S. last year, two-thirds of the companies had not planned adequately for the avian flu and there was no one in charge of such a plan.  By contrast, 80 per cent of corporate officials surveyed at a conference in Hong Kong had people and plans in place because of reported deaths in Asia.

So it may just take the death of a prominent CEO of a U.S. company to scare companies into finally putting a crisis communications plan in place that covers not only disasters in a manufacturing facility, or a rumor about a product recall, but also one for a possible global pandemic.