Reward and
Recognition
“Establishing an Effective Workplace Recognition System”
Module objectives:
Candidates will learn:
•What’s Lean about Reward & Recognition
•What is Effective Recognition & why do it.
•Recognition vs. Reward
•What to Recognise
•Recognition Tools
How does Recognition fit with Lean?
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Effective recognition: Empowerment
Culture Change
Invert the pyramid
Recognition versus Reward cont.’
Maslow’s Hierarchy
of Needs
SELF
ACTUALISATION
SOCIAL / LOVE
SELF - ESTEEM
SAFETY
PHYSIOLOGICAL
What is recognition?
Any action called recognition should include
all three A’s:
•Acknowledgment
•Appreciation
•Approval
Seven critical success factors:
1. Sincere
2. Fair and Consistent
3. Timely
4. Frequent
5. Flexible
6. Appropriate
7. Specific
1.Sincere
Don’t just say thanks for the sake of it – mean it.
Example: Long Service Qualifiers
Put individual names in your area newsletter &
attending their work group brief to shake hands and
say thanks
Writing ‘Congratulations to all those who have
completed a long service milestone this month.’ in
your area newsletter.
2. Fair and Consistent
Recognition loses its value if it is perceived as inequitable or
inconsistent. Standardisation is important.
Don’t leave recognition up to managers – encourage peers to
recognise each other.
Example: Two teams have no accidents for over 1 year. One GL uses
his initiative & asks you to come & thank his team.
Find out if anyone else has equal achievement & visit all
relevant groups. Share what you have done with other
managers in your area.
Send a congratulatory email back to the Group Leader
who contacted you & feel proud of yourself for being good
at R&R.
3.Timely
Immediate recognition ensures that achievements
are not overlooked. The recognition is more likely
to be remembered and thus the behaviour or
practice more likely to be repeated.
Example: An area receives a good score in an audit
Before the score is announced decide what to do if the
team reach or exceed the target score. When the results
are announced personally congratulate the key players
with a phone call / visit that day.
At the end of the year, write a Xmas note to your team,
listing the area’s achievements for the year.
4.Frequent
There will be daily opportunities to say “thanks” –
use them. It does not cost anything but is a great
investment.
Example: Attendance
Make time in your diary each week to review attendance
figures and send thanks to teams with good records.
Wait until a team has 0% absence for 1 year and then
send them an email.
5.Flexible
Recognition should be a personal matter – try & use
a variety of recognition tools, matching your choice
of tool to the individual / team’s needs.
Example: Two of your direct reports complete projects on
time with good results. You know one of them is quite
shy, whilst the other enjoys being in the limelight.
Speak to both separately & ask if they would like their
project being highlighted on the area notice board with
a photo of themselves.
Without asking, get them to stand up in front of the
wider team & give them an award.
6.Appropriate
•The recognition method selected should match the
effort expended, the behavior exemplified, or the
results achieved.
! Recognition should not be reduced to a lottery.
Example: An individual & a team in your area both have
no accidents for 1 year.
Congratulate the team and give them a free meal voucher /
coffee & cake during break. Send a general note to all in
the area thanking everyone who has contributed to the
area’s safety record.
Give both the individual & the team a free meal voucher.
6.Appropriate
Appropriate
Recognition Tools Initiated improvement activity to solve
Difficult quality issue or make substantial
Featured in Industry
cost savings
magazine / External
media.
MD congratulates.
Article in company magazine.
Team has achieved a number of
Display featured in prominent area on site
targets, e.g 0 accidents
e.g. canteen.
Plant or regional manager congratulates.
Small article on team or individual in plant magazine Team taken part in
Mention on screen saver/ intranet Kaizen activity or
Display on area notice board 6Sigma project
Area manager attends team meeting to congratulate.
Long service
Supervisor / Group Leader mentions in team meeting.
Good Spot
'Well done' posted on team or area notice board
Good attendance
Mentioned in area newsletter
record (team or ind)
7.Specific
Recipients should know exactly what they are being
thanked for and why their contribution is valuable.
Example – An operator carries out a Kaizen activity
making cost or waste savings.
Ask the operator to demonstrate what he has done and
why. Thank him personally & explain why what he has
done is important to you and the business. If appropriate
arrange for his project to be featured on a wall display /
plant magazine.
Thank him for his ‘hard work’ via an email to his Group
Leader.
Recognition versus Reward
“Hearts and Minds” Concept:
To encourage individuals to want to change, want to
be their best, and want to come to work, you must
win over both their ‘hearts’ and their ‘minds’.
Recognition will win over both.
Recognition and reward are often used
synonymously or are combined into one system – the
R & R system. However, often efforts to improve R &
R systems totally neglect recognition.
Differences between Reward and Recognition
Recognition Reward
Non-cash Monetary
Needed frequently Infrequently changes
Psychological Financial
Personal Impersonal
Value – and principle-based Based on corporate budget
Used to keep employees Used to attract employees
Reinforces behaviours Supports short-term goals
What Should You Recognise?
•Values and Behaviours:
Recognising the behaviors that you want to
encourage and see repeated.
•Objectives and goals:
Recognising a the achievement of team, area
or plant goals / targets.
What to Recognise
Behaviours to recognise
include:
•Team working
•Continuous improvement mindset.
•Building quality into the process
•Encouraging safe working
•Incident Reporting
•Lean thinking
•Sharing of best practice
•Appropriate Escalation
•Good use of 5C
•Use of Work Group board as focus for group activity.
What to Recognise
Achievements that we should be recognising include
actions towards achieving work group, department, or
plant objectives.
For example:
•No Lost Time Accidents / good team safety record
•Putting forward an idea for a kaizen activity which will
eliminate waste from a process
•100% attendance
•Involvement in an environment / community programme.
•Instigating a time saving / standardising idea.
•Team achieves excellent right first time score.
•Green Belt training completed.
Recognition Tools
Recognition Boards
Thank you
Lunches or after work events
Family days
Recognition Tools
Go – Look – See – Say Thank you !
Team meetings / briefs
Newsletters & Magazines
Group Exercise
How would you recognise each of the following achievements:
•Work Group has not had any accidents for a year.
•Area has had no accidents for one month.
•Somebody is celebrating 30 years service with the company.
•Plant achieves an exceptional score in an audit
•An individual’s kaizen idea is implemented, which improves a simple process.
•An individual spots a potential quality issue
•A Group Leader makes a presentation to senior management on a plant tour.
Benefits of effective recognition:
1. Reinforces desired behaviours, practices, principles,
and values.
2. Gives the organisation the ability to show
appreciation and say “thanks!”
3. Builds self-esteem.
4. Promotes trust and respect.
5. Facilitates and encourages change.
6. Drives improvement.
7. Celebrates success.
8. Improves the quality of work life.
Benefits of effective recognition
9. Motivates individuals and teams to do their best.
10. Enhances loyalty.
11. Creates a positive attitude and confidence that carries
over to public.
12. Addresses the basic human need to feel appreciated.
13. Reflects commitment to each other.
14. Inspires accomplishment and achievement.
15. Empowers individuals and teams
17. Drives out fear.
18. Improves the bottom line.
