Gift Programs

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Employee Recognition and Reward Programs for Financial Services Organizations

New research by Scott A. Jeffrey at Monmouth University and Guillermo Wilches-Alzate at University of Waterloo, shows a high correlation between recognition awards and high customer satisfaction/customer loyalty in the financial services industry. The white paper titled, “The Role of Rewards and Recognition in Customer-oriented Citizenship Behaviors,” reveals three traits of a recognition program that boosts employee performance and therefore customer retention. I would like to share these traits with readers this week as these concepts can be applied to any industry in which customer service is highly related to long term success.

Management Recognition

Managers can recognize employees best when an organization provides management with a formal recognition process. The recognition program needs to detail the ways managers can recognize and reward employees, how often recognition and rewards can be given and guidelines for reasons or situations that should elicit recognition and rewards from managers. The authors of the white paper recommend, “…managers in the banking industry need to find innovative ways to motivate, recognize and reward employees who demonstrate high levels of customer service.”

Spontaneous recognition is easier to manage when you pre-order award packages, award cards and/or merchandise awards. By keeping these recognition awards on hand for situations deserving immediate recognition, your managers will be prepared to provide employee recognition on the spot.

Linking Behaviors to Rewards

“One of the unique challenges in a bank branch – apart from the traditional retail service model - is that customer service requests and interactions vary greatly, and unexpected and challenging situations frequently arise, such as checks and deposits not clearing properly or on time, or questions or disputes over service fees,” Jeffrey and Wilches-Alzate note. They point out that since all of these customer interactions cannot be foreseen or necessary trained for, banking branch managers must demonstrate that employees are valued in order to increase customer satisfaction. This can be accomplished by implementing arecognition and rewards program at bank branch locations. The researches point out, “Recognition programs which work the best in the banking industry are those which recognize employees for spontaneous behaviors that go above and beyond their normal roles on the job.”

Peer to Peer Recognition

Peer to peer recognition, according the research by Jeffrey and Wilches-Alzate, had a smaller but still meaningful effect in encouraging higher levels of customer service. Mostly peer to peer recognition has an impact on a recognition program because it encourages employees to participate in the program. The more employees participate in the program, the more likely they are to understand how the recognition program works.

Through better understanding and participation, a financial services organization can create a recognition culture in the workplace in which customers receive superior service and loyalty from employees and customers is increased. As the research in this white paper demonstrates, the impact of recognition and rewards on the financial services industry is relevant and measurable.

 

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