For the past two weeks I have been discussing how recognition and incentive programs motivate employees in the healthcare and manufacturing industries. To conclude this series I will examine how employee award programs can motivate employees in the public utilities/municipality industry.
Part Three: Public Utility and Municipality Employee Award Programs
Government offices and public utility organizations often are looking for solutions to engage employees in an effort to increase employee loyalty. It is no wonder when one considers a recent Gallup poll showing actively disengaged workers cost employers $292 billion to $355 billion per year. In addition, the poll revealed that disengaged employees have an impact on absenteeism rates and overall employee retention rates.
Organizations in the public utility and government office industry search for ways to reduce costs such as employee recruiting, hiring and training expenses and combat overhead costs related to disengaged employees, low productivity and high absenteeism. Online and paper-based recognition programs are an excellent solution to these kinds of issues commonly experienced by public utilities and municipalities.
Both online and paper-based employee recognition programs can be started to serve a number of purposes. I have quite a few clients in this industry who reward employees as part of a peer to peer recognition, employee anniversary award, employee of the month, retirement award or safety recognition program.
A major concern for my clients in the public utility and municipality industry is keeping the employee award program within budget guidelines. I often hear that a client is trying to put as much of the award program budget as possible towards the actual merchandise awards that employees earn. By presenting employees with simple and elegant employee recognition packages and award ordering instructions, many of my clients are able to keep an average of 95% of their budget towards the actual recognition awards. With 14 price points ranging from $25 to $3500, many of my public utility and municipality clients are able to adjust the award program budget from year to year with much ease, allowing for flexibility in their award program budget.
I hear from my public utility and municipalities clients that although they are building employee loyalty with the employee award program, this loyalty often translates to improved customer retention in the long run. A 5% increase in customer retention can increase lifetime profits from a customer by 75%, according to the The Loyalty Effect ,by Frederick Reichheld.
When employees are recognized and rewarded for their hard work and dedication to an organization, costs due to absenteeism, high turnover and disengaged employees can be drastically reduced. With gifts to fit any budget, it has never been easier for public utilities and government offices to take advantage of employee award programs.
Over the course of this three part series I have presented the unique challenges of three different industries and how recognition and incentive programs can be a useful tool for managers in these industries to overcome their challenges once considered just an accepted part of doing business. What kinds of challenges has your employee award program helped your company overcome? I would love to hear your feedback.
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