Human resources are one of the most important assets of a firm which act as its long term competitive advantage. It is the employees’ knowledge which puts the firm in a competitive position. In order to keep employees engaged at the work place and to ensure employees apply their knowledge in innovative and progressive ways for the organisation, a system for reward and recognition is usually put in place.

Reward and Recognition in a Recession
All businesses want to maximise profits and one of the ways to do so is to cut costs. During the recent recession, firms were tempted to cut back on employee benefits and some even succumbed to this the temptation. For example, one Fortune 500 food industry company responded to the crisis by chopping its 2009 budget for employee rewards and recognition by half.

Limited availability of employment options keeps the workforce from changing jobs. Nevertheless, the result is that firms think they have managed to cut costs without altering elements of their current product/service. Managers would widely agree that slashing rewards and recognition may hamper the morale of employees and help to build a de-motivated work force. The ideal path is to set a reward and recognition practice in the firm rather than a programme. In difficult times even a “thank you” may make the desired difference. Even though the employee may not receive expensive gift items, they still receive the recognition which is due to them. Innovative ways of motivating employees through reward and recognition practice can be sought in order to avoid cost inflations in difficult times.

Reinforcing Behaviour through Reward and Recognition
A reward and recognition practice can help to create a motivated work force which can take a firm to different heights of success. Generation of innovative ideas, cost cutting solutions, and increased sales are some of the work related outcomes of motivated individuals and teams. It becomes important to reward employees as a means of reinforcing desirable behaviours. It is to be noted that focusing only on reinforcing those behaviours which are in line with the strategic mission and vision of the firm is what makes the firm profitable. Rewards generally lead to re-production of the desired behaviour. For example, research suggests that rewarding the creativity demonstrated by an employee for his/her task, motivates that employee to show creativity in other tasks which are outside the employee’s job description too. A Gallup poll also suggests that greater employee satisfaction leads to greater customer satisfaction (increase of 38%) than when employees are less satisfied. This suggests that reward and recognition practice leads to a motivated workforce which in turn affects the customer service delivered by a firm.

Reward and Recognition at Ethos Consultancy
Ethos Consultancy realises that a reward and recognition practice is of critical importance for its workforce. Being in the customer service industry makes it even more important to work towards achieving a dedicated team who would in turn help to promote customer service excellence. As of October 2009, Ethos Consultancy rewarded 87% of its staff members as compared to the industry average of 15%. With the number of employees growing by 30% from the year 2008 to 2009, Ethos Consultancy was awarded with the “Recommended Employer of the Year” which was announced during the Middle East Business Achievement (MEBA) Awards at this year’s Leaders in Dubai Business Forum.

A reward and recognition concept was initiated in 2008, and called “Can’t Wait for Lunch”. Awards presented at the monthly Can’t Wait for Lunch staff meeting include:

Monthly Awards:

• Achiever of the Month: Acknowledgement of individuals’ special achievements during the month encouraging employee engagement and motivation.
• Best Suggestion of the Month: Encourages innovation and creativity and drives continuous improvement within Ethos.
• Ethos Dustbin Award: Awarded to the person with the most untidy desk in order to promote fun as well as a neat and tidy atmosphere.

Quarterly Awards:

• Employee Extraordinaire:Acknowledgement of individuals’ consistent delivery of special achievements during the quarter encouraging employee engagement and motivation.
• Ethos People Planet Award: Promotes sustainable working practices and working culture, by awarding employees for green initiatives. Also recognises individuals who demonstrate social responsibility within the community (outside of Ethos).
• Bob’s 5k Award: Introduced with the purpose to motivate employees to go above and beyond expectations.

Ethos has managed to reach a point where it ensures minimum absenteeism and low turnover rates. This in turn helps it to maintain high levels of productivity with more work hours dedicated to service excellence and improvement!

Ethos consultancy is a Territory Franchise Partner (TFP) of The International Customer Service Institute (TICSI) and is a leading customer service consultancy in the Middle East.

Robert Keay
Managing Director
Ethos Consultancy