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Reward & Recognition Archives | Underwood Executive | Executive Search & Talent Management

STOP! Why you shouldn’t make a counter offer

By | Recruitment, Results, Retention

downloadIn the current economic climate – just about every candidate we make an offer of employment to is being counter-offered by their current employer.  This enticement to stay takes many forms including more money, job title change, better projects, company cars, larger offices, bonus offers and extended leave.  The list goes on and on. But stop right there. Don’t do it. Let me tell you why.

They don’t work. They never have. They never will.

An employee who hands you their resignation has already emotionally left the building. They made a decision some time ago that the role, position, company, culture or leadership was not for them. Whatever those reasons may be. Let them go.

Your reasons for making a counter-offer probably feel valid including:

(a)  It is easier to get them to stay than to even think about the time, cost and effort in trying to recruit and replace them.

(b)  You don’t want to deal with the unpleasantness of telling the rest of the team. It will hurt the morale.

(c)  They are a top performer and you can’t possibly continue without them. (Rubbish! Everyone is replaceable).

(d)  It’s a quick fix – you need time to plan how you are going to deal with this

(e)  It’s cheaper to pay them $10K more vs. time lost in productivity, clients, training and replacement costs

All valid. I get it. I’ve been there.  The first time one of my staff resigned, I was in my early 20’s and invincible….ha! I had to go to the coffee shop to pull myself together and work out my ‘strategy’ on how I was going to keep her.  I tried more money, I tried a change of duties, a change of title…anything, please don’t go.  My attempts were clearly unsuccessful.  It wasn’t about me. It was about her – her career ambition and her desire that we were unable to fulfill at the time.

It is that immediate, but, band-aid attempt to keep someone. We’ve all done it.

Once someone has resigned, there are genuine reasons and needs that are going to be met elsewhere. You are prolonging the inevitable pain that will be felt by both of you over the next 6 months if you do go down the counter-offer path and they accept.

To the company last month that tried offering more money; to the company the month before who offered a bonus plan on the largest account and to the company who said they would finally come through with the company car they had promised a year ago.  It’s too late. Let them go. Counter-offers don’t work.

Next time someone hands you his or her resignation, accept it with grace. This is business – don’t use guilt or persuasion. Stay professional and listen to their feedback – is there anything you could have done differently? Yes? Great – learn it for next time.  Instead, implemented “stay strategies” that will retain your remaining performers.

Salli Tanner who works with me now is a great example of this strategy working effectively.  Early in 2010, Salli worked for me in another organisation, when she resigned. I was sad to be losing her as a valuable member of my team, but I accepted the move being the right one for her and her career at the time. As much as I didn’t want her to leave, I genuinely wished her well and joked, “You never know where we might work together again in the future!” The strategy does work.

Sure, you can be disappointed that someone is leaving, but acknowledging their contribution and wishing them well will go a long way in a market where people talk and employer brand awareness is critical for future hiring. See the opportunity to improve your retention plans, gain some constructive feedback and always leave the employment relationship on a positive note.

 

Reward & recognition – the secret to reducing staff turnover

By | Leadership, Retention

When one of my Consultants resigned after 7 years I was excited for her. She was taking a leap of faith and pursuing her life long dream of becoming a paramedic. It was at her farewell when it hit me how important it is to reward staff. In her speech, she mentioned the time I invested $500 for each staff member to pursue a personal goal outside of work.  Funny isn’t it – but as she was talking I was struggling to recall the exact detail of the initiative. On the other hand, she was describing it in vivid detail and the impact it had on her in terms of pursuing a hobby (share trading), which helped her develop her relationship with her husband (he is a day trader).  She loved that I had shown an interest in her as a person beyond what she delivered at work.  Notice she didn’t rave on about her base salary or the significant monthly bonus cheques she got – she talked about several small random rewards that I gave her over the years to recognise her achievements, loyalty and contribution.

It was when I engaged a business coach to help me develop my leadership skills that I learnt the importance of praise, recognition and random reward in attracting and retaining talent.  It sounds simple in theory doesn’t it? Of course staff love to be told they are doing a great job, of course they love a gift voucher for achieving a target or getting a group email saying how wonderful they are. BUT in reality how often does this happen? And randomly? Perhaps when an important milestone comes around or someone lands a big deal, but the day-to-day successes are rarely recognised, let alone rewarded.  I was guilty as charged.

To assist me in taking action in this area and making sure I actually delivered what I knew to be right in theory, I kept a reward and recognition book.  It made me consciously recognise and record what someone did and how I rewarded it.  This could range from a personal email, to a company wide announcement, to a lunch, to a specific gift or even time off.  It didn’t matter, as long as I was consistently rewarding the desired behaviours for individuals to consistently achieve top performance. The book was an easy idea and it kept the importance front of mind as well as myself accountable to take action.

Quick ideas to take action:

  1. Public acknowledgement – giving someone praise in a public forum (team meeting, group email etc) is a great way to pump someone up in front of their teammates.  It is also an opportunity to reinforce company-desired behaviours. I would always share positive client feedback in our sales meeting on a Monday, with any five star ratings receiving a Freddo Frog.
  2. Small rewards, big impact – I know you are thinking chocolate – come on Nicole, no one is going to be aiming for that! Small rewards can often have a big impact – it is often not the gift itself, but the acknowledgement of the performance.
  3. Be specific – how often have you been given something as a thank you that you didn’t like? Maybe you got red wine and you don’t drink red wine, maybe it was flowers that make your sneeze or a subscription to a magazine you don’t read? I developed a $5 – $500 chart for each staff member where they listed rewards in that range that they would value and appreciate. This way the reward was personal to them and well received rather than a generic gift.
  4. All staff recognised – don’t forget non-revenue generating roles! Administration staff were always included in recognising their contribution to the team.  This could be the way they resolve a client query through to their phone manner or going beyond the call of duty.
  5. Random – don’t wait for only the big milestones to say well done and don’t reward the same people and actions all the time.  Your team will get pretty sick of seeing the same rewards, you will lose impact and you could be accused of playing favourites.

Overall, my aim was to be specific with the reward.  What was the behaviour they demonstrated that I wanted to see demonstrated again in the future? Don’t lose the meaning of recognition by just saying well done. Be specific about what the reward is for.  This is important not only for the individual, but also for the rest of the team to hear the right message.

Don’t wait for someone to crack their budget or out-perform last’s year’s record – reward people now for the action they take, the small steps they make and the lessons they learn.  It’s never to late to let your staff know that you appreciate what they do, to say thank you or to publicly reward action and effort rather than just outcomes and revenue.  Random recognition and rewards will win you loyalty and trust as well as assisting to reduce unnecessary staff turnover due to feeling valued and acknowledged.  Human nature tells us we like to feel appreciated and we want to do a good job – so go on, look for the successes, go and say thank you, be specific and randomly reward a team member today.

Nicole Underwood understands what it takes to create, build and grow a successful business. As a previous finalist in the prestigious Telstra Business Women Awards, Nicole consults and coaches individuals and organisations to improve their results through effective leadership and attracting and retaining top talent.

 This article was written for Lifestyle Elements – a great way to reward your staff with their own personal concierge.  

Why is confidence still an issue for women at work?

By | Confidence, Results, Retention

Over the years I would have mentored and coached more than 100 women formally and informally in business. It still puzzles mehow many successful women still suffer from both a lack of confidence and self-belief at work.  Some of these women openly admit this is what is holding them back, while others suffer in silence and it is proven through their behaviour of self- doubting and not believing they can achieve or are worthy of success.  When they achieve a record result or win a new client, it is nearly brushed aside as no big deal or anyone could have done that.

It has been one of my biggest frustrations leading a team of all women.  These women are amazing. They inspire me on a daily basis with what they achieve in the corporate world, at home and outside of work. To be surrounded by such talent and enthusiasm makes it easy to come to work every day.

So how is it that on nearly a weekly basis, a coaching session reverts back ultimately to a lack of self-confidence around a sales pitch, negotiation, making a call to a new contact or giving professional advice? Why do they often doubt their expertise around what they know and have successfully practiced for years and years?

As a Leader, it presents a daily and immediate challenge to coach on. I find myself continually coming up with new techniques and tactics to reinforce what I already think and believe about these women, expecting that they start believing it themselves. These include:

  • Facts – giving them facts and figures about their performance that can’t be argued. For example, you have won 8 new clients this month, you have achieve $30K in revenue for the business, you won 80% of the proposals you submitted and you have a 99% retention rate on all placements you have made. Hard to argue with real data!
  • Give them something to believe in – I have found that women in particular are more effective when they are working towards a greater purpose, to achieve an ultimate goal, other than just making money.  They need to believe in something greater than their individual performance to see they are making a difference in business, themselves and ultimately in the lives of others.
  • Reward and recognition – a verbal recognition at a meeting, a group email praising their achievements or a tangible reward such as a piece of jewellery, a dinner with their partner or clothing seems to generate a greater response than an increase in salary or a  large commission cheque (although that works too!).
  • Expect confidence – treating team members as confident professional and expecting they can do the things they may hesitate to take on. You get what you expect.
  • Being uncomfortable – sometimes I have had the best success asking them to do something that they really don’t want to it and it pushes them way outside their comfort zone.  So much so, they learn the most and their confidence sky rockets.
  • Fake it until you make it – sometimes when you don’t feel 100% confident in a situation, I encourage my team to “fake it until you make it”.  This is not about lying your way through a situation, it’s about exuding confidence, remaining calm and delivering a rational response. I remember being 21 conducting a meeting with a CFO in large blue-chip organisation and being drilled about the current market conditions and salaries.  Instead of being intimidated and bumbling through answers, I was clear and confident and if I wasn’t 100% sure, I said I would find out and get back to him. It won me this client until this day purely because of my confidence.
  • Role models and inspiration – I encourage my team to read books, seek out mentors outside of our business and to learn from others’ success.  The best mentors can be those that have achieved the results you aspire to and follow their recipe for success rather than reinventing the wheel.   Surround yourself with these people and learn as much as you.

Can self-confidence be learnt or re-built? Can we coach to overcome it? In my experience the best we can do is nurture the talent that we have, believe in people and hope to inspire them to things they didn’t even think they were capable of.