Piece By Piece

Recognition has become a discipline within HR.  It is the art of providing or delivering attention to someone for a particular accomplishment.  It could be about the achievement of a specific goal or to mark a milestone within the organization.  It is valuable and provides proof that the company sees what its employees are doing and, sometimes, for the way in which those actions benefit the organization.

Of course, if someone works on a project for six months and it turns out great, it's very nice to be recognized for having finished the work well.  There is a benefit to those who see how the achievement of their work matters.  Connectivity is very important and it allows the performer to see how action produces real results, per person, piece by piece.  All of the cogs on the wheel are fantastically connected.  It's a great picture and the recognition factor drives it home.

Is that it?  

Long are the conversations regarding felt needs and reward.  Do we merely offer a plaque, a gift card, a weekend away and check off the box of recognition?  When dealing with real people with real baggage and real emotion living real lives, providing inauthentic trinkets may not pack the punch hoped for by the organization.  And what can often happen is that companies become bitter towards recognition because they sense an ungrateful response by employees.  What was meant to be a motivator becomes an open sore of tension pushing division.

As practical as we ought to be in HR (don't get me started on the value of business acumen and metrics, people!), we cannot swing the pendulum so far that we forget the people we are trying to serve.  Consider the concept of restorative recognition.  This is the kind of recognition that knows where people are, what makes them tick, what their circumstances are and then rewards them in the context of a real situation.  The deficiencies in their lives may not all be met, but we're providing appropriate levels of engaged recognition that we know will touch upon it.

The Make a Wish Foundation is magical because for years it has provided terminally ill children with the opportunity to have their greatest wish granted.  From going to a prom to meeting the President to being Batman for a day, the stories have touched the hearts of those precious children, of their parents and families and of the millions who watch the stories unfold.  It affects the heart.  

An employee who is struggling to pay for a child's college education is a real need.  We can know that.  Handing that employee a gift card for Macy's as a reward for an achieved goal or milestone is not going to solve the need of paying for college.  Nor is the point to give them $5000 as the reward in order to meet that need.  Think.  Be creative.  What would it mean to that employee to be recognized for the work he/she did that met the criteria for reward by handing him/her proof of monies being deposited into his/her child's college campus account for textbook purchases or towards the meal plan?  It's thoughtful.  It's given in light of knowing your employees.  It's an absolute way of endearing employees to the organization even more.

Think I'm crazy?  Get in line.  The point is that we can know these things about our staff and make a choice to recognize in restorative ways.  People carry around burdens and dreams.  Practically, we can't grant wishes all day, nor do we have the budget to do so.  Yet, we can use our imaginations and creativity to do something more than rummaging through a drawer in our office to find an Amazon gift card for a giveaway.

How many of your staff didn't get to go on a honeymoon?  How many haven't been able to take their spouse out due to a lack of affordable child care?  How many dreamed to be a professional baseball player?  How many trained as a dancer all throughout their childhood and have no opportunity to fit it into life now?  Now, be creative.  Work with a vendor partner to secure a weekend or an overnight to a bed and breakfast.  Work with a local certified and approved child care service provider for one night of child care (and throw an Uber and dinner in).  Get tickets to a baseball game and work with the event staff to throw some confetti on the employee to celebrate the Home Run Hitter he/she is at work.  Provide a six-week dance class to the employee that can happen after work in an open space right in the building.

These aren't all of the solutions.  They may be none in your particular case, but the point is that restorative recognition goes a long way to show that our involvement is thoughtful and done as a result of knowing our people.  As said earlier, connectivity is very important and it allows the performer to see how action produces real results, per person, piece by piece.  By doing this in a tailored manner, we cut to the soul of our people as well as of ourselves.  As a blubberer myself, I can tell you that when we're this thoughtful, people are moved and the tears flow.  

Get those creative juices flowing and know that people need more than a crystal pyramid with their name engraved.  That isn't likely to hit them deeply, but tickets to a concert of the one performer they've never had the chance to see before will.  Because you took the time to know them.  Because the company is invested in its employees.  Because we're building community.

The Reason

by +Matt Bagell 

(Financial Contributor for Humareso)

As a financial planner, I run into the same question all the time when talking to a business owner, hr specialist or controller.  Which retirement plan should we set up for our company?  They always seem to be leaning towards a solution but are not sure what the full details are with regard to the various plan options.  

You just need to know one simple thing; what is "The Reason" for creating one for your company.

Let's face it.  Some business owners are extremely interested in putting a lot of money away for retirement and taking advantage of as many tax deductions as possible.   In a perfect world, a business owner could do this while receiving a tax break from the government at the same time without limitations.  Unfortunately, there are caps to what you can do and it depends on what plan you choose.  On the other hand, a business may be solely focused on enhancing the benefits they are offering to their employees.  The company may see a retirement plan as a way of keeping their employees around and also attracting new ones as well.  

I could bore you with all of the details that go along with a SEP IRA, Simple IRA, and 401k plan but if anything else you have to first realize that these plans allow contributions to increase to a level much higher than an individual IRA.  In 2015, the traditional IRA contribution limits are $5,500 and $6,500 if age 50 or older.  The limit allows for a decent contribution but a business retirement plan such as a SEP IRA allows for contributions up to $52,000 in 2015. Now that is a huge difference.  If you put that amount against a 30% tax bracket, you would receive over $15,000 in tax savings in just this year alone. If your company has many employees or is likely to grow, a 401k/ Profit sharing plan might be more suitable.  You will have the flexibility to decide if you want to invest more or less each year and can limit the benefits provided to the employees based on actuarial testing.  

There are many factors that affect how a retirement plan will work including the age of employees, the number of employees, the salaries of employees and the contribution amount of the employer(s). This is why a decision should not be rushed.  A Simple IRA plan, for example, does not allow for higher contribution limits compared to other business plans but the out of pocket cost is less for the employer to set up. 

Retirement plans are great ways to really improve your company.  The business owner(s) can really take advantage of putting money away and the employees are also set up to come along for the ride. Think about it. When else does the government hook you up with a discount on taxes for saving your own money. By the way, they also let your money grow tax free before withdrawals. Not a bad situation if you are able to contribute steadily throughout your working career.

So, first start with "The Reason" you are considering a plan. From there, it will be a lot easier to figure out what fits your company's needs.

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