performance

volume 5

perspectives
a publication of madison performance group: workforce engagement + incentive marketing

HR or Marketing: Who is better equipped to manage employee engagement?

By Mike Ryan Senior Vice President, Marketing & Client Strategy

Because compensation drives the bulk of a companys cost structure, the question worth discussing is this: Is the Human Resources discipline really the best group to manage recognition programs in the pursuit of a more engaged workforce or is the Marketing organization better equipped to do so?
Of course, the concept of HR as Marketers is not new. Marketing activities executed by the HR ranks have been used to promote services within organizations, as well as outside, to potential job candidates. But those efforts, and the techniques used, tend to be more homespun than high tech. Most HR Marketing initiatives are more informative than persuasive, and in comparison to todays newer data and digital-driven marketing strategies and techniques, are behind the curve. for its ability to attract, retain and leverage profitable customers. Some business leaders wonder if Marketing shouldnt also be charged with building and maintaining the corporate connection with employees. At a minimum, HR should take a direct marketing approach in crafting and delivering recognition and award program announcements and offerings. That starts with carefully considering message delivery, and the message itself. During the course of the work day (and well beyond it) employees are flooded with emails, IMs, voice mails and phone calls, not to mention all of those meetings and unscheduled conversations. All of that noise competes for mind share. To rise above the clutter of everyday communications, HR must deliver messages that have personal meaning communications that build and reinforce an emotional connection while inspiring improved performance.

Should HR concede to their marketing counterparts?

No. But the fact that the question is even being asked suggests that if HR is going to be successful in creating meaningful relationships with employees akin to Can HR deliver strategic programs? the relationships that Marketing builds with customers it would be wise to Thats the question asked on the top floor. adopt some of their methods. The C-suite is looking for HR to help build an internal brand that supports the external one, and cultivate leaders who promote the culture. They want HR do more than communicate processes and To rise above the clutter of everyday procedures; top executives want HR to own the internal employee customer. communications, HR must deliver Marketing has evolved particularly fast in using digital media to deliver messages that are more efficient and impactful. Precision marketing practices that build personalized relationships with the brand have helped Marketing gain new respect and status within the organization

messages that have personal meaning - communications that build and reinforce an emotional connection while inspiring improved performance.

Segment, Segment, Segment.

The HR organization has a wide range of employee demographics at its disposal. It should use them to segment message distribution based on whatever variable makes sense for the targeted employee. Think of how job function, position, team or business unit alignment, even tenure data can help you crystallize the message for key work groups, and key individuals within those groups. Just like an effective marketing piece makes a targeted offer, your recognition message should communicate a personally meaningful and pertinent message that articulates the desired behaviors, next steps, and outcomes that an employee will relate to, understand and act upon. On the back end, a data-based rules engine can dispense messages electronically through email, text and web outlets, increasing touches while easing administration. Whats more, communication events can be sequenced to other workflow systems so messages can be generated if and when certain performance milestones are achieved. In addition, sophisticated recognition systems can shift messages and goals based on an employees recent achievements. This allows HR leaders to utilize another layer of segmentation the Show, Grow, Teach, Reach model, for example for maximum performance impact.

performance

perspectives
How Does the Show, Grow, Teach, Reach model work?
Show. Top producers are acknowledged to their peer groups; their efforts are saluted and their stories told. Smart recognition planners know this gives the best performers the recognition they crave, while helping others learn from the best practices used to spark their success. Grow. All too often, one-size-fits-all award earning scenarios disenfranchise the bulk of employees. Lofty goals are dismissed as unattainable by the majority of employees. On-the-rise performers need goals that are obtainable to stay focused, motivated and engaged. Progressive firms incorporate a staircase approach into their recognition programs to set and reset achievable targets. They reward incremental attainment and then reset new goals at the next achievable level. Teach. This group of employees has shown promise in the past, but is currently lagging behind. Perhaps something has changed; confusion with a new product offering or changes in a work process has caused them to struggle and fall behind. Incentive and recognition systems that award personal mastery revised training or a recertification of some kind help make this group feel they are on the right track. Reach. This group is clearly underperforming. And, yes, maybe its time to let some of them go. But before you cut your losses you owe it to everyone involved to try to reengage these employees. Use your communications to focus on the personal potential of the position and the intrinsic and extrinsic rewards that await. Ask them to develop a plan for success and reward them for submitting it and following through. You spent a lot of money recruiting and training this group. If you can salvage even a small percentage of

So back to our question: Which discipline is best prepared to manage employee engagment?
The answer is simple. No discipline within any organization is more committed to the development and optimization of its workforce than the HR team. But to be truly the best at generating emotional connections that drive long term value and loyalty, HR will need to start acting, and executing, like Marketing.

these workers and turn them into steady performers, the effort will be worth it.

Madison Performance Group | 350 Madison Ave, 15th Floor, New York, NY 10017 | 212.758.4385 | marketing@madisonpg.com

Madison is the global leader in Workforce Engagement and Sales Incentive Marketing. Since 1974, leading brands and global organizations have relied on our strategies and deep reservoir of rewards, recognition and incentive applications to engage and appreciate their workforces, mobilize their field forces and maximize relationships with their channel partners.