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ADP: Leveraging Financial, Nonfinancial Bonuses for Strategic Employee Engagement

Rewards and recognition is a critical part of sustaining employee engagement practices.

(Originally published on ADP's "Spark")


Variable pay is in place at more than 80 percent of organizations, according to the Society for Human Resource Management (SHRM). This means firms are leveraging financial and nonfinancial bonuses to go beyond base salaries and discover ways to reward workers andencourage behaviors strategically.

Knowing the Importance of Reward and Recognition

The deliberate application of rewards and recognition is a critical component of sustained employee engagement practices. For many organizations, this brings to mind a stand-alone bonus program or the latest recognition tool.

According to the 2016 ADP Employee Engagement Study, (ADP is No. 21 on the DiversityInc Top 50 Companies list) 66 percent of millennials, 62 percent of Gen Xers and 57 percent of baby boomers are more likely to be motivated by financial rewards. Interesting to note, however, is that, even though financial rewards are motivating regardless of age, non-financial rewards such as praise and peer recognition increase motivation as age decreases.

But the reality is a blended approach may be best for meeting the diverse needs of workers and keeping costs reasonable. In addition, with the rise of the millennials and an increasingly diverse population in the workforce, firms need to find flexible ways to meet the variety of worker needs by establishing a culture of recognition.

Blending Your Approach

As SHRM notes, 90 percent of organizations use more than four methods of rewarding employees, including cash bonuses or extra paid time off. Financial and nonfinancial bonuses offer a variety of options to reward, recognize and ultimately engage employees. Being able to flex the approach to meet the needs of the workforce is where the value comes in. A blended approach can bring in not only executives and managers, but also co-workers. Peer recognition, or the option of allowing someone's team members to offer recognition for good work, allows managers to get a broader view of an employee's performance while still rewarding the worker for a job well done.

Implementing an Approach

A common mistake when developing something like this is to label it as a "program." While there are some aspects that fit that definition, this really needs to be a culture shift. According to WorldatWork, creating a culture of recognition was one of the top three priorities for businesses seeking to improve their approach. The purpose of seeking culture change instead of a new program is twofold:

  1. Unlike many programs, culture adoption doesn't have a specified end date.
  2. Culture shifts are embedded across the organization's practices, not narrowly confined to one area.

Coaching Your Team

An effective way to help coach your executive team on how to adopt a culture of recognition could include the framework called "GIFT," which stands for:

  • Give regularly, even if it's not always monetary
  • Incentivize behaviors that you want people to exhibit over and over again
  • Find opportunities to recognize good work
  • Treat employees differently — not everyone wants a public celebration or a plaque on the wall

GIFT — it's simple, which is what can matter most in this approach. Creating a complex program with dozens of rules and options can stall out the effort before it gets any momentum.

Meeting Diverse Needs

In the book "Giftology," John Ruhlin talks about his experience trying to propose to his fiancee. He created an elaborate scheme, including dressing himself as an old man, creating props and scheduling secret plane flights. In the end, the master plan didn't work out, and he came to realize that the idea was well-suited to his own tastes for adventure and intrigue but didn't fit the down-to-earth preferences of his future bride. The lesson he learned was a powerful one — we should each look for chances to give what others want, not what we want for ourselves.

This can apply equally in the workplace when it comes to financial and nonfinancial bonuses and rewards. For instance, millennials don't care only about compensation when looking for a new role. Harvard Business Review notes that for millennials, learning opportunities are the most desirable aspects of a new employer. While this is a nonfinancial opportunity, it has the ability to drive incredible value for this audience.

Delivering an employee experience with the right mix of rewards, recognition and opportunities is part art and part science. The important lesson is to start simply, weave the practices throughout the organization's culture and look for ways to meet the varying needs of your diverse employee population.

Stay up-to-date on the latest workforce trends and insights for HR leaders: subscribe to ADP's monthly e-newsletter.

ADP and Intuit Expand Relationship to Improve Integration Across Platforms

Cloud-based dashboard enhancements help reduce re-work, save time and provide access to award-winning compensation benchmarks for client consultation.

Originally Published by ADP.
ADP announced expanded integration with Intuit QuickBooks adding enhanced General Ledger Interface (GLI) mapping directly through Accountant Connects . This new interface, combined with enhanced Compensation Benchmarking, powered by ADP DataCloud, will enable accountants to provide a better service and add value to their clients. Through shared values and a commitment to creating industry-leading innovation, ADP and Intuit are better positioning accountants for the future; allowing them to provide a more comprehensive experience to their clients.
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ADP: 5 Energy Tax Credits and Incentives You May Not Have Considered

Creating a more energy efficient organization isn't just helpful for the environment — it can also make a big difference for your bottom line.

Originally Published by ADP's Newsletter.

Want to lower your electricity bills and taxes? Energy tax credits could be the answer.

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ADP National Employment Report: Private Sector Employment Increased by 219,000 Jobs in July

"The labor market is on a roll with no signs of a slowdown in sight," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "Nearly every industry posted strong gains and small business hiring picked up."

Originally Published by ADP.

Private sector employment increased by 219,000 jobs from June to July according to the July ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Moody's Analytics. The report, which is derived from ADP's actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

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ADP National Employment Report: Private Sector Employment Increased by 177,000 Jobs in June

"The labor market continues to march towards full employment," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "Healthcare led job growth once again and trade rebounded nicely."

Originally Published by ADP.

Private sector employment increased by 177,000 jobs from May to June according to the June ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Moody's Analytics. The report, which is derived from ADP's actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

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ADP Uses Machine Learning and Artificial Intelligence to Drive a Data-Fueled Future of Work

ADP uses real, empirical, anonymized data from more than 30 million employees to anticipate how human work behaviors will evolve, and the impact that macro trends will have on the way people want and need to work.

Originally Published by ADP.

The world of work is rapidly changing, and data is increasingly fueling the human capital management function's ability to innovate to meet the needs of an evolving workforce. The second annual Datathon at ADP® gathered more than 40 partners and innovators from across the ADP business for two weeks of collaboration and ideation around leveraging the company's world-leading dataset.

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ADP Marketplace Continues Tremendous Growth Thanks to Leading Solutions Providers

Inaugural ADP Marketplace Partner Connections Summit Recognizes Partners who Demonstrate Excellence in Sales and Service.

Originally Published by ADP.

As the world of work changes, companies are increasingly seeking innovative solutions to meet the evolving needs of their employee base and their businesses. For more than four years, ADP® Marketplace, the largest human capital management (HCM) app store, and its world-class partners have helped create a unique ecosystem, where clients can tailor their HR solutions through apps that leverage ADP platforms and data.

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Celebrate Pride Month!  ADP Promotes Diversity and Inclusion with LGBTQ Employee Self-Identification

Self-identification can help companies to better develop programs and benefits that meet the needs of LGBTQ associates and to better attract and retain a diverse talent pool to stay competitive in today's tight labor market.

Originally Published by ADP.

Numerous studies have shown that having a diverse workforce brings a wider range of opinions to the table which leads to better problem solving and drives innovation. But to benefit from diverse perspectives, companies first need to understand the makeup of their employee population beyond gender, ethnicity and race.

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