Cisco is using Globoforce software to dramatically boost participation in a program for recognizing employees whose work best represents the company's values.
Under a recognition program on the software, 73% of Cisco's 72,000 employees received an award valued from $25 to $2,000, Claire Gray, senior director of compensation and performance management at Cisco, told attendees at the HR Technology Conference and Exposition in Las Vegas. Overall, Cisco spends $58 million a year on the awards, she said.
A total of 185,000 awards have been provided to employees, Gray said. An employee nominates another employee for an award, and a manager approves it, said a spokeswoman for Globoforce, which is based in Southborough, Mass. A manager only rarely rejects an award, the spokeswoman said. The Globoforce employee recognition software increased the percentage of employees who received an award, Gray said. It replaced a more traditional program, which provided awards to 39% of employees, Gray said.
The employee recognition software is mostly used to build an emotional connection between workers and their jobs, and help employees fulfill their potential, she said.
A Cisco survey found that employees who received $250 award, for example, basically were just as satisfied as employees who received $1,000.
"I received a gift card, and I took my girlfriends out to dinner one night," Gray said. "That made me feel good to share with them. It's not about the actual money. It is much more about that actual experience."
Awards more than $1,000 are cash, while those less than $1,000 are gift cards.
Increased visibility of award nominees
The software is easy to use and provides a "cool, intuitive platform," said Gray, who led the HR Tech session with Eric Mosley, co-founder and CEO at Globoforce.
Claire Graysenior director of compensation and performance management, Cisco
She said Cisco chose Globoforce partly because it is a global company like Cisco.
"Together, we are making our companies better," she said. "We push each other. It is not always easy. We don't always adopt every idea on the first go, but we're committed to make sure that we are continuing to innovate. If we stand still, it will die on the vine."
She said the goals of the program include increasing participation in employee recognition programs, reinforcing company values, boosting employee satisfaction scores and promoting teamwork. The program is also aimed at increasing productivity, but the company still is working on ways to measure that aspect, she said.
There is a lot of flexibility with the employee recognition software, she said. When using the software, employees can recognize another employee or they can redeem an award. There is a feed of people who are getting recognized, and employees can leave comments.
"It is very visible," Gray said. "That is a huge change with this program."
Under the old program, no one knew who was being recognized unless a manager sent out an email, she said.
In making nominations, employees must say that the award is being given for a co-worker's representation of certain Cisco values, such as teamwork, focusing on customers or innovation.
Cisco hopes to inspire innovation with awards
Cisco went live globally with Globoforce in January 2014, after a small pilot and a larger pilot the two prior years, Gray said.
The program still is evolving and is only in its early stages, she said. Right now, the awards tend to be unevenly distributed, since some teams use it more than others and some managers are more frugal, she said.
Cisco employee recognition program gives up to $2,000
Cisco's voluntary employee appreciation program is called "Connected Recognition," and it gives workers the power to give awards to other employees.
During the fiscal year, 85% of employees took part by either giving or receiving an award, said Claire Gray, senior director of compensation and performance management at Cisco. Some people gave and did not receive anything, while many gave and received, she said. Connected Recognition supplanted a program that essentially involved managers giving small bonuses after reaching a milestone or finishing a big project.
There are different award levels, ranging from $25 to $2,000, she said.
A manager can provide an award as much as $2,000 to an employee or another manager. Generally, a regular employee can award a peer or a manager up to $250. The vast majority of awards are $50 to $500, she said.
The awards also need to be tied more closely to sparking innovation, because that is a main emphasis at the company, she said.
Also, the awards should be provided more regularly through a fiscal year, she said. Right now, too many are given toward the end of the fiscal year because of a "use it or lose it" feeling among managers, she said.
Cisco wants to find ways to increase participation among low users, but as an incentive, it also might give more money to high users, she said.
Overall, she said, the program is enjoying wide adoption and is great for employees.
New report at HR Technology Conference highlights trends
Two companies discuss why they deployed employee recognition programs
New Cisco chief promises simplicity