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Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   1	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Employee	
  Performance:	
  
What	
  Causes	
  Great	
  Work?	
  
	
  
	
  
National	
  Research	
  by	
  the	
  Cicero	
  Group	
  
Commissioned	
  by	
  the	
  O.C.	
  Tanner	
  Institute	
  
2015	
  
	
  
Dr.	
  Trent	
  Kaufman	
  
	
  	
  	
  	
  	
  D.	
  Joshua	
  Christensen	
  
Andrew	
  Newton	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   2	
  
	
  
	
  
	
  
Abstract	
  
In	
  this	
  paper,	
  we	
  seek	
  to	
  understand	
  what	
  organizations	
  can	
  do	
  to	
  cause	
  employees	
  to	
  produce	
  
Great	
  Work,	
  what	
  organizations	
  currently	
  do	
  to	
  motivate	
  employees,	
  and	
  how	
  effective	
  each	
  is	
  
at	
  causing	
  employees	
  to	
  produce	
  Great	
  Work.	
  We	
  divide	
  this	
  paper	
  into	
  two	
  sections.	
  In	
  the	
  
first	
  half	
  of	
  this	
  paper,	
  we	
  discuss	
  the	
  research	
  objectives.	
  Following	
  the	
  research	
  objectives	
  we	
  
provide	
  detailed	
  steps	
  to	
  the	
  qualitative	
  and	
  quantitative	
  methodology	
  we	
  employed,	
  the	
  
categorization	
  of	
  our	
  respondents,	
  and	
  the	
  basic	
  characteristics	
  of	
  our	
  sample.	
  In	
  the	
  second	
  
half	
  of	
  this	
  paper,	
  we	
  explain	
  the	
  findings	
  of	
  our	
  research.	
  We	
  used	
  four	
  different	
  analyses,	
  or	
  
approaches,	
  to	
  draw	
  conclusions	
  to	
  our	
  objectives.	
  We	
  provide	
  detail	
  and	
  context	
  to	
  each	
  of	
  
the	
  four	
  analyses	
  we	
  conducted,	
  and	
  provide	
  an	
  interpretation	
  of	
  the	
  results	
  of	
  each	
  of	
  those	
  
analyses.	
  
	
  
Introduction	
  
Think	
  about	
  an	
  example	
  of	
  Great	
  Work	
  –	
  work	
  that	
  made	
  a	
  difference	
  in	
  your	
  organization,	
  
maybe	
  even	
  got	
  the	
  attention	
  of	
  senior	
  management.	
  What	
  prompted	
  that	
  employee	
  to	
  go	
  
above	
  and	
  beyond	
  to	
  produce	
  Great	
  Work?	
  Great	
  Work	
  can	
  affect	
  an	
  entire	
  organization	
  in	
  a	
  
positive	
  way:	
  from	
  inspiring	
  fellow	
  employees,	
  to	
  creating	
  positive	
  financial	
  growth	
  for	
  the	
  
organization	
  as	
  a	
  whole.	
  For	
  any	
  organization	
  trying	
  to	
  encourage	
  workers	
  to	
  produce	
  
innovative,	
  productive	
  work,	
  knowing	
  what	
  causes	
  employees	
  to	
  produce	
  Great	
  Work	
  is	
  
extremely	
  important.	
  
	
  
Objective	
  
The	
  objective	
  of	
  this	
  research	
  is	
  to	
  understand	
  what	
  organizations	
  can	
  do	
  to	
  cause	
  employees	
  
to	
  produce	
  Great	
  Work	
  on	
  a	
  consistent	
  basis	
  -­‐	
  to	
  discover	
  what	
  types	
  of	
  motivating	
  perks	
  and	
  
practices	
  are	
  currently	
  being	
  used	
  by	
  different	
  organizations,	
  and	
  how	
  effective	
  each	
  is	
  at	
  
actually	
  causing	
  employees	
  to	
  produce	
  Great	
  Work.	
  We	
  seek	
  to	
  accomplish	
  this	
  by	
  first	
  defining	
  
Great	
  Work	
  as	
  instances	
  that	
  go	
  beyond	
  daily,	
  pedestrian	
  tasks;	
  second,	
  by	
  classifying	
  
employees	
  based	
  on	
  their	
  likelihood	
  of	
  producing	
  Great	
  Work	
  on	
  a	
  consistent	
  basis;	
  and	
  finally	
  
finding	
  and	
  isolating	
  which	
  motivating	
  perks	
  and	
  practices	
  are	
  most	
  effective	
  at	
  causing	
  Great	
  
Work	
  to	
  happen	
  consistently.	
  The	
  following	
  sections	
  explain	
  the	
  methodology	
  we	
  employed	
  in	
  
this	
  study	
  as	
  well	
  as	
  detailed	
  explanations	
  of	
  the	
  findings	
  of	
  this	
  research.	
  
	
  
	
  
	
  
	
  
	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   3	
  
	
  
	
  
	
  
Research	
  Methodology	
  
For	
  this	
  study,	
  we	
  employed	
  a	
  methodology	
  that	
  included	
  both	
  qualitative	
  and	
  quantitative	
  
research	
  steps.	
  The	
  qualitative	
  research	
  was	
  instrumental	
  in	
  helping	
  guide,	
  design,	
  and	
  develop	
  
the	
  quantitative	
  research,	
  and	
  lent	
  further	
  support	
  to	
  the	
  results	
  of	
  our	
  quantitative	
  analyses.	
  	
  
	
  
Qualitative	
  Research	
  
In	
  order	
  to	
  inform	
  the	
  development	
  of	
  the	
  quantitative	
  survey	
  we	
  held	
  focus	
  groups	
  across	
  the	
  
country	
  in	
  which	
  we	
  asked	
  employees	
  what	
  types	
  of	
  motivating	
  perks	
  and	
  practices	
  their	
  
organizations	
  use	
  to	
  cause	
  them	
  to	
  produce	
  Great	
  Work.	
  These	
  focus	
  groups	
  played	
  an	
  integral	
  
role	
  in	
  the	
  development	
  of	
  our	
  quantitative	
  research.	
  It	
  was	
  during	
  these	
  focus	
  groups	
  that	
  we	
  
confirmed	
  the	
  type	
  of	
  motivating	
  perks	
  and	
  practices	
  organizations	
  use	
  to	
  encourage	
  
employees,	
  how	
  effective	
  employees	
  perceived	
  those	
  perks	
  and	
  practices	
  to	
  be,	
  and	
  how	
  to	
  
best	
  frame	
  the	
  quantitative	
  survey	
  to	
  produce	
  unbiased	
  results.	
  	
  
	
  
Quantitative	
  Research	
  
We	
  administered	
  an	
  online	
  survey	
  to	
  respondents	
  working	
  in	
  the	
  United	
  States	
  for	
  companies	
  
with	
  over	
  1,000	
  employees;	
  no	
  industries	
  were	
  excluded.	
  Our	
  target	
  demographic	
  consisted	
  of	
  
employees	
  between	
  the	
  ages	
  of	
  25	
  and	
  65.	
  We	
  collected	
  survey	
  data	
  during	
  October	
  2014.	
  A	
  
total	
  of	
  980	
  respondents	
  completed	
  the	
  survey	
  and	
  were	
  included	
  in	
  the	
  analysis.	
  
Throughout	
  the	
  research,	
  we	
  may	
  refer	
  to	
  “employees”	
  (respondents)	
  and	
  “organizations”	
  (the	
  
companies	
  for	
  which	
  respondents	
  work).	
  We	
  also	
  consistently	
  use	
  the	
  term	
  “Great	
  Work,”	
  a	
  
term	
  we	
  borrowed	
  from	
  the	
  O.C.	
  Tanner	
  Institute.	
  While	
  Great	
  Work	
  can	
  mean	
  a	
  variety	
  of	
  
things,	
  for	
  this	
  study,	
  we	
  provided	
  respondents	
  with	
  the	
  following	
  definition:	
  work	
  that	
  is	
  
productive,	
  innovative,	
  and	
  makes	
  a	
  difference	
  that	
  people	
  care	
  about.	
  	
  
Categorization	
  
It	
  is	
  important	
  to	
  recognize	
  that	
  employee	
  work	
  performance	
  varies	
  greatly,	
  as	
  do	
  the	
  
organizations	
  for	
  which	
  they	
  work.	
  In	
  order	
  to	
  understand	
  and	
  compare	
  what	
  causes	
  different	
  
employees	
  at	
  a	
  variety	
  of	
  organizations	
  to	
  produce	
  Great	
  Work,	
  it	
  was	
  necessary	
  to	
  categorize	
  
both	
  employees	
  and	
  the	
  organizations	
  for	
  which	
  they	
  work,	
  employees	
  in	
  terms	
  of	
  their	
  history	
  
of	
  producing	
  Great	
  Work	
  on	
  a	
  consistent	
  basis,	
  and	
  organizations	
  in	
  terms	
  of	
  the	
  types	
  and	
  
strength	
  of	
  motivating	
  perks	
  and	
  practices	
  that	
  they	
  utilize	
  to	
  help	
  motivate	
  their	
  employees	
  to	
  
produce	
  Great	
  Work	
  more	
  consistently.	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   4	
  
	
  
In	
  order	
  to	
  measure	
  the	
  ability	
  of	
  different	
  motivating	
  perks	
  and	
  practices	
  to	
  cause	
  Great	
  Work,	
  
we	
  looked	
  at	
  the	
  correlation	
  between	
  the	
  types	
  and	
  strength	
  of	
  an	
  organization’s	
  motivating	
  
perks	
  and	
  practices,	
  and	
  the	
  likelihood	
  of	
  a	
  respondent	
  to	
  produce	
  Great	
  Work	
  on	
  a	
  consistent	
  
basis.	
  
We	
  could	
  not	
  directly	
  ask	
  each	
  respondent	
  to	
  tell	
  us	
  how	
  consistently	
  they	
  produce	
  Great	
  Work	
  
without	
  contaminating	
  the	
  results	
  with	
  self-­‐report	
  bias.	
  To	
  avoid	
  such	
  bias	
  we	
  assigned	
  each	
  
respondent	
  a	
  “Great	
  Work	
  Score”	
  which	
  measured	
  the	
  respondent’s	
  likelihood	
  of	
  producing	
  
Great	
  Work	
  on	
  a	
  consistent	
  basis.	
  Scores	
  were	
  calculated	
  using	
  responses	
  to	
  a	
  broad	
  range	
  of	
  
open-­‐ended	
  and	
  multiple-­‐choice	
  questions	
  designed	
  to	
  gauge	
  the	
  consistency	
  and	
  quality	
  of	
  
work	
  performance,	
  including	
  manager	
  review	
  scores,	
  written	
  examples,	
  and	
  other	
  variables.	
  
The	
  Great	
  Work	
  Scores	
  were	
  used	
  to	
  categorize	
  respondents	
  based	
  on	
  their	
  work	
  performance	
  
as	
  “Infrequent,”	
  “Occasional,”	
  or	
  “Consistent”	
  performers	
  of	
  Great	
  Work.	
  	
  
We	
  scored	
  organizations	
  in	
  a	
  similar	
  manner.	
  Each	
  was	
  assigned	
  a	
  “Perk	
  or	
  Practice	
  Score”	
  
based	
  on	
  the	
  provision,	
  size,	
  frequency,	
  and	
  effectiveness	
  of	
  each	
  motivating	
  perk	
  or	
  practice.	
  
We	
  then	
  categorized	
  each	
  organization	
  as	
  either	
  “Poor,”	
  “Adequate,”	
  or	
  “Excellent”	
  based	
  on	
  
their	
  perk	
  or	
  practice	
  score	
  in	
  each	
  of	
  the	
  motivating	
  perks	
  and	
  practices.	
  Respondents	
  were	
  
blind	
  to	
  the	
  ultimate	
  purpose	
  of	
  the	
  study	
  and	
  the	
  methods	
  of	
  categorization	
  to	
  ensure	
  
unbiased	
  results.	
  
Great	
  Work	
  Score	
  
In	
  our	
  focus	
  groups,	
  we	
  found	
  that	
  nearly	
  all	
  employees	
  think	
  that	
  they	
  produce	
  Great	
  Work	
  on	
  
a	
  consistent	
  basis;	
  and	
  although	
  our	
  participants	
  understood	
  the	
  definition	
  of	
  Great	
  Work,	
  the	
  
examples	
  of	
  Great	
  Work	
  that	
  they	
  shared	
  with	
  us	
  indicated	
  that	
  few	
  of	
  them	
  actually	
  produced	
  
Great	
  Work	
  consistently.	
  As	
  a	
  result,	
  we	
  determined	
  it	
  would	
  be	
  necessary	
  for	
  us	
  to	
  categorize	
  
respondents	
  according	
  to	
  their	
  actual	
  work	
  performance.	
  
To	
  score	
  and	
  categorize	
  respondents,	
  we	
  built	
  variables	
  indicative	
  of	
  work	
  performance	
  into	
  the	
  
survey.	
  Those	
  variables	
  included	
  the	
  financial	
  impact	
  of	
  the	
  respondent’s	
  work,	
  job	
  satisfaction,	
  
whether	
  or	
  not	
  the	
  respondent	
  had	
  received	
  a	
  performance-­‐based	
  promotion,	
  annual	
  pay	
  
growth,	
  the	
  number	
  of	
  performance-­‐based	
  raises	
  received	
  during	
  the	
  previous	
  two	
  years,	
  the	
  
respondent’s	
  latest	
  manager	
  review	
  score,	
  and	
  a	
  written	
  example	
  of	
  Great	
  Work	
  that	
  the	
  
respondent	
  had	
  recently	
  produced.	
  	
  
We	
  weighted	
  each	
  variable	
  in	
  a	
  multivariate	
  model	
  to	
  produce	
  an	
  overall	
  “Great	
  Work	
  Score”	
  
for	
  each	
  respondent	
  that	
  indicated	
  the	
  respondent’s	
  likelihood	
  of	
  producing	
  Great	
  Work	
  on	
  a	
  
consistent	
  basis.	
  Certainly	
  none	
  of	
  these	
  factors	
  alone	
  is	
  wholly	
  indicative	
  of	
  work	
  performance,	
  
but	
  when	
  aggregated,	
  the	
  sum	
  is	
  telling.	
  Following	
  is	
  a	
  brief	
  description	
  of	
  how	
  each	
  variable	
  in	
  
the	
  Great	
  Work	
  Score	
  was	
  determined.	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   5	
  
	
  
	
  
• Written	
  Example:	
  a	
  written	
  example	
  of	
  Great	
  Work	
  provided	
  an	
  unfiltered	
  view	
  into	
  the	
  
respondent’s	
  actual	
  work	
  performance.	
  Two	
  unbiased,	
  independent	
  researchers	
  
reviewed	
  and	
  post-­‐coded	
  each	
  of	
  the	
  980	
  responses	
  and	
  rated	
  each	
  on	
  a	
  1-­‐5	
  scale	
  (1	
  
being	
  the	
  lowest	
  and	
  5	
  being	
  the	
  highest)	
  for	
  the	
  degree	
  to	
  which	
  the	
  respondent’s	
  
example	
  of	
  Great	
  Work	
  was	
  “productive,	
  innovative,	
  and	
  [made]	
  a	
  difference	
  that	
  
people	
  care	
  about.”	
  The	
  responses	
  were	
  highly	
  indicative	
  of	
  the	
  respondent’s	
  work	
  
performance.	
  
• Manager	
  Review:	
  the	
  manager	
  review	
  score	
  was	
  valuable	
  in	
  providing	
  a	
  manager’s	
  
assessment	
  of	
  overall	
  work	
  performance.	
  Respondents	
  were	
  asked,	
  “On	
  a	
  scale	
  of	
  1-­‐7	
  
where	
  1	
  means	
  very	
  poor	
  and	
  7	
  means	
  very	
  excellent,	
  how	
  did	
  your	
  manager	
  generally	
  
rate	
  your	
  job	
  performance	
  during	
  your	
  last	
  employee	
  review?”	
  	
  
• Raises:	
  respondents	
  reported	
  the	
  number	
  (up	
  to	
  five)	
  of	
  performance-­‐based	
  raises	
  
received	
  over	
  the	
  course	
  of	
  the	
  last	
  two	
  years.	
  Performance-­‐based	
  raises	
  ignore	
  year-­‐
end	
  and	
  scheduled	
  raises	
  and	
  therefore	
  make	
  for	
  a	
  strong	
  indicator	
  of	
  work	
  
performance.	
  
• Pay	
  Growth:	
  annual	
  pay	
  growth	
  was	
  calculated	
  using	
  starting	
  salary,	
  current	
  salary,	
  and	
  
tenure,	
  indicating	
  pay	
  growth	
  as	
  a	
  percent	
  of	
  income.	
  Respondents	
  that	
  reported	
  year	
  
over	
  year	
  pay	
  growth	
  beyond	
  the	
  norm	
  were	
  likely	
  recognized	
  through	
  bonuses	
  and	
  
raises	
  for	
  performing	
  beyond	
  expectations.	
  	
  
• Promotions:	
  the	
  number	
  of	
  performance-­‐based	
  promotions	
  is	
  a	
  strong	
  indicator	
  of	
  work	
  
performance,	
  as	
  the	
  variable	
  does	
  not	
  include	
  promotions	
  for	
  tenure	
  or	
  vacancy,	
  but	
  
only	
  for	
  work	
  performance.	
  	
  
• Job	
  Satisfaction:	
  overall	
  job	
  satisfaction	
  is	
  often	
  a	
  characteristic	
  of	
  those	
  producing	
  
Great	
  Work.	
  We	
  considered	
  it	
  important	
  to	
  add	
  to	
  the	
  model	
  because	
  of	
  its	
  correlation	
  
with	
  Great	
  Work,	
  but	
  did	
  not	
  weight	
  it	
  heavily	
  in	
  our	
  model	
  relative	
  to	
  other	
  variables.	
  
• Financial	
  Impact:	
  while	
  Great	
  Work	
  is	
  likely	
  to	
  have	
  a	
  positive	
  financial	
  impact	
  on	
  the	
  
organization	
  that	
  is	
  not	
  always	
  the	
  case.	
  We	
  reduced	
  the	
  weight	
  of	
  this	
  variable	
  relative	
  
to	
  other	
  variables	
  for	
  that	
  reason.	
  
The	
  scores	
  generated	
  by	
  our	
  model	
  were	
  normally	
  distributed.	
  As	
  mentioned	
  in	
  the	
  research	
  
objectives,	
  in	
  order	
  to	
  understand	
  which	
  perks	
  and	
  practices	
  cause	
  Great	
  Work,	
  we	
  cannot	
  look	
  
at	
  the	
  entire	
  sample	
  as	
  all	
  results	
  will	
  converge	
  upon	
  a	
  mean	
  result.	
  Instead,	
  we	
  divided	
  our	
  
sample	
  into	
  segments	
  for	
  analysis	
  (see	
  Figure	
  1).	
  	
  
Respondents	
  that	
  received	
  a	
  score	
  below	
  the	
  median	
  were	
  categorized	
  as	
  being	
  “Inconsistent”	
  
Performers	
  of	
  Great	
  Work.	
  Respondents	
  with	
  a	
  score	
  above	
  the	
  median	
  were	
  categorized	
  as	
  
being	
  “Occasional”	
  Performers	
  	
  of	
  Great	
  Work.	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   6	
  
	
  
	
  
To	
  isolate	
  truly	
  Great	
  Work,	
  we	
  examined	
  the	
  upper	
  limits	
  of	
  the	
  “Occasional”	
  Performers	
  of	
  
Great	
  Work.	
  This	
  elite	
  group	
  that	
  scored	
  two	
  standard	
  deviations	
  above	
  the	
  median	
  and	
  above	
  
were	
  categorized	
  as	
  “Consistent”	
  Performers	
  of	
  Great	
  Work.	
  These	
  Consistent	
  Performers	
  of	
  
Great	
  Work	
  comprise	
  roughly	
  5	
  percent	
  of	
  our	
  sample.	
  Based	
  on	
  our	
  focus	
  group	
  discussions	
  
we	
  anticipated	
  that	
  these	
  Consistent	
  Performers	
  of	
  Great	
  Work	
  would	
  be	
  rare	
  within	
  an	
  
organization,	
  but	
  the	
  working	
  habits	
  and	
  motivators	
  of	
  this	
  group	
  are	
  significantly	
  different	
  
from	
  the	
  mean	
  survey	
  population.	
  Isolating	
  this	
  small	
  group	
  ensures	
  that	
  we	
  examine	
  what	
  
causes	
  employees	
  to	
  produce	
  truly	
  Great	
  Work,	
  rather	
  than	
  above-­‐average	
  work.	
  	
  
Figure	
  1:	
  Distribution	
  of	
  Great	
  Work	
  Scores	
  (5-­‐percentile	
  Groupings)	
  
	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   7	
  
	
  
	
  
Perk	
  and	
  Practice	
  Scores	
  
Organizations	
  often	
  use	
  a	
  number	
  of	
  different	
  perks	
  and	
  practices	
  in	
  an	
  effort	
  to	
  motivate	
  
employees	
  to	
  produce	
  Great	
  Work.	
  We	
  repeatedly	
  refer	
  to	
  these	
  as	
  “motivating	
  perks	
  and	
  
practices”	
  throughout	
  this	
  paper.	
  These	
  perks	
  and	
  practices	
  can	
  be	
  anything	
  from	
  awards	
  
programs	
  and	
  raises,	
  to	
  installing	
  a	
  Ping-­‐Pong	
  table	
  in	
  the	
  break	
  room.	
  In	
  our	
  focus	
  groups,	
  
participants	
  helped	
  us	
  identify	
  six	
  popular	
  perks	
  and	
  practices	
  commonly	
  used	
  by	
  organizations.	
  
However,	
  our	
  focus	
  groups	
  also	
  revealed	
  that	
  those	
  perks	
  and	
  practices	
  vary	
  by	
  type	
  and	
  quality	
  
from	
  organization	
  to	
  organization.	
  To	
  manage	
  those	
  differences,	
  we	
  assigned	
  each	
  organization	
  
a	
  “Perk	
  and	
  Practice	
  Score”	
  based	
  on	
  the	
  strength,	
  effectiveness,	
  and	
  frequency	
  of	
  each	
  of	
  
these	
  motivating	
  perks	
  and	
  practices.	
  We	
  then	
  categorized	
  each	
  organization	
  according	
  to	
  their	
  
score	
  so	
  as	
  to	
  be	
  able	
  to	
  compare	
  like	
  categories.	
  The	
  following	
  is	
  a	
  brief	
  overview	
  of	
  those	
  six	
  
popular	
  motivating	
  perks	
  and	
  practices:	
  
• Recognition	
  Practices:	
  recognition	
  includes	
  awards	
  and	
  plaques	
  for	
  Great	
  Work	
  
performance,	
  or	
  simple	
  practices	
  such	
  as	
  encouragement	
  or	
  appreciation	
  for	
  a	
  job	
  well	
  
done.	
  We	
  asked	
  respondents	
  how	
  frequently	
  their	
  organization	
  recognizes	
  employees	
  
for	
  Great	
  Work,	
  what	
  types	
  of	
  recognition	
  the	
  organization	
  uses,	
  and	
  how	
  effective	
  the	
  
organization’s	
  recognition	
  practices	
  are.	
  
• Promotion	
  Practices:	
  this	
  includes	
  both	
  expected	
  promotions,	
  such	
  as	
  promotions	
  for	
  
tenure,	
  or	
  to	
  fill	
  a	
  vacancy;	
  and	
  performance-­‐based	
  promotions.	
  Respondents	
  were	
  
asked	
  how	
  often	
  their	
  organization	
  gives	
  expected	
  promotions,	
  how	
  often	
  the	
  
organization	
  gives	
  performance-­‐based	
  promotions,	
  and	
  how	
  effective	
  the	
  organization’s	
  
overall	
  promotion	
  practice	
  is.	
  
• Raise	
  Practices:	
  raises	
  include	
  expected	
  raises,	
  such	
  as	
  year-­‐end	
  raises,	
  as	
  well	
  as	
  
performance-­‐based	
  raises.	
  Respondents	
  were	
  asked	
  how	
  often	
  the	
  organization	
  gives	
  	
  
	
  
	
  Infrequent	
  
performer	
  of	
  
Great	
  Work	
  
Occasional	
  
performer	
  of	
  
Great	
  Work	
  
Consistent	
  
performer	
  of	
  
Great	
  Work	
  
These	
  employees	
  are	
  the	
  least	
  likely	
  to	
  produce	
  Great	
  Work:	
  They	
  are	
  
most	
  likely	
  to	
  have	
  low	
  job	
  satisfaction,	
  have	
  limited	
  financial	
  impact,	
  
stagnant	
  wage	
  growth,	
  below-­‐average	
  manager	
  reviews,	
  have	
  never	
  been	
  
promoted,	
  and	
  provided	
  a	
  poor	
  example	
  of	
  Great	
  Work.	
  
	
  These	
  employees	
  are	
  likely	
  to	
  occasionally	
  produce	
  Great	
  Work:	
  They	
  
are	
  likely	
  to	
  have	
  higher	
  job	
  satisfaction,	
  moderate	
  salary	
  growth,	
  and	
  
above	
  average	
  manager	
  reviews.	
  Their	
  work	
  is	
  more	
  likely	
  to	
  have	
  a	
  
financial	
  impact,	
  and	
  they	
  provided	
  a	
  better	
  example	
  of	
  Great	
  Work.	
  
	
  
These	
  employees	
  are	
  most	
  likely	
  to	
  consistently	
  produce	
  Great	
  Work:	
  
They	
  have	
  the	
  greatest	
  financial	
  impact,	
  higher	
  job	
  satisfaction,	
  
exceptional	
  salary	
  growth	
  and	
  promotions,	
  are	
  most	
  likely	
  to	
  have	
  
excellent	
  manager	
  reviews,	
  and	
  gave	
  a	
  distinct	
  example	
  of	
  Great	
  Work.	
  
	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   8	
  
	
  
	
  
both	
  types	
  of	
  raises,	
  how	
  large	
  those	
  raises	
  typically	
  are,	
  and	
  how	
  effective	
  the	
  organization’s	
  
raise	
  practice	
  is	
  at	
  causing	
  them	
  to	
  produce	
  Great	
  Work.	
  
• Bonus	
  Practices:	
  this	
  includes	
  expected	
  bonuses	
  for	
  overall	
  company	
  performance,	
  and	
  
performance-­‐based	
  bonuses	
  for	
  producing	
  Great	
  Work.	
  Respondents	
  were	
  asked	
  how	
  
often	
  their	
  organization	
  awards	
  both	
  kinds	
  of	
  bonuses,	
  how	
  large	
  those	
  bonuses	
  
typically	
  are,	
  and	
  how	
  effective	
  the	
  organization’s	
  bonus	
  program	
  is	
  at	
  causing	
  them	
  to	
  
produce	
  Great	
  Work.	
  
• Benefits	
  Practices:	
  traditional	
  benefits	
  that	
  many	
  companies	
  offer	
  their	
  employees,	
  
including	
  401k	
  plan,	
  health	
  insurance,	
  and	
  paid	
  time	
  off	
  (PTO)	
  are	
  often	
  used	
  to	
  
motivate	
  employees.	
  Respondents	
  were	
  asked	
  if	
  their	
  organization	
  provides	
  these,	
  what	
  
contribution	
  the	
  organization	
  makes	
  to	
  their	
  401k	
  plan,	
  what	
  share	
  of	
  health	
  insurance	
  
premiums	
  the	
  organization	
  covers,	
  how	
  many	
  days	
  of	
  PTO	
  the	
  employees	
  receive,	
  and	
  
how	
  effective	
  these	
  benefits	
  are	
  at	
  causing	
  employees	
  to	
  produce	
  Great	
  Work.	
  
• Environment	
  Perks:	
  not	
  just	
  Ping-­‐Pong	
  tables	
  and	
  cafeterias,	
  this	
  category	
  can	
  include	
  
perks	
  like	
  on-­‐site	
  childcare	
  and	
  creative	
  workspaces	
  –	
  any	
  perk	
  to	
  keep	
  employees	
  
happy	
  on	
  the	
  job.	
  Respondents	
  were	
  asked	
  which	
  of	
  these	
  perks	
  their	
  organization	
  
offered,	
  how	
  innovative	
  the	
  workspace	
  was,	
  and	
  how	
  effective	
  the	
  organization’s	
  
environment	
  perks	
  were	
  at	
  causing	
  employees	
  to	
  produce	
  Great	
  Work.	
  	
  
Since	
  each	
  of	
  these	
  scales	
  varied	
  depending	
  on	
  the	
  perk	
  or	
  practice,	
  we	
  totalled	
  points	
  for	
  each	
  
perk	
  and	
  practice,	
  with	
  points	
  awarded	
  for	
  the	
  types,	
  frequency,	
  size	
  and	
  effectiveness	
  of	
  each:	
  
• Types:	
  applies	
  to	
  recognition	
  and	
  benefits	
  practices,	
  and	
  environment	
  perks.	
  We	
  
awarded	
  the	
  perk	
  or	
  practice	
  one	
  point	
  for	
  every	
  type	
  of	
  	
  practice	
  they	
  offer.	
  For	
  
example,	
  we	
  awarded	
  an	
  environment	
  perk	
  3	
  points	
  if	
  the	
  organization	
  offered	
  on-­‐site	
  
gym,	
  day	
  care,	
  and	
  cafeteria,	
  compared	
  to	
  1	
  point	
  if	
  it	
  only	
  offered	
  a	
  cafeteria.	
  
• Frequency:	
  applies	
  to	
  recognition,	
  promotion,	
  raise,	
  and	
  bonus	
  practices.	
  We	
  awarded	
  
points	
  for	
  increased	
  frequency	
  with	
  which	
  the	
  practices	
  were	
  implemented.	
  For	
  
example,	
  we	
  awarded	
  3	
  points	
  to	
  a	
  bonus	
  practice	
  that	
  gives	
  yearly	
  bonuses,	
  compared	
  
to	
  1	
  point	
  for	
  an	
  organization	
  that	
  gives	
  bonuses	
  only	
  every	
  3-­‐5	
  years.	
  
• Size:	
  applies	
  to	
  raise,	
  bonus,	
  and	
  benefits	
  practices.	
  We	
  awarded	
  points	
  for	
  increased	
  
size	
  of	
  the	
  practice.	
  For	
  example,	
  we	
  awarded	
  4	
  points	
  to	
  a	
  benefits	
  practice	
  that	
  pays	
  
100	
  percent	
  of	
  health	
  insurance	
  premiums,	
  compared	
  to	
  2	
  points	
  for	
  a	
  benefits	
  practice	
  
that	
  pays	
  50	
  percent	
  of	
  health	
  insurance	
  premiums.	
  
	
  
	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   9	
  
	
  
	
  
• Effectiveness:	
  applies	
  to	
  all	
  perks	
  and	
  practices.	
  We	
  awarded	
  1	
  point	
  for	
  every	
  point	
  on	
  
a	
  1-­‐7	
  scale.	
  Respondents	
  rated	
  the	
  effectiveness	
  of	
  each	
  of	
  their	
  organizations’	
  perks	
  
and	
  practices.	
  
	
  
We	
  then	
  scaled	
  total	
  possible	
  points	
  so	
  as	
  to	
  make	
  each	
  score	
  comparable	
  across	
  the	
  different	
  
perks	
  and	
  practices.	
  Using	
  the	
  top	
  and	
  bottom	
  scores,	
  we	
  divided	
  the	
  range	
  into	
  three	
  equal	
  
categories:	
  Poor,	
  Adequate,	
  and	
  Excellent.	
  Organizations	
  falling	
  in	
  the	
  lowest	
  third	
  of	
  the	
  scale	
  
are	
  considered	
  to	
  have	
  a	
  “Poor”	
  perk	
  or	
  practice	
  for	
  that	
  category.	
  Organizations	
  in	
  the	
  middle	
  
third	
  are	
  considered	
  to	
  have	
  an	
  “Adequate”	
  perk	
  or	
  practice	
  for	
  that	
  category,	
  and	
  
organizations	
  scoring	
  in	
  the	
  top	
  third	
  are	
  considered	
  to	
  have	
  an	
  “Excellent”	
  perk	
  or	
  practice	
  for	
  
that	
  category.	
  Using	
  that	
  methodology	
  we	
  categorized	
  each	
  organization’s	
  motivating	
  perks	
  
and	
  practices	
  for	
  analysis.	
  	
  
Research	
  Findings	
  
It	
  is	
  worth	
  repeating	
  that	
  respondents	
  and	
  the	
  organizations	
  for	
  which	
  they	
  work	
  were	
  scored	
  
and	
  categorized.	
  They	
  did	
  not	
  self-­‐select	
  their	
  work	
  performance	
  categories,	
  and	
  were	
  blind	
  to	
  
the	
  ultimate	
  purposes	
  of	
  the	
  survey.	
  We	
  have	
  emphasized	
  and	
  reemphasized	
  our	
  research	
  
methodology	
  in	
  order	
  to	
  elucidate	
  not	
  only	
  our	
  methods,	
  but	
  most	
  importantly,	
  the	
  significance	
  
of	
  the	
  findings.	
  
	
  
	
  
Recognition	
  Drives	
  Great	
  Work	
  
The	
  survey	
  was	
  developed	
  using	
  open-­‐ended,	
  unaided	
  questions	
  to	
  ensure	
  unbiased,	
  accurate	
  
results.	
  To	
  begin,	
  survey	
  respondents	
  were	
  asked	
  an	
  open-­‐ended	
  question,	
  “What	
  is	
  the	
  most	
  
important	
  thing	
  that	
  your	
  manager	
  or	
  company	
  currently	
  does	
  (or	
  could	
  do)	
  that	
  would	
  cause	
  
you	
  to	
  produce	
  Great	
  Work?”	
  	
  
Respondents	
  were	
  able	
  to	
  answer	
  in	
  their	
  own	
  words,	
  providing	
  a	
  variety	
  of	
  answers,	
  from	
  
“recognize	
  me”,	
  to	
  “pay	
  me	
  more”,	
  to	
  “nothing:	
  I’m	
  self-­‐motivated”.	
  	
  A	
  team	
  of	
  unbiased,	
  
independent	
  researchers	
  reviewed	
  and	
  post-­‐coded	
  each	
  response,	
  creating	
  buckets	
  to	
  
categorize	
  each	
  of	
  the	
  responses.	
  In	
  the	
  end,	
  the	
  essence	
  of	
  each	
  response	
  could	
  be	
  
categorized	
  into	
  any	
  of	
  the	
  nine	
  different	
  buckets	
  in	
  Figure	
  2:	
  Recognition,	
  Nothing,	
  Inspiring	
  
Leadership,	
  Autonomy,	
  Increased	
  Pay,	
  Additional	
  Training,	
  Promotions,	
  Other,	
  and	
  Don’t	
  Know.	
  	
  
	
  
	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   10	
  
	
  
	
  
Figure	
  2:	
  Most	
  Important	
  Drivers	
  of	
  Great	
  Work	
  
	
  
Of	
  those	
  nine	
  factors	
  identified,	
  37	
  percent	
  of	
  respondents	
  said	
  that	
  recognition	
  was	
  the	
  “most	
  
important	
  thing	
  [their]	
  manager	
  or	
  company	
  does	
  (or	
  could	
  do)	
  that	
  would	
  cause	
  them	
  to	
  
produce	
  Great	
  Work”	
  (see	
  Figure	
  2).	
  This	
  is	
  a	
  very	
  significant	
  insight	
  as	
  more	
  and	
  more	
  
organizations	
  invest	
  in	
  extravagant	
  perks	
  and	
  benefits	
  which	
  may	
  not	
  be	
  highly	
  effective	
  at	
  
producing	
  Great	
  Work.	
  Take	
  note,	
  this	
  question	
  did	
  not	
  ask	
  “What	
  is	
  the	
  most	
  important	
  thing	
  a	
  
manager	
  or	
  company	
  could	
  do	
  to	
  make	
  work	
  fun?”;	
  rather,	
  it	
  asked	
  what	
  the	
  most	
  important	
  
thing	
  is	
  that	
  a	
  manager	
  or	
  company	
  can	
  do	
  to	
  cause	
  employees	
  to	
  produce	
  Great	
  Work.	
  	
  
This	
  is	
  an	
  open-­‐ended	
  response	
  question.	
  Respondents	
  could	
  answer	
  truthfully	
  in	
  their	
  own	
  
words,	
  unrestricted	
  by	
  preconceived	
  response	
  options.	
  When	
  post-­‐coding	
  responses	
  such	
  as	
  
these,	
  any	
  response	
  cited	
  by	
  at	
  least	
  two	
  percent	
  of	
  respondents	
  is	
  included	
  in	
  its	
  own	
  bucket.	
  
Though	
  respondents	
  could	
  have	
  answered	
  about	
  on-­‐site	
  gyms,	
  free	
  food,	
  and	
  open	
  workspaces	
  
as	
  being	
  the	
  cause	
  of	
  Great	
  Work,	
  they	
  did	
  not	
  recognize	
  these	
  as	
  being	
  as	
  effective	
  as	
  any	
  one	
  
of	
  the	
  buckets	
  in	
  Figure	
  2.	
  Those	
  examples	
  may	
  attract	
  and	
  retain	
  employees,	
  build	
  an	
  
organization’s	
  work	
  culture,	
  but	
  they	
  are	
  not	
  motivating	
  them	
  to	
  produce	
  Great	
  Work.	
  Figure	
  
2.1	
  illustrates	
  some	
  of	
  the	
  answers	
  that	
  did	
  cross	
  respondents	
  minds	
  as	
  they	
  considered	
  the	
  
most	
  important	
  driver	
  of	
  Great	
  Work.	
  
	
  
	
  
	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   11	
  
	
  
	
  
Figure	
  2.1:	
  Most	
  Important	
  Driver	
  of	
  Great	
  Work	
  –	
  Verbatim	
  Comments	
  	
  	
  	
  
	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  “I	
  really	
  appreciate	
  sincere	
  appreciation	
  and	
  recognition.	
  I	
  am	
  paid	
  to	
  do	
  a	
  job	
  –	
  I	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  agreed	
  to	
  the	
  job	
  for	
  my	
  salary.	
  Salary	
  doesn’t	
  drive	
  my	
  motivation.	
  I	
  appreciate	
  it	
  
and	
  like	
  it,	
  but	
  it	
  doesn’t	
  make	
  me	
  perform	
  any	
  better.”	
  
	
  
“When	
  someone	
  recognizes	
  you	
  for	
  something	
  you	
  did	
  or	
  gives	
  you	
  appreciation,	
  I	
  feel	
  that	
  
it	
  hits	
  the	
  heart	
  more	
  than	
  anything.	
  Sure	
  you	
  can	
  get	
  a	
  financial	
  gain	
  or	
  perk,	
  but	
  if	
  
someone	
  actually	
  comes	
  to	
  you	
  and	
  recognizes	
  you	
  for	
  what	
  you	
  do,	
  that	
  stands	
  out	
  more	
  
than	
  anything.	
  It	
  is	
  more	
  personal.”	
  
	
  
“Lack	
  of	
  recognition	
  is	
  a	
  deal	
  breaker	
  for	
  me.	
  It’s	
  great	
  to	
  get	
  a	
  raise	
  and	
  everything,	
  but	
  I	
  
need	
  recognition	
  as	
  well.”	
  
	
  
	
  
Excellent	
  Recognition	
  Effectively	
  Drives	
  Great	
  Work	
  
As	
  mentioned	
  in	
  the	
  methodology,	
  we	
  analyzed	
  the	
  different	
  motivating	
  perks	
  and	
  practices	
  at	
  
each	
  organization	
  and	
  categorized	
  each	
  as	
  Poor,	
  Adequate,	
  or	
  Excellent.	
  
Figure	
  3	
  illustrates	
  the	
  distribution	
  of	
  all	
  respondents	
  among	
  only	
  those	
  practices	
  that	
  were	
  
categorized	
  as	
  “Excellent.”	
  It	
  is	
  worth	
  mentioning	
  that	
  employees	
  may	
  work	
  at	
  an	
  organization	
  
that	
  employs	
  more	
  than	
  one	
  Excellent	
  Perk	
  or	
  Practice.	
  	
  
Figure	
  3:	
  Distribution	
  of	
  All	
  Respondents	
  among	
  Excellent	
  Perks	
  and	
  Practices
	
  
The	
  most	
  prevalent	
  of	
  the	
  Excellent	
  perks	
  and	
  practices	
  are	
  Excellent	
  Benefits	
  Practices,	
  
followed	
  by	
  Excellent	
  Recognition	
  Practices.	
  Looking	
  at	
  Figure	
  3,	
  because	
  Excellent	
  Benefits	
  and	
  
Excellent	
  Recognition	
  practices	
  are	
  relatively	
  prevalent,	
  organizations	
  may	
  be	
  persuaded	
  to	
  
differentiate	
  their	
  organization	
  by	
  investing	
  in	
  the	
  less	
  prevalent	
  Excellent	
  perks	
  and	
  practices.	
  	
  
”
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   12	
  
	
  
	
  
While	
  doing	
  so	
  may	
  certainly	
  make	
  an	
  organization	
  more	
  unique,	
  those	
  perks	
  and	
  practices	
  will	
  
not	
  necessarily	
  increase	
  the	
  likelihood	
  of	
  Great	
  Work.	
  	
  
Like	
  Figure	
  3,	
  Figure	
  3.1	
  shows	
  the	
  distribution	
  of	
  all	
  respondents	
  among	
  Excellent	
  perks	
  and	
  
practices	
  (the	
  left	
  bar	
  of	
  each	
  set);	
  however,	
  Figure	
  3.1	
  also	
  shows	
  the	
  distribution	
  of	
  Consistent	
  
Performers	
  of	
  Great	
  Work	
  among	
  Excellent	
  perks	
  and	
  practices	
  (the	
  right	
  bar	
  of	
  each	
  set).	
  
Figure	
  3.1:	
  Distribution	
  of	
  Consistent	
  Great	
  Work	
  Performers	
  among	
  Excellent	
  Practices	
  
	
  
By	
  comparing	
  the	
  distributions	
  of	
  Consistent	
  Performers	
  of	
  Great	
  Work	
  against	
  the	
  entire	
  
sample	
  we	
  see	
  the	
  impact	
  that	
  each	
  Excellent	
  perk	
  or	
  practice	
  has	
  on	
  causing	
  Great	
  Work.	
  
Figure	
  3.2	
  highlights	
  the	
  magnitude	
  of	
  that	
  impact.	
  	
  
The	
  outlined	
  box	
  shows	
  the	
  increased	
  likelihood	
  of	
  a	
  Consistent	
  Performer	
  of	
  Great	
  Work	
  to	
  be	
  
employed	
  at	
  an	
  organization	
  with	
  Excellent	
  perks	
  and	
  practices.	
  Shown	
  in	
  Figure	
  3.2,	
  Consistent	
  
Performers	
  are	
  24	
  percent	
  more	
  likely	
  to	
  work	
  at	
  an	
  organization	
  with	
  an	
  Excellent	
  Promotion	
  
Practice.	
  Second	
  to	
  that,	
  Consistent	
  Performers	
  of	
  Great	
  Work	
  are	
  19	
  percent	
  more	
  likely	
  to	
  
work	
  at	
  organizations	
  with	
  an	
  Excellent	
  Recognition	
  Practice.	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   13	
  
	
  
	
  
Figure	
  3.2:	
  Over-­‐Indexing	
  of	
  Great	
  Workers	
  in	
  Organizations	
  with	
  Excellent	
  Practices	
  
	
  
In	
  contrast	
  to	
  Figure	
  3,	
  solely	
  because	
  there	
  are	
  fewer	
  Excellent	
  Environment,	
  Raise,	
  and	
  Bonus	
  
perks	
  and	
  practices,	
  investment	
  in	
  these	
  less	
  prevalent	
  perks	
  and	
  practices	
  will	
  not	
  necessarily	
  
produce	
  more	
  Great	
  Work.	
  While	
  those	
  perks	
  and	
  practices	
  certainly	
  could	
  make	
  an	
  
organization	
  more	
  unique,	
  they	
  will	
  not	
  necessarily	
  increase	
  the	
  likelihood	
  of	
  Great	
  Work.	
  In	
  
fact,	
  if	
  an	
  organization	
  wants	
  to	
  encourage	
  Great	
  Work,	
  the	
  best	
  investment	
  it	
  can	
  make	
  is	
  in	
  
some	
  of	
  the	
  most	
  prevalent	
  of	
  the	
  Excellent	
  perks	
  and	
  practices:	
  Recognition	
  and	
  Promotions.	
  
We	
  understand	
  that	
  there	
  are	
  certainly	
  costs	
  involved	
  in	
  implementing	
  motivating	
  perks	
  and	
  
practices	
  in	
  any	
  workplace.	
  While	
  Excellent	
  Recognition	
  and	
  Excellent	
  Promotion	
  practices	
  
clearly	
  produce	
  the	
  greatest	
  impact	
  as	
  far	
  as	
  increasing	
  the	
  occurrence	
  of	
  Great	
  Work,	
  
organizations	
  ought	
  to	
  analyze	
  which	
  of	
  those	
  practices	
  produces	
  the	
  greatest	
  ROI	
  in	
  terms	
  of	
  
cost	
  and	
  likelihood	
  of	
  causing	
  Great	
  Work.	
  
Perceived	
  Effectiveness	
  of	
  Drivers	
  
Knowing	
  that	
  	
  Excellent	
  Recognition	
  and	
  Excellent	
  Promotion	
  Practices	
  are	
  the	
  most	
  effective	
  at	
  
increasing	
  the	
  likelihood	
  of	
  Great	
  Work,	
  a	
  logical	
  question	
  would	
  be	
  “Just	
  how	
  effective	
  are	
  
these	
  practices?”	
  	
  
We	
  used	
  two	
  different	
  metrics	
  to	
  answer	
  this	
  question.	
  The	
  first	
  metric	
  we	
  used	
  did	
  not	
  directly	
  
ask	
  the	
  respondent	
  how	
  effective	
  a	
  perk	
  or	
  practice	
  was.	
  Rather	
  we	
  put	
  the	
  respondent	
  in	
  the	
  
position	
  of	
  a	
  manager	
  and	
  asked	
  how	
  they	
  would	
  motivate	
  others	
  to	
  produce	
  Great	
  Work.	
  
Respondents	
  were	
  asked	
  in	
  open-­‐ended	
  format,	
  “You	
  have	
  peers	
  that	
  don’t	
  attempt	
  to	
  produce	
  
Great	
  Work	
  as	
  often	
  as	
  you.	
  What	
  would	
  you	
  do	
  to	
  cause	
  [your	
  peers]	
  to	
  attempt	
  to	
  produce	
  
Great	
  Work	
  more	
  often?”	
  
	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   14	
  
	
  
	
  
Figure	
  4:	
  Employee	
  Recommendations	
  to	
  Cause	
  Peers	
  to	
  Produce	
  Great	
  Work	
  
	
  
	
  
Figure	
  4	
  shows	
  that	
  among	
  all	
  responses,	
  recognition	
  was	
  the	
  practice	
  of	
  choice	
  for	
  the	
  majority	
  
of	
  respondents.	
  What	
  is	
  most	
  significant,	
  is	
  that	
  this	
  subconscious	
  metric	
  gauges	
  what	
  
respondents	
  feel	
  would	
  be	
  the	
  most	
  effective	
  at	
  causing	
  Great	
  Work	
  if	
  they	
  were	
  managing	
  
their	
  peers.	
  Thirty-­‐five	
  percent	
  agree,	
  without	
  prompting,	
  that	
  recognition	
  is	
  the	
  best	
  way	
  to	
  
motivate	
  employees	
  to	
  do	
  Great	
  Work.	
  	
  
For	
  the	
  sake	
  of	
  comparing	
  parallel	
  results,	
  we	
  then	
  directly	
  asked	
  respondents	
  to	
  rate	
  the	
  
effectiveness	
  of	
  each	
  perk	
  or	
  practice	
  at	
  the	
  organization	
  where	
  they	
  are	
  currently	
  employed.	
  
Respondents	
  were	
  asked	
  about	
  each	
  motivating	
  perk	
  or	
  practice,	
  “On	
  a	
  scale	
  of	
  1-­‐7	
  where	
  1	
  
means	
  very	
  ineffective	
  and	
  7	
  means	
  very	
  effective,	
  how	
  effective	
  are	
  [your	
  organization]’s	
  
current	
  [perks	
  and	
  practices]	
  at	
  causing	
  you	
  to	
  produce	
  Great	
  Work?”	
  	
  
For	
  analysis,	
  we	
  use	
  the	
  top	
  two	
  (rating	
  of	
  6	
  or	
  7	
  on	
  the	
  1-­‐7	
  scale)	
  to	
  quantify	
  a	
  perk	
  or	
  practice	
  
as	
  “very	
  effective.”	
  	
  
One	
  of	
  the	
  issues	
  we	
  dealt	
  with	
  in	
  focus	
  groups	
  was	
  the	
  fact	
  that	
  participants	
  were	
  unable	
  to	
  
tell	
  us	
  how	
  effective	
  certain	
  practices	
  were	
  at	
  causing	
  Great	
  Work.	
  Some	
  participants	
  had	
  never	
  
been	
  exposed	
  to	
  certain	
  perks	
  and	
  practices,	
  and	
  subsequently	
  had	
  a	
  difficult	
  time	
  quantifying	
  
the	
  effectiveness	
  of	
  a	
  perk	
  or	
  practice	
  with	
  which	
  they	
  had	
  little	
  to	
  no	
  experience.	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   15	
  
	
  
	
  
Based	
  on	
  those	
  focus	
  groups	
  experiences,	
  we	
  sought	
  to	
  avoid	
  postulation	
  and	
  guesswork.	
  
Subsequently,	
  our	
  analysis	
  in	
  Figure	
  4	
  illustrates	
  what	
  percentage	
  of	
  respondents,	
  who	
  have	
  
been	
  exposed	
  to	
  Excellent	
  perks	
  and	
  practices,	
  perceive	
  those	
  perks	
  and	
  practices	
  to	
  be	
  “very	
  
effective.”	
  Since	
  only	
  those	
  that	
  were	
  exposed	
  to	
  Excellent	
  perks	
  and	
  practices	
  are	
  included,	
  
this	
  analysis	
  measures	
  the	
  responses	
  of	
  those	
  qualified	
  to	
  rate	
  each	
  perk	
  or	
  practice.	
  
Figure	
  5:	
  Perceived	
  Effectiveness	
  by	
  All	
  Respondents	
  Exposed	
  to	
  Excellent	
  Practices	
  
	
  
The	
  analysis	
  in	
  Figure	
  4	
  concludes	
  that	
  94	
  percent	
  of	
  respondents	
  who	
  were	
  exposed	
  to	
  an	
  
Excellent	
  Recognition	
  practice	
  perceived	
  it	
  to	
  be	
  “very	
  effective”	
  at	
  causing	
  them	
  to	
  produce	
  
Great	
  Work.	
  
In	
  addition,	
  Figure	
  4	
  tells	
  us	
  that	
  employees	
  exposed	
  to	
  an	
  Excellent	
  Recognition	
  practice	
  rated	
  
that	
  practice	
  as	
  “very	
  effective”	
  20	
  -­‐	
  40	
  percent	
  more	
  often	
  than	
  employees	
  that	
  had	
  been	
  
exposed	
  to	
  any	
  other	
  Excellent	
  perk	
  or	
  practice.	
  What	
  this	
  tells	
  us	
  is	
  that	
  nearly	
  unanimously,	
  
employees	
  exposed	
  to	
  an	
  Excellent	
  Recognition	
  practice	
  rated	
  that	
  practice	
  as	
  very	
  effective	
  at	
  
causing	
  Great	
  Work	
  more	
  often	
  than	
  employees	
  that	
  had	
  been	
  exposed	
  to	
  any	
  other	
  perk	
  or	
  
practice.	
  	
  
Conclusion	
  
Through	
  qualitative	
  and	
  quantitative	
  research,	
  we	
  concluded	
  that	
  of	
  the	
  six	
  common	
  motivating	
  
perks	
  and	
  practices	
  our	
  focus	
  group	
  participants	
  identified,	
  recognition	
  is	
  the	
  strongest	
  driver	
  of	
  
Great	
  Work.	
  This	
  point	
  was	
  made	
  clear	
  in	
  the	
  conclusions	
  of	
  the	
  four	
  different	
  analyses	
  we	
  
tested.	
  	
  
 
	
  
Cicero	
  Group	
  –	
  Copyright	
  2015	
  |	
  How	
  Organizations	
  Can	
  Drive	
  Employees	
  to	
  Do	
  Great	
  Work	
   16	
  
	
  
	
  
First,	
  respondents’	
  unprompted	
  responses	
  to	
  the	
  open-­‐ended	
  question,	
  “What	
  is	
  the	
  most	
  
important	
  thing	
  your	
  manager	
  or	
  company	
  could	
  do	
  that	
  would	
  cause	
  you	
  to	
  produce	
  Great	
  
Work?”	
  confirm	
  that	
  for	
  37	
  percent,	
  recognition	
  is	
  “the	
  most	
  important”	
  in	
  causing	
  them	
  to	
  
produce	
  Great	
  Work.	
  Our	
  next	
  analysis	
  concluded	
  that	
  Consistent	
  Performers	
  of	
  Great	
  Work	
  are	
  
19	
  percent	
  more	
  likely	
  to	
  work	
  at	
  organizations	
  that	
  have	
  Excellent	
  Recognition	
  Practices.	
  In	
  
addition,	
  35	
  percent	
  of	
  respondents	
  cited	
  that	
  they	
  themselves	
  would	
  use	
  recognition	
  to	
  
motivate	
  their	
  peers.	
  Finally,	
  of	
  all	
  respondents	
  exposed	
  to	
  Excellent	
  perks	
  and	
  practices,	
  94	
  
percent	
  concluded	
  that	
  recognition	
  is	
  effective	
  at	
  causing	
  them	
  to	
  produce	
  Great	
  Work.	
  
	
  
This	
  study	
  is	
  interested	
  in	
  the	
  causes	
  of	
  Great	
  Work,	
  and	
  we	
  feel	
  confident	
  in	
  our	
  conclusion.	
  
Four	
  different	
  approaches	
  all	
  yielded	
  the	
  same	
  results:	
  If	
  you	
  want	
  employees	
  that	
  produce	
  and	
  
innovate	
  more,	
  invest	
  in	
  recognition.	
  	
  
	
  
	
  
	
  

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Employee Performance: What Causes Great Work? [WHITE PAPER]

  • 1.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   1                 Employee  Performance:   What  Causes  Great  Work?       National  Research  by  the  Cicero  Group   Commissioned  by  the  O.C.  Tanner  Institute   2015     Dr.  Trent  Kaufman            D.  Joshua  Christensen   Andrew  Newton                                  
  • 2.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   2         Abstract   In  this  paper,  we  seek  to  understand  what  organizations  can  do  to  cause  employees  to  produce   Great  Work,  what  organizations  currently  do  to  motivate  employees,  and  how  effective  each  is   at  causing  employees  to  produce  Great  Work.  We  divide  this  paper  into  two  sections.  In  the   first  half  of  this  paper,  we  discuss  the  research  objectives.  Following  the  research  objectives  we   provide  detailed  steps  to  the  qualitative  and  quantitative  methodology  we  employed,  the   categorization  of  our  respondents,  and  the  basic  characteristics  of  our  sample.  In  the  second   half  of  this  paper,  we  explain  the  findings  of  our  research.  We  used  four  different  analyses,  or   approaches,  to  draw  conclusions  to  our  objectives.  We  provide  detail  and  context  to  each  of   the  four  analyses  we  conducted,  and  provide  an  interpretation  of  the  results  of  each  of  those   analyses.     Introduction   Think  about  an  example  of  Great  Work  –  work  that  made  a  difference  in  your  organization,   maybe  even  got  the  attention  of  senior  management.  What  prompted  that  employee  to  go   above  and  beyond  to  produce  Great  Work?  Great  Work  can  affect  an  entire  organization  in  a   positive  way:  from  inspiring  fellow  employees,  to  creating  positive  financial  growth  for  the   organization  as  a  whole.  For  any  organization  trying  to  encourage  workers  to  produce   innovative,  productive  work,  knowing  what  causes  employees  to  produce  Great  Work  is   extremely  important.     Objective   The  objective  of  this  research  is  to  understand  what  organizations  can  do  to  cause  employees   to  produce  Great  Work  on  a  consistent  basis  -­‐  to  discover  what  types  of  motivating  perks  and   practices  are  currently  being  used  by  different  organizations,  and  how  effective  each  is  at   actually  causing  employees  to  produce  Great  Work.  We  seek  to  accomplish  this  by  first  defining   Great  Work  as  instances  that  go  beyond  daily,  pedestrian  tasks;  second,  by  classifying   employees  based  on  their  likelihood  of  producing  Great  Work  on  a  consistent  basis;  and  finally   finding  and  isolating  which  motivating  perks  and  practices  are  most  effective  at  causing  Great   Work  to  happen  consistently.  The  following  sections  explain  the  methodology  we  employed  in   this  study  as  well  as  detailed  explanations  of  the  findings  of  this  research.            
  • 3.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   3         Research  Methodology   For  this  study,  we  employed  a  methodology  that  included  both  qualitative  and  quantitative   research  steps.  The  qualitative  research  was  instrumental  in  helping  guide,  design,  and  develop   the  quantitative  research,  and  lent  further  support  to  the  results  of  our  quantitative  analyses.       Qualitative  Research   In  order  to  inform  the  development  of  the  quantitative  survey  we  held  focus  groups  across  the   country  in  which  we  asked  employees  what  types  of  motivating  perks  and  practices  their   organizations  use  to  cause  them  to  produce  Great  Work.  These  focus  groups  played  an  integral   role  in  the  development  of  our  quantitative  research.  It  was  during  these  focus  groups  that  we   confirmed  the  type  of  motivating  perks  and  practices  organizations  use  to  encourage   employees,  how  effective  employees  perceived  those  perks  and  practices  to  be,  and  how  to   best  frame  the  quantitative  survey  to  produce  unbiased  results.       Quantitative  Research   We  administered  an  online  survey  to  respondents  working  in  the  United  States  for  companies   with  over  1,000  employees;  no  industries  were  excluded.  Our  target  demographic  consisted  of   employees  between  the  ages  of  25  and  65.  We  collected  survey  data  during  October  2014.  A   total  of  980  respondents  completed  the  survey  and  were  included  in  the  analysis.   Throughout  the  research,  we  may  refer  to  “employees”  (respondents)  and  “organizations”  (the   companies  for  which  respondents  work).  We  also  consistently  use  the  term  “Great  Work,”  a   term  we  borrowed  from  the  O.C.  Tanner  Institute.  While  Great  Work  can  mean  a  variety  of   things,  for  this  study,  we  provided  respondents  with  the  following  definition:  work  that  is   productive,  innovative,  and  makes  a  difference  that  people  care  about.     Categorization   It  is  important  to  recognize  that  employee  work  performance  varies  greatly,  as  do  the   organizations  for  which  they  work.  In  order  to  understand  and  compare  what  causes  different   employees  at  a  variety  of  organizations  to  produce  Great  Work,  it  was  necessary  to  categorize   both  employees  and  the  organizations  for  which  they  work,  employees  in  terms  of  their  history   of  producing  Great  Work  on  a  consistent  basis,  and  organizations  in  terms  of  the  types  and   strength  of  motivating  perks  and  practices  that  they  utilize  to  help  motivate  their  employees  to   produce  Great  Work  more  consistently.  
  • 4.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   4     In  order  to  measure  the  ability  of  different  motivating  perks  and  practices  to  cause  Great  Work,   we  looked  at  the  correlation  between  the  types  and  strength  of  an  organization’s  motivating   perks  and  practices,  and  the  likelihood  of  a  respondent  to  produce  Great  Work  on  a  consistent   basis.   We  could  not  directly  ask  each  respondent  to  tell  us  how  consistently  they  produce  Great  Work   without  contaminating  the  results  with  self-­‐report  bias.  To  avoid  such  bias  we  assigned  each   respondent  a  “Great  Work  Score”  which  measured  the  respondent’s  likelihood  of  producing   Great  Work  on  a  consistent  basis.  Scores  were  calculated  using  responses  to  a  broad  range  of   open-­‐ended  and  multiple-­‐choice  questions  designed  to  gauge  the  consistency  and  quality  of   work  performance,  including  manager  review  scores,  written  examples,  and  other  variables.   The  Great  Work  Scores  were  used  to  categorize  respondents  based  on  their  work  performance   as  “Infrequent,”  “Occasional,”  or  “Consistent”  performers  of  Great  Work.     We  scored  organizations  in  a  similar  manner.  Each  was  assigned  a  “Perk  or  Practice  Score”   based  on  the  provision,  size,  frequency,  and  effectiveness  of  each  motivating  perk  or  practice.   We  then  categorized  each  organization  as  either  “Poor,”  “Adequate,”  or  “Excellent”  based  on   their  perk  or  practice  score  in  each  of  the  motivating  perks  and  practices.  Respondents  were   blind  to  the  ultimate  purpose  of  the  study  and  the  methods  of  categorization  to  ensure   unbiased  results.   Great  Work  Score   In  our  focus  groups,  we  found  that  nearly  all  employees  think  that  they  produce  Great  Work  on   a  consistent  basis;  and  although  our  participants  understood  the  definition  of  Great  Work,  the   examples  of  Great  Work  that  they  shared  with  us  indicated  that  few  of  them  actually  produced   Great  Work  consistently.  As  a  result,  we  determined  it  would  be  necessary  for  us  to  categorize   respondents  according  to  their  actual  work  performance.   To  score  and  categorize  respondents,  we  built  variables  indicative  of  work  performance  into  the   survey.  Those  variables  included  the  financial  impact  of  the  respondent’s  work,  job  satisfaction,   whether  or  not  the  respondent  had  received  a  performance-­‐based  promotion,  annual  pay   growth,  the  number  of  performance-­‐based  raises  received  during  the  previous  two  years,  the   respondent’s  latest  manager  review  score,  and  a  written  example  of  Great  Work  that  the   respondent  had  recently  produced.     We  weighted  each  variable  in  a  multivariate  model  to  produce  an  overall  “Great  Work  Score”   for  each  respondent  that  indicated  the  respondent’s  likelihood  of  producing  Great  Work  on  a   consistent  basis.  Certainly  none  of  these  factors  alone  is  wholly  indicative  of  work  performance,   but  when  aggregated,  the  sum  is  telling.  Following  is  a  brief  description  of  how  each  variable  in   the  Great  Work  Score  was  determined.  
  • 5.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   5       • Written  Example:  a  written  example  of  Great  Work  provided  an  unfiltered  view  into  the   respondent’s  actual  work  performance.  Two  unbiased,  independent  researchers   reviewed  and  post-­‐coded  each  of  the  980  responses  and  rated  each  on  a  1-­‐5  scale  (1   being  the  lowest  and  5  being  the  highest)  for  the  degree  to  which  the  respondent’s   example  of  Great  Work  was  “productive,  innovative,  and  [made]  a  difference  that   people  care  about.”  The  responses  were  highly  indicative  of  the  respondent’s  work   performance.   • Manager  Review:  the  manager  review  score  was  valuable  in  providing  a  manager’s   assessment  of  overall  work  performance.  Respondents  were  asked,  “On  a  scale  of  1-­‐7   where  1  means  very  poor  and  7  means  very  excellent,  how  did  your  manager  generally   rate  your  job  performance  during  your  last  employee  review?”     • Raises:  respondents  reported  the  number  (up  to  five)  of  performance-­‐based  raises   received  over  the  course  of  the  last  two  years.  Performance-­‐based  raises  ignore  year-­‐ end  and  scheduled  raises  and  therefore  make  for  a  strong  indicator  of  work   performance.   • Pay  Growth:  annual  pay  growth  was  calculated  using  starting  salary,  current  salary,  and   tenure,  indicating  pay  growth  as  a  percent  of  income.  Respondents  that  reported  year   over  year  pay  growth  beyond  the  norm  were  likely  recognized  through  bonuses  and   raises  for  performing  beyond  expectations.     • Promotions:  the  number  of  performance-­‐based  promotions  is  a  strong  indicator  of  work   performance,  as  the  variable  does  not  include  promotions  for  tenure  or  vacancy,  but   only  for  work  performance.     • Job  Satisfaction:  overall  job  satisfaction  is  often  a  characteristic  of  those  producing   Great  Work.  We  considered  it  important  to  add  to  the  model  because  of  its  correlation   with  Great  Work,  but  did  not  weight  it  heavily  in  our  model  relative  to  other  variables.   • Financial  Impact:  while  Great  Work  is  likely  to  have  a  positive  financial  impact  on  the   organization  that  is  not  always  the  case.  We  reduced  the  weight  of  this  variable  relative   to  other  variables  for  that  reason.   The  scores  generated  by  our  model  were  normally  distributed.  As  mentioned  in  the  research   objectives,  in  order  to  understand  which  perks  and  practices  cause  Great  Work,  we  cannot  look   at  the  entire  sample  as  all  results  will  converge  upon  a  mean  result.  Instead,  we  divided  our   sample  into  segments  for  analysis  (see  Figure  1).     Respondents  that  received  a  score  below  the  median  were  categorized  as  being  “Inconsistent”   Performers  of  Great  Work.  Respondents  with  a  score  above  the  median  were  categorized  as   being  “Occasional”  Performers    of  Great  Work.  
  • 6.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   6       To  isolate  truly  Great  Work,  we  examined  the  upper  limits  of  the  “Occasional”  Performers  of   Great  Work.  This  elite  group  that  scored  two  standard  deviations  above  the  median  and  above   were  categorized  as  “Consistent”  Performers  of  Great  Work.  These  Consistent  Performers  of   Great  Work  comprise  roughly  5  percent  of  our  sample.  Based  on  our  focus  group  discussions   we  anticipated  that  these  Consistent  Performers  of  Great  Work  would  be  rare  within  an   organization,  but  the  working  habits  and  motivators  of  this  group  are  significantly  different   from  the  mean  survey  population.  Isolating  this  small  group  ensures  that  we  examine  what   causes  employees  to  produce  truly  Great  Work,  rather  than  above-­‐average  work.     Figure  1:  Distribution  of  Great  Work  Scores  (5-­‐percentile  Groupings)    
  • 7.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   7       Perk  and  Practice  Scores   Organizations  often  use  a  number  of  different  perks  and  practices  in  an  effort  to  motivate   employees  to  produce  Great  Work.  We  repeatedly  refer  to  these  as  “motivating  perks  and   practices”  throughout  this  paper.  These  perks  and  practices  can  be  anything  from  awards   programs  and  raises,  to  installing  a  Ping-­‐Pong  table  in  the  break  room.  In  our  focus  groups,   participants  helped  us  identify  six  popular  perks  and  practices  commonly  used  by  organizations.   However,  our  focus  groups  also  revealed  that  those  perks  and  practices  vary  by  type  and  quality   from  organization  to  organization.  To  manage  those  differences,  we  assigned  each  organization   a  “Perk  and  Practice  Score”  based  on  the  strength,  effectiveness,  and  frequency  of  each  of   these  motivating  perks  and  practices.  We  then  categorized  each  organization  according  to  their   score  so  as  to  be  able  to  compare  like  categories.  The  following  is  a  brief  overview  of  those  six   popular  motivating  perks  and  practices:   • Recognition  Practices:  recognition  includes  awards  and  plaques  for  Great  Work   performance,  or  simple  practices  such  as  encouragement  or  appreciation  for  a  job  well   done.  We  asked  respondents  how  frequently  their  organization  recognizes  employees   for  Great  Work,  what  types  of  recognition  the  organization  uses,  and  how  effective  the   organization’s  recognition  practices  are.   • Promotion  Practices:  this  includes  both  expected  promotions,  such  as  promotions  for   tenure,  or  to  fill  a  vacancy;  and  performance-­‐based  promotions.  Respondents  were   asked  how  often  their  organization  gives  expected  promotions,  how  often  the   organization  gives  performance-­‐based  promotions,  and  how  effective  the  organization’s   overall  promotion  practice  is.   • Raise  Practices:  raises  include  expected  raises,  such  as  year-­‐end  raises,  as  well  as   performance-­‐based  raises.  Respondents  were  asked  how  often  the  organization  gives        Infrequent   performer  of   Great  Work   Occasional   performer  of   Great  Work   Consistent   performer  of   Great  Work   These  employees  are  the  least  likely  to  produce  Great  Work:  They  are   most  likely  to  have  low  job  satisfaction,  have  limited  financial  impact,   stagnant  wage  growth,  below-­‐average  manager  reviews,  have  never  been   promoted,  and  provided  a  poor  example  of  Great  Work.    These  employees  are  likely  to  occasionally  produce  Great  Work:  They   are  likely  to  have  higher  job  satisfaction,  moderate  salary  growth,  and   above  average  manager  reviews.  Their  work  is  more  likely  to  have  a   financial  impact,  and  they  provided  a  better  example  of  Great  Work.     These  employees  are  most  likely  to  consistently  produce  Great  Work:   They  have  the  greatest  financial  impact,  higher  job  satisfaction,   exceptional  salary  growth  and  promotions,  are  most  likely  to  have   excellent  manager  reviews,  and  gave  a  distinct  example  of  Great  Work.    
  • 8.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   8       both  types  of  raises,  how  large  those  raises  typically  are,  and  how  effective  the  organization’s   raise  practice  is  at  causing  them  to  produce  Great  Work.   • Bonus  Practices:  this  includes  expected  bonuses  for  overall  company  performance,  and   performance-­‐based  bonuses  for  producing  Great  Work.  Respondents  were  asked  how   often  their  organization  awards  both  kinds  of  bonuses,  how  large  those  bonuses   typically  are,  and  how  effective  the  organization’s  bonus  program  is  at  causing  them  to   produce  Great  Work.   • Benefits  Practices:  traditional  benefits  that  many  companies  offer  their  employees,   including  401k  plan,  health  insurance,  and  paid  time  off  (PTO)  are  often  used  to   motivate  employees.  Respondents  were  asked  if  their  organization  provides  these,  what   contribution  the  organization  makes  to  their  401k  plan,  what  share  of  health  insurance   premiums  the  organization  covers,  how  many  days  of  PTO  the  employees  receive,  and   how  effective  these  benefits  are  at  causing  employees  to  produce  Great  Work.   • Environment  Perks:  not  just  Ping-­‐Pong  tables  and  cafeterias,  this  category  can  include   perks  like  on-­‐site  childcare  and  creative  workspaces  –  any  perk  to  keep  employees   happy  on  the  job.  Respondents  were  asked  which  of  these  perks  their  organization   offered,  how  innovative  the  workspace  was,  and  how  effective  the  organization’s   environment  perks  were  at  causing  employees  to  produce  Great  Work.     Since  each  of  these  scales  varied  depending  on  the  perk  or  practice,  we  totalled  points  for  each   perk  and  practice,  with  points  awarded  for  the  types,  frequency,  size  and  effectiveness  of  each:   • Types:  applies  to  recognition  and  benefits  practices,  and  environment  perks.  We   awarded  the  perk  or  practice  one  point  for  every  type  of    practice  they  offer.  For   example,  we  awarded  an  environment  perk  3  points  if  the  organization  offered  on-­‐site   gym,  day  care,  and  cafeteria,  compared  to  1  point  if  it  only  offered  a  cafeteria.   • Frequency:  applies  to  recognition,  promotion,  raise,  and  bonus  practices.  We  awarded   points  for  increased  frequency  with  which  the  practices  were  implemented.  For   example,  we  awarded  3  points  to  a  bonus  practice  that  gives  yearly  bonuses,  compared   to  1  point  for  an  organization  that  gives  bonuses  only  every  3-­‐5  years.   • Size:  applies  to  raise,  bonus,  and  benefits  practices.  We  awarded  points  for  increased   size  of  the  practice.  For  example,  we  awarded  4  points  to  a  benefits  practice  that  pays   100  percent  of  health  insurance  premiums,  compared  to  2  points  for  a  benefits  practice   that  pays  50  percent  of  health  insurance  premiums.      
  • 9.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   9       • Effectiveness:  applies  to  all  perks  and  practices.  We  awarded  1  point  for  every  point  on   a  1-­‐7  scale.  Respondents  rated  the  effectiveness  of  each  of  their  organizations’  perks   and  practices.     We  then  scaled  total  possible  points  so  as  to  make  each  score  comparable  across  the  different   perks  and  practices.  Using  the  top  and  bottom  scores,  we  divided  the  range  into  three  equal   categories:  Poor,  Adequate,  and  Excellent.  Organizations  falling  in  the  lowest  third  of  the  scale   are  considered  to  have  a  “Poor”  perk  or  practice  for  that  category.  Organizations  in  the  middle   third  are  considered  to  have  an  “Adequate”  perk  or  practice  for  that  category,  and   organizations  scoring  in  the  top  third  are  considered  to  have  an  “Excellent”  perk  or  practice  for   that  category.  Using  that  methodology  we  categorized  each  organization’s  motivating  perks   and  practices  for  analysis.     Research  Findings   It  is  worth  repeating  that  respondents  and  the  organizations  for  which  they  work  were  scored   and  categorized.  They  did  not  self-­‐select  their  work  performance  categories,  and  were  blind  to   the  ultimate  purposes  of  the  survey.  We  have  emphasized  and  reemphasized  our  research   methodology  in  order  to  elucidate  not  only  our  methods,  but  most  importantly,  the  significance   of  the  findings.       Recognition  Drives  Great  Work   The  survey  was  developed  using  open-­‐ended,  unaided  questions  to  ensure  unbiased,  accurate   results.  To  begin,  survey  respondents  were  asked  an  open-­‐ended  question,  “What  is  the  most   important  thing  that  your  manager  or  company  currently  does  (or  could  do)  that  would  cause   you  to  produce  Great  Work?”     Respondents  were  able  to  answer  in  their  own  words,  providing  a  variety  of  answers,  from   “recognize  me”,  to  “pay  me  more”,  to  “nothing:  I’m  self-­‐motivated”.    A  team  of  unbiased,   independent  researchers  reviewed  and  post-­‐coded  each  response,  creating  buckets  to   categorize  each  of  the  responses.  In  the  end,  the  essence  of  each  response  could  be   categorized  into  any  of  the  nine  different  buckets  in  Figure  2:  Recognition,  Nothing,  Inspiring   Leadership,  Autonomy,  Increased  Pay,  Additional  Training,  Promotions,  Other,  and  Don’t  Know.        
  • 10.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   10       Figure  2:  Most  Important  Drivers  of  Great  Work     Of  those  nine  factors  identified,  37  percent  of  respondents  said  that  recognition  was  the  “most   important  thing  [their]  manager  or  company  does  (or  could  do)  that  would  cause  them  to   produce  Great  Work”  (see  Figure  2).  This  is  a  very  significant  insight  as  more  and  more   organizations  invest  in  extravagant  perks  and  benefits  which  may  not  be  highly  effective  at   producing  Great  Work.  Take  note,  this  question  did  not  ask  “What  is  the  most  important  thing  a   manager  or  company  could  do  to  make  work  fun?”;  rather,  it  asked  what  the  most  important   thing  is  that  a  manager  or  company  can  do  to  cause  employees  to  produce  Great  Work.     This  is  an  open-­‐ended  response  question.  Respondents  could  answer  truthfully  in  their  own   words,  unrestricted  by  preconceived  response  options.  When  post-­‐coding  responses  such  as   these,  any  response  cited  by  at  least  two  percent  of  respondents  is  included  in  its  own  bucket.   Though  respondents  could  have  answered  about  on-­‐site  gyms,  free  food,  and  open  workspaces   as  being  the  cause  of  Great  Work,  they  did  not  recognize  these  as  being  as  effective  as  any  one   of  the  buckets  in  Figure  2.  Those  examples  may  attract  and  retain  employees,  build  an   organization’s  work  culture,  but  they  are  not  motivating  them  to  produce  Great  Work.  Figure   2.1  illustrates  some  of  the  answers  that  did  cross  respondents  minds  as  they  considered  the   most  important  driver  of  Great  Work.        
  • 11.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   11       Figure  2.1:  Most  Important  Driver  of  Great  Work  –  Verbatim  Comments                                            “I  really  appreciate  sincere  appreciation  and  recognition.  I  am  paid  to  do  a  job  –  I                                  agreed  to  the  job  for  my  salary.  Salary  doesn’t  drive  my  motivation.  I  appreciate  it   and  like  it,  but  it  doesn’t  make  me  perform  any  better.”     “When  someone  recognizes  you  for  something  you  did  or  gives  you  appreciation,  I  feel  that   it  hits  the  heart  more  than  anything.  Sure  you  can  get  a  financial  gain  or  perk,  but  if   someone  actually  comes  to  you  and  recognizes  you  for  what  you  do,  that  stands  out  more   than  anything.  It  is  more  personal.”     “Lack  of  recognition  is  a  deal  breaker  for  me.  It’s  great  to  get  a  raise  and  everything,  but  I   need  recognition  as  well.”       Excellent  Recognition  Effectively  Drives  Great  Work   As  mentioned  in  the  methodology,  we  analyzed  the  different  motivating  perks  and  practices  at   each  organization  and  categorized  each  as  Poor,  Adequate,  or  Excellent.   Figure  3  illustrates  the  distribution  of  all  respondents  among  only  those  practices  that  were   categorized  as  “Excellent.”  It  is  worth  mentioning  that  employees  may  work  at  an  organization   that  employs  more  than  one  Excellent  Perk  or  Practice.     Figure  3:  Distribution  of  All  Respondents  among  Excellent  Perks  and  Practices   The  most  prevalent  of  the  Excellent  perks  and  practices  are  Excellent  Benefits  Practices,   followed  by  Excellent  Recognition  Practices.  Looking  at  Figure  3,  because  Excellent  Benefits  and   Excellent  Recognition  practices  are  relatively  prevalent,  organizations  may  be  persuaded  to   differentiate  their  organization  by  investing  in  the  less  prevalent  Excellent  perks  and  practices.     ”
  • 12.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   12       While  doing  so  may  certainly  make  an  organization  more  unique,  those  perks  and  practices  will   not  necessarily  increase  the  likelihood  of  Great  Work.     Like  Figure  3,  Figure  3.1  shows  the  distribution  of  all  respondents  among  Excellent  perks  and   practices  (the  left  bar  of  each  set);  however,  Figure  3.1  also  shows  the  distribution  of  Consistent   Performers  of  Great  Work  among  Excellent  perks  and  practices  (the  right  bar  of  each  set).   Figure  3.1:  Distribution  of  Consistent  Great  Work  Performers  among  Excellent  Practices     By  comparing  the  distributions  of  Consistent  Performers  of  Great  Work  against  the  entire   sample  we  see  the  impact  that  each  Excellent  perk  or  practice  has  on  causing  Great  Work.   Figure  3.2  highlights  the  magnitude  of  that  impact.     The  outlined  box  shows  the  increased  likelihood  of  a  Consistent  Performer  of  Great  Work  to  be   employed  at  an  organization  with  Excellent  perks  and  practices.  Shown  in  Figure  3.2,  Consistent   Performers  are  24  percent  more  likely  to  work  at  an  organization  with  an  Excellent  Promotion   Practice.  Second  to  that,  Consistent  Performers  of  Great  Work  are  19  percent  more  likely  to   work  at  organizations  with  an  Excellent  Recognition  Practice.              
  • 13.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   13       Figure  3.2:  Over-­‐Indexing  of  Great  Workers  in  Organizations  with  Excellent  Practices     In  contrast  to  Figure  3,  solely  because  there  are  fewer  Excellent  Environment,  Raise,  and  Bonus   perks  and  practices,  investment  in  these  less  prevalent  perks  and  practices  will  not  necessarily   produce  more  Great  Work.  While  those  perks  and  practices  certainly  could  make  an   organization  more  unique,  they  will  not  necessarily  increase  the  likelihood  of  Great  Work.  In   fact,  if  an  organization  wants  to  encourage  Great  Work,  the  best  investment  it  can  make  is  in   some  of  the  most  prevalent  of  the  Excellent  perks  and  practices:  Recognition  and  Promotions.   We  understand  that  there  are  certainly  costs  involved  in  implementing  motivating  perks  and   practices  in  any  workplace.  While  Excellent  Recognition  and  Excellent  Promotion  practices   clearly  produce  the  greatest  impact  as  far  as  increasing  the  occurrence  of  Great  Work,   organizations  ought  to  analyze  which  of  those  practices  produces  the  greatest  ROI  in  terms  of   cost  and  likelihood  of  causing  Great  Work.   Perceived  Effectiveness  of  Drivers   Knowing  that    Excellent  Recognition  and  Excellent  Promotion  Practices  are  the  most  effective  at   increasing  the  likelihood  of  Great  Work,  a  logical  question  would  be  “Just  how  effective  are   these  practices?”     We  used  two  different  metrics  to  answer  this  question.  The  first  metric  we  used  did  not  directly   ask  the  respondent  how  effective  a  perk  or  practice  was.  Rather  we  put  the  respondent  in  the   position  of  a  manager  and  asked  how  they  would  motivate  others  to  produce  Great  Work.   Respondents  were  asked  in  open-­‐ended  format,  “You  have  peers  that  don’t  attempt  to  produce   Great  Work  as  often  as  you.  What  would  you  do  to  cause  [your  peers]  to  attempt  to  produce   Great  Work  more  often?”    
  • 14.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   14       Figure  4:  Employee  Recommendations  to  Cause  Peers  to  Produce  Great  Work       Figure  4  shows  that  among  all  responses,  recognition  was  the  practice  of  choice  for  the  majority   of  respondents.  What  is  most  significant,  is  that  this  subconscious  metric  gauges  what   respondents  feel  would  be  the  most  effective  at  causing  Great  Work  if  they  were  managing   their  peers.  Thirty-­‐five  percent  agree,  without  prompting,  that  recognition  is  the  best  way  to   motivate  employees  to  do  Great  Work.     For  the  sake  of  comparing  parallel  results,  we  then  directly  asked  respondents  to  rate  the   effectiveness  of  each  perk  or  practice  at  the  organization  where  they  are  currently  employed.   Respondents  were  asked  about  each  motivating  perk  or  practice,  “On  a  scale  of  1-­‐7  where  1   means  very  ineffective  and  7  means  very  effective,  how  effective  are  [your  organization]’s   current  [perks  and  practices]  at  causing  you  to  produce  Great  Work?”     For  analysis,  we  use  the  top  two  (rating  of  6  or  7  on  the  1-­‐7  scale)  to  quantify  a  perk  or  practice   as  “very  effective.”     One  of  the  issues  we  dealt  with  in  focus  groups  was  the  fact  that  participants  were  unable  to   tell  us  how  effective  certain  practices  were  at  causing  Great  Work.  Some  participants  had  never   been  exposed  to  certain  perks  and  practices,  and  subsequently  had  a  difficult  time  quantifying   the  effectiveness  of  a  perk  or  practice  with  which  they  had  little  to  no  experience.  
  • 15.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   15       Based  on  those  focus  groups  experiences,  we  sought  to  avoid  postulation  and  guesswork.   Subsequently,  our  analysis  in  Figure  4  illustrates  what  percentage  of  respondents,  who  have   been  exposed  to  Excellent  perks  and  practices,  perceive  those  perks  and  practices  to  be  “very   effective.”  Since  only  those  that  were  exposed  to  Excellent  perks  and  practices  are  included,   this  analysis  measures  the  responses  of  those  qualified  to  rate  each  perk  or  practice.   Figure  5:  Perceived  Effectiveness  by  All  Respondents  Exposed  to  Excellent  Practices     The  analysis  in  Figure  4  concludes  that  94  percent  of  respondents  who  were  exposed  to  an   Excellent  Recognition  practice  perceived  it  to  be  “very  effective”  at  causing  them  to  produce   Great  Work.   In  addition,  Figure  4  tells  us  that  employees  exposed  to  an  Excellent  Recognition  practice  rated   that  practice  as  “very  effective”  20  -­‐  40  percent  more  often  than  employees  that  had  been   exposed  to  any  other  Excellent  perk  or  practice.  What  this  tells  us  is  that  nearly  unanimously,   employees  exposed  to  an  Excellent  Recognition  practice  rated  that  practice  as  very  effective  at   causing  Great  Work  more  often  than  employees  that  had  been  exposed  to  any  other  perk  or   practice.     Conclusion   Through  qualitative  and  quantitative  research,  we  concluded  that  of  the  six  common  motivating   perks  and  practices  our  focus  group  participants  identified,  recognition  is  the  strongest  driver  of   Great  Work.  This  point  was  made  clear  in  the  conclusions  of  the  four  different  analyses  we   tested.    
  • 16.     Cicero  Group  –  Copyright  2015  |  How  Organizations  Can  Drive  Employees  to  Do  Great  Work   16       First,  respondents’  unprompted  responses  to  the  open-­‐ended  question,  “What  is  the  most   important  thing  your  manager  or  company  could  do  that  would  cause  you  to  produce  Great   Work?”  confirm  that  for  37  percent,  recognition  is  “the  most  important”  in  causing  them  to   produce  Great  Work.  Our  next  analysis  concluded  that  Consistent  Performers  of  Great  Work  are   19  percent  more  likely  to  work  at  organizations  that  have  Excellent  Recognition  Practices.  In   addition,  35  percent  of  respondents  cited  that  they  themselves  would  use  recognition  to   motivate  their  peers.  Finally,  of  all  respondents  exposed  to  Excellent  perks  and  practices,  94   percent  concluded  that  recognition  is  effective  at  causing  them  to  produce  Great  Work.     This  study  is  interested  in  the  causes  of  Great  Work,  and  we  feel  confident  in  our  conclusion.   Four  different  approaches  all  yielded  the  same  results:  If  you  want  employees  that  produce  and   innovate  more,  invest  in  recognition.