Join Halogen Software for an inspiring webcast from renowned author and engagement expert Chester Elton and learn how fostering a recognition culture can motivate your employees and drive business results for your organization. Based on his runaway New York Times best-seller The Carrot Principle, Elton will reveal the groundbreaking results of one of the most in-depth management studies ever undertaken. This breakthrough 10-year study of 200,000 people found dramatically greater business results when managers offered constructive praise and meaningful rewards in ways that powerfully motivated employees to excel. Drawing on case studies from leading companies, Elton will share how the transformative power of purpose-based recognition produces astonishing increases in operating results, such as higher productivity, engagement, retention, and customer satisfaction. This presentation introduces the simple steps to become a Carrot Principle manager and to build a recognition culture in your organization. You’ll also hear about how this culture can be enabled by a best practices-based talent management system that supports better business results.

1. The Carrot Principle — How the Best Managers Use
Recognition to Engage Their Employees, Retain
Talent and Drive Performance
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2. The Carrot Principle — How the Best Managers Use
Recognition to Engage Their Employees, Retain
Talent and Drive Performance
Speaker: Chester Elton
Author
The Carrot Principle
Moderator: Connie Costigan
Director, Marketing & Communications
Halogen Software
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6. The Carrot Principle — How the Best Managers Use
Recognition to Engage Their Employees, Retain
Talent and Drive Performance
Connie Costigan
Director, Marketing & Communications
Halogen Software
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7. The Carrot Principle — How the Best Managers Use
Recognition to Engage Their Employees, Retain
Talent and Drive Performance
Chester Elton
Author
The Carrot Principle
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8. © 2011 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

9. How recognition
ACCELERATES
employee
engagement,
retention and
performance
with Chester Elton

11. Who here has
worked for a GREAT
leader?

12. So, what are the
characteristics of a
good leader?

13. The Basic Four

14. The Basic Four
• Goal Setting
• Communication
• Trust
•Accountability

15. Accountability
“At first, I think our employees found it hard to believe
this was all really happening. Seeing managers being
held accountable for employee satisfaction, budgets and
training and development is helping to strengthen our
organization's employee accountability and to boost
overall morale.”
Tim Mulligan, Chief Human Resources Officer

16. A Crisis in Business
Finding and
Engaging
the best people

17. Why
Engagement ?

18. Managers who ignore their employees
have 2% engaged employees and 40%
actively disengaged.
“BAF has transformed employee performance
management from a once a year chore to an ongoing,
year-round process. Managers now provide regular
feedback and coaching to employees. This has been
instrumental in transforming our entire culture.”
Melanie Rydalch, Regional HR Manager

19. The Basic Four
• Goal Setting
• Communication
• Trust
•Accountability

20. Goals
Goal Setting that helps set expectations
“Having employee goals clearly and objectively laid out and the
ability to track their progress in real time ensures that there are
no surprises during the performance conversation between
manager and employee. Employees know what is expected of
them and this makes them accountable and the system
becomes transparent. This has enabled the Bank to increase
employee engagement in the process.”
Laura Van Well, HR Officer

21. Employee Engagement:
Goal Setting
100% 91%
90%
80% 68% 70%
70%
60%
50% 40%
40%
30%
20%
10%
0%
Goal Setting: Goal Setting:
High Favorable Opinion Low Favorable Opinion
20
Recognition: Strong Recognition: Weak

22. Employee Engagement:
Communication
100% 92%
90%
80% 68% 69%
70%
60%
50% 39%
40%
30%
20%
10%
0%
Communication: Communication:
High Favorable Opinion Low Favorable Opinion
21
Recognition: Strong Recognition: Weak

23. Employee Engagement:
Trust
100% 91%
90%
80%
70% 65% 63%
60%
50%
40% 35%
30%
20%
10%
0%
Trust: Trust:
High Favorable Opinion Low Favorable Opinion
22
Recognition: Strong Recognition: Weak

24. Employee Engagement:
Accountability
100% 91%
90%
80% 70%
70% 65%
60%
50% 38%
40%
30%
20%
10%
0%
Accountability: Accountability:
High Favorable Opinion Low Favorable Opinion
23
Recognition: Strong Recognition: Weak

25. Why
Engagement?

26. Engagement = GROWTH

27. Operating Income
Growth with
vs
Without engagement

28. Best Buy: a 0.1% increase in employee
engagement at a store equals a $100,000
increase in the store’s annual operating
income.
Harvard Business Review
October 2010

29. What Drives
Employee
Engagement?

30. Percent of Employees “Completely
Satisfied” With Their Jobs
By Level of Recognition

31. Percent With “Very High” Desire To
Work For Their Employer “One Year”
From Now By Level of Recognition

32. Percent of Employees Who Are “Highly
Engaged” by Level of Recognition

33. Top drivers of engagement
Appreciation Opportunity
& Well-Being
Employee
Communication Trust Engagement
Goal-setting / Pride in
Accountability
Symbol

34. Opportunity
Develop for the future and employees will be more
engaged today!
“Turnover rates decreased from 20 per cent to 4 per cent. People
feel really good about what they do and what they contribute
knowing there are a lot of different promotions and leadership roles
that have evolved through our leadership development program,
which is part of our performance management and career
development approach. 64 per cent of the company's leadership
positions are now held by individuals promoted from within.”
Michelle Reid, HR Manager

35. A Crisis in Business
65% of Workers
are looking around says survey
Responses from 14,000 workers reveal that many are
weighing their options– and employers haven’t caught on.

37. Research-Based
• One of largest workplace
surveys ever conducted
• Focus groups
• Interviews

38. How
LARGE
was the
study?

39. The Carrot Principle
• 10-year study of
200,000 people
• 20-year study of
10,000 people
• 10,000-year study of
20 people
• Half-hour study of
“The Office”

40. The Carrot Principle
• 10-year study of
200,000 people

41. Ah, the Power of a Carrot
• Higher retention, of your good people
• Greater, sustained productivity
• Stronger, more committed employees
• Allows managers to communicate a
powerful, lasting way
• And PROFIT!

42. Ah, the Power of a
Carrot
• It communicates what
matters most to your
organization

43. Appreciate the Family

45. Personal Recognition
a Coach

46. Personal Recognition

47. What Differentiates Your
Organization?

48. How
Do You
Measure
Success?

50. Why Employee
Engagement?
Fortune 100 Best vs Stock Market
7 year Cumulative Return
• Companies with
higher employee 133.8%
engagement deliver
higher returns than
their peers 72.9%
• 100 Best Companies
with highly engaged 25.2%
employees have Annual List of
consistently 100 Best
Companies
outperformed major
stock indices. Stock Market Index Fortune 100 Best
Source: Frank Russell Company
49

51. The Fortune 100 Best
“As for recognition it is probably the
fattest pitch that managers miss. Telling
employees they are doing a great job
costs nothing but counts big And it is so
easy to do more”
Fortune Magazine 100 Best
Companies issue
50

52. Work
Environment
=
How People Feel
on the Job

53. At Work
25% Driven to tears by stress
50% Place of “verbal abuse” and
“yelling”
30% Unrealistic deadlines
52% 12 hour days
1 in 12 complain “chair hurts my butt”
NY TIMES

56. People join organizations
They leave people!

57. According to research, what
percent of workers cite “lack of
acknowledgement” as their top
work issue?
A. 88%
B. 67%
C. 44%
D. Eleventy-one%

58. According to research, what
percent of workers cite “lack of
acknowledgement” as their top
work issue?
A. 88%

59. Why People Leave a
Manager?
☛ 79% leave due to
A. A fear of alien abduction
B. Unwashed “restroom” hands
C. Body piercing policies
D. A lack of appreciation
Society for Human Resource Management (SHRM) survey

60. Why People Leave a
Manager?
☛ 79% leave due to
D. A lack of appreciation
Society for Human Resource Management (SHRM) survey

61. But there are
toxic Managers.
What happens
when we follow
them…?

65. That’s
Turnover!

66. Why People Stay
With a Manager
Recognition and Praise correlated with:
• Higher Retention
• Higher Productivity
• Higher Customer Satisfaction
• Higher Profits

67. Wisdom from
your mom
This is stuff mom taught you

68. Wisdom from
your MUM!
This is stuff MUM taught you

70. Recognition Basics
• Frequent
• Specific
• Timely

72. Married? Madly in LOVE?

74. General
Praise has NO
impact.

79. Praise vs. Rewards
Do you know how to ride a bike?

80. Praise vs. Rewards
• Praise Effort
• Reward Results

81. Reward RESULTS!

82. Reward RESULTS!

83. Reward RESULTS!

84. Reward RESULTS!

86. Wisdom from the
Carrot Patch
• Create informal
recognition moments

87. Informal /Seeds
• Letter of praise to family • Box of chocolate bars
• Do least favorite task • Half day off to spend w/
kids
• Remember special days
• Scrapbook of memories
• Wash car
• Tickets to movie, play,
• Parking space for a week game
• Recognition box
• Hand Written Note
• Friday inspirational movie
• Cup of coffee
• A pat on the back

88. Not a slap to the Head!

89. People may forget what you
said or even what you did,
but they never forget the way
you made them
feel .

90. Wisdom from the
Carrot Patch
Make powerful
presentations!

91. When it comes to recognition,
Presentation
is everything!

93. Presentation Objectives
1. Show sincere thanks
2. Reinforce organizational values
3. Set the standard of Excellence
4. Motivate

94. Dos & Don’ts…

95. Add Impact to Formal
VIP
• VALUE
• IMPACT
• PERSON

96. Anybody Know the best
American soccer player in
the world?
Clint Dempsey

103. Add Impact to Formal
VIP
• VALUE
• IMPACT
• PERSON

104. And Recipients Will
Go Wild!

106. Informal /Seeds
• Letter of praise to family • Box of chocolate bars
• Do least favorite task • Half day off to spend w/
kids
• Remember special days
• Scrapbook of memories
• Wash car
• Tickets to movie, play,
• Parking space for a week game
• Recognition box
• Hand Written Note
• Friday inspirational movie
• Cup of coffee
• A pat on the back

107. Vegephobia
Why People Don’t Recognize
• Don’t want to get familiar
• I never got any recognition!
• What’s in it for me?
• Don’t have time
• Don’t want to play favorites
• They will ask for more money!

108. Vegephobia
Why Managers Don’t Recognize
Not in this economy!

109. What can
you
do tomorrow?

111. You Know how!
• Verbal Praise
• Thank You Notes
• Frequent Specific Timely
• Praise Effort / Reward Results
• Better presentations / VIP

112. Do this at
HOME!
It works there too

113. Ah, the Power of a Carrot
• Higher retention, of your good people
• Greater, sustained productivity
• Stronger, more committed employees
• Allows managers to communicate a
powerful, lasting way
• And PROFIT!

116. Are You
Committed?

117. Thank You!
chester@chesterelton.com
@chesterelton

119. Q&A
Additional questions regarding the content from this webinar? Contact:
Chester Elton - chester@chesterelton.com
www.chesterelton.com
For additional Halogen Software inquiries or to request a personalized
demonstration, contact:
Connie Costigan- ccostigan@halogensoftware.com
www.halogensoftware.com

120. Join Our Next TM Webinar
Support Your Business Better: HR
Competencies for 2013 and Beyond
Thursday, November 29, 2012
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