Professional Documents
Culture Documents
Table of Contents
Team Members
Summary
Team Evolution/Scope/Methodology
Findings and Conclusions
Recommendations
Awards Program Administration/Structure/Initiation
Years of Service Program Administration
Costs
Implementation Strategies
Integration Points
Measurements
Success Criteria
Program Categories
Exceptional Job Performance Award
Managing People Award
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important to note that the HRPD project teams have been charged with
developing
Summary
The Evolution of the Recognition and Rewards Project
Team
The Recognition and Rewards Project Team was formed in October 1997 in
response to a recommendation by
the Human Resource Practices Design (HRPD)
Team. The HRPD Team was chartered in the spring of 1996 to
define human
resource practices to support the changing needs of MIT and its workforce.
In its work, the team
was committed to maintaining the diversity, flexibility
and fairness that make MIT a good place to work. These
tenets are at the
heart of the Human Resource Principles adopted in 1994.
During 1996, the HRPD Team researched and reviewed best practices within
the MIT community and at
selected corporations and institutions; as part
of their information gathering process, they interacted with
approximately
10 percent of MIT's campus based staff at all levels. Their major conclusions,
discussed in the
HRPD Design Team Final Report in April, 1997, were that
current human resource practices at MIT no longer
aligned with the Institute's
changing environment. However, they found that members of the community
would
support human resource practices that provided clarity for employees,
supported career development, and
rewarded and recognized high performance
if these practices were designed to meet the diverse needs of MIT's
different
constituencies.
On the basis of these findings, the HRPD Team generated eight broad
recommendations for human resource
practices to help make MIT as excellent
an employer as it is an educator. One of these recommendations, to
develop
a recognition and rewards program, arose from a strong sentiment in the
MIT community that MIT must
recognize the contributions of its employees.
This sentiment was reinforced by information gathered in surveys
and interviews
that indicated a perception among MIT employees that their work often went
unappreciated and
unacknowledged.
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Methodology
The Recognition and Rewards Project Team began by surveying the needs and
concerns of the MIT community.
This fact-gathering process included two
surveys, one to managers and supervisors, and the other to all
administrative
and support staff employees. In addition, team members conducted 23 one-on-one
interviews
with mid- to high-level administrators around the Institute
and held a number of brainstorming sessions with the
Working Group on Support
Staff Issues and members of the HRPD Team (Appendices I, II, III). All
told, the
Recognition and Rewards Project Team solicited input from over
3,000 employees and received responses from
over 1,000 of them, including
faculty and sponsored research staff. However, the primary focus was on
administrative and support staff.
After evaluating input received from the MIT community and combining
this information with their research,
the team wrote a first draft of its
recommendations. During February and March, these draft recommendations
were presented to eight focus groups. On the basis of the input they received
from the focus groups (Appendix
V), the team finalized the recommendations
included in this report.
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Recognizing and rewarding employee contributions can benefit both the employee
and the employer. Bob
Nelson, whose current book 1001 Ways to Reward
Employees is on the "Business Week Best-Seller List,"
describes the
benefits in terms of lower stress, lower absenteeism and reduction of turnover
and its related
costs. The resulting improvement in morale among employees
leads to greater productivity and increased
competitiveness (hiring and
retention of employees). These results were also reinforced in the
benchmarking
data when institutions cited the positive effects of such programs as Harvard
University's
"Harvard Heroes Award," L.L. Bean's "Bean Award" and the Saint
Elizabeth Hospital's "Star Award
Program" (Appendix VI).
MIT currently has a variety of informal recognition and rewards efforts,
but these programs exist only in
units and areas with the necessary time
or financial flexibility and resources to make them possible.
Managers
willing to find ways to recognize and reward their best employees take
the initiative in these
efforts. However, there is no consistency in the
way these informal efforts are administered throughout the
Institute. Some
departments also have more formal awards programs such as the Department
of Electrical
Engineering which recognizes exceptional work performance
with a monetary award of $1,000 (funded
through an endowment) or Physical
Plant which formally recognizes years of service with service pins.
The most popular forms of recognition at the Institute, according to the
survey data, are a luncheon or
dinner for an individual or a group, and
time off or flextime. People are being recognized and rewarded
when they
perform exceptionally well, take on additional responsibilities or short-term
projects, exhibit
extra initiative or complete a specific amount of service
time. When the team surveyed what people would
like to receive in the future,
the overwhelming response was monetary bonuses. However, the other three
most popular responses were aligned with what they are currently receiving.
The team made a conscious
effort of communicating that bonuses are outside
the scope of their work and that they are currently being
addressed by
the Classification and Compensation Project Team (under the auspices of
HRPD).
A research of current practices at MIT revealed the Institute currently
has a series of awards such as the
James N. Murphy Award, the Gordon Y.
Billard Award (both part of the Annual Awards Convocation), the
Martin
Luther King Award, and the President's Community Service Award. Some of
these awards are
open to faculty, students and people outside the MIT community.
Brainstorming sessions, one-on-one
interviews, and surveys from administrative
and support staff employees indicated a lack of awareness of
these awards
or confusion about who is eligible for them.
A recognition and rewards program at MIT should be separate from a program
that recognizes employees
for years of service. Focus group members consistently
expressed this opinion. They felt that an awards
program celebrates individual
or team achievement above and beyond normal responsibilities whereas the
years of service award automatically recognizes any and all employees for
their loyalty and dedication.
In order to be successful and provide maximum benefit to both MIT and its
employees, recognition and
reward programs should have a formal and an
informal component which include a variety of recognition
and reward options.
In the surveys, MIT employees expressed a strong desire for a recognition
and
rewards program that was flexible enough to operate within specific
areas as well as Institute-wide. Their
responses have been confirmed by
research that cites an informal gesture (a spoken thank you, a letter,
an
e-mail) as the most effective way to motivate people. However, research
shows that these gestures lose
their impact if they are not followed up
and supported by more substantial forms of appreciation such as
money,
gifts or public acknowledgment.
The team concluded that the most successful recognition and rewards programs
operate on multiple levels.
In the team's internal research, the community
expressed not only interest in a program that provides
greater flexibility
in the kinds of awards being given at the local level, but also interest
in a program with
Institute-wide support and recognition at the highest
levels. In addition, a formal, system-wide program
can be more consistently
administered and provides an opportunity for the whole organization to
celebrate
employee achievements. Formal programs also lend credibility
to the more spontaneous, informal rewards
used daily.
In the process of drawing these conclusions, team members identified a
number of instances where
successful implementation of the Recognition
and Rewards Program depended on support from other
areas within MIT or
integration with the work of other HRPD teams. These are listed in Appendix
X.
Recommendations
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The team believes the following two-part program will make it possible
for MIT to recognize and reward
individuals or teams who make a significant
contribution to the Institute. This program also provides a way to
make
MIT employees aware of the value the Institute places on such contributions.
Award Program
According to the Human Resource Principles for MIT People, "The organization
of the future will place an
emphasis on high performance and flexibility.
This will require an increased focus at all levels on establishing
performance
goals, measures and evaluation, training when necessary, and rewarding
employees according to
the achievements of those goals."
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The team found overwhelming interest and support for a program across the
MIT community.
Employees not included in the pilot might feel they are being excluded
from recognition.
A pilot would take time, could yield inconclusive data, and delay the program
for as much as a year.
Distribution of the Institute awards as part of a pilot may not be as meaningful
since the award winners
will represent a smaller pool of nominations.
Unique differences among Institute organizational units would make pilot
results difficult to apply
Institute-wide.
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Costs
The annual cost of the recommended Award Program for Administrative and
Support Staff (excluding the
Sponsored Research Staff) is approximately
$270,000; the cost for the Years of Service Recognition Program is
$30,000
per year; and the administration cost is $80,000. The total program costs
of $380,000 represent
approximately .10 percent of the Institute's total
operating budget ($400 million). (See Appendix IX for
complete cost details).
The MIT community expressed a strong opinion that this money should not
be taken from
the existing merit pool. There was general consensus that
central funding would not only encourage the use of
the program, it would
eliminate unfair disadvantages in departments with budgetary constraints.
The team recommends that a high percentage of the award program budget
be allocated to the department (Tier
I) and Dean or VP level (Tier II)
to ensure that more people are recognized and rewarded more often. The
money
could be allocated based on a percentage of headcount for Administrative
and Support Staff members, with a
minimum of $200 per administrative unit.
Budgeted funds, if not used within one year, should be carried over to
the next fiscal year so that supervisors/managers don't feel pressure to
spend their budget if no one merits an
award.
Implementation Strategies
It is important to note that this Recognition and Rewards Program has been
designed to make use of MIT's
existing infrastructure. For example, a cost
center (i.e. an object code) could be assigned for recognition and
rewards,
or the existing "morale object code" could be used by the administrative
unit as long as the appropriate
amount is allocated. Regular business and
financial forms can be used to process transactions to buy gifts or
rewards,
and the MIT ID might be used as an internal debit card in places like the
cafeteria and MITAC.
Integration Points
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Success Criteria
Eligibility
part time administrative and support staff.
Does not include (at this time): faculty, service, other academic,
sponsored research, voucher, temporary, or
contract staff.
Criteria
- Showing
concern for working well or for surpassing a standard of
excellence.
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Eligibility
Does not include (at this time): faculty, service, other academic,
sponsored research, voucher, temporary, or
contract staff.
Criteria
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as award value increases up through the tiers. Recognition can stand alone
but rewards
must be accompanied by recognition.
Eligibility
Does not include (at this time): faculty, service, other academic,
sponsored research, voucher, temporary, or
contract staff.
Criteria
Must show
one or more of the following:
"wants" but at
the same time analyzing the customer's
- Going the extra mile, understanding the customer's
"needs" to ensure total customer
satisfaction.
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Purpose
Eligibility
part-time administrative and support staff.
Does not include (at this time): faculty, service, other academic,
sponsored research, voucher, temporary, or
contract staff.
Criteria
Local/Department Level - Tier I Institute Level
Dean/VP Level - Tier II
- Tier III
Options
Recognition Thank You post-it notes, Certificates from Senior Plaques
notecards, and email ("e-plause" Officer from
template) Article in school or other President
Certificate or letter from publication Vest
Supervisor, Team Leader, Tech Talk
Manager, Head, Director,
or Article
equivalent when appropriate Awards
Ceremony
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and Selection
Committee
Recognition and/or Rewards will be commensurate
with the number of criteria met and/or
the consistency with which they
are displayed, with more attention paid to length of time
involved, amount
of effort required, degree of difficulty of work, and level of performance
as award value increases up through the tiers. Recognition can stand alone
but rewards
must be accompanied by recognition.
Frequency As often as appropriate Semiannually or as appropriate Annually
Low-$
Mod-$$
High-$$$
0
$$
$$$
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part-time administrative and support staff.
Does not include (at this time): faculty, service, other academic,
sponsored research, voucher, temporary, or
contract staff.
- Only regular
years of service at the Institute will be counted (exclude
voucher or student employment service).
service.
Criteria
- Must be
celebrating 5th, 10th, 15th and 20th anniversary of employment
at the Institute by the end of the fiscal
year.
5th year anniversary 10th year anniversary 15th year anniversary 20th year anniversary
Options Recognition:
Recognition:
Recognition:
Recognition:
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