A Show of Appreciation

Charities find that small rewards or even a simple ‘thank you’ can have a big impact on employee morale

The Julia Porter Award may not be as prestigious as the Oscar, Emmy, or Tony, but to one of this year’s

winners, it doesn’t get much better.

Mary Anne Beddome, a nurse at Children’s Memorial Hospital, in Chicago, was floored when she learned that she had received the award, which goes to hospital employees who “consistently extend themselves beyond their normal work responsibilities to contribute to the overall mission of the hospital.”

“I was so surprised to be singled out for something I consider to be just part of my job,” she says. “But it does feel nice to be recognized and appreciated, and it motivates me to want to keep doing well at what I do.”

The award, which includes a certificate, a $500 prize, and a moment in the spotlight at a presentation ceremony, is named for the nurse who founded the nonprofit hospital more than 120 years ago. It is just one of several efforts to reward employees that Children’s Memorial has begun over the last few years as a way to increase morale and productivity, and to retain good workers. Maureen Mahoney, the hospital’s corporate manager for service excellence, says the efforts seem to be working: An internal survey of employee satisfaction last year showed marked improvement from a similar survey taken before the hospital began its push to recognize its hardest-working employees.

Many senior executives at nonprofit organizations are unable to offer huge monetary rewards and incentives to their employees, even when they know that such bonuses are deserved. But as the economy begins to loosen and more job options become available in both the for-profit and nonprofit worlds, some charities are starting efforts to show their appreciation to their best workers. And many employers are learning that sometimes the most effective rewards require only creativity, not an abundance of cash.

Doling Out Applause

Officials at Children’s Memorial decided to step up efforts to honor employees four years ago, after a survey of staff members revealed that many hospital workers did not feel adequately valued, says Ms. Mahoney.

To brainstorm ideas on how to reward and motivate the staff, the hospital formed a Recognition Committee, recruiting employees from different departments. Since its inception in 2001, the committee has developed several free or low-cost ways to lift employee morale, including the Julia Porter Award and two other annual achievement awards. The hospital also provides less-formal, more-frequent honors through its Applause Program, which supplies managers with gift certificates that they can distribute to deserving employees at their discretion.

Another program encourages workers to improve their own work environment. Staff members submit their suggestions and receive $150 gift certificates when their ideas are put to use. One winner: an online “swap shop,” in which departments list unused supplies, equipment, and office furniture that other departments may want.

Going Public

But probably the cheapest, and most effective, thing that Children’s Memorial does to reward its employees, says Ms. Mahoney, is to simply thank them — often, and in front of as many people as possible. “We take the time at meetings with our staff to verbally recognize accomplishments, big and small,” she says.

Many workers are hungry for kudos from their co-workers, says Vivian Bertman, who works as an internal consultant for human resources at Seattle Goodwill. Her organization, she says, strives to make it as easy as possible for all employees, not just managers, to thank hard-working employees.

For example, beginning about a year ago, each of the organization’s stores and training and administrative sites created a “happy box” — a big, bright orange toolbox covered with happy-face stickers. The boxes are filled with candy, toys, and other small prizes that co-workers are encouraged to give to each other when they see a colleague doing something above and beyond the call of duty. Most of the gifts carry customized labels, such as one on microwave-popcorn packets that reads “Thanks for popping into action!”

Seattle Goodwill also maintains a bulletin board at each of its locations where staff members can reward each other with “stars” at any time. The names of both the person honored and the person awarding the star are later entered into random drawings for prizes like Blockbuster and Starbucks gift cards.

“The gift cards are only $5,” says Ms. Bertman, “but they make a big impact on employee morale.” Although the group does not yet have any data that show the results of its efforts to reward employees, she says, the number of stars studding the boards shows that Goodwill workers like giving and receiving recognition.

While snacks and general-merchandise gift certificates can make great incentives, some employers try to make their rewards more personal. The Community Foundation for the National Capital Region, in Washington, used to award an Employee of the Month honor, for which winners received prizes customized to their tastes, says Carole Johnson, the group’s office manager.

Honored employees have received gift certificates to their favorite restaurant or store, or a favorite food item, such as cheesecake from The Cheesecake Factory restaurant chain. “This worked well because not only did employees feel motivated and appreciated by the recognition,” she says, “but they also received a gift that was tailored to their specific tastes, which showed them that some real thought had been put into it.”

Offering Flexibility

Effective rewards do not necessarily have to be tangible prizes, however. A flexible work schedule and a supervisor who understands the difficulties of balancing work and home life can be a huge reward in and of itself, says Sean Simpson, who worked for 14 years as both an employee and as a manager at several nonprofit organizations in Tulsa and Oklahoma City before accepting a job this past spring at a for-profit communications company.

As a boss, Mr. Simpson says, he sent “thank you” notes not only to hard-working staff members, but also, during particularly hectic times, to their spouses to thank them for their sacrifice and patience. He also gave all his employees a paid half-day off every month, which he encouraged them to use for something fun, like shopping or getting a haircut, rather than for doctor’s appointments or errands.

“I had two employees in particular tell me that they specifically stayed for less money because of the flexible hours and the other unconventional perks,” he says. “People already make a lot of sacrifices by working at a nonprofit, so offering a flexible schedule or time off are very easy ways to say ‘thank you.’”

Invest in Employees

Another inexpensive, yet powerful reward that charities can offer their staffs is the chance to develop skills and make professional connections. At first glance, seminars, classes, and the like may seem to be too work-related to be considered rewards, but employees may be flattered and to see that their bosses are investing in their careers and personal growth, says Steve Watts, head of Bold Approach, a management consulting group in Boise, Idaho, that works with nonprofit clients. “It makes them feel important, respected, and recognized all at the same time,” he says.

Joann Cyganovich, executive director of Sisters Place, a charity in Pittsburgh that provides housing and other services to homeless mothers who are raising their children alone, says that she looks hard for chances to help her staff members get the training they need. She scours the health section of local newspapers each week for announcements of free or low-cost seminars, and she checks the Web sites of local hospitals, many of which offer workshops on women’s issues. She’s learned, she says, that her county Department of Health and Human Services offers free seminars for human-services providers on such topics as mental illness and substance abuse.

She has to remain vigilant to take advantage of the opportunities, she says: “I’ve found that most organizations that offer training also have scholarships or discounts available to nonprofits, so it is important to respond to announcements as soon as possible.” But, she adds, it’s been worth the effort. “My staff appreciates not only the confidence that they gain through the training, but also the opportunity to get out of the office environment and to network with others.”

Educational opportunities can be developed in-house as well. For example, the Frick Collection, an art museum in New York, has hosted a Staff Education Day for its employees every summer for the last five years. This event, which takes place during normal working hours, features classes taught by staff members. This year, the staff chef taught a cooking class, the staff gardener taught city dwellers how to tend to plants on their fire escapes, and the events coordinator explained how to plan a party on a budget.

“It’s a really fun learning opportunity for the employees,” says Dana Winfield, the museum’s head of human resources. “And for those who teach a course, it’s a great chance for them to show off their talents and share some facets of their job that others don’t ordinarily get to see.”

Following Through

In setting up rewards programs, charities must be careful not to commit to more than they can sustain, says Kate Dewey, a management consultant in Pittsburgh.

“Wonderful gestures followed by inconsistent actions or no action are counterproductive,” she says. “I have seen organizations haphazardly implement incentive and recognition programs that lacked well-formulated goals and clearly defined reward criteria. Those poorly planned programs created hurt feelings and perceptions of favoritism among employees.”

Perceived favoritism was exactly what ultimately led the Community Foundation for the National Capital Region to abandon its Employee of the Month program, in which employees voted for their peers to receive the honor. It started out successfully, but soon degenerated into what Ms. Johnson calls an “American Idol situation,” becoming more of a popularity contest, and less of an acknowledgment of workers’ performance.

One way to avoid this pitfall, say nonprofit managers, is to require that employees list very specific reasons when nominating co-workers for awards.

For example, Ms. Mahoney at Children’s Memorial Hospital says that the organization has created strict and clear eligibility requirements for awards, and also removes the names from nomination forms after they have been submitted, so that the selection committee must choose winners strictly on merit.

To be effective, nonprofit groups that hope to start reward programs need to be sure that all managers support the idea, says Mr. Watts of Bold Approach.

“When incentives are promoted from the director-level down and each manager is consistently promoting them to her team members, they almost always work, if they are relevant to the team,” he says. “But when there is no buy-in from the top, people see right through the efforts. If managers are not motivated to promote reward programs, they won’t, and employees will quickly begin to see them as worthless and will stop striving to earn them.”

At Children’s Memorial Hospital, managers’ dedication to rewarding their best workers appears to be bearing fruit, says Ms. Mahoney. Response scores to the annual employee-opinion survey question “Are you given recognition when you provide good service or care to your patients/customers?” has seen a significant boost since the rewards programs were implemented. In 1999, the median score was 2.99 (out of 5). In 2003, she says, the same question received a score of 3.51.

As for Ms. Beddome, she says she is thankful that she has an employer that appreciates and rewards her best efforts, and she encourages other charitable organizations to do the same for their staff members.

“Happy employees make for happier clients, customers, and patients. It’s all one big cycle,” she says. “If employees feel appreciated and rewarded, they will go out of their way to make their customers happy and satisfied. And if they like their jobs and what they do, it will be apparent to the people they come into contact with, and all of it will only reflect positively on the organization as a whole.”