Wal-Mart Misses The Boat With Employee Recognition
On December 4, The New York Times published an article about Wal-Mart’s plans to increase employee recognition. (“With a Shirt and Discounts, Wal-Mart Says Thank You to Workers” by Michael Barbaro and Steven Greenhouse) It seems that Wal-Mart has decided to polish its tainted image by showing more appreciation for its 1.3 million workers in the US. Promising increased access to managers, increased discounts and reduced healthcare premiums during the holidays, the “Associates Out in Front” program made its debut.
Now, don’t get me wrong, I’m all for employee recognition. If you’ve read any of my previous writings, or my website, you’ll recall emphasis on optimizing Structure to create value for employees. In my opinion, employee rewards and recognition are a key component of the Structure of a business. That being said, optimizing Structure requires a solid understanding of a business’s Strategy and its existing strengths and weaknesses.
It is mind boggling to me that Wal-Mart’s employee incentive program could have missed the boat so miserably – at least on one point: personalized golf shirts after 20 years of service. Wal-Mart’s employee turnover is approximately 44%. (I gleaned this tidbit from a timely article in the December issue of Harvard Business Review, “The High Cost of Low Wages” by Wayne Cascio.) So, with the average employee working at Wal-Mart for less than 2.5 years, exactly who do executives think they are motivating with a golf shirt after 20 years of service?
Clearly, the powers that be at Wal-Mart have neglected to notice that workforce trends are changing. Today’s employees change jobs relatively frequently, voting with their feet in the constant quest for the perfect job. Long gone are the days of lifetime employment, expected by employees and promised by employers…At least in those days 30 years earned you a gold watch and a retirement party.
Wal-Mart would be much better served to establish modest, yet meaningful rewards at much smaller milestones: 3 years, 5 years, etc. This would create an attainable recognition for employees and demonstrate that Wal-Mart executives both value and understand their employees.
Now, don’t get me wrong, I’m all for employee recognition. If you’ve read any of my previous writings, or my website, you’ll recall emphasis on optimizing Structure to create value for employees. In my opinion, employee rewards and recognition are a key component of the Structure of a business. That being said, optimizing Structure requires a solid understanding of a business’s Strategy and its existing strengths and weaknesses.
It is mind boggling to me that Wal-Mart’s employee incentive program could have missed the boat so miserably – at least on one point: personalized golf shirts after 20 years of service. Wal-Mart’s employee turnover is approximately 44%. (I gleaned this tidbit from a timely article in the December issue of Harvard Business Review, “The High Cost of Low Wages” by Wayne Cascio.) So, with the average employee working at Wal-Mart for less than 2.5 years, exactly who do executives think they are motivating with a golf shirt after 20 years of service?
Clearly, the powers that be at Wal-Mart have neglected to notice that workforce trends are changing. Today’s employees change jobs relatively frequently, voting with their feet in the constant quest for the perfect job. Long gone are the days of lifetime employment, expected by employees and promised by employers…At least in those days 30 years earned you a gold watch and a retirement party.
Wal-Mart would be much better served to establish modest, yet meaningful rewards at much smaller milestones: 3 years, 5 years, etc. This would create an attainable recognition for employees and demonstrate that Wal-Mart executives both value and understand their employees.
Labels: employee recognition, organizational Structure, Wal-Mart
