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Home My WebLink AboutCAO-06-011 - Staff Recognition Program1 Ki~~.R ~hiefAdministraror's Off)ce REPORT Report To: Mayor C. Zehr and Members of Council Date of Meeting: February 20, 2006 Submitted By: Carla Ladd, CAO Prepared By: Doug Paterson, Director of Human Resources & Christiane Sadeler, Interim Director of Community Programs & Services Ward(s) Involved: n/a Date of Report: February 14, 2006 Report No.: CAO-06-011 Subject: STAFF RECOGNITION PROGRAM RECOMMENDATION: That funding of the city-wide staff recognition program be increased from $50,000 to $100,000 on an annual basis and this program continue to be funded through savings achieved through the gapping program. BACKGROUND: In June 2003, a new Performance Management program was endorsed by Council. This program introduced performance based variable pay for senior management positions and a cash pool of $50,000 to allow for the recognition of outstanding performance for individuals or groups throughout the organization. Funding for both the general staff recognition program and the senior management bonus system are charged against the City's gapping account and are thus generated by savings or unspent funds from staff vacancies. Early in 2005, the Senior Leadership Team (SLT) reviewed this program and decided to discontinue the performance based bonus system for management in favour of developing an improved, organization-wide performance recognition program. Subsequently, in April 2005, SLT formed asub-committee to investigate how to best re-allocate funds from the discontinued bonus system to the staff recognition program. Committee members were: • Shelley Adam • Keith Baulk • Michelle MacDonald • Michael Michalski • Doug Paterson • William Sleeth • Brandon Sloan • Christine Solcan • Gary Sosnoski • Christiane Sadeler Following parameters established by SLT, the sub-committee's deliberations were based on a review of the recognition program todate -including past rationale for the recognition program, employee experiences with the program, and departmental and divisional applications of the program - as well as research of the value and effectiveness of staff recognition in general. Initially, committee members were made up of management staff. However, two months into the review process, it was decided to merge the efforts of the recognition committee with the Employee Advisory Committee (EAC), which had also extensively reviewed and discussed staff recognition, in order to ensure cross-corporate communication. The Financial Services Department also provided assistance. The following standing staff committees were consulted by the joint committee: Employee Advisory Committee (EAC) • Senior Leadership Team (SLT) • Management Leadership Team (MLT) Corporate Management Team (CMT) REPORT: In response to Council's strategic area of focus "Pride in the Workplace", staff have developed new programming which along with existing programs (eg: Long Service Awards) is intended to foster a positive culture shift within our organization. The following chart outlines the various initiatives to date. Initiative Budget Budget Source Wellness Program $12,000 Fringe Benefit Account Staff Development: • City Talk • Bravo Cards • Candidate Testin $15,000 Capital Budget Employee Orientation None N/A Staff Appreciation $100,000(proposed) Gapping Fund Employee Advisory Committee $1500 Operating Budget Long Service Recognition $21,500 Sick Leave Reserve Appreciation should be expressed daily by not only managers but indeed by all City staff: All staff need to be cognizant of how their behaviour impacts the well being oftheir co-workers. This approach reinforces the corporate values of the City and our leadership agreements and enhances the cultural change process as outlined by the CAO. Daily efforts to adhere to principles of cooperation, fairness, friendliness and inclusion serve an organization more than any one program could ever attempt to accomplish. Programs of recognition are not meant to replace daily interactions and efforts to build a strong, safe, supportive and healthy working environment, nor can they make up for any lack of consideration in these areas. However, it is well documented in research that the most significant impact on organizational health can be attributed to three factors: (1) reasonable expectations; (2) a locus of control as close to the work that is being performed as reasonably possible; and (3) appreciation and recognition of special efforts. Furthermore, research shows that recognition is critical for recruiting and retaining talented and dedicated staff. Retaining staff will soon become a major consideration as we move into a period of widely recognized global labour shortage. In recognizing the efforts of those employees who go "the extra mile" in the performance of their duties and those employees who foster a strong team environment, we will be serving the Corporation in its efforts to change our corporate culture, and to recruit and retain the very best employees. These efforts will translate into a resilient organization and moreover, the community we serve will receive better service. The staff recognition pilot program at the City of Kitchener rationalized: "A Corporate Performance Recognition Program has been set up to allow for formal recognition of employees because of work that they do in an outstanding way. Employee recognition ties into the Corporate Strategic Plan. The following principles should be considered: Something for individual efforts, something for team efforts". (Internal Memorandum: Corporate Performance Recognition Fund.) Funds were divided by department, based on permanent employee complement, and were tracked on the City's Core Complement report. While guidelines were established under which the plan was administered, departments had sufficient flexibility to allow for a range of approaches in allocating these funds. A consultation with the above-mentioned committees, a financial review and a survey of General Managers in July 2005 revealed the following themes: ^ Recognizing staff can significantly contribute to sustaining and enhancing an organizational culture where people like to work and provide good service. • Some managers excel in utilizing the program with creativity and with an eye to the larger picture. • There are critical differences in the implementation of the program across departments and divisions and some of these differences speak to the unique nature of each departmentldivision. • There is an inconsistent use of the program across the Corporation and some departments and divisions under-utilize the program. • Some departments and divisions utilize the program for efforts more accurately described as staff appreciation than recognition. • There is no consistent awareness of the existence of the program across the Corporation. • The program needs additional guiding principles for application. Based on these findings the committee proposes that the staff recognition program continue with some adjustments to ensure its corporate identity and effectiveness. The following is the expressed purpose of this program as proposed by the committee. The staff recognition program of the City of Kitchener aims to augment practices that appreciate and include all staff by providing special acknowledgement of those staff that go beyond their duties to meet the values and vision of the city. Managers should pay attention in this recognition not only to the outcome but also the process (including overcoming barriers) engaged in by staff to accomplish a positive result for the City and citizen service, the department and division culture, and their teams. The program seeks to enhance an organizational climate that thrives on engagement, innovation and dedication. The behaviours the program should aim to support are identified as: • Dedication • Enhancing the vision of the City • Equity • Excellence in performance • Excelling in a duty beyond expectation • Fairness • Fostering a healthy team environment The following principles should guide the implementation of the recognition program: ^ Clear delineation as a corporate program ^ Transparency ^ Financial accountability ^ Creativity The committee further agreed: ^ That an evaluation be conducted annually by Human Resources. ^ That departmental and divisional uniqueness be sustained and fostered. ^ That all management staff be trained in the purpose and application principles of the program. ^ That creative applications within departments and divisions should be encouraged ^ That a "tool box" of good practises be provided. ^ That recognition efforts should clearly support people as our most valuable resource. ^ That the program be officially launched through the office of the CAO to ensure staff awareness of its existence and expectations. ^ That management performance evaluation include consideration of the appropriate utilization of recognition. FINANCIAL IMPLICATIONS: The funds for the staff recognition program be increased to $100,000 per annum, representing a $50,000 increase. COMMUNICATIONS: Communication to all staff should launch the extended program, and management training in recognition should be provided at L.E.A.D. workshops. CONCLUSION: Pride in the Workplace is an essential element to providing a higher quality of service across the City. A focused and clear staff recognition program enhances these efforts by acknowledging the staff that go "the extra mile". Recognizing talent and dedication is widely understood in research as a key component of building resilient organizations and a small per staff allocation can go a long way towards furthering the well-being of the City team and by implication the quality of services provided to residents. Respectfully submitted, Doug Paterson Director of Human Resources C: Carla Ladd Christiane Sadeler Interim Director of Community Programs & Services SLT Recognition subcommittee