The bonus question: How to boost performance and recruitment while ensuring transparency
This article appeared in Right Course - a magazine published by Business in Vancouver (2012 issue). To view the print version, please click here.
Bonuses easily qualify as among the most hotly debated forms of payment. The sophisticated schemes and hefty sums of the 1990s and early 2000s still elicit strong emotions as we recall those bailed-out Wall Street executives handing themselves handsome bonuses, even while economic uncertainty continues to this day.
While the percentage of employees fortunate enough to get mega-bonuses is miniscule, most corporate professionals do have some bonus component to their compensation. Bonuses are typically tied to performance, either individual or company-based. Often a bonus links to both, as a percentage of the base salary.
Yet bonuses remain mysterious to most of us. Unlike base compensation, they’re almost never clearly quantified in employment contracts. Therefore they can be distributed at the employer’s discretion, communicated as thanks to employees for achieving certain goals. Such vagueness inadvertently produces a disconnect between employees’ expectations and what companies are really prepared to pay.
If bonuses are to reward performance, companies must establish clear rules and expectations as to how they measure corporate and individual results. A business that prides itself on encouraging performance but then hides behind discretionary “thank-you” bonuses risks being perceived by potential employees as hypocritical to its staff.
At the core of a bonus plan is the intention to align individual performance with what’s best for the company.
It’s relatively easy to set up key performance indicators (KPIs) for employees who affect the bottom line directly, but it gets more complicated when performance doesn’t generate profit immediately. Creating awareness of how each employee contributes to the success of the business is an important first step.
Once you’ve established KPIs for each role, the next step is to identify high yet attainable goals. To ensure internal buy-in, develop these goals collaboratively with each employee and review them together regularly. If bonuses are based on performance, people must be confident in their ability to attain their goals.
Incentives become notoriously more complicated than they appear to the people who first set them up, so put the structure in writing. Be as specific and unambiguous as possible. People will focus their actions on areas on which they’ll be measured. An unbalanced incentive structure leads to neglect of important deliverables. Good employment contracts and clearly defined performance plans can help you minimize this problem. Be unmistakable about what constitutes performance and how each employee’s performance will be measured, so that every person understands how his or her own contribution affects the organization’s success.
Lastly, it doesn’t always have to be about money. Most Fortune 500 companies also support innovation and creativity through recognition. Positive reinforcement and active engagement are key indicators of corporate cultures that celebrate success and produce high performance.
Continuing economic challenge offers an excellent opportunity for companies to take hard looks at their corporate cultures, for realigning their approaches to measurement and recognition. An environment in which employees are passionate about doing their best every day results in higher profitability, which, in turn, allows for better bonuses.
Bonus dos and don’ts
- Do ensure that any performance targets for earning a bonus are within the individual’s area of control or influence.
- Do set goals ambitiously but make sure they’re attainable. Follow the SMART rule: make goals specific (S), measurable (M), attainable (A), relevant (R) and time-bound (T).
- Do aim for transparency. Track performance consistently. Give your employees full access to their comparisons to the benchmarks.
- Don’t be cheap. If the bonus isn’t worth the extra effort in the employee’s eyes, you’re defeating its purpose.
- Don’t make it too complicated. Use easy-to-understand formulas for bonus payments, and you’ll avoid frustration and conflict.
- Don’t wait until the next performance review to discuss shortcomings. Discuss performance issues immediately.
Why top talent continues to choose Vancouver
This article appeared as part of my quarterly column in the HR supplement of Business In Vancouver (July 19 – 25, 2011; issue 1134). To view the print version, please click here.
In the story “Home truths hurt talent search”, published in the Business In Vancouver May 31st issue, several executive recruiters warned that Vancouver-based employers lose out on recruiting top talent due to our red-hot housing market and high cost of living. While this is true, there is also no denying the fact that a lot of people have deliberately chosen to make Vancouver their home, despite the challenges of the city’s affordability.
When asked about the origin of applicants to the BC Cancer Foundation, Cindy Dopson, Director of Human Resources suggests that only 50% of all resumes actually come from BC. A large number are being received from Alberta, followed by other provinces, mainly Saskatchewan, Ontario and Quebec. On top of that, quite a few resumes come from the US. When screening those applicants, it turns out that most of them are keenly aware of what they are getting themselves into.
To avoid surprises later on, recruiters at lululemon athletica cover the home truths right off the bat. Most importantly, though, they stress what still makes Vancouver such a desirable place to move to: “We tell them, yes, your place will likely be smaller but it might only be a few blocks away from the ocean. Your commute might be 10 minutes by ferry as opposed to two hours in traffic. 30 minutes and you’re in the mountains”, says Stephanie Corker-Irwin, Head of Recruitment at lululemon. All this is part of a well-developed recruitment strategy as the company purposefully looks to hire people who embrace the West Coast lifestyle, which is also part of lululemon’s corporate culture, states Corker-Irwin. “We are not looking for people who want to replicate their NYC lifestyle, but rather who will embrace the beautiful experiences here in Vancouver.”
Eric Perez, HR Director at WorleyParsons remembers discussions with candidates from places like Texas where taxes and cost of living are substantially lower compared to Vancouver. Surprisingly, some have told him they would much rather live in a society that values inclusivity and has a strong social culture. That said, Perez is still cognizant of the fact that financial concerns are a reality for hiring managers looking to bring people to Vancouver. But if companies can’t ease the pain by maxing out their budgets and paying newcomers top dollars, what else can employers do? Perez suggests that recruiting managers are forced to really understand their candidates much better: “This is a great opportunity for companies to see what else they can do to accommodate their candidates’ personal and family needs.”
In her career as an HR professional, Sabeeha Pardhan, now HR Manager at Molson Coors Canada would routinely connect new hires with real estate agents, invite potential candidates to events in Vancouver, and offer assistance in finding work for their spouses. “You really have to spend time with them to find out what they want”, urges Pardhan as she recalls situations where new hires were offered regular flights home, and exceptions were allowed to vacation and education reimbursement policies. In one case, a paid golf club membership did the trick, registered as a taxable benefit.
Other than meeting candidates’ unique needs, some companies have understood that building extraordinarily strong corporate brands can withstand the challenges of a place where many think only the rich can afford to buy. Lululemon is a great example. The same goes for organizations such as the BC Cancer Foundation which is known as one of the top fundraising organizations in BC. Vancouver’s hot housing market and high cost of living is a reality companies have little control over. What they are in control of, however, is their brand as employers of choice. Companies like lululemon know exactly who fits their culture. They have mastered the art of attracting the right talent by focusing on all the things that truly matter to their people outside of basic monetary needs. In this market, employers have two choices: they can complain about how the housing market prevents them from recruiting top people to Vancouver, or they can start to think what unique value they can offer to meet their employees’ non-financial needs. Which option will your company pick?
Counter offers – the forbidden fruit of employee retention
This article appeared as part of my quarterly column in the HR supplement of Business In Vancouver (April 19 – 25, 2011; issue 1121). To view the print version, please click here.
While the challenging economic climate of the past two years has given employers a bit of a break, there is no denying that the war for talent is back on again. The economy is picking up and a lot of people have made “finding a better job” their number one New Year’s resolution. Still, most employers will be caught off guard when a valued employee hands in their notice. Many will default to the age-old sales strategy of making a counter offer. As someone who recruits professionals and assists companies in trying to hire the best talent, I have frequently observed how the counter offer game is being played. Rarely does anyone win.
The resignation of a high performance employee means considerable loss of knowledge and revenue to a company. Add to that the average cost of 1.5 – 3 times their annual salary to find a replacement. Presenting a better offer appears to be the only realistic option to prevent significant loss to the company. I firmly believe in doing whatever you can to retain your top employees, but the moment an employee makes it known that they have another offer on the table, the dynamics of the relationship between employer and employee shift dramatically. If you are not prepared to accept the resignation, there is no real alternative to making a counter offer. However, this makes it an act entirely born out of desperation. I like to call it the forbidden fruit of employee retention, and as tempting as it may seem – don’t touch it.
Employees who are truly invested in the well-being of their company will always bring up their concerns and, at times, challenge their employer. Only when they repeatedly feel disappointed will they consider the last resort: Making the conscious decision to leave. You might be able to persuade them to stay on by making all sorts of promises and possibly paying them a better salary. Almost all companies who make a successful counter offer still end up losing the person within the next six months. The reason: A counter offer only sugar-coats issues that are much deeper rooted and can’t be resolved as easily. Eventually, employees will remember why they were looking in the first place. And that has rarely to do with money, benefits, vacation time or job title. Most employees leave because of their bosses.
Sometimes, an employee hands in their notice completely out of the blue. Before rushing into a counter offer, take a moment to think about this: Why did they not bring up any of their concerns before? If they never bothered raising their concerns and observations with you, are they really the kind of individual you want as part of your business? You may be able to convince them to stay on, but be prepared that their productivity level is compromised as they have already checked out mentally. Also consider for a moment the effect a successful counter offer sends to your other staff. People talk and your other employees will soon have figured out that they have a very powerful bargaining tool at hand. Do you really want to put your company into such a vulnerable position?
That said, there is one circumstance when touching the forbidden fruit can be excused: In a pinch, a manager may very well want to use this tool, especially when the immediate cost of losing the individual outweighs the risks of the counter offer. Keep in mind that the odds are against you if you think you will be able to retain the individual permanently. Instead, use the counter offer strategy to buy yourself some time. Remember, by threatening to leave, the employee has just shown you how little they believe in a future with your company. You can no longer be sure of their loyalty and commitment. Use the time you bought with the counter offer wisely and do whatever you can to find a replacement as soon as possible.
A word of caution to any professional considering accepting a counter offer: Think very carefully about the implications of your decision. If you have gone through an in-depth interview process with another company but turn down their offer because you accepted a better deal from your current employer, your true motivations will be questioned. In my experience, companies don’t make job offers lightly and will wonder whether you were simply out shopping for a better deal. This will definitely limit your future chances with this company and whomever you met during the interview process. Receiving a counter offer is very flattering but be aware that you will invariably be considered a flight risk even if you decide to stay on. Your employer can no longer be sure of your loyalty. What will this mean for your future career?
photo credit: purplemattfish
Etiquette 101 for Hiring Managers – How applicants’ experiences during the hiring process have a substantial impact on the employer’s brand in the candidate community
This article appeared as part of my quarterly column in the HR supplement of Business In Vancouver (October 26 – November 1, 2010; issue 1096). To view the print version, please click here.
In my role as a recruiter, I spend a lot of time in interview situations. Like most hiring managers, I sure have my share of anecdotes when it comes to the topic of etiquette. There are numerous examples of applicants blowing their chances by ignoring the simplest rules of first impressions, ranging from being late to casually bringing along a cup of coffee to the job interview. However, basic etiquette (or the lack thereof) is not only a pet peeve for employers but also a hot topic in the candidate community. When asking job seekers about their experience applying for jobs, many are disillusioned and frustrated after having had poor experiences. The recessionary climate has put some hiring managers in a deceivingly comfortable spot where opportunities are scarce and applicants are plentiful. Qualified candidates complain about companies not responding to their applications, about poor interview experiences or a breakdown in communication after having gone through a formal interviewing process with a company.
What many employers seem to forget is that the interviewing and hiring process speaks volumes of the company’s brand as an employer. Smart companies know how important it is to treat every applicant respectfully and to offer an interviewing experience that reflects the company’s brand and values. It’s not just about courting the best candidates; job interviews can still be tough, intense situations. In fact, high potential applicants will expect a tough interview process which enables them to display their accomplishments and abilities which will make them stand out from the pack. A high performing, no-nonsense producer will want to feel reassured that the company they are interviewing with shares their sense of professionalism, respect and effectiveness. Here are a few ideas how your company can improve their brand in the candidate community:
- Set expectations properly: One of the major frustrations applicants experience is the complete lack of communication after an initial application has been submitted. If you are not planning on contacting every single applicant, at the very least include a disclaimer in the job posting indicating that only qualified applicants will be contacted. Ideally, you will also include a specific date by which an applicant can expect a response. At least they will know to move on if they haven’t heard anything by then.
- Communicate effectively: Most companies have applicant tracking or HRI Systems in place that allow them to properly track applications and to send out personalised emails to large groups of recipients. Why not set up an automated response thanking applicants for submitting their resumes and advising them of what they can expect moving forward? Even if your company doesn’t have a proper system in place, a basic email client has the ability to send automated responses or customised emails.
- Consider some advice from the dating world: As with any first date, a first impression is a lasting impression. When conducting the first interview, remember the basics: Be polite, be respectful, and be on time. Be an active listener but also be prepared to give an elevator pitch as to what an employee can expect from your firm. As the labour market improves, top candidates end up with multiple job offers and you want to make sure that your company is at the top of their list.
- Nothing trumps professionalism: I’ve heard numerous hiring managers say that they don’t really need to “interview” a candidate. They simply “know” when they see the right fit. While this may be true, the applicant is left with a disappointing experience. A strong candidate will want more from an interview than just a pleasant conversation. They want to feel that the hiring manager has a keen interest in their work history and previous accomplishments. In the worst case, a top candidate may not want to proceed after a weak interview experience as they presume it is a reflection of the company’s lack of focus on performance.
- Be smart when releasing applicants: At the end of the day you can only hire one person per job. It’s very tempting to focus entirely on that new hire. Sadly, taking down the job posting marks the end of the hiring process for most companies. Making an effort to not leave other applicants in the dark is more than just good karma: Those applicants who have been interviewed should receive personal feedback. Be constructive and explain your hiring decision. Thank them for their time and interest and encourage them to keep in touch should you feel that they may be of interest for future openings. Sending out an email to the other applicants who could not be interviewed offers a great opportunity for employer branding. By advising them that a hiring decision has been made and thanking them for their interest in your company, you are sending a clear message that speaks volumes of your professionalism and thoroughness not only during the recruitment process but also in how your company conducts its business.
As with any experience in an open market, negative news travels exponentially faster than positive. In a time when people can vent publicly about a negative experience, disgruntled job seekers can leverage the powerful world of social media networks by openly commenting on their experience with a particular company and an employer brand can suffer substantial damage. With every new job your company recruits for, your brand is put to the test over and over again. A lot can be gained from offering a great hiring experience. Much more can be lost by having a particularly bad one. What is the impression you think your organization is leaving in the candidate community?
Everyone’s a leader!
This article appeared as part of my quarterly column in the HR supplement of Business In Vancouver (July 20 – 26, 2010; issue 1082). To view the print version, please click here.
I was 16 when I had my first full-time temp job. It was a three-week stint during spring break, doing some basic machine and assembly work in a local manufacturing business. The comparatively good money aside, my experience was a rather daunting one. The image of being no more than that infamous cog in a company’s machine started to dawn on me. While I was only there for a couple of weeks to earn some extra cash, I knew that most of my co-workers were following a highly repetitive schedule where you get up, go to work, put in your hours and stamp your time card not a fraction of a minute too late. My first impressions of the working world were that you do what you’re told and don’t dare to think – not even inside the box. In this reality, the rewards are an alleged sense of security, structure, direction and order. And there seems to be a reason that society has been so successful in dividing the workplace into a small group of leaders and a much larger group of followers: It goes back to that primordial instinct that makes us see anything new as a risk to our personal safety. Entrepreneur, author and blogger Seth Godin calls this the “lizard brain”; a work environment where everyone keeps their head down and simply follows detailed directions satisfies the lizard brain. Even though the lizard brain makes us generic and replaceable, a vast majority of employees simply can’t get past it.
In the past, reward was given to those who soldiered on the most, followed directions the best, and worked the longest hours. No wonder we used to refer to our daily work as the “grind”. Employees who are thriving today are nothing less than leaders in their own realm. Godin calls them “artists”, in the sense that they provide value to other peoples’ lives above and beyond what is expected of them. They are not replaceable cogs in the machine but “linchpins” as Godin calls them: indispensable components of the whole. You find them in your favourite coffee shop where the barista makes you feel so good that you would never think about getting your latte anywhere else. You find them in the flight attendant who puts a smile on your face with their wit and attention. They are the customer service reps who not only solve your problem but manage to make you laugh and completely forget why you were so frustrated before making the call. Linchpins are better listeners – they do what it takes to solve problems, and they engage with people. They are leaders at what they do; not because they have to, but because they can’t help but invest emotionally in the work they do.
Why are such leaders in everyday jobs still a rare find? The answer may be slightly more complex than you might think. People are leaders in their field because they are passionate about what they do. They truly care. The real challenge is that the majority of employees don’t do what they are really passionate about. They are in the wrong jobs, doing the wrong things that don’t really mean anything to them emotionally. This predicament was described by Ken Blanchard and Sheldon Bowles in their 1993 bestseller “Raving Fans”: More than 55% of North Americans are dissatisfied with their current jobs. No wonder that a good number of people come to work in a bad mood. Unhappy employees are all around us. Instead of being unhappy, Blanchard and Bowles ask, why not take the lead and focus on improving the situation? Leadership goes hand in hand with self-respect, taking charge of our own destiny and is ultimately born out of a sense of purpose. Author and New Yorker staff writer Malcolm Gladwell examines a few examples of individuals who decided to rise above the rest. In “Outliers”, he shows that what separates the good from the great and exceptional are two basic virtues: passion combined with hard work. Be it The Beatles, Bill Gates or Steve Nash – what separates the good from the great is practice, and lots of it.
Great employers have long realized that individuals don’t want to be micromanaged. The self-management trends of the past couple of decades have allowed for everyone to manage their own work, time, production, quality, and goals. Former GE CEO Jack Welch is known for allowing everyone in his company to be a leader, just so long as they contribute, ideally with new business ideas. Such commitment generates a sense of purpose, a high degree of respect, extensive involvement, dedication, and enthusiasm. Are you lizard or are you a leader?
Grape Juice – A Wine Auction for Big Sisters of BC Lower Mainland
At McNeill Nakamoto, we believe that a strong connection to our community completes us. Grape Juice is an exciting fundraiser event we created in 2007. Oenophiles enjoyed the silent auction in 2007 and 2008 which raised a combined total of $40,500. This year, our goal is to raise $50,000 at Grape Juice to commemorate the 50th anniversary of Big Sisters of BC Lower Mainland. The following article is courtesy of McNak Blog:
We like to dream big. And when it comes to Big Sisters we can find no boundaries to this dreaming. We are honoured to have created an event that has become a cornerstone fundraiser for Big Sisters of BC Lower Mainland.This year we’ve taken it to the next level with our partnership with Cameron McNeill Group of Companies which includes MAC Marketing Solutions, TAC Real Estate and MPC Intelligence. “Grape Juice” is THE social wine event and auction tailored for wine aficionados both casual and serious. And most importantly, it’s all for a great cause – Big Sisters of BC Lower Mainland.
Once again, Grape Juice will be a terrific, fun, after work function – it will take place on Thursday, May 6th 2010 at the cool V Lounge at the new Earls in Yaletown (between 5 and 8 pm so it’s the perfect night to go out for dinner). Tickets are $100 and attendees will be able to sample top wines from both BC and around the world, bid on a wide selection of wines (including some hard to find ones), as well as enjoy some appetizers and entertainment. If you are a wine connoisseur or simply enjoy wine and a great social event, then this event will certainly appeal to you!
This event is limited to 250 people and the last event sold out so get on the list now! Plus, if you choose to donate some wine – whether $30 or $300 value, Big Sisters will provide the donor with a tax receipt! – everyone wins! Big Sisters will of course happily accept cash donations as well if you are unable to attend.
To donate money or purchase tickets call Andree Lalonde at 604.873.4525 ext. 302 or complete their online web form. For information on how to donate wine or contribute to Grape Juice contact Jessica Rozitis. Don’t forget to check them out online at www.grapejuicevancouver.com.
Are you making Conan O’Brien’s mistakes?
- Avoid defensive talent strategies: Conan was promised the host role of The Tonight Show in response to efforts by competitors to steal him away from NBC in 2004. Jay was promised the 10PM slot due to fears he would go to another network. Both decisions suggest a defensive approach to talent — keep them because “they’d be dangerous at the competition” rather than “they’re the perfect fit with our strategy.” Talent choices should be made proactively and to hurt the competition, not merely to avoid pain.
- Place big talent bets: It can take new talent a while to reach their full potential. Give them that opportunity. Once they’ve identified their “stars,” organizations should focus all their resources on making them successful. Early missteps aren’t necessarily predictive of failure — it’s often just moving up the learning curve. A little patience can result in a big payoff.
- Diversify succession risk: Lining up successors against individual jobs is a rather outmoded approach. Is it expensive to have two talk show hosts in the succession pool? Of course — just as it was expensive for GE to have three CEOs in waiting. Yet that gave them tremendous flexibility when it came to replacing Jack Welch. Somehow, GE’s succession planning rigor didn’t seem to reach NBC.
No question, more than ever before companies understand how important it is to nurture their Power Employees and to build a culture that allows for top talents to find fulfilment while realizing their full potential. At McNak we have been fascinated by corporate culture and are amazed by companies when they truly get it. But what if a company’s best intentions still have to yield profit-driven directives? Marc Effron and Miriam Ort recommendations can serve as an excellent reminder for every high potential employee:
No organization can make reasonable promises of future placement — you’re setting yourself up for disappointment trusting an organization to honor that agreement. In fact, that’s essentially today’s career deal. The corporation will give you an opportunity to acquire a bundle of experiences that have some market value. They are under no obligation to take advantage of that combined experience but they have the option to do so. If for some reason they choose not to take that option (or to revoke it) you walk away and apply those skills to an employer who values them.
What do you do to ensure that you don’t end up like NBC and Conan?
Professional training and development make the difference
This article appeared in Right Course - a magazine published by Business in Vancouver (2010 issue). To view the print version, please click here.
Developing your professional skills is an excellent idea in any economy but particularly important when the labour market is highly competitive. With more players on the scene, those who continually invest in their own skills and talents have significant advantages.
One of the most common errors in training is to look for ways of improving weaknesses rather than developing areas of strength. Imagine you’re a top-producing sales professional but profoundly dislike documenting your monthly expenses. Will a workshop on organizing and filing help? Face it: You’ll probably never be an organizing whiz. As long as your weaknesses don’t detract from the quality of your work (remember, you’re a sales professional after all!), forget about overcoming your weaknesses.
Instead, think of training as a way of boosting your strengths and passions so that you can anticipate the highest return on investment. Say you’re a successful business professional aiming at an executive-level position. You may need some graduate education, possibly an MBA. If you’re an aspiring accountant, proper licensing and professional credentials are key to senior roles.
Whatever your profession, leverage your interests and existing abilities to take your career to the next step. Training and professional development require the investment not only of money but also of time and energy. A few ideas to help you be a smart investor and achieve the highest return:
Public speaking events and conferences: Attend speaker events and relevant conferences to update your knowledge of developments in your area. Extend your network at these events.
Do your homework: Get the latest business books that apply to your field. Subscribe to relevant publications: blogs, email newsletters, podcasts, business publications and magazines or scientific journals.
Get the most from your industry association: Most professional associations provide in-depth literature lists and compile overviews of the latest research done in their fields. They often offer valuable seminars and workshops to members.
Find a mentor: Life lessons frequently offer more value than theory. Talk to an accomplished professional in your field ideally about 15 years your senior. Build a mentoring relationship, learn from his or her experience and bounce off your ideas.
Talk to your employer: Most employers understand that continuing education give their staff and ultimately their companies competitive advantages. They may offer financial support or pay for time taken off for studying.
How to use social media participation to turn your employees into ambassadors for your own brand
This article appeared as part of my quarterly column in the HR supplement of Business In Vancouver (July 14 – 20, 2009; issue 1029). To view the print version, please click here.
The emergence of social media sites such as MySpace, Facebook and Twitter has created a critical mass of users who are voicing their opinions online. With distinct online personas, individuals are not only more connected than ever before, they also have started to play a much more distinct role as consumers. User-generated business directories such as Yelp are evidence of who is really in control of brand perception. In an effort to stay connected with their customers, many companies were quick to adapt to this new reality by creating corporate profiles and engaging in social media marketing to build online communities and increase brand visibility. However, the emergence of social media has caused a paradigm shift in the field of corporate marketing and communication: Companies are no longer in full control of how their products and services are being perceived. In the age of Yelp, a brand is only as strong as the most recent user-generated review. Social media participation has become a key to the new reality of corporate branding and communication.
In its recently published Social Media Survey, Vancouver’s 6S Marketing Inc. claims that every second blogger in Canada runs a business blog. One third of these post on both personal and professional topics. The lines between public and private, personal and professional have become more and more blurred; with Generation Y joining the workforce, this trend can only intensify. While some companies have not yet formulated specific rules for social media participation, others have restricted their employees’ access to social media websites during work hours. From a corporate perspective, there are valid reasons to fear employee participation in social media platforms. Most concerns circle around legal uncertainties and worries of inappropriate comments made about the company. This risk-focused approach, however, ignores that employees are often the biggest brand enthusiasts of their own company. Such employees will naturally act as their employer’s ambassadors when participating in social media. Raving employees have the power to create an online buzz around a company that will help raise brand recognition while marketing their company as a desirable place to work.
To ensure that both employers and employees are clear on each other’s expectations with regard to social media participation, and to protect both the company and the employee, guidelines are essential. IBM and Intel are two prominent companies that have successfully developed social media policies that allow their employees to be active online participants. In the case of IBM, a blogging policy was drafted for all employees to discuss internally. After a quick corporate review and final edit, it found approval from legal. When Intel recently announced its new social media approach by publicly posting its guidelines online, the company received raving responses from the blogosphere and was praised for its commitment to employee empowerment. Not only does Intel allow workers to use social media for work purposes, it even encourages them to truly be themselves while doing so. The online buzz IBM and Intel employees have successively created speaks for itself and only suggests what enormous branding and marketing potential is to be unravelled by supporting employee participation in social media. And what can be more exciting from an employer’s perspective than turning your employees into ambassadors for your own company and brand?
