HR Corner Rewards based on more than money by Charles Mak Recognition and a sense of belonging can have as much impact on staff turnover as the contents of remuneration packages Annual staff appraisals have become increasingly popular as a way of tracking the morale and changing needs of a company's workforce and benchmarking against trends within the same industry. HR professionals also use them as a vital source of information to identify skills gaps and get advance warning of broader concerns that may have a later impact on issues like staff retention. As the group director of HR for the Sino Group of Hotels, Janet Lai has come to rely on her own company's annual appraisals as a key factor in subsequent decisions on performance management, retention policies, succession planning and training. They also help her to gauge how well staff understand the company's core values and which motivational tools work best. "First of all, we need to find out the opinions, ideas and development needs of our staff before we take appropriate actions," she says. She points out that this ties in with the company's emphasis on open communication and creating a sense of belonging. "At work, people offer their service to the company, but we believe that giving an employee more than just money in return is a better form of incentive and helps to generate loyalty." Training programmes on offer for all staff aim to create more opportunities for self-improvement and development. "We initiate a lot of in-house training sessions to improve skills and knowledge in specific areas of expertise," says Ms Lai. "We also help staff to add value and explore their potential through job rotations." The Sino Group of Hotels currently manages five premium hotels and a yacht club in Hong Kong and Singapore and has a reputation for excellence in customer service. Behind this is a programme, started in 2002, which helps in achieving customer service distinction. As Ms Lai explains, "There are six modules covering fundamentals like hotel product knowledge, tourist information and language skills. These are mandatory training programmes for frontline staff and uphold our professional image by eliminating unnecessary problems. Trainers, supervisors and team leaders are all included in the learning process." Winning awards Realising that good performance should be recognised, the group has also introduced awards such as employee of the month, manager of the year and outstanding employee, under the umbrella of the Sino Group. Those nominated for the latter award undergo a panel interview and are individually assessed by the CEO. Each winner gets a cash prize of HK$25,000 and a study trip to Singapore, as a token of appreciation and to encourage continuous improvement. This year, four of the ten outstanding employees were from the hotel group, including Peggy Leung, assistant manager from the front office of Hong Kong Gold Coast Hotel. "This award serves as motivation for my future development," she says. Another winner, the Island Pacific Hotel's assistant sales director Emme Lee, was similarly motivated by the fact that her efforts had been recognised. Cleo Jimenez, guest services officer from the Royal Pacific Hotel & Towers, attributed her award to good service and the good relationships she has with customers and colleagues. While Jacky Yau, assistant manager of the City Garden Hotel's front office says, "I hope this will give a positive message that if you work hard, you'll succeed." While noting the motivational value of the awards and the recognition they bring, Ms Lai stresses that promotion opportunities are just as important for staff retention, particularly for those with ambitions to broaden their horizons. Performance monitored As a result of monitoring staff turnover, the group has also made a number of changes to its remuneration policies since the SARS outbreak and economic downturn. Bonuses and incentives are now linked with performance, so that a clear message is delivered to each employee about standards and expectations. "We realise that business growth is a direct reflection of the performance of our staff," says Ms Lai. "Overall, it is a fairer system if the bonus scheme and salary increments are linked with staff performance. If every person performs according to the company's core values and business direction, the group will grow and prosper as a whole." To ensure there is no uncertainty, appraisal training and workshops are run to keep everyone informed of the assessment criteria and to spell out required competencies. "Our core values comprise customer satisfaction, integrity, teamwork, continuous improvement, preparedness and a sense of urgency, and our staff are coached to meet all of them," recaps Ms Lai. In addition, employees are graded into five levels of performance and are fully informed of where they stand on the scale during appraisals. "When staff know how they are graded and understand the impact on their career development, they will improve themselves without being asked. It has been very effective," she adds. Salient points Employee appraisals as a useful tool in designing HR policies Comprehensive training programme in customer service for frontline staff Recognition and awards contribute to morale and a sense of belonging Performance management system linked to bonuses and promotions Appraisal training and workshops to ensure employees understand assessment criteria Taken from Career Times 18 February 2005, p. 16 Your comments are welcome at [email protected]