Online recognition: Like other HR functions, employee recognition programs move online with fewer administrative headaches, lower costs - Agenda: Awards & Incentives

HR Magazine, June, 2002 by Andrea C. Poe

And upfront costs and maintenance fees associated with online programs typically cost less than old-style paper programs, primarily because online programs save on labor and printing costs.

"We have a client with 9,000 employees who has one person run the whole program part time," Jorgensen says. "Before, they had six people working on the program for the same employee population."

Some traditional programs depend on expensive promotional brochures. "Our brochures looked great, but they had to be updated constantly as items changed, which got expensive," says Wilhelm.

"We found that companies [that move programs online] save 50 percent or more on printing costs alone," notes Smith.

Training is almost always included in the vendor package. Most online incentives providers offer a train-the-trainer program for an employee who then trains other HR staff. Front-line employees generally need no training to access the program. "If they can sign on and find e-mail and a browser like Yahoo! they can use the programs," says Jorgensen.

Reach Out

One of the biggest benefits is that online programs offer an immediacy that offline programs just can't match, proponents say.

"Managers can send immediate recognition for a job well done, which has a big impact," says Peter Fornal, vice president of HR for Log On America Inc., a regional telecommunications services provider in Providence, R.I., who studies the online awards industry. "You can recognize people in ways you couldn't before. Think about companies with employees who telecommute or work from satellite offices."

Online programs also enable organizations to recognize and motivate a variety of employees by running multiple programs at once.

One caveat: To reach everyone, everyone must be wired. While that's rapidly becoming a reality, some companies have employees on factory floors, in the field and at cash registers across the country who cannot readily tap into PCs. Most online vendors continue to offer supplemental paper materials for these employees. Meanwhile, many companies are making the investment to give all employees computer access.

"Dismiss any myths about online programs not working when some employees are not online. We have one client who is a manufacturer with 13 locations," says Hinda Incentives' Termini. "The money they saved in administrative costs enabled them to invest in kiosks so all employees have access.

That's what Debra Engel, an SHRM Foundation board member in Sunnyvale, Calif., helped to arrange while she was senior vice president of corporate services at 3Com Corp. "We made a number of PCs available at kiosks and scheduled time on the computer as part of the workday," she says.

And because online programs run 24/7, programs can span thousands of miles and all time zones.

"Online systems uniquely enable a manager in the U.K. to recognize employees in New York, something one would not even attempt with an offline system," Jorgensen notes.

Previously, complex international regulations often rendered overseas programs impossible.