Money is still the best reward - Wisconsin Power and Light Co.'s Jim Bindl - Yoder-Heneman Creative Application Awards

HR Magazine, August, 1994 by Linda Thornburg

The HR Department of the Wisconsin Power & Light Co. in Madison didn't need an expensive consultant to design a variable pay program that fosters teamwork, employee empowerment and continuous quality improvement. Under the direction of Jim Bindl, the department turned an employee suggestion into a simple but successful reward system employees like and support, even though it puts $200 of their pay at risk every year. The program is called "Employees Recognizing Employees." Workers at all levels can reward their colleagues immediately for extraordinary cooperation, brilliant ideas, or just plain hard work.

At the beginning of every year, 800 employees each get 10 certificates worth $20 each. Previously, this money was part of a variable compensation package. Throughout the year, workers pass these certificates along to other employees

as appreciation for jobs well done, noting on the certificate the reason for presenting it. The employee who receives the certificate can redeem it at the end of the year for cash, or pass it along to another employee, who can redeem it or pass it along.

Last year, one employee cashed in certificates worth $840, and 68 employees made at least $400 apiece. The pass-on feature was used 973 times--for a total of almost $20,000.

Team leaders like the certificates because they give other employees the ability to provide immediate positive feedback. Managers like them because they give employees timely communications about how well they are doing their jobs and reward behaviors that contribute to teamwork. Other employees like them because they give everybody a chance to say thank you.

"There are many people in this organization you really can't thank enough. This program is a nice way to send those employees the message that as their internal customer, you appreciate the service they provided. The program ensures that employees who should be recognized are recognized," one employee said.

The HR department likes the certificates for all these reasons. "They encourage team building and employee-to-employee communications without the involvement of the supervisor," says Debby Newton-Tainter, manager of compensation, benefits and HRIS.

"We tried to develop something within the organizational concept of working together that would help us build teams, focus on internal customers, and give feedback for continuous quality improvement," says Bindl. "Employees wanted timely communications about their performance from colleagues so they could do their jobs better. This gives them immediate insight and motivation to strengthen the behaviors that work best in the team environment."

Union employees (International Brotherhood of Electrical Workers) are currently excluded from the program, but Bindl says he thinks that they may ask to participate soon. Even the CEO is involved, receiving an almost average share of certificates, which he passes along to others, as do most managers lucky enough to get rewarded.