The Human Resources Practices Development (HRPD) Project

Project Sponsor: Joan F. Rice, V. P. for Human Resources

The HRPD Core Team

Patricia A. Brady, Project Director, Team Leader
Mark Cason-Snow, Brain and Cognitive Sciences, mediation@mit
Melissa Damon, Personnel Department*
Margaret Ann Gray, Personnel Department
Peter Narbonne Student Financial Aid Services* Performance Consulting and Training)
Alyce Johnson, Personnel Department
Steven Wade Neiterman, Information Systems*
Barbara Peacock-Coady, School of Engineering
Affiliates:    Maureen Bednarek, Personnel Department
   Cynthia Vallino, Personnel Department *

The Recognition and Rewards Project Team

Chris Bates, Program in Science, Technology and Society
Claude Bellot, Electrical Engineering and Computer Science
Melissa Damon, HRPD, Team Co-Leader
Lee Ann Day, School of Architecture and Planning
Lisa Feltner, Earth, Atmospheric, and Planetary Sciences
Kenia Franco, Personnel Department, Team Co-Leader
Sue Mannett, School of Humanities and Social Science
Steve McCluskey, Office of the Dean of Students and Undergraduate Education
Patricia McCosco, Mechanical Engineering
Ellen Stordy, Physical Plant

* Term of appointment shorter than full term of the project.

Table of Contents



A Special Note about the HRPD Team Reports

This is one of a series of Human Resource Practices Development (HRPD) Team reports
containing recommendations for MIT human resource programs and policies. It is
important to note that the HRPD project teams have been charged with developing
recommendations about human resource practices changes. However, implementation of
these recommendations is outside of the purview of the HRPD Team which will be
disbanded in January 1999 after all work has been completed. 

Summary

The Evolution of the Recognition and Rewards Project Team

The Recognition and Rewards Project Team was formed in October 1997 in response to a recommendation by the Human Resource Practices Design (HRPD) Team. The HRPD Team was chartered in the spring of 1996 to define human resource practices to support the changing needs of MIT and its workforce. In its work, the team was committed to maintaining the diversity, flexibility and fairness that make MIT a good place to work. These tenets are at the heart of the Human Resource Principles adopted in 1994.

During 1996, the HRPD Team researched and reviewed best practices within the MIT community and at selected corporations and institutions; as part of their information gathering process, they interacted with approximately 10 percent of MIT's campus based staff at all levels. Their major conclusions, discussed in the HRPD Design Team Final Report in April, 1997, were that current human resource practices at MIT no longer aligned with the Institute's changing environment. However, they found that members of the community would support human resource practices that provided clarity for employees, supported career development, and rewarded and recognized high performance if these practices were designed to meet the diverse needs of MIT's different constituencies.

On the basis of these findings, the HRPD Team generated eight broad recommendations for human resource practices to help make MIT as excellent an employer as it is an educator. One of these recommendations, to develop a recognition and rewards program, arose from a strong sentiment in the MIT community that MIT must recognize the contributions of its employees. This sentiment was reinforced by information gathered in surveys and interviews that indicated a perception among MIT employees that their work often went unappreciated and unacknowledged.

In response to these findings, the HRPD Recognition and Rewards Project Team was formed to recommend options for recognizing and rewarding administrative and support staff at MIT. To accomplish this, the ten members of the team committed 20 percent of their time for a six-month period beginning on October 20, 1997.

Scope of the Team's Work

The Recognition and Rewards Project Team was charged to: Because of organizational issues involving union or grant contracts, the team's recommendations focus on developing a recognition and rewards program for administrative and support staff. Nevertheless, the team approached other groups for ideas and experiences as the basis for their recommendations.

Methodology

The Recognition and Rewards Project Team began by surveying the needs and concerns of the MIT community. This fact-gathering process included two surveys, one to managers and supervisors, and the other to all administrative and support staff employees. In addition, team members conducted 23 one-on-one interviews with mid- to high-level administrators around the Institute and held a number of brainstorming sessions with the Working Group on Support Staff Issues and members of the HRPD Team (Appendices I, II, III). All told, the Recognition and Rewards Project Team solicited input from over 3,000 employees and received responses from over 1,000 of them, including faculty and sponsored research staff. However, the primary focus was on administrative and support staff.

In the process, the team solicited information on current recognition and reward practices at MIT and ideas about the funding and administration of future programs. They also reviewed current trends and issues in recognition and reward programs through extensive research on the topic (see Appendix VI) and incorporated benchmarking data from twelve sites that included three universities and nine organizations (Appendix IV). As the team gathered information and opinions, members met regularly to review and analyze their findings and identify emerging trends. At the end of January, the Recognition and Rewards Project Team met for a two-day retreat to review the major conclusions of their research and to write a first draft of recommendations for a program for MIT.

After evaluating input received from the MIT community and combining this information with their research, the team wrote a first draft of its recommendations. During February and March, these draft recommendations were presented to eight focus groups. On the basis of the input they received from the focus groups (Appendix V), the team finalized the recommendations included in this report.

The team based their recommendations on a series of conclusions that they drew. These conclusions reflect input from the MIT community and research on the topic of recognition and rewards.

Findings and Conclusions

Recommendations

The team believes the following two-part program will make it possible for MIT to recognize and reward individuals or teams who make a significant contribution to the Institute. This program also provides a way to make MIT employees aware of the value the Institute places on such contributions.

These recommendations incorporate feedback from the MIT community, along with established and successful award program models. They also reflect the team's consideration of what might be needed in order to successfully integrate, implement and administer such a program at MIT. The proposed program has two parts: an Award Program and a Years of Service Program, both of which have a recognition and reward component.

In developing their recommendations, team members have solicited input broadly from the MIT community to understand key human resource issues within all employee categories and to look for and build upon MIT’s best human resource practices across departments, labs and centers. Consequently, their deliverables to the Vice President of Human Resources will be generally applicable to the Institute. This means that they do not address, specifically, particular requirements of employee groups whose work may be defined by labor contracts, funding agreements or other factors.  Relevant issues of this type will be addressed at the time new practices are implemented.

Award Program

According to the Human Resource Principles for MIT People, "The organization of the future will place an emphasis on high performance and flexibility. This will require an increased focus at all levels on establishing performance goals, measures and evaluation, training when necessary, and rewarding employees according to the achievements of those goals."

In keeping with these principles and their research, including feedback received from the community, the team recommended four types of awards. These categories were specifically chosen to reinforce current practices at MIT and address future needs. They are summarized below and described in detail in the attached charts (pages 10-14) which include both recognition and reward components.

  1. Exceptional Job Performance - Surveyed employees indicated a growing need to hold people accountable, especially as MIT employees are required to do more work with fewer people. This award would recognize and reward exceptional job performance above and beyond job requirements.
  2. Managing People - A recurring theme from the internal research highlighted the need for employee feedback, consistent performance reviews and evaluations, coaching and mentoring. This award is to recognize and reward supervisors, managers, or team leaders who demonstrate strong management skills and create a supportive and diverse working environment where people can do their best work.
  3. Customer Service - According to a December 1997 special report, A National Mission, from The Office of Charles M. Vest, MIT must strive to improve the value and efficiency of the services it provides. To support this effort, quality service must be delivered to all the Institute's customers. For the purposes of this award, a customer is defined as any recipient (i.e. faculty, students, external or internal personnel) of a service provided by Administrative and Support Staff employees.
  4. Cost Savings/Efficiency - Recent reengineering efforts have placed heavy emphasis on improving efficiency and using technology to implement cost saving measures. The surveys indicated significant interest in recognizing and rewarding employees who improve the efficiency of the Institute's administrative processes. In keeping with this principle, this award will recognize and reward employees who develop and implement strategies which save money and/or time.

Administration of the Awards Program

The team recommends that the Awards Program (described below) be administered centrally from the Personnel Department by a single, part-time administrator. This makes sense because rewards are closely linked to compensation. The Compensation Office within the Personnel Department oversees salary structure, both administrative and support staff review processes, and may manage variable pay and bonuses in the future. Through the surveys and one-on-one interviews, the community voiced a preference for a centrally administered program that provided flexibility at the local level.

For the Institute-level awards, the team recommends an appointed committee of seven individuals to review nominations and select the winners. Every year the four winners from the categories will serve on the selection committee for the following year with three appointees from a cross-section of the Institute. Obviously, the first-year committee will be composed of only appointees.

It is recommended that the regular program administrator, based in the Compensation Office, be appointed to serve as a non-voting member of the committee to provide continuity and support for the program. In addition, the administrator's job responsibilities will include marketing, communications, and public relations. The administrator will be key in encouraging the fair and consistent use of the program and serve as a community resource.

Structure of the Awards Program

The recommended Recognition and Rewards Program has been structured in tiers to accommodate its operation at both a formal and informal level. The three tiers are: Local/Department Level, Dean/VP Level, and Institute Level. Moving across the tiers from the Institute to the Local/Department Level increases the opportunity for flexibility, spontaneity and personalized recognition and reward. Within each tier, awards can be given to either individual employees or to teams. The Recognition and Rewards Project Team recommends the use of an open nomination process to maximize people's abilities to receive recognition and rewards from those that are more familiar with their performance and services. This process allows nominations from anyone who has a working relationship with the nominee. Where appropriate, a special form will be used to submit the nomination to the person who is administering the program at the appropriate tier.

Initiating the Award Program

The team recommends an implementation team to either officially roll out the program or to test it Institute-wide for a year. The team believes that piloting in selected areas of the Institute will not be effective for the following reasons: Years of Service Program

According to the Institute's Personnel Policy Manual, "long service testifies to loyalty and commitment and implies a record of responsible performance." This award will help the Institute acknowledge dedicated years of service and celebrate special milestones in people's careers at MIT.

A letter of recognition and a small token of appreciation will be awarded for every fifth year of service. This award will complement the Quarter Century Club, a highly regarded tradition at MIT.

Administration of the Years of Service Program

The team recommends that this program also reside in the Personnel Department and be administered by the administrator of the Awards Program. This individual will notify Department Heads/Directors on a regular basis of their employees' significant anniversary dates. Each organizational unit will then decide how to commemorate the event. (For Administration and Implementation details, see Appendices, VII and VIII).

Costs

The annual cost of the recommended Award Program for Administrative and Support Staff (excluding the Sponsored Research Staff) is approximately $270,000; the cost for the Years of Service Recognition Program is $30,000 per year; and the administration cost is $80,000. The total program costs of $380,000 represent approximately .10 percent of the Institute's total operating budget ($400 million). (See Appendix IX for complete cost details). The MIT community expressed a strong opinion that this money should not be taken from the existing merit pool. There was general consensus that central funding would not only encourage the use of the program, it would eliminate unfair disadvantages in departments with budgetary constraints.

The team recommends that a high percentage of the award program budget be allocated to the department (Tier I) and Dean or VP level (Tier II) to ensure that more people are recognized and rewarded more often. The money could be allocated based on a percentage of headcount for Administrative and Support Staff members, with a minimum of $200 per administrative unit. Budgeted funds, if not used within one year, should be carried over to the next fiscal year so that supervisors/managers don't feel pressure to spend their budget if no one merits an award.

Implementation Strategies

It is important to note that this Recognition and Rewards Program has been designed to make use of MIT's existing infrastructure. For example, a cost center (i.e. an object code) could be assigned for recognition and rewards, or the existing "morale object code" could be used by the administrative unit as long as the appropriate amount is allocated. Regular business and financial forms can be used to process transactions to buy gifts or rewards, and the MIT ID might be used as an internal debit card in places like the cafeteria and MITAC.

The Recognition and Rewards Program should be accompanied by on going publicity and employee communications. All MIT employees should receive information on the implementation of the program and then be kept regularly informed of its operation. This could include articles in campus publications about award recipients, notices on department bulletin boards, even an annual booklet listing all award recipients Institute-wide. In addition, all new employees should receive information about the program as part of their orientation. The success of this program depends on the managers and supervisors who will use it to reward their best employees. To make certain that they understand its use, the team recommends that information on the Recognition and Rewards Program be included in training courses for managers and supervisors. The program "Management Principles" which focuses on legal issues, MIT policies, and good management practices, would be an ideal training program. The Institute-wide Mastering Performance Reviews course could also include a section about recognizing and rewarding employees beyond performance reviews.

Integration Points

It became obvious in the process of developing these recommendations that a Recognition and Rewards Program at MIT must be integrated at certain points with other activities, both ongoing and projected, within the Institute. Team members specifically pinpointed the following actions as important to consider as part of the implementation and management of a successful Recognition and Rewards Program.

Measuring the Program's Success

The team recommends the following ways to measure the success of the program:

Success Criteria

The success of a consistent, Institute-wide Recognition and Rewards Program can be easily measured by employee awareness of its existence and the number of recipients acknowledged. However, the more significant success of such a program lies in the benefits it will bring to MIT by:

Exceptional Job Performance Award

Purpose
To recognize and reward exceptional job performance above and beyond job expectations.

Eligibility
- All full and part time administrative and support staff.
Does not include (at this time): faculty, service, other academic, sponsored research, voucher, temporary, or contract staff.

 Criteria
- Showing concern for working well or for surpassing a standard of excellence.
- Demonstrating consistent superior performance and significantly exceeding position requirements.
Examples include: pro-active/innovative approach, problem-solving skills, achievement orientation, results oriented.
- Taking on significant responsibilities in addition to exceeding the expectations of their job.
Local/Department Level - Tier I Dean/VP Level - Tier II Institute Level - Tier III
Options
Recognition
  • Thank You post-it notes, notecards, and email ("e-plause" template) 
  • Certificate or letter from Supervisor, Team Leader, Manager, Head, Director, or equivalent when appropriate
  • Certificates from Senior Officer 
  • Article in school or other publication
  • Plaques from President Vest 
  • Tech Talk Article 
  • Awards Ceremony
Rewards (recommendations of rewards listed separately
  • Choice of reward using R&R dollars up to $200 in value per individual or team member. 
  • Time off with pay
  • Choice of reward using R&R dollars up to $1000 in value per individual or team member. 
  • Time off with pay
  • Choice of $5,000 award or 
  • 1 month -time off with pay per individual which can be taken intermittently or continuously over a two year period. 
Nomination Process Open process for rewards = nomination by peers, supervisors, customers (internal and external to MIT or organizational unit), students, faculty, other academic, administrative, support, sponsored research, and service staff, who have a working relationship to the nominee. Nomination forms should be given to the appropriate designee or to the R&R committee as appropriate.
Administration and SelectionProcess Designee will be selected by the Department Head/Director. Designee will be selected by Dean, VP's area. Program Administrator and Selection Committee
Recognition and/or Rewards will be commensurate with the number of criteria met and/or the consistency with which they are displayed, with more attention paid to length of time involved, amount of effort required, degree of difficulty of work, and level of performance as award value increases up through the tiers. Recognition can stand alone but rewards must be accompanied by recognition.
Frequency As often as appropriate Semiannually or as appropriate Annually


Managing People Award

Purpose
To recognize and reward supervisors and managers who demonstrate strong management skills and provide a good working environment where people can do their best to support the mission of MIT.

 Eligibility
- All full and part-time administrative staff who have administrative responsibility (responsible for hiring, salary adjustments, contributing to performance evaluations, promotions, and termination) for managing; or a formal group leader of a formal team.
- Must have been in a manager or team leader capacity for at least one year.
Does not include (at this time): faculty, service, other academic, sponsored research, voucher, temporary, or contract staff.

 Criteria
- Demonstrating excellent leadership skills: coaching, mentoring, training and providing other career advancement opportunities for their employees.
- Creating an inclusive work environment that supports the full utilization of all employees and fosters, encourages, and respects diversity
- Demonstrating strong performance management practices that are consistent and fair.
- Demonstrating strong conflict resolution skills including mediation, negotiation, and fair handling of employee relations issues in a way that is consistent with Institute policies.
- Advocating on behalf of the administrative unit, while maintaining good citizenship at MIT.
- Motivating people to perform at the highest level.
Local/Department Level - Tier I Dean/VP Level - Tier II Institute Level - Tier III
Options
Recognition
  • Thank You post-it notes, notecards, and email ("e-plause" template) 
  • Certificate or letter from Supervisor, Team Leader, Manager, Head, Director, or equivalent when appropriate
  • Certificates from Senior Officer 
  • Article in school or other publication
  • Plaques from President Vest 
  • Tech Talk Article 
  • Awards Ceremony
Rewards (recommendations of rewards listed separately)
  • Choice of reward using R&R dollars up to $200 in value per individual. 
  • Time off with pay
  • Choice of reward using R&R dollars up to $1000 in value per individual. 
  • Time off with pay
  • Choice of $5,000 award 
  • or
  • 1 month -time off with pay per individual which can be taken intermittently or continuously over a two year period.
Nomination Process Open process for rewards = nomination by peers, supervisors, customers (internal and external to MIT or organizational unit), students, faculty, other academic, administrative, support, sponsored research, and service staff, who have a working relationship to the nominee. Nomination forms should be given to the appropriate designee or to the R&R committee as appropriate.
Administration and SelectionProcess Designee will be selected by the Department Head/Director. Designee will be selected by Dean, VP's area. Program Administrator and Selection Committee
Recognition and/or Rewards will be commensurate with the number of criteria met and/or the consistency with which they are displayed, with more attention paid to length of time involved, amount of effort required, degree of difficulty of work, and level of performance as award value increases up through the tiers. Recognition can stand alone but rewards must be accompanied by recognition.


Customer Service Award

Purpose
To recognize and reward employees for high standards of quality Customer Service. It means focusing one's effort on discovering and meeting the customer's needs. A customer includes anyone, internal or external, who is a recipient of the services provided by the employee. This may be more clearly defined by each area.

 Eligibility
- All full and part-time administrative and support staff.
Does not include (at this time): faculty, service, other academic, sponsored research, voucher, temporary, or contract staff.

Criteria
Must show one or more of the following:
- Taking ownership of services rendered and acting on behalf of the person being served.
- Demonstrating a helpful and positive attitude.
- Providing exceptional and conscientious service.
- Going the extra mile, understanding the customer's "wants" but at the same time analyzing the customer's "needs" to ensure total customer satisfaction.
- Demonstrating strong and consistent follow-through.
Local/Department Level - Tier I Dean/VP Level - Tier II Institute Level - Tier III
Options
Recognition
  • Thank You post-it notes, notecards, and email ("e-plause" template) 
  • Certificate or letter from Supervisor, Team Leader, Manager, Head, Director, or equivalent when appropriate
  • Certificates from Senior Officer 
  • Article in school or other publication
  • Plaques from President Vest 
  • Tech Talk Article 
  • Awards Ceremony
Rewards (recommendations of rewards listed separately)
  • Choice of reward using R&R dollars up to $200 in value per individual or team member. 
  • Time off with pay
  • Choice of reward using R&R dollars up to $1000 in value per individual or team member. 
  • Time off with pay
  • Choice of $5,000 award
  • or
  • 1 month -time off with pay per individual which can be taken intermittently or continuously over a two year period.
Nomination Process Open process for rewards = nomination by peers, supervisors, customers (internal and external to MIT or organizational unit), students, faculty, other academic, administrative, support, sponsored research, and service staff, who have a working relationship to the nominee. Nomination forms should be given to the appropriate designee or to the R&R committee as appropriate.
Frequency As often as appropriate Semiannually or as appropriate Annually 


Cost Savings/Efficiency Award

Purpose
To recognize and reward employees who develop and implement a strategy which saves money/time for the Institute.

Eligibility
- All full and part-time administrative and support staff.
Does not include (at this time): faculty, service, other academic, sponsored research, voucher, temporary, or contract staff.

 - Must have saved a significant amount of money or time.
(Significant - may be further defined within each area, with special consideration paid to the relative value to that working unit).

Criteria
- Must display extraordinary initiative and dedication to improvement of work processes or environment.
- Cost savings/efficiency strategy must be practical, useful, and feasible to the working unit.
- The strategy must be implementable.
 
 
Local/Department Level - Tier I Dean/VP Level - Tier II Institute Level - Tier III
Options
Recognition
  • Thank You post-it notes, notecards, and email ("e-plause" template) 
  • Certificate or letter from Supervisor, Team Leader, Manager, Head, Director, or equivalent when appropriate
  • Certificates from Senior Officer 
  • Article in school or other publication
  • Plaques from President Vest 
  • Tech Talk Article 
  • Awards Ceremony
Rewards (recommendations of rewards listed separately
  • Choice of reward using R&R dollars up to $200 in value per individual or team member. 
  • Time off with pay
  • Choice of reward using R&R dollars up to $1000 in value per individual or team member. 
  • Time off with pay
Nomination Process Open process for rewards = nomination by peers, supervisors, customers (internal and external to MIT or organizational unit), students, faculty, other academic, administrative, support, sponsored research, and service staff, who have a working relationship to the nominee. Nomination forms should be given to the appropriate designee or to the R&R committee as appropriate.
Administration and SelectionProcess Designee will be selected by the Department Head/Director. Designee will be selected by Dean, VP's area. Program Administrator and Selection Committee
Recognition and/or Rewards will be commensurate with the number of criteria met and/or the consistency with which they are displayed, with more attention paid to length of time involved, amount of effort required, degree of difficulty of work, and level of performance as award value increases up through the tiers. Recognition can stand alone but rewards must be accompanied by recognition.
Frequency As often as appropriate Semiannually or as appropriate Annually


Ideas for Recognizing and Rewarding

No-0
Low-$
Mod-$$
High-$$$

 0

$ $$ $$$

Years of Service Award

Purpose
To recognize support staff and administrative staff for their dedication and years of service at the Institute. Eligibility
- All full and part-time administrative and support staff.
Does not include (at this time): faculty, service, other academic, sponsored research, voucher, temporary, or contract staff.
- Only regular years of service at the Institute will be counted (exclude voucher or student employment service).
- If an employee has taken a leave without pay for a year or more, that will not be counted towards their years of service.
- If an employee has been reinstated or rehired, the combined years of service will be added.

 Criteria
- Must be celebrating 5th, 10th, 15th and 20th anniversary of employment at the Institute by the end of the fiscal year.
5th year anniversary 10th year anniversary 15th year anniversary 20th year anniversary
Options Recognition: 
Letter from President Vest 

 Token of appreciation: 
Glass paperweight with MIT Logo and years of Service.

Recognition: 
Letter from President Vest 

 Token of appreciation: 
Picture Frame with MIT Logo and years of Service.

Recognition: 
Letter from President Vest 

 Token of appreciation: 
Pen Set with MIT Logo and years of Service.

Recognition: 
Letter from President Vest 

 Token of appreciation: 
Clock with MIT Logo and years of Service.

Process Personnel produces reports and letters to be sent to the Senior Officer for signature and distribution. Tokens of appreciation should be distributed at a luncheon or dinner
Return to the HRPD Homepage