We define Reward (the third R of the “Four R’s of Workforce Engagement”) as recognizing individual, team, and organizational achievement through cash, non-cash, and other management approaches.

In my experience, it is the non-cash methods that work best.  A recent company takeover here in Indianapolis is a great example of a company rewarding their company the right way. 

I met Steve Rusche, chief operating officer of E-Tapestry more than a decade ago when he joined Walker Information (two career-lives ago for me) to help with the marketing and sales of a suite of products I was responsible for, including an employee survey tool.  He was perhaps the nicest, most genuine person I had met in a long time.  He lived with his wife and sons on a farm, and it wasn’t long before I dubbed him our “gentleman farmer”. 

Steve came to us with a strong background on the sales/marketing side of business (something sorely lacking by us researchers) and he quickly caught on to the research products and services we were providing to our customers.  Steve’s importance to the company expanded as did his duties and responsibilities.  After a few years though, Steve and two other close friends and associates, Jay Love and John Moore founded E-Tapestry, a company that provides fundraising software and services to not-for-profits.

Within their first year of operation, E-Tapestry began to get some local buzz about some of the “unique” employee-centric ideas they were employing for their mostly IT staff.   Although (and perhaps because of) being just a start-up with a handful of employees, a decision was made early on to create a high energy environment, provide job flexibility and encourage work-life balance.  I remember going to one of their various open houses (they’ve grown a lot, and have had to move), and noticed the “sliding white erase-board walls” and the basketball court.   I also noticed a washer and drier, not something normally seen in a business office.

The three principals sold their company for nearly $25 million dollars, and gave nearly 10% of that to their 81 employees, as a reward for their service.  This was not something they had to do, they could have taken the cash and run.  However it was so important for them to reward their employees for the hard work and success the employees had helped achieve, they convinced the acquiring company to let them take the cash the company carried on their balance sheet at the time of the sale and divide it among the employees. 

Nice.  Very nice.

So, the lunchtime wiffle ball games, company basketball games and free on-site laundry facilities for the employees stay.  For this group of talented employees (and their “progressive thinking owners”) the cash, non-cash, and other management approaches have worked to grow a thriving business.

We don’t have a brain-drain problem in Indiana.  We have a no-brain management problem.  Today’s business leaders can learn a lot from Jay, John, and my friend, the Gentleman Farmer.