IAG Recognition Program Rewards Promotion of Purpose and Values
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By Francesca Di Meglio, as told by Niki Kesoglou, Executive Manager Culture, Diversity, Inclusion and Belonging
In 2020, IAG, one of the largest insurance companies in Australia and New Zealand, set out to transform its workplace culture. The mission was to revamp the company’s recognition program to improve employee engagement, retention, and employer brand.
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For a company composed of more than 12,000 people, these efforts needed to align with already established employee engagement and retention initiatives that were meant to create a “cohesive and connected workplace,” according to The Weekend Australian in a 2023 article, “Way to Keep Staff Is to Keep Them Happy.”
“Nurturing a culture of inclusion and belonging, we aspire for our people, customers, and communities to be seen, accepted, embraced, and valued for who they are,” said an IAG spokesperson as reported in that same article. “We instill pride and create meaning for our people in how their work connects with our purpose, helping our customers and serving communities during their times of need. Encouraging people to be their authentic selves, providing meaningful work that makes a difference, and deriving a culture of purpose and connection creates IAG’s organizational happiness.”
A Plan Coming Together
First, the two recognition programs being used in Australia and New Zealand respectively had to be turned into one. In Australia, IAG had Spirit Shout Outs while New Zealand offered He toa Takitini, and the organization simply brought the two names together to create Shout Outs | He toa Takitini.
Defining the company’s purpose as “making your world a safer place,” IAG promoted the unified goal of being ready for anything. From the start, those heading this transformation wanted to involve the entire team. This meant leaders had to exemplify the behaviors and set the standard for others. Once the program was redesigned, the intention was for employees to feel more pride in the organisation, recognise IAG as a best place to work, and garner stronger performance and results.
Teaming up with third-party vendor, O.C. Tanner, for the program redesign, the company wanted to ensure that employees earned recognition for reinforcing IAG’s values. To start, leaders spelled out the values, literally: HEART – Honest and upfront, Easier together, Act and own it, Reimagine today, and Treat everyone fairly.
While the organisation would maintain its traditional performance management process and remuneration review, it would also incorporate the possibility of
recognition tied to promoting the company values. In the new program, anyone in the company can recognise anyone else for exemplifying HEART. People earn “beats,” in the form of e-cards delivered on a digital platform that is visible to all, for demonstrating HEART.
With Every Beat of Your HEART
The co-worker issuing the beat shares an explanation of what they employee did and how it connects to one of the values represented in the acronym HEART.
In the spirit of the human-centered design of this program, IAG turns to “culture amplifiers”, those in the organisation who come from different divisions and provide regular feedback and reporting on the program. On this digital platform, people also receive recognition for work anniversaries at pivotal points in the employee experience, including a welcome when someone joins, the first 30 days on the job, 100 days at work, and other milestones in one’s career.
When an employee gives someone a beat, the person’s manager is copied and executives and senior leaders regularly call out people for their wins. There’s an effort for teams to showcase who has won a beat. At monthly meetings, the pictures of those who have earned a beat are displayed.
Tracking HEART Rate
100% of IAG’s employees were recognised within the first 14 months of the program, and nearly 400,000 recognition moments have been given to date (October 2023).
O.C. Tanner reports the following results:
The odds of employees reporting stronger pride in IAG increased by 36% for every additional eCard received, and 137% for every nomination received, per month
The odds of employees more strongly recommending IAG as a great place to work increased by 31% for every additional eCard received, and 162% for every nomination received, per month
The odds of employees reporting stronger discretionary effort increased by 22% for every additional eCard received, and 136% for every nomination received, per month.
There is an internal customer service piece as well. The recognition program reinforces how we all should be working together and living our values. IAG believes keeping our people happy is critical. Celebrating the wins of team members and linking them to IAG’s purpose and values is a way to increase job satisfaction, engage employees, forge stronger bonds among team members, gain better results, and remind everyone of the company’s priorities.
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