News Coverage

“Employees need recognition & reassurance”

Published at Holyoke SUN By Daniel C. Boyle

HOLYOKE . MASS. — Twenty-four years ago this week (Dec. 4, 2008), my former business partner and I captured the dream of many employees by purchasing the manufacturing plant in which we worked. Bob Arnold had started as a third shift hourly worker at Diamond International Corporation’s egg carton manufacturing operation in the Village of Thorndike, Town of Palmer, 30 or so years earlier, and worked his way through the ranks to become plant manager. For about four years, I had been the operation’s human resources manager.

When I landed the H.R. job – in April 1980 – the United States was starting its downward spiral toward a recession comparable to what we’re experiencing right now. One day, we were planning to add more workers to our 340-employee payroll. The next day, literally, we had to work on a layoff strategy.

In dealing with the challenge of maintaining operational efficiency, it was evident that our employees – those who continued to work as well as the ones laid off and hopeful of a return – needed the reassurance that, as a company, we would survive and, hopefully, emerge even stronger. Because many employees were distracted by the financial turmoil surrounding them, they tended to switch to automatic pilot when they came into work. A way had to be found to get them to be more focused on their jobs. One key answer was creation of the 100 Club employee recognition program and its introduction to all employees - hourly and salaried. Unlike gainsharing plans, the 100 Club offered non-monetary rewards for an all encompassing slate of work-related tasks plus some community volunteer activities. In short, management wanted to reassure employees that we valued their contributions to our company’s success and the well-being of our communities.

In mid-November 2008, I was reminded of our efforts when the bosses of the automakers “Big 3” – General Motors, Ford and Chrysler – breezed into Washington, D.C. expecting to leave with large bags of cash resulting from another taxpayer bailout. For those supposed leaders to go there without having a turnaround plan was incredulous as were reports that the United Auto Workers, who represent employees at all three companies, were unwilling to make concessions.

In the Diamond International case, our union employees, represented by the United Paperworkers, voted overwhelmingly to forego an already negotiated 7.3% pay hike when our company was in the throes of an economic battle with manufacturers of styrofoam egg cartons. When asked by a TIME magazine reporter why the union took that action, union leaders credited “the employee recognition program with keeping the company afloat and fostering a new atmosphere of cooperation with management.” Henry Sarrette, the union president, said, “Things have been tough. But, at least we’re all in it together.”

Why is it that those who manage the automotive industry and their workers seem to be on different pages? They keep sending vibes that they are anything but “in it” together? They make it sound like they are “entitled” to the billions-of-dollars-bonanza. Did the head honchos really believe that all they needed to do was show up in Washington, beg for money, and have Santa make his deliveries? I used to shake my head about comments made by the top bosses at Diamond International Corp. when they would say, “We have more to lose than do our employees if this company goes bankrupt.” Oh, really? At the top echelon, there were a dozen managers, each with his or her specific skill. In the Palmer plant, there were 340 employees, many with the same skills. If all were dumped on the streets of Palmer at the same time, how many would be able to find good paying jobs? And, how long would it take? So, who really has more to lose when a company teeters on the brink of financial disaster?

It was the cooperation received from the Paperworkers Union that led area financial institutions to loan us the money needed to secure a leveraged buyout of the Palmer plant from Diamond International. In addition to the banks, we got an economic development grant from the state. In awarding the money, the state pointed to the efficiency improvements – 16.5% productivity increase, 40% cut in quality errors, 44% fewer lost-time work-related accidents and a 32% reduction in absenteeism – as a strong indicator that our company would continue to succeed. Further, they stressed the importance of the labor-management cooperation that was evident.

During the first week of December, the CEO’s of the Big 3 are expected back in Washington. Hopefully, they will have put together some REAL plans to turnaround their respective companies. Whether the cash they are seeking – if awarded – is a loan or a handout remains to be seen. Meanwhile, their employees as well as those in every other business in the United States need the reassurance that management will do their best to retain jobs. Employees need to hear that their efforts are appreciated. And, both sides must remember they are “in it” together.

News Media Worldwide Praise 25 Years of Results Generated by THE 100 CLUB …

“Diamond Productivity Cited at Thorndike Plant” – The Journal Register, Palmer MA – June 2, 1983 “Incentives Boost Job Production” – The Washington Times, Washington DC – June 3, 1983

“Productivity Program Enhances Divested Plant” – The Daily News, Springfield MA – June 3, 1983

“Federal Aid to Labor-Management Panels Justified by Results, Participants Say” – Daily Labor Report – June 6, 1983

“100 Club Boosts Plant Productivity” – Holyoke Transcript-Telegram, Holyoke MA – June 30, 1983

“Palmer Workers Score 100 in TIME Magazine Article” – The Daily News, Springfield MA – July 1, 1983

“Hot 100: A Million-Dollar Incentive Plan” – TIME Magazine – July 4, 1983

“A Diamond of a Productivity Idea” – Industry Week – July 25, 1983

“Recognition Makes a Major Difference” – The Enterprise – Davis, CA – July 27, 1983

“Employers and Their Workers Gain from 100 Club Program” – The White House Conference on Productivity – Washington DC – July 1983

“100 Club a Good Bet for Employers” – BNA Bulletin to Management – August 11, 1983

“‘100 Club’ Boosts Mill Productivity” – Pulp and Paper Week – August 22-26, 1983

“‘100 Club’ Drives Profits” – Pulp and Paper – October 1983

“Worker Woes? Motivate the Good Ones, Not the Bad” – Incentive Marketing – October 1983

“MANAGEMENT – Tokens of Appreciation” – The Levinson Letter – The Levinson Institute, Inc., Cambridge MA – December 15, 1983

“Government Study Verifies Productivity Increases through Employee Recognition” – Federal Mediation and Conciliation Service, Washington DC – February 6, 1984

“Build Employee Commitment to Productivity Growth” – Productivity Improvement Bulletin, Waterford CT – February 25, 1984

“Heekin Can Offers Employee Incentive Program” – Aerosol Age – May 1984

“RRD Recognition Program Makes First Awards” – Owens-Corning Fiberglas Information Newsletter, Toledo OH – January 1985

“New Program at Owens/Corning to Recognize and Reward Employees” – The Brookville Democrat, Brookville IN – March 20, 1985

“Who’s in Charge Here?” – Nation’s Business – May 1985

“The 100 Club Reports Major Employer Gains” – The 100 Club Newsletter, Holyoke MA – Summer 1985

“The 100 Club Spreads from Coast to Coast” – National Productivity Report, Wheaton IL – July 31, 1985

“Focus on Change” – Industry Magazine – August 1985

“Bonus Rewards Job Well Done at Heekin Can” – Cincinnati Post Neighbors, Cincinnati OH – June 24, 1985

“Four RRD Plants Celebrate 100 Club Anniversary” – Owens-Corning Fiberglas Information Newsletter, Toledo OH – June/July 1985

“Case History: Employee Recognition Programs” – Small Business Report – October 1985

“Effective Management: Want to Amaze Your Employees? Tell Them You Like Their Work” – PIMA Magazine – October 1985

“Are Rewards Merely a Penny for Your Thoughts?” – The Myths & Methods of Being a Manager by Kandy Kidd, Brendon Hill Publishing, Oakland CA – October 1986

“Nestle ‘100 Club’” – The Valley News, Fulton NY – December 18, 1986

“The 100 Club: A Shining Example of Successful Labor/Management Relations” – Plant Services – February 1987

“Ideas for Action: The 100 Club” – Harvard Business Review, Cambridge MA – March-April 1987

“Psychic Income: The 80/20 Rule for Managers” – Creative Management – April 1987

“Employees Proud to Join 100 Club; It Recognizes Their Value to Company” – CUE/Clearinghouse, CUE/NAM, Washington DC – April 15, 1987

“People: An Employee Recognition Plan that Works!” – Food Store Magazine – April/May 1987

“Viewpoint: Employee Involvement Recognition Can Save $$” – Boxboard Containers – May 1987

“‘100 Club’ Wise Investment” – Personnel Management Alert Newsletter, Management Resource Association, Institute of Management, Milwaukee WI – June 1987

“Productivity Incentive: The 100 Club” – The Pryor Report – June 1987

“100 Club Makes Major Difference” – The Informed Executive – June 1987

“The ‘100 Club’ – Recognizes Good Workers – Yields Amazing Results” – Manufacturer & Employer Association – June 24, 1987

“Softer Voices at Bargaining Tables? Hard Times Spawn Innovations in Labor-Management Relations” – The Christian Science Monitor – June 25, 1987

“100 Club Productivity Incentive” – Briefs, Greater Cincinnati Employers Institute – June 26, 1987

“Profit Probe: Employee Involvement Program Creates Positive Environment” – Paper, Film & Foil Converter June & July 1987

“‘100 Club’ Increases Productivity” – Central Illinois Employers’ Association Facts – Bulletin 7 – July 1, 1987

“The Name of the Game is Productivity” – American Association of Industrial Management – July 1987

“In Management, It’s Surprising What a Simple ‘Thank You’ Can Do” – The Rotarian – September 1987

“Employee Club Boosts Morale, Attendance, Efficiency” – FMI Digest, Food Marketing Institute, Washington DC – October 1987

“Nestle Promotes ‘100 Club’” – The Patriot, Fulton NY – October 20, 1987

“Nestle Welcomes Employees into ‘100 Club’” – The Valley News, Fulton NY – October 20, 1987

“Employee Motivation: Recognition that Works” – Incentive Marketing – December 1987

“America Works” – The Report of the President’s Advisory Committee on Mediation and Conciliation, Washington DC – 1988

“Motivating for Success – 2. Recognize Your Employees” – Nation’s Business – March 1988

“Recognition: The Winning Strategy” – Healthy Companies – Summer 1988

“This Is What Motivation Is All About – Now Let’s Try Human Relations” – ProMat News, Johannesburg, South Africa – August 1988

“Let’s Talk About Employee Appreciation” – The Jerry Williams Show, WRKO Radio, Boston MA – March 1989

“Small Gifts for Good Work Can Make a Big Difference” – The Union-Leader, Manchester NH – March 20, 1989

“Labor Letter: We Love You” – The Wall Street Journal – May 2, 1989

“Seeking an Edge: Incentives Prove Their Worth” – The Boston Globe, Boston MA – July 4, 1989

“‘100 Club’ Offers Workers Incentive” – The Arizona Republic, Phoenix AZ – July 16, 1989

“Human Resource Management and Labor Relations: (Chapter 13) Employee Recognition Programs at Diamond Fiber Products” – Management by John A. Pearce II and Richard B. Robinson, Jr., Random House Business Division, New York NY – 1989

“Competitiveness: The Executive’s Guide to Succe$$” – by L. William Seidman and Steven L. Skancke, M.E. Sharpe, Armonk NY – 1989

“Spirit of Consol” – by Anthony Hooking, Hollards South Africa, Bethulie, Republic of South Africa – 1989

“The Loyalty Factor – A Management Guide to the Changing Dynamics of Loyalty in the Workplace” – by Carol Kinsey Goman, Ph.D., KCS Publishing, Berkeley CA – 1990

“Clubbing Together to Improve Worker Productivity” – The Daily News, Durban, South Africa – October 18, 1990

“Club Boosts Employee Morale” – The Sunday Tribune, Durban, South Africa – October 28, 1990

“The Loyalty Factor – Building Trust in Today’s Workplace – (Chapter 4) – A Culture for Loyalty: Recognition Programs” – by Carol Kinsey Goman, Ph.D. – MASTERMEDIA Limited, New York NY – 1991

“These Lovely Gifts” – CEO Briefing, Investor’s Daily – 1991

“Employee Motivation that Works” – HR Magazine, Society for HR Management – October 1992

“”To Employees – ‘Thanks’ Mean Millions – Literally” – Supervision, National Research Bureau, Burlington IA – November 1992

“Employees as ‘Point Persons’” – Manufacturing Systems – February 1994

“The 100 Club: A Time-Tested Recognition Plan” – Total Employee Involvement Newsletter, TEI Institute, Productivity, Inc., Norwalk CT – April 1994

“Saying Thanks – The 100 Club: An Ideal Way to Recognize TPM Achievements” – Total Productive Maintenance Newsletter, American Institute for Total Productive Maintenance, Productivity, Inc., Norwalk CT – April 1994

“Policy Guide – Recognition Raises Productivity” – BNA Bulletin to Management – July 14, 1994

“Enlist Your Workforce in the Re-engineering Revolution” – (paper by Daniel C. Boyle) Total Employee Involvement, 13th National Conference – October 27-28, 1994