Business can’t go on as usual when something very unusual is going on. So, what in the world made AIG think they could continue as usual with a $400,000 corporate retreat after they suffered a huge financial crisis requiring a federal $86 billion bailout. According to the AP report, the event included spa treatments totaling $23,380 at the St. Regis resort south of Los Angeles. And, although the trip did not include anyone from the failed financial products division, AIG rewarded their top salespeople from their life insurance subsidiary to catered banquets, golf outings and visits to the resort's spa and salon. AIG spokesman Nicholas Ashooh was quoted saying "It's as basic as salary as a means to reward performance.” For companies running in the black -- not the red.
Wall Street execs are now fighting a villainous image from their reckless, irresponsible and ethically-challenged behavior causing the current economic catastrophe. The AIG trip, taken one week after receiving the Federal bailout, does nothing to counter this image. If one division failed should the hard workers at another suffer? Can companies demonstrate employee appreciation in the midst of global economic chaos?
According to Christi L. Gibson, Executive Director of Recognition Professionals International, what AIG did on the retreat is not unusual (in normal times) because hundreds of thousands to multi-millions are spent by companies on employee recognition, rewards and appreciation. “And it is actually profitable,” says Gibson, “and here’s why. Recognizing employees generates motivation which increases productivity which influences the bottom line.” Since 2003, Gibson has been the Exec Director of RPI which has over 700 members representing 500+ companies and is in their second year of offering an accredited recognition certification program for recognition professionals. “The problem with the AIG retreat is that it is an AIG retreat. When you are the recipient of a federal bailout that has shaken the markets – it is irresponsible to recognize employees this way. Instead, AIG should be offering seminars on how employees can handle their reduced 401K plans or telecommute incentives, etc.”
This division of employees may have done well for the company but according to Gibson they are still workers who are facing the same crisis we all are. Offering this type of recognition during these circumstances and times will disengage employees. Because after the massage they will have to face the music.
AIG did cancel their next retreat but what about other companies who have reward programs planned yet want to protect their image. According to Gibson, organizations create stability for employees by expressing the importance of recognition during these unstable times and recognizing employees is a great way to ease tensions. When planning a retreat during these unsteady times remember to stop. look. and listen. Take a new look at what you have planned. Speak to the recipients of this retreat. Listen to what is really important. If family is what truly motivates them, rather than a golf outing, give them a professionally painted portrait of their children. If community service is their passion, take the group out to clean up a local park. End the day grilling hot dogs and playing potato-sack races. Thoughtful, personalized forms of recognition can gain both employee loyalty and positive press.
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Comments
Sure, instead of lavish retreats, contribute to the employee's 401K. I recommend accountibility and criminal charges for those who spent depositor's money as the thieves that they are and PUT THEM IN LOCK UP for a significant number of years. They must serve community service years writing letters and business models that show how they will settle the pay back. NO AMNESTY!
Disturbed by AIG Executives
Accountability and responsibility for decisions is required by so many during this economic crisis. The first people to turn to should be the individual AIG executives who took this retreat/vacation. If I was in their position, I would hope that it would be impossible for me to enjoy a massage or golf during this time. I would hope that my thoughts would turn to some of the loans and mortgages that I personally involved myself in and how that is causing not only "crisis" but people to lose their homes all over America. I would hope that some of the faces that I worked with would come into my head and cause me to realize that a vacation is not what i need or deserve right now. I would hope that I would have enough conscience and sense of personal responsibility to refuse such a trip, and instead use the time to figure out what went wrong. To ask myself, "why is my job causing crisis and homelessness." These executives should be busy looking at what they have done wrong, which loans were inappropriate and irresponsible. They should be working hard to correct what they have created.
First and foremost, their own conscience, family, and children should hold them accountable for what has happened. Second, the CEOs, their bosses, should hold them accountable. Third, every American and American News media should hold them accountable to demand from them reasons for this crisis and how to get out of it. Fourth, the American government should hold them accountable. I am a medical student from New York, and I want to understand. I want to understand what these executives are thinking and I want each and everyone of them to explain. I further want to challenge them to access the beautiful parts of being human and to gain the courage to take responsibility for their actions. I am not here to blame them. I am here to reflect to them how disturbing their actions are to the whole world. I am here to challenge them to reflect on their decisions and to do what is right, compassionate, and honest. I still believe that they have it in them.
Thank You,
Jacqueline Calderone
24 Vega Drive Ronkonkoma, NY 11779
631-648-3955
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