How Amar Panchal recognizes and rewards employees to build a culture of success

Amar Panchal, co-founder and CEO, Akraya Inc.

Amar Panchal didn’t plan to start “waffle day.” It came about after he and a group of employees arranged an impromptu breakfast one Friday at the office. But it didn’t take long before waffle day became a company tradition.

“People really enjoyed it, so then they volunteered to make this a monthly event,” says Panchal, the co-founder and CEO of the Akraya Inc., an IT consulting and staffing business in Sunnyvale, Calif. “Every second Friday of every month, there’s a team of employees who volunteer to arrange for breakfast. It’s amazing how excited people are about it, because every month we’ve had a completely different menu for breakfast. That’s how much people enjoy it. And since they are working in a team, there’s a sense of achieving something together as a team. Everybody is enthusiastically part of participating.”

Providing breakfast for employees is just one of the ways Panchal leads his company to celebrate and reward employees for their contributions.

“All of us have achievements on a regular basis and it’s important to recognize and celebrate the achievements and milestones that we have,” he says.

At the company level, key achievers are recognized on a monthly basis at an all-hands meeting. Also, to celebrate success on a daily basis, employees come together to ring a bell in the center of the office whenever a person or group has a significant achievement.

“Everybody actually gathers around and high fives, and that’s a constant recognition of people hitting milestones during their everyday tasks,” Panchal says.

One of the company’s most obvious forms of employee appreciation is its unique perks for personnel. Panchal says each of these is the result of listening to people and identifying ways to reward them for their hard work. A good example is the company’s biweekly cleaning service for employees, which came about several years ago when the company was much smaller but gained it attention on Inc.’s Top 10 Perks We Love list in 2010.

“One day a few of the employees were discussing in the break room that they had to spend a long time over the weekend cleaning up their homes because they had visitors coming in,” Panchal says. “So I said, ‘OK. What can we do to help in this situation?’ We identified a cleaning service that every two weeks goes and cleans people’s homes.

“We listen to employees needs. Small things make a big difference to people.”

Yet although the ideas for a cleaning service and a monthly breakfast took off, there have been other ideas that did not work out financially or culturally long term. Implementing perks for employees comes down to trial and error.

“Some of them will work; some of them will not,” Panchal says. “We recognize that and continue to evolve.

“We’re constantly experimenting with ways to recognize or celebrate within the company, which is why people enjoy working here.”

In recent years, another challenge of having employee perks has been managing expectations when people begin to take certain cultural benefits for granted. Over time, a perk can become something that employees feel entitled to, and you may need to remind them of its value.

“Part of the solution is refreshing, especially the older employees, that these were things that although you have had for several years and think that everybody has it, that is not the case,” Panchal says. “It is still a fairly unique benefit or culture that we have in place.”

Although the costs of certain recognition programs and perks have increased as the company has grown — it grew to $32.5 million in revenue in 2010 — Panchal says he sees culture as an ongoing investment.

“Each of these has a significant cost in terms of not just hard dollars but time that it takes,” he says. “It’s something that is part of the prohibitive cost of doing business.

“When we were smaller, the costs were lower but as we’ve continued to grow, the costs have added up. But the value of that small perk is immense, because it benefits not just the employee. It benefits the entire family, and they appreciate it.”

How to reach: Akraya Inc., (408) 907-6400 www.akraya.com

Everybody counts

Cultural success at Akraya Inc. is the result of not just building a great culture for employees but working hard at maintaining it, says the company’s co-founder and CEO Amar Panchal.

“We consciously work on not just creating the culture, but we work on maintaining it and continuing to evolve it,” Panchal says. “It takes effort. All of us are busy with meeting our customers’ needs. It’s a competitive industry and people have a lot of tasks on their plates, but I venture that we take time out and do things that we value as a company, whether it is celebrating or it is giving back to the community.”

Though the company has been recognized for its culture in the past, Panchal continues to look for ways to improve its recognition program. That is why he invited an outside consultant to meet with employees one on one to gain more employee feedback about how they view the company’s culture.

“We’re actually going through that process right now, where we have compiled information and we are actually working on more of a companywide recognition program,” he says.

This has helped the company create a recognition program that takes into account the various contributions of different roles within the company.

“In most companies, it’s very easy to recognize the achievement of sales people because that is very measurable, but there are operations teams, there are customer support teams, there are marketing teams, there are finance teams. How do you have a recognition program that recognizes their achievements too?”

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