Money is the root of all evil … I’m sure you’ve heard that saying before and it begs the question, if there’s any semblance of truth to that phrase; why is it that when we think of corporate recognition or incentives, we almost always associate them with money?
On average, employees spend anywhere from a third to half of their waking hours at work. That statistic alone should be a strong indicator to businesses that they will only succeed if they strive to make their workplace an engaging culture. And, building that engaging culture requires more than simply paying people more. In fact, quite often it can do less damage to the bottom line and be more effective in the long run to examine other opportunities for recognition and incentivizing associates.
Consider this example: An associate attains a certain level of productivity for a professional goal and it’s time to celebrate. Option 1: Give her a check in the budgeted amount and say thank you. Option 2: Have her director contact her husband and explain that you want to celebrate her accomplishments and you’d like to plan a trip for the two of them including travel, lodging, a gift certificate for meals and tickets to a favorite game because you know she’s a sports fan. Which would you prefer?
“At Talent Plus, we like to make memories,” said Director of Leadership Consultants Libby Farmen. “If you give someone a check, in 10 years they may or may not remember that they were rewarded for an accomplishment. If you give them a reason to make a memory with someone they love, doing something they love, it will last a lifetime. We are all about creating a special moment that is meaningful for each individual. That’s something that money can’t buy.”
INDIVIDUALIZE THE RECOGNITION
Even if you and I share the same demographic, our individual needs differ. The first step in retaining a particular person, therefore, is to understand their unique configuration of needs. So what is an easy, inexpensive and effective way to understand someone’s needs? Ask them!
The perfect question: Tell me about the most powerful gesture of recognition you have ever received. Why was that recognition so meaningful to you?
According to Larry Sternberg, chair of consulting for Talent Plus, it’s no different than a birthday gift. “Take the time to get to know what is important to the person you want to recognize. Individualize the gesture and it says to the person, ‘I’ve thought about you and I know this will mean a great deal to you’,” he said. “When you show someone that you care, it is so much more powerful. It indicates that you really value them as a person.”
EMOTIONAL RE-HIRING
Learn a simple practice that builds loyalty and enhances engagement. Consider emotional re-hiring, the revivifying gesture of telling someone, authentically, why you’re thankful to have him or her on your team.
There are very few practices that cost less money, take less time and create the impact of emotional re-hiring. All it takes is a word of encouragement, or a public announcement acknowledging credit for a job well done. Sometimes, emotional re-hiring takes a written form.
Have you ever received a handwritten note of thanks for a job well done? In this age of technological wizardry where half of all communication takes place over a computer or mobile device, the power of a handwritten note is not lost. At Talent Plus, we use Five Star Cards and often take moments out of our day to write a quick note to say, “I appreciate that you did this for me today,” or “Great job.” These handwritten notes become a powerful tool of personal engagement.
How would you feel if your boss did this for you from time to time? If you make this a practice, people will be more motivated and more engaged, and their performance will improve. In addition you’ll improve the emotional state of your organization.
CELEBRATE SUCCESSES
Very few things are as motivational as success. Celebrations need not be time consuming or costly. A high five. Verbal or written congratulations. Applause. In terms of celebrating success, all the little gestures add up. As your successes grow, or begin to make a bigger impact, so should the rewards.
Certain rewards, the best ones, should be reserved for those who achieve results. The more impressive the results, the better the reward. But you should also reward extraordinary effort with sincere praise and other meaningful gestures appropriate to your culture, even in cases where the desired outcome was not achieved. Absent that continuing effort, your team will not achieve its goals. And celebrating the effort both individually and corporately will invigorate your entire organization to levels of productivity and excellence that is only offered within the confines of an engaged culture.
REAPING THE REWARDS OF AUTHENTIC RECOGNITION
Employee recognition and incentives, in order to motivate, must be personal, meaningful and received with enthusiasm by the recipient. When that goal is achieved, your organization will begin to see meaningful results.
According to Bersin Predictions for 2013, a recognition-rich culture decreases turnover by more than 30 percent.
If you examine your turnover costs, reduce them by 30 percent and then compare them to the value of a gift card, an authentic note of appreciation, the cost of a trip to continue an associate’s learning development or even a personalized gift, there likely is no comparison.
“Often in terms of dollars spent on various expressions of recognition, you really get more bang for your buck by retaining your most talented individuals with a personalized thank you,” said Sternberg.
Engaged employees lead to better business outcomes. In fact, according to Towers Watson research, companies with engaged workers have 6 percent higher net profit margins. Kevin Kruse, in a Forbes.com article, said, “Engaged employees lead to higher service, quality and productivity, which leads to higher customer satisfaction, which leads to increased sales (repeat business and referrals), which leads to higher levels of profit, which leads to higher shareholder returns.”
Effective employee recognition is so much more than a check and a handshake. If it’s done right, not only does it highlight the success of your most talented employees and show them that you value their effort and them as an individual, it causes a ripple effect. Recognition done right often lowers the chance that they will look elsewhere for employment, increases their productivity because they know their work is valued, and emotionally lifts the entire organization as others strive for their own personal levels of recognition.
It’s a gift that keeps on giving … right back to your bottom line.
