The Wisdom of Using Recognition (adapted from The Carrot Principle by Adrian Gostick)

Isn’t money the most effective motivator?  The answer, “No.”  Think about your last raise or last bonus.  How long did the “after glow” of the added money last?  Not long, did it?  The author of The Carrot Principle finds similar results from a 200,000-person study by the Jackson Organization.  “The element that shows up time and again in every great workplace—is a manager’s ability to recognize employees’ talents and contributions in a purposeful manner.”  Recognition accelerates a leader’s effectiveness.

Since 1949 another fascinating survey has been conducted three times and each time the conclusions have been the same.  You’ve probably seen the results.  Managers are asked to list what employees in their organizations want and this list is then compared to a list prepared by the employees.  Each time managers state that “good wages” and “job security” will be at the top of the employee lists, but the employee lists have “feeling appreciated” and “informed” on the top. 

Recognition works.  “Gallup’s study of nearly 5 million employees reveals that an increase in recognition and praise in an organization can lead to lower turnover, higher customer loyalty, and increases in overall productivity.”  In fact, the U.S. Department of Labor statistics show that the #1 reason people leave organizations is that they “don’t feel appreciated.” 

The author’s point is this: “When recognition is applied to good management [goal setting, communication, trust, and accountability], it serves as an accelerator of employee performance and engagement.”  In other words, just helping an ineffective manager learn how to recognize employee performance will not cut it.  You’ve got to start with a good manager and then through training increase his/her recognition skills.

One attribute of a good manager is her ability to communicate.  Effective managers know that “to influence behavior, to explain what really matters most, they must speak to each individual in their charge frequently, specifically, and in a timely manner.”  One way to do just that is through employee recognition.  Recognition is effective because it meets a universal human need—we all want to matter. 

And yet, according to a recent Gallup Poll, 65% of Americans received no praise or recognition in the workplace in the past year.  One reason for this lack of recognition may be that few organizations give their managers the tools and training they need to provide recognition to their people.  How about your organization?  Do you train your leaders in the “wisdom of recognition?”

Types of Recognition

·        Day-to-day recognition: low cost/high touch (frequent, specific, timely).  Try this out.  Make a list of your direct reports and for the next few weeks keep track of the number of times you recognize each of your people.  Your goal should be weekly recognition for each person.  Note that “general” praise has no impact; be specific!

·        Above-and-beyond recognition: (value, impact, personal).  Here you are looking at significant accomplishments with the value of the award representing the impact of the achievement.  Select an award that is personal and meaningful to the employee.

·        Career recognition: These awards are the foundation of effective formal recognition.  They build “trust and establish a greater sense of connection with all employees.” 

·        Celebration events: “Important moments in your company history can build employee commitment and loyalty.”  These events send the message, “We’re all in this together.”   

What’s the level of investment?

The authors mention that a good starting place is to budget about 2% of payroll for day-to-day recognition, team event gifts, above-and-beyond rewards, and service awards.   Just make sure that your recognition program is:

·        Strategic—aligned with your core values and goals

·        Simple—easy to use and understand

·        Owned—by your managers and senior leaders 

And back up the recognition dollars with resources allocated for manager training and ongoing communication about the program.  The authors provide 125 recognition ideas in their book and even give some guidelines on anticipated annual spending per employee.  For example:

·        Day-to-day:

o       $0 annually.  Every 7 business days thank someone with something free—a handwritten note, verbal praise or even an e-mail of thanks.

o       $100 to $200 annually. Four to six times a year award a tangible gift like movie tickets, a basket of food, dinner certificates, etc.

·        Above-and-beyond awards

o       $250 - $500 annually. On average, at least every 2 years, an employee should receive a tangible performance award for above-and-beyond behavior.  Some may receive several annually. 

The idea is to plan, develop and systematize a recognition system that works for your organization and for your people.   Think about using the “Wisdom of Recognition” in your business. 

Keith 

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