Inspiring employees to better performance is a critical component to effective management. Historically there have been two ways to motivate employees: reward and punishment. Employees that do well receive rewards such as money, awards, recognition, titles and other perks; while employees who do not do what they are supposed to receive warnings, reprimands, demotions and firings. Behavioral science teaches that you will get better performance from positive motivators than negative consequences. It is the old principle of catching more flies with honey than vinegar.
This does not mean that punishment does not have its place. Sometimes you have no choice but to fire someone. However, positive rewards that encourage the behaviors you seek will create a much better environment to work and subsequently a happier more productive workforce. This is the ideal way to inspire your employees to do what you want them to do. You get what you reward.
Managers must realize the power and practicality of praising. Everyone wants to be appreciated and if you praise, recognize and reward your employees you will get the most out those that work for you. Positive reinforcement, rewarding behavior you want repeated, works. This does not just mean bigger pay checks or cash bonuses. Studies indicate that personal recognition can be more motivating than money. Common sense would tell you that the manager who systematically makes an effort to thank employees for doing good work, and implements innovative ways to recognize accomplishments, will be liked, respected and sought after. Unfortunately, common sense is not common practice in many organizations.
Money is important, but thoughtful, personal recognition signifying true appreciation for a job well done is the top motivator of employee performance. Recognition both formal and informal, along with formal and informal rewards will reinforce behaviors. In “1001 Ways To Reward Employees,” Bob Nelson sets forth three critical criteria for rewarding and recognizing employees:
1. Match the reward to the person. Reward people in ways they find rewarding. Find out the person’s personal preferences and reward accordingly. The reward may be personal or official, informal or formal, public or private and may take the form of gifts or activities. Preferred reinforcers differ from person to person, so you, the manager, must determine or discover what things each employee responds to best.
2. Match the reward to the achievement. Reward people in ways that are customized to the significance of the achievement. The reward for completing a major project should be more substantial than for completing a small favor. The amount of time you have to plan and execute the reward and the money you have to spend are factors that you should consider when determining rewards.
3. Be timely and specific. For greatest effect, rewards need to be given as soon as possible after the desired behavior or achievement. Late rewards do little to motivate. Rewards should always be given with a reason, you need to acknowledge why the reward is given.
Nelson also shares Catherine Meek’s, president of Meek and Associates, Los Angeles compensation consultants, guidelines to make reward and recognition programs effective:
• The programs should reflect the company’s values and business strategy.
• Employees should participate in the development and execution of the programs.
• The programs can involve cash, noncash or both.
• Since what is meaningful to you may not be meaningful to someone else, the programs should encompass variety.
• The programs should be highly public.
• The programs have a short life span and must be changed frequently.
Finally, do not give out the same reward to every member of the organization. Passing out rewards with no real value, just for the sake of “rewarding,” can backfire. When there is no real acknowledgment of exceptional jobs or outstanding achievements, motivation can be damaged. If an equal reward is given to everyone, the person who is working harder will get offended and possibly lose motivation. The cookie cutter approach to rewards should be avoided.
Money talks, and bonuses work as incentive programs. However, there are other ways to motivate employees, and informal rewards and recognition can increase the productivity of a workforce without breaking the bank.
Informal rewards and forms of recognition can be implemented by almost any manager with minimal planning and effort. In a study of more than 1,500 employees, Dr. Gerald H. Graham, professor of management at Wichita State University, found that the most powerful motivator was personalized, instant recognition from their managers. In “1001 Ways To Reward Employees,” Bob Nelson shares the top five motivating techniques determined by Graham’s study:
1. The manager personally congratulates employees who do a good job.
2. The manager writes personal notes about good performance.
3. The organization uses performance as the basis for promotion.
4. The manager publicly recognizes employees for good performance.
5. The manager holds morale-building meetings to celebrate successes.
Informal rewards are effective and less expensive. Following are a few ideas based on Bob Nelson’s 1001 ideas. Tailoring these to the individual preferences of the people being recognized is the best way to reward and motivate employees.
No-cost recognition such as a sincere word of thanks from the right person at the right time can be extremely significant to an employee. It can mean more than a raise or formal reward. Knowing someone took the time to notice a job well done, a certain achievement or contribution, and took the time to personally deliver praise in a timely manner, is a powerful motivator for employees. It makes you feel good to know someone is paying attention to what you do, and feeling good makes you want to continue to contribute and succeed. There are many ways to thank a person, such as, calling them into the office just to say thanks and nothing more, posting a thank you on the employees door or computer screen, or having the company President call them or stop by just to say thank you.
Low-cost rewards from a nominal amount to $20.00 are also highly effective forms of recognition. With a modest investment of time, thoughtfulness and money, a manager can deliver a unique and memorable employee reward that will do wonders for morale, motivation, and productivity. Spending a small sum on something unique can provide a much more lasting impression than spending a larger sum on something ordinary and forgettable. Gift certificates for a dinner for two, concert or sports tickets, and something more unique that has meaning for the individual employee are simple low-cost ways to reward people. With some creativity, the manager can come up with unique ideas to reward and recognize people that do not cost much monetarily, but have enormous benefits to the organization by the increased productivity and morale of the work force.
Recognition activities that are one time events to celebrate significant achievements are another effective way to recognize and reward employees. These events should be planned so they are timely and pertinent to the situations and people being recognized. There are a variety of programs and activities that an organization can implement to recognize and reward employees. These programs can include VIP passes for certain privileges for a period of time, company sponsored social events, to the traditional awards banquette.
Time off can be a very powerful reward. Studies have illustrated that many employees would give up a day’s pay for an extra day off. In “1001 Ways To Reward Employees,” Bob Nelson shares the three ways you can use time off as a reward, according to Michael LeBoeuf, author of The Greatest Management Principle in the World:
1. If the job permits it, simply give people a task and a deadline and specify the quality you expect. If they finish before the deadline, the extra time is their reward.
2. If the job is one where employees must be present all day, specify an amount of work you want done by a certain time. If the work is completed on time and satisfactorily, reward them with an afternoon, day or week off. Or you can set up a scoring system in which people earn an hour off for maintaining a certain output for a specific period. When they earn four hours, they can have a half day off; eight hours earns a day off, and so on.
3. Award time off for improvements in quality, safety, teamwork or any behavior you believe is important.
There are many ways to reward employees with time: Provide extra breaks, give a two-hour lunch, send people home a couple hours early on a Friday afternoon, or give them the entire Friday off for a three day weekend. Some companies and organizations offer sabbaticals after a certain length of service. There is an old saying, time is money, and many employees prefer it over money, so use it when recognizing and rewarding people.
Formal reward programs are used in many organizations and firms. Studies suggest that such programs are often not as motivating as more specific, personal forms of recognition, but they are still important. They are useful for formally acknowledging significant accomplishments. Bob Nelson shared the eight general guidelines for conducting successful reward and recognition programs from Tim Puffer, of Puffer and Associates, in “1001 Ways To Reward Employees.” These eight guidelines are: Define objectives, lead by management example, develop specific criteria, use meaningful rewards, involve employees, keep communications clear, reward teams and manage the long term. The manager must manage reward programs. They should be promoted, but not overdone. The timing should be right. Employees should receive the award shortly after the achievement being recognized. The reward program should be fair. The reward program should be flexible so it can be adapted to each employee where feasible.
Recognizing employees for doing a good job is one of the best ways to keep them motivated. A “good job” goes a long ways toward making employees remain engaged in their work. There are countless ways to thank and appreciate employees for doing good work and achieving company goals, and many require little or no money. Recognize and reward employees and you will not only have a better work force, but the organizations culture and atmosphere will be more pleasant and positive, resulting in more successes for everyone in the organization.
