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Spoil your staff …. A lesson in reward & recognition – Guest Blog

Business Reward

Business RewardWhen one of my Consultants left after 7 years I was excited for her. She was taking a big leap of faith and pursuing one of her life long dreams of becoming a paramedic. It was at her farewell when it hit me how important it is to reward staff on a random, yet regular basis.  In her speech, she mentioned the time I invested $500 for each staff member to pursue a personal goal outside of work.  Funny isn’t it – but as she was talking I was struggling to recall the exact detail of the initiative. On the other hand, she was describing it in vivid detail and the impact it had on her in terms of pursuing a hobby (share trading), developing her relationship with her husband (a passion they shared) and my interest in her as a person beyond what she delivered at work.  Notice she didn’t rave on about her base salary or the significant monthly bonus cheques she got – she talked about several small random rewards that I gave her over the years to recognise her achievements, loyalty and contribution.

It was in 2004 when I engaged a business coach to help me develop my leadership skills that I learnt the importance of praise, recognition and random reward in attracting and retaining talent.  It sounds simple in theory doesn’t it? Of course staff love to be told they are doing a great job, of course they love a gift voucher for achieving a target or getting a group email saying how wonderful they are. BUT in reality how often as Leaders are we actively doing this and randomly? Perhaps when an important milestone comes around or we land a big deal, but the day-to-day successes are rarely recognised, let alone rewarded.  I was guilty as charged.

To assist me in taking action in this area and making sure I actually delivered what I knew to be the right theory, I kept a reward and recognition book.  It made me consciously recognise and record what someone did and how I rewarded it.  This could range from a personal email, to a company wide announcement, to a lunch, to a specific gift or even time off.  It didn’t matter, as long as I was consistently rewarding the desired behaviours for individuals to consistently achieve top performance. The book was an easy idea and it kept the importance front of mind as well as myself accountable to take action.

Quick ideas to take action:

  1. Public acknowledgement – giving someone praise in a public forum (team meeting, group email etc) is a great way to pump someone up in front of their teammates.  It is also an opportunity to reinforce company-desired behaviours. I would always share positive client feedback in our sales meeting on a Monday, with any five star ratings receiving a Fredo Frog.
  2. Small rewards, big impact – I know you are thinking staff won't get excited about chocolate! It isn’t the chocolate though; it’s what it stands for. Small rewards can often have a big impact – it is often not the gift itself, but the acknowledgement of the performance.
  3. Be specific – how often have you been given something as a thank you that you didn’t like? Maybe you got red wine and you don’t drink red wine, maybe it was flowers that make your sneeze or a subscription to a magazine you don’t read? I developed a $5 - $500 chart for each staff member where they listed rewards in that range that they would value and appreciate. This way the reward was personal to them and well received rather than a generic gift.
  4. All staff recognised – don’t forget non-revenue generating roles! Administration staff were always included in recognising their contribution to the team.  This could be the way they resolve a client query through to phone manner or going beyond the call of duty.
  5. Random – don’t wait for only the big milestones to say well done and don’t reward the same people and actions all the time.  Your team will get pretty sick of seeing the same rewards, you will lose impact and you could be accused of playing favourites.

Overall, my aim was to be specific with the reward.  What was the behaviour they demonstrated that I wanted to see demonstrated again in the future? Don’t lose the meaning of recognition by just saying well done. Be specific about what the reward is for.  This is important not only for the individual, but also for the rest of the team to hear the right message.

Don’t wait for someone to crack their budget or out-perform last’s year’s record – reward people now for the action they take, the small steps they make and the lessons they learn.  It’s never to late to let your staff know that you appreciate what they do, to say thank you or to publicly reward action and effort rather than just outcomes and revenue.  Random recognition and rewards will win you loyalty and trust as well as assisting to attract and retain talent.  Human nature tells us we like to feel valued and we want to do a good job – so go on, look for the successes, go and say thank you, be specific and randomly reward a team member today.

Nicole UnderwoodNicole Underwood understands what it takes to create, build and grow a successful business. As a previous finalist in the prestigious Telstra Business Women Awards, Nicole consults and coach’s individuals and organisations to improve their results through effective leadership and attracting and retaining top talent. http://www.nicoleunderwood.com.au

 

  • Jen

    Great article. Daniel Pink, in his book “Drive,” said extrinsic motivators like bonuses for work done are not as effective if set as a goal to attain, but do have impact when given as a surprise thank you for hard work.  He says surprises don’t sap the creativity required to produce extraordinary results on certain projects.

  • Thanks for this great insight Jen. I haven’t yet read “Drive” but shall now bump it up my list. On personal reflection, I can certainly see how the surprise reward can really work to reward staff.