By Craig Kitch
www.craigkitch.com
I just finished reading “The Carrot Principle: How the Best Managers Use Recognition to Engage Their People, Retain Talent, and Accelerate Performance” by Gostick and Elton. I have long been a fan of employee recognition but always struggled with how so many companies allow it to become blasé. Sometimes it even turns into an entitlement program when team members complain that they have not had “their turn” as employee of the month.
So many managers begin a rewards and recognition program with the best of intentions only to have it become a waste of time and a drain on the bottom line. The monthly sandwich or pizza lunch in the conference room seems to lose its luster after a year or so. The standard pat on the back and $25 gift certificate to a local eatery for exceptional performance can become an insult. The problem is that most managers have no idea how to implement an effective recognition and rewards program.
Gostick and Elton do a masterful job of explaining the effects of their extensive research on employee recognition and how to boil the theories down into specific, effective tasks that any manager can engage. Their research shows that a well thought out recognition plan that is consistently carried out results in reductions in turnover by as much as 20% almost immediately. There is no doubt that this tool is virtually indispensable for managers who want their teams to remain competitive (not to mention in-tact) in an ever tightening labor pool.
The authors assert that effective recognition must carry four primary qualities to produce the desired results.
• It must be delivered frequently. Six or seven times per year just won’t cut the mustard. Research showed a direct correlation between top employees’ motivation and how often they received recognition for their work. For best results, your best people should be recognized at least every other week.
• It must reflect organizational values. Teams often struggle with understanding and implementing your company’s values. The authors contend that if you recognize specific activity that supports the company values, you will begin to see more interest on the part of your team in walking the company talk.
• It must be appropriate to the achievement. There are few things more damaging to the accomplishment. There should be an obvious difference in the reward given based on the value of the contribution by the associate.
• It must be tailored to the individual. Not everyone wants to be recognized in the same way. While one person values a hearty round of applause in front of the entire company, another might put more value in a personal letter on company letterhead outlining the specific achievements you are thanking them for. We are not all created equal in the ways we prefer to be rewarded.
As the labor pool continues to shrink and the market at large is becoming more competitive, the manager who can hire the best and retain them is the one who will sleep soundly at night. The old days of “do it or else” are long gone. The new workplace will continue to evolve over the coming decade and personal fulfillment will become even more important than money for many workers. Today would be a great day to begin overhauling your recognition and rewards program so that you’ll have smooth sailing with you team tomorrow.
Craig Kitch works with managers to reduce conflict and improve communication so that everyone can stay focused on their jobs. He began his professional life as a broadcaster, where he learned the power of the spoken word. He took those skills with him into the hospitality industry where he had a very successful career for over 20 years. Working in management, Craig developed the skills necessary to pull teams of people together and lead them to accomplish ambitious goals. He eventually became a “turn around specialist”, using those skills to remedy problematic properties.
Today Craig runs his own business, Kitch and Associates, and is dedicated to improving the lives of managers. He serves on the Board of Directors for the Greater Nashville Hotel and Lodging Association
