Note to managers: Lack of employee recognition damaging to company performance

Suppose someone asked you the following questions: Do managers in your company do a good job of recognizing employee contributions?

What would you say? Let’s hope you answered positively. But for a majority, getting a pat on the back may be a rare thing.

Based on a large study of employees at U.S. organizations over a decade, Adrian Gostick and Chester Elton, who write books and conduct training programs on the power of recognition and team-building, reported some disheartening statistics:

• 79 percent of employees who quit their jobs cite a lack of appreciation as a key reason for leaving.
• 65 percent of North Americans report they didn’t receive recognition at all in the previous year.

The lack of recognition is not only demoralizing to employees, but it can hurt company performance. When employees know their strengths and potential will be praised and recognized, they are more likely to produce value. Recognizing their efforts is not about making sure everyone gets a trophy. It’s really about taking the time to thank people for the contributions they give to making the company a better place.

So what’s a manager to do?
First, examine what is currently being done to recognize employees at the firm. Get feedback from employees on what’s working and what’s not.

Second, design a recognition system that is performance-based. Make sure the system is aligned with the culture you want in your firm and the company’s values and business objectives.

Third, train other managers in providing recognition.
This training might incorporate some of Gostick and Elton’s recommended recognition strategies, including:

• Day-to-day recognition: The most frequent, specific and least costly, this could include pats on the back, handwritten notes, team lunches, on-the-spot award certificates and thank-you gifts.

• Above-and-beyond recognition: More formal recognition for significant accomplishments such as the achievement of sales goals, exceptional customer service, etc. Generally, they suggest awarding these to employees about every two years.

• Career recognition: Formal programs to recognize people for loyalty or cumulative contributions, such as years of service. You could start with a welcome award — thanking them for joining the firm, followed by recognition at their one-, three- and five-year milestones.

• Celebration events: Consist of celebrations for successful completion of a team project, achievement of record results, new product launches, etc.

Courtesy of NJ.com, 11/1/2010: -- Joyce E.A. Russell, Special to The Washington Post

For more recognition ideas contact your local appreciateologists at the Baltimore Office. Email us at baltimore@octanner.com or call us at 410-661-5668.