Many a CEO has asked the question: Do staff recognition efforts pay off for employers?
Crunching the numbers may show that while recognition can prod a worker to a higher level of performance, don’t expect it to work miracles. That’s particularly true if your staff already suffers from low morale.
According to Peter Dudley, a blogger for Charities@Work, formal recognition doesn’t directly motivate workers. Even so, don’t think for a moment regular expressions of gratitude to stellar performers aren’t vital to a productive workplace. Even saying a simple ‘thank you’ can do wonders for increasing your company’s bottom line.
When you consider the bigger picture, a lack of recognition of your workers’ achievements will pull down collective workplace morale over time. It’s important to create incentives that encourage both group performance and still reserve the ability to grant kudos to the individual worker.
Also consider how you structure incentives, as that can create unexpected pitfalls. The last thing you want to do is to unwittingly cultivate an atmosphere in which employees feel entitled to recognition and rewards for performing basic job responsibilities. Conferring praise for just fulfilling the job description can backfire and work as a disincentive for those workers doing an excellent job.
Keep in mind that employees talk amongst themselves. And even if your company policy forbids discussion of salaries, don’t think for a minute that employees won’t ferret out those numbers. If and when they do, they may attempt to play one staff member against another in an effort to wrangle a bit of an advantage. While that rarely cripples a company, it can and will erode morale and create unhealthy vibes in the workplace.
A CEO should ensure the perception for fairness and motivate staff with the ability to earn deserved rewards. That makes for a healthy workplace atmosphere that remains collegial and productive. If you’re looking for more insight into business issues, sharing tips with other business owners in diverse industries can help shed light on the issue of effective employee incentives.