Leadership Tips: Recognition and Praise Can Supplement Salaries

It’s a big mistake to think that your company’s associates are only there for the salary. Oh, sure, many of them are, but not all of them. And if you think what you’re paying them is enough to ensure your loyalty, you’re sorely mistaken.

Just like we leaders decry the fact that there’s no loyalty from employees anymore, just remember that they show the same amount of loyalty that we show them.

It’s like that 1980s “I learned it from watching you!” anti-drug commercial: Your employees learn about their level of loyalty from you.

That means if you only focus on paying a salary but treating your associates like a number, they will only view you as an employer. And unless you take some other positive steps, they’re going to leave as soon as someone offers them more money. But more importantly, they’ll leave unless you practice this one leadership secret:

Offer recognition and praise to your associates. Doing this can lead to several positive results.

1. It increases intrinsic motivation. People crave acknowledgment and appreciation, and when they get it, they’re more likely to go above and beyond what you ask of them. For the most part, people want to do a good job, even if it’s just a point of personal pride and not the promise or threat of reward or punishment.

If you can offer recognition for people meeting their challenges, they’ll be more likely to take on new challenges and become more innovative. They’ll work harder because they want to continue to be worthy of that (continued) recognition.

2. It builds stronger relationships. When you acknowledge a person’s efforts, it fosters trust, respect, and a deeper level of connection. It creates a more human, supportive work environment where the people feel valued.

For instance, take a few minutes to chat with an employee about their hobbies, family, or personal interests. It shows genuine interest and builds a stronger rapport. These personal connections create a sense of loyalty and belonging, making employees more likely to stay with the company even if they receive competitive salaries elsewhere.

Jack Salzwedel, the former CEO of American Family Insurance, was known for talking with his associates about their families and hobbies. He would sometimes give books to people who shared his interest in things like history and chat with them about a particular event they were both reading about.

3. It fuels passion and purpose. Recognized associates feel more engaged in their work, which means they’re more likely to be enthusiastic about their jobs, take the initiative on certain things, and actively participate in team projects.

For example, my safety council was made up of associates who worked on the floor, not the management team. When they were finished, I closed down the company and let them present our new safety policy. Then, I properly recognized the hard work they did and made sure that everyone knew we were supposed to follow those policies at all times.

Just that simple recognition helped them all to buy into the new policy and follow it and to help keep the safety team’s interest and continued participation.

When associates feel that they’ve been heard and their contributions are valued, they’re more likely to feel a sense of pride in their work. It drives them to go above and beyond what’s expected of them.

4. Recognizing and rewarding excellence
Recognizing people’s hard work can improve overall morale because when other associates see their colleagues being recognized for their hard work and achievements, it can motivate them to shoot for those same results and work harder to reach them.

A culture of recognition can also attract and retain top talent. When prospective new associates hear about your commitment to recognizing and rewarding their employees, they’re more likely to be interested in working for you.

And associates who might have been interested in leaving can be persuaded to stay because they don’t want to lose that possible recognition and start over at a new company.

Fair compensation is important, don’t get me wrong. You can’t compliment people more just to pay them less. But salary is not the most important thing to a person when they’re working. You can increase satisfaction and productivity just by offering a few words of encouragement or even giving a simple “thank you” to someone for what they do.

By doing so, you’re investing in your employees, which means you’re investing in the long-term success of your organization.

But don’t just wait for a big event to happen. You should be out walking around the office or floor and talking to people for a few minutes. That in itself can be encouraging and supportive. And by doing so, you’re building personal loyalty and personal appreciation as well.

I’ve been a manufacturing executive, as well as a sales and marketing professional, for a few decades. Now I help companies turn around their own business, including pivoting within their industry. If you would like more information, please visit my website and connect with me on Twitter, Facebook, or LinkedIn.

Photo credit: NoName_13 (Pixabay, Creative Commons 0)