Posted on: Monday, September 24, 2001

60 Seconds on Business
A little praise can mean a lot of profit

By Dr. Drake Beil
President, Solutions Inc.

When was the last time your boss came over to you and said sincerely, "You're doing a good job!"

Now, you probably do at least 99 out of every 100 things right on the job, but how many of them get recognized? None? How often are they even noticed? Once a year?

Employee recognition is one of the most powerful motivators that managers can use to get the most out of their people.

The best recognition programs are tied to performance-based incentives and literally pay for themselves many times over.

Managers can look at a range of job-related performances to reward employees and recognize their contributions. For example, they can set up motivational incentives for such things as attendance, unused sick leave, customer service excellence, length of service, productivity goals, internal promotions, improved safety efforts, sales successes, special projects and training opportunities.

All of these can be tied to performance goals in such a way that the company actually makes money when the motivational programs are properly installed.

Companies in the United States spent more than $2 billion on recognition programs in 1998, more than 3 times the amount spent in 1986.

As your employees get harder to replace, and more expensive to train, spending a little more to keep the better ones makes economic sense.

Performance and profits improve when people are properly recognized. What gets recognized gets repeated.

Reach Dr. Drake Beil at drake@60secondsonbusiness.