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The Honolulu Advertiser
Posted on: Monday, August 8, 2005

Intangible rewards may motivate best

By Diane Stafford
Knight Ridder News Services

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KANSAS CITY, Mo. — In the 11 years since Bob Nelson burst onto the best-selling scene with "1001 Ways to Reward Employees," he's tracked an evolution in what employees want to feel appreciated.

Awards, parties, even thank-you notes from the boss are still valued, but employee preference has gravitated toward more intangible rewards.

"It's less about merchandise or plaques and more about feeling supported and involved," Nelson said.

"Workers say: 'Ask my opinion. Let me know what's going on. Involve me in decisions. Back me up when I make mistakes. Give me some autonomy.'

"It's more about how people are treated every day at work — about being given interesting, meaningful work and being shown its context and value to the organization."

In other words, workers still covet, but care a bit less about, occasional recognition than about a steady diet of information, collegiality and, yes, praise.

Nelson, who holds a master of business administration degree in organizational behavior from the University of California-Berkeley and a doctorate in management from the Peter F. Drucker Graduate Management School at Claremont Graduate University, has tailored his career to learning what makes workers tick and how managers can motivate them.

"In a time of flat raises, hiring freezes, doing away with 401(k)s, outsourcing and so forth, money is so important," Nelson said. "I don't pit my stuff against money. Employers still need to pay people as best they can. Recognition programs aren't substitutes for money."

But recognition and rewards are vital if employers want to retain workers, especially their best workers, who would be the ones most likely to jump ship for better offers, he said.

Older generations took jobs in companies where they expected to work, get promoted and have a lifetime commitment, he said; they didn't expect "silly stuff" to help them feel better about their work because they felt secure.

Now, Nelson said, the notion of job security within an organization is gone for most workers. Instead, they need to find security within themselves, in their own self-confidence that they're doing a good job. And, human nature being what it is, they need bosses to reinforce them.

"You get personal security through praise, plain and simple," Nelson said.

When companies see the light about endorsing rewards and recognition programs, they train their managers and hold them accountable for delivering spontaneous recognition of individual employees, he said.

"To be a better manager, you need to transfer the anchor from being self-serving to helping others," Nelson advised.

Today's younger workers grew up in an environment where "everyone on the team got a participation trophy," he said. "Right or wrong, they expect rewards."

"The best companies, the best managers, find ways to make everyone feel involved and appreciated and then go the step beyond to drive performance by really rewarding the best performers," he added.

Nelson said it's possible to create an entitlement culture, where free doughnuts are expected on Wednesday," so rewards efforts should be tied to production.

"Don't pass out goodies 'just because.' Do it to celebrate success, both group and individual. Tie rewards toward performance, and it will be a meaningful driver."