As parents, coaches, or teachers we’ve all see the results of positive reinforcement. Managers can achieve the same bottom line results. Expressions of frequent, sincere appreciation will have positive effects on productivity, sales, and customer satisfaction. So think again before awarding that bronzed plaque – is it really producing the right results?

The key to a successful company recognition program is to distinguish between recognition and reward. The American Heritage Dictionary defines recognition as: an acknowledgment; attention or favorable notice.

That’s the reason an effective company recognition program should include: acknowledgment, appreciation and approval. Combined, these elements produce a psychological benefit and the recipient feels a sense of belonging and is intrinsically motivated. A reward involves a financial or physical benefit, with no psychological benefit. This is not to say that rewards are not important, they are. But there must be a balance between the two. Seven critical success factors for effective recognition include:

• SINCERE - Acknowledge that without employee commitment business would not survive
• FAIR AND CONSISTENT - The power of recognition is lost if perceived as inequitable and inconsistent
• TIMELY - Immediate recognition is essential!
• FREQUENT - Saying "thank you" is inexpensive and should be applied liberally.
• FLEXIBLE - Offer a variety of options to meet the needs of giver and recipient
• APPROPRIATE - Match the recognition to the effort
• SPECIFIC - Be clear about what exact behavior is appreciated and valued

Several tools can help ensure success – thank you cards, tokens exchangeable for products, team celebrations, and celebrations with family. To separate recognition and rewards try:

1. Never use "reward" and "recognition" in the same sentence
2. Use staff with psychological/motivational expertise to foster recognition
3. Staff in the financial and legal functions should monitor rewards
4. Keep cash for compensation
5. Provide training on giving and receiving feedback
6. Never give recognition based on a competition, lottery, or subjective judgment
7. Recognize all efforts that contribute to meeting the goals and objectives of the business

Remember, the best things at work may be free – don’t miss an opportunity to tell the people who work with you that you appreciate their efforts. Catch them doing something right today!

© Debbie King, Evolution Management, Inc.  All Rights Reserved.