In “1001 Ways to Reward Employees” and the “1001 Ways to Energize Employees”, Bob Nelson recommended the worth of awards and recognition and he elucidated the reason how they are essential tools of employee motivation, team building and productivity.



You may find it hard to believe, but recognition is the most powerful motivator of all. We all need to feel important and worthwhile. When someone gives us compliment for doing something or recognizes our efforts, we feel good, we feel proud. In fact this recognition and compliment satisfies our self esteem. It makes us feel appreciated and respected. Imagine, for a moment, being complimented by all your family members, friends, colleagues and bosses all the day, every day; “wow… you are outstanding in all deeds, your performance is superb”. This is the upshot of the compliments, you received. It satisfies the desire to have strength among family, friends and colleagues. Indeed this is the essential ingredient for the happiness and success.



There are two types of recognitions: The formal and informal. When we say formal, we mean those that are awarded by the company i.e. Performance awards, performance bonuses. While the informal ones are granted by the manager based on the good job done by the employee; i.e. a pat on the back, a Well-done or Thank you card.



Researches have shown that there is a stronger need in the society today for recognition than there is for the money. Money is an external motivator but it is never lasting; neither can it ever substitute the true values shared by the mankind like recognition and praise. It’s true that we cannot ignore the part played by the money in our lives, but by hook or by crook we need to satisfy our self esteem, we need to feel appreciated.



In a research study of 1,500 employees in a variety of work settings, Gerald Graham, professor of management at Wichita State University, found that money was not a top motivator. Personalized, instant recognition from managers was reported to be the most motivating incentive of 65 potential incentives he evaluated. But 58 percent of employees reported that they seldom, if ever, received such personal thanks from their managers. Second motivator he revealed was a letter of praise/appreciation written by the manager to his employee.



An American staffing company Robert Half International has also reported that the major reason employees give for leaving companies is the lack of praise and recognition. No doubt, recognition is truly a highly valued reward. However it should be on appropriate time. Appropriate recognition at the appropriate time is a best practice that ultimately improves the performance. A Gallup poll found that 82 percent of employees say that the recognition and praise they receive at work motivates them to improve their performance. Organizations are realizing the powerful impact of recognition and praise to achieve the desired results in the workplace and adopting it as a “Number One” reward that is far more significant than salary and benefits.



It’s a cost effective way to recognize the hard work, achievements and accomplishment of the employees. Believe me; you will get the “Exceptional Performance” in the result. Your employees will be happy to know that their managers notice their work and acknowledge it. They will be motivated to improve their performance, will take more pride in affiliation with the company and their productivity will be increased. The companies having environment of employee appreciation do make the difference. In the 1995 issue of “Employee Relations Today”, Professor Kenneth Kovach has reported that his research has proved the two most referred to factors of motivation by employees were not salary and benefits, but more or less, an interesting job and recognition for doing that job well.



AT&T Universal Card Services in Jacksonville, Florida, uses the “World of Thanks Award” as one of more than 40 recognition and reward programs. It’s a pad of colored papers shaped like a globe with “Thank You” written all over it in different languages. Anyone in the company can write a message of thanks to someone else and send it to that person. You would be amazed to know the popularity of this award that they used more than 130,000 notes in just four years.



There are hundreds of other ideas to consider that are really creative and simple to implement. All in fun, but these things keep up the morale of the company and it keeps the employees in the team spirit.



Some of these creative ideas are as follows:



1. You can introduce Idea Award. If someone comes up with an innovative idea that can be used for a new product or save the company big bucks by changing the procedures, he can be nominated for this award.



2. You can place the photograph of most outstanding employee on the notice board or the lobby of the company or in company newsletter. Or you can create a “Wall of Fame” to honor him/her in your organization.



3. Letters from the immediate boss, the head of department, deputy director or director of the company.



4. Find out what an employee’s hobby is and purchase a small gift that relates to that hobby.



5. Special-parking.



6. Free car wash.



7. Arrange for a top manager or Director in your company to have a recognition lunch with the employee or have the company president call the employee to thank him personally for a job well done.



8. Recognition by email.



9. Arrange a dinner for you employee and his family to recognize his work in a five star hotel.



10. Try to introduce Pat Culture in your organization. There should be the pats on the back.



11. Day-free, half day off, Friday off.



There are so many other ways to recognize and praise your employees; the need is to discover them. Especially in a down economy, recognition and praise and non tangible rewards programs can be used as a specific tool to help a company succeed in both good times and bad by making employees feel valued, appreciated and satisfied.