Pioneering entrepreneur Mary Kay Ash, Founder of Mary Kay Cosmetics, once said: “There are two things people want more than sex and money – recognition and praise.”
She has a point. 69% of employees prefer praise and recognition from their managers over and above money, according to Gallup. The management consulting firm’s research also found that employees who do not feel adequately recognised are twice as likely to quit.
James Lee, Chief Design Officer at LifeWorks, spoke to us about this very issue.
“In the employee engagement space recognition and reward are often used synonymously,” he observed. “Yet they impact differently on the two basic human motivations; extrinsic (external) and intrinsic (internal).
“Rewards are extrinsic motivators – external material rewards such as bonuses and gifts in return for good behaviour or good work. Whereas recognition, an acknowledgement for something done well, is a primary intrinsic motivator.
“Whilst there are obviously benefits to both, intrinsic motivation develops a sense of achievement, responsibility and satisfaction. It’s long-term and sustainable. These are all crucial components of an engaged employee.
“Conversely, studies show extrinsic motivators to be short-term and with diminishing returns. And, of course, if the reward is removed, the motivation is too.
“All too often engagement programmes are geared towards external motivators, meaning many companies are missing out on the benefits of a low-cost, high-impact engagement strategy – the simple act of recognition.
“The number of companies that implement strategic recognition, a formal process tied to corporate values, to encourage and facilitate the acknowledgement of good work done by staff, is in the minority.”
High-recognition companies have a 31% lower turnover rate, according to Deloitte. Lee outlines why: “As well as individual and business benefits, it sends a positive message to other employees as well as reinforcing the actions and behaviour you most want to see from them.
“The most effective recognition is real-time, genuine and personal to the individual. Critical to success is to embed it into the culture of the organisation creating an environment where continuous recognition comes from all directions, especially peer-to-peer.
“Who doesn’t want to be recognised for their hard work and successes? It’s a basic human need. As the guru of the ‘recognition culture’ and author Dr Bob Nelson once said: ‘Take time to appreciate employees and they will reciprocate in a thousand ways’.” He, too, has a point.
Source: HR Grapevine
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