by Dizem Ramadan Wednesday 16th December 2009
A recent report by RedBalloon1 has contended that many managers are driving employees away due to their failure to adequately recognise and reward positive contributions.
The RedBalloon study which surveyed 3,053 employees, found that a whopping 62 per cent of employees assessed their managers as being "very poor", "poor" or just "satisfactory" when it came to giving specific and timely praise to employees.
Furthermore, 28 per cent of respondents said that they would leave an organisation which did not praise them at all.
It is essential to explore the background behind these figures to see how your organisation can avoid this pitfall.
Fear of Spoiling Employees
Some managers avoid praising effective employees because they fear that such an approach will "spoil" them and result in the employee adopting a more careless attitude in the future.
This is generally incorrect. The main thing to remember is that any praise should be constructive. Generic remarks should be avoided.
Liz Ryan, an American business journalist, stated that compliments should be based on achieved objectives.
"There's no danger in making a point of thanking and acknowledging employees for specific, observed results," she says.
While this is important, it should not be overdone.
"If you praise people non-stop, your complimentary words will lose their effectiveness as a motivator," Ms Ryan added. "If you give praise when it's not deserved, you'll lose your credibility and undermine the whole group's efforts."
How Can Praise Be Given?
Praise is most effective if it is taken to be genuine and well thought-out. It is best to show your appreciation for your employee’s achievements through actions, rather than just words.
One great way to do this is by offering already accomplished staff members the opportunity to excel even further. This could be done by providing them with access to professionally-relevant training programs or support for further study. They may appreciate being offered a challenging position on an important company committee or a chance to attend seminars and conferences that align with their professional goals. This shows your successful employees that not only do you value their contribution to your organisation, but that you also believe in their capabilities and want to see them prosper.

1 http://www.redballoondays.com.au/media/corporate/siteDownloads/pdfs/RewardRecognitionSurvey.pdf
It is important that your organisation doesn’t overlook the more "obvious" forms of effort recognition such as regular performance reviews and pay increases or bonuses where due.
Have a well defined remuneration and reward scheme
While it is beneficial to give staff regular praise, this should not be a casual "at whim" exercise. It is imperative that your organisation’s approach to employee effort recognition appears in official, written form.
This will ensure that your employees perceive your company as taking a fair and consistent approach to staff recognition. There are few things more damaging to team morale than the realisation of favouritism or bias by management towards employees.
It should also be remembered that policies can only be effective if they are rigorously adhered to. An important part of this is regular evaluation and review. If your organisation finds that a particular approach is not working, perhaps it is time to sit down and review the schemes currently in place.
What Can Your Organisation Do?
iHR Australia and its sister company DirectEx can assist your organisation in developing effective recognition and reward schemes and provide professional advice regarding the implementation and evaluation of such schemes.
iHR also offer other complementary services such as staff surveys, to better gauge staff sentiments, and leadership training, to give your organisation’s emerging leaders the tools to succeed. This training is tailored to your firm and has the added bonus of being held in-house on your company’s premises.
For more information, please contact us on (03) 9854 0000.

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