Showing appreciation to your employees for a job well done is one of the most effective (and underrated) ways to boost morale, performance, and loyalty in your organization.
When your people feel valued and know their contribution matters, it doesn’t just help them develop personally; it cultivates the skills and talents that’ll contribute to building an even stronger team in the future.
Too often, we only give feedback to point out a problem or suggest something that could be done better or differently. But highlighting and rewarding positive achievements is just as critical for the growth and health of your company.
Why Is Employee Recognition So Important For Your Team?
If you’re not motivated by praise, it’s easy to forget that’s not the case for everyone. You may not need appreciation to continue doing a good job – but your team does!
Positive feedback helps your employees understand the standards of behavior in your organization and makes for an engaged, driven, and productive team.
Not showing gratitude for your team’s efforts is one of the biggest mistakes you can make in your business. Without a system in place to recognize your employee’s contributions, it won’t be long before the cracks start appearing in your team.
What Happens When Your Team Feels Under-Appreciated?
You might notice a bad atmosphere starting to creep across the organization, with team members not speaking up at meetings or only revealing problems once they’ve reached emergency status. People may seem disinterested, uninspired, and even resentful. After a while, progress will hit a wall because no one knows whether they’re actually doing a good job or what to double down on.
Worst case scenario, if the situation reaches a critical point, it’ll start to show in your staff turnover rate, and your best people just won’t stick around.
In an online study of Gen Z and Millennials (age 18-38) carried out by financial services firm DaVinci Payments, 79% of those polled said that “an increase in recognition and rewards would make them more loyal to their employer.”
So with that in mind, what practical steps can you take to reward outstanding work in your organization?
What Type Of Work And Results Deserve To Be Rewarded?
Think about what defines great work for your company and the type of effort and results you want to recognize.
As a minimum, this might be:
Firsts – a new role, new responsibilities, the first time completing something the company or group has never done before.
Results – acknowledge the expected and celebrate when goals and targets are exceeded.
Finishes – completing projects, both big and small.
Once you’ve got those basics covered, think about recognizing attitude and effort, not just achievement.
This might mean acknowledging and appreciating:
- Being a particularly strong and supportive team player
- Tackling challenges with a positive approach
- Staying cool and calm under the pressure of a tight deadline
- Going above and beyond to serve a client
- Thinking ahead and anticipating next steps
Finally, don’t forget to consider individual growth moments for your team members. Those times when someone overcomes a particular challenge, strengthens their leadership skills, receives a great 360 from their team, or accomplishes something significant in their personal life. All of these are achievements worth celebrating alongside the more company-focused milestones.
Ideas for Rewarding Great Work
Once you’ve figured out what you’re going to reward in your company, it’s time to think about the how. There are so many ways you can show your employees you appreciate them, ranging from a simple “thank you” right up to financial rewards and promotions.
Online retailer Zappos has some awesome examples of creative employee recognition – with their “Zollar” (Zappo dollars) program, coworker bonuses, and Zappo heroes. Or maybe you could take a leaf out of UK financial institution Yorkshire Building Society’s book. (Literally!) They present employees with a personalized yearbook on their work anniversary, celebrating them with comments, photos, and positive stories contributed by everyone from coworkers right up to the CEO.
But you don’t have to do anything as fancy as that to make your employees feel that their efforts are truly valued. Show your appreciation for your team with:
- Bonuses
- A promotion
- Extra paid time off
- An old-fashioned thank-you note
- A small gift you know they’ll love
- A shoutout in the dedicated company Slack channel or newsletter
The #1, hands-down, best way to reward good work is to look the person in the eye and acknowledge them fully. Address them by name and say a heartfelt “thank you.” Share with them how things have changed for the better because of their achievement. Sometimes simple really is most effective.
Related Reading: How the Right Routines and Systems Can Make Your Feedback More Effective
How To Add More Meaning And Impact To Your Feedback
- Be specific – Mention exactly what they did and why it was remarkable. Instead of: “Good job today.”, try: “Thank you for taking the initiative to step in and solve the problem with the server this morning. Your quick thinking saved us from a whole lot of extra headaches and unhappy clients.”
- Be timely – don’t leave a long gap between the event or actions and voicing recognition for it.
- Be open – make a point of showing appreciation for your employees’ efforts in front of their coworkers. Not only will they feel a stronger sense of pride, but it’ll also have the knock-on effect of acting as motivation and a morale-booster for the rest of the team.
- Be selective – it may sound counterintuitive, but don’t go too far in the opposite direction. Over-praising routine tasks and actions will remove some of the impact and value from your appreciation.
Create A Company Culture Of Employee Recognition And Rewarding
When was the last time you told your team members how much you valued their contribution?
The first step to building a company culture of recognition and reward are the simple systems and practices we’ve discussed above to help you acknowledge and appreciate your team’s achievements.
When gratitude is the norm rather than the exception, you’ll earn respect, loyalty and build a team that’s pulling together and willing to do their absolute best for your business.
For more guidance on creating a working environment that boosts productivity and cultivates creativity, download your free copy of my People Reading Guide. It’ll help you better understand what makes your team tick AND show you how to use that knowledge to lead with impact.
