How much does it cost to motivate your employees? Less than you think, according to an article in the April 12, 2010, print edition of FORTUNE.
The article shares research insights from Globoforce – a global recognition solutions firm – that says small awards, more often are the best way to incent and reward employees. For example, the firm found that the best reward systems have common characteristics:
- Share the wealth by giving 80 percent to 90 percent of employees some reward every year. This helps reinforce positive behaviors.
- Smaller rewards are better. A meaningful reward can average just $110.
- Frequency matters. Every week, 5 percent of employees should get an award.
“Small awards all the time are a way to constantly touch people,” said Globoforce CEO Eric Mosley in the FORTUNE article.
At Linhart PR, we also discovered that small, ongoing recognition shouldn’t be limited from the top down. Our team members told us that they wanted to have more opportunities, more often to provide peer-to-peer recognition. That’s why we started a rewards program called Mile High Fives (only fitting since we’re in Denver). It allows employees to share hand-shaped cut-outs with a note of appreciation for a job well done – whether it’s wowing a client with exceptional service or staying late to help a fellow team member complete a project. The cut-outs can be collected and redeemed for gift cards that employees choose. It’s a low-cost, high-impact way to empower employees to feel motivated – and motivate each other. What could be better?
This is a great program. While Globoforce mentions that “meaninful rewards can average just $110″, I’ve found that the most meaningful reward is recognition for your work, especially by peers & direct managers. A sincere & specific “thank you” can go a lot farther in someone’s mind than, say, a $100 gift card.
Of course, I’ve also taken part in a traveling wine tasting trip at one of my old companies as the holiday celebration. That was very memorable as well.
But not specifically targeted, so it didn’t have the level of personalization that your Mile High Five awards do.
Very cool.
-S
Some people love public praise; others are mortified by it and would much prefer a sincere, in-person “thank-you.” Make sure you take this into account if you are planning a ceremony to give awards or other recognition. Hence, what the thing is, each person will be motivated in an unique manner. So that we can reach the goal without spending much budget.