Why it's just as important to dole out the praise as it is the pay

We’re all too familiar with the saying “Money can’t buy happiness.” Well, it seems this sentiment is as true in the workplace as it is in our personal lives. Just as a bigger house, car or flat-screen TV can’t define our happiness at home, neither can a bigger paycheck, bonus or raise at the office.

What does bring more satisfaction, according to a recent McKinsey Quarterly global survey, is praise from our superiors. Recognition and support go a long way toward boosting an employee’s self esteem, building confidence and enhancing performance. Those are huge positives that, thankfully, don’t cost your recession-challenged business a lot of money!

Salary isn't everything

Conducted in June 2009, the McKinsey survey garnered responses from more than 1,000 executives, managers and employees from around the world (and representing a range of industries).

The survey posed the question, “Which incentives do you find boost employee morale and productivity most?” The answers were:

• Praise and commendation from immediate managers – 67%
• Attention from leaders – 63%
• Opportunities to lead projects or task forces – 62%
• Performance-based cash bonuses – 60%
• Increased base pay – 52%
• Stock or stock options – 35%

As the report outlining the survey results explains: “The respondents view three noncash motivators … as no less or even more effective motivators than the three highest-rated financial incentives. The survey’s top three nonfinancial motivators play critical roles in making employees feel that their companies value them, take their well-being seriously, and strive to create opportunities for career growth.”

How to keep employees engaged

The results of this survey are good news for cash-strapped employers still crawling out from under the recent economic downturn. “There couldn’t be a better time to reinforce more cost-effective approaches,” explains the report. Money’s traditional role as the dominant motivator in the workplace is taking a back seat to more intrinsic benefits.

So how do you act on this important message and motivate employees to give their best? Here are some simple, low-cost employee recognition ideas to enhance job satisfaction and performance:

Make a note of it
A hand-written thank you note shows you valued a person’s work enough to take time out of your day to acknowledge it. It’s a simple gesture with great impact. For even more impact, mail a card or letter home so the employee can share the praise with family members.

Point out employees publicly
Use a public forum, such as a staff meeting, to recognize excellent performance, so an employee’s moment in the spotlight is shared with others. Look for other creative ideas for employee recognition, such as company newsletters, intranets or even articles in local newspapers.

Little things mean a lot
It’s great to recognize the "big wins," but it’s also important to call attention to the everyday achievements. Reward employees for their “quieter” contributions with a thank you note and if the budget will allow, something extra like a store gift card, desktop award or free lunch.

Encourage peer recognition
Implement a program in which employees recognize one another. One version of this could be a "Pay It Forward" type of award in which the first employee who receives the award identifies the next employee who deserves the award.

Create a work environment that supports achievement
Display inspirational and motivational posters on the wall, introduce team-building or motivational games as a part of staff meetings, and provide occasional social events on company time to strengthen camaraderie among employees and management.

Keep in mind, too, that most employees enjoy new, challenging opportunities. Avoid micromanaging employees so they’ll gain a sense of control and mastery with their work, and involve them in (or have them lead) fresh projects that will expand their skills and stretch them creatively.

Why it's just as important to dole out the praise as it is the pay

Mastering the tools of engagement

Your employees show up to work every day, and most of them are doing a great job. But as five o’clock inches closer, you notice that they’re counting down until the workday ends. If more employees were excited to be at work, rather than thinking about quitting time, the company could do a lot better. Raising salaries isn’t an option right now and you feel stuck. What can you do?

Budgets have shrunk and our belts are so tight it’s hard to breathe; traditional motivators like performance bonuses are out of the question. So, what can managers do to improve employee commitment when dollars are in short supply?

The good news – managers can use many tools to improve morale, boost employee motivation and raise the level of engagement, even when there seems to be no room in the budget.

These tools fall into one of four basic categories:

What is said?
What is permitted?
What is encouraged?
What is offered?

Find out how to leverage the tools of engagement in G.Neil’s free white paper, The Tools of Engagement: Boosting Employee Commitment When Money is Tight (.pdf).

In it you’ll find suggestions on improving employee engagement on a budget and examples to help you identify what’s missing in your workplace. No registration required, read the white paper (.pdf) today.

Mastering the tools of engagement

Top employee retention tips and advice

With the economy the way it is right now, many businesses are worried about losing top talent only to be short staffed when the market turns around. Today it’s all about employee retention strategies that will keep employees happy and motivated in their current positions.

You could be like Google and use a mathematical formula to calculate when a staff member is most likely to leave the company, but most would probably reach for a more conventional method. Luckily, there’s a world of valuable resources out there to help you discover the best option for your team.

Here are some of the top blog posts and articles on employee retention from across the Web:

• Along with being “desperately” short staffed in skilled jobs, many leaders are also facing an increase in the number of toxic employees and their impact on the organization. Read how leading with gratitude can make your workplace better from Globoforce.


• Though budget cuts and layoffs may be a necessary evil during a recession, organizations can boost morale by giving employees challenging assignments that promote growth. Read more on how to incorporate “stretch goals” in this recent BusinessWeek article.


• Times are tough everywhere, but it’s still no excuse for bad management behavior. Read what Jessica Lee from Fistful of Talent would tell a badly behaving manager who’s worried about employees leaving.


• The revolutionaries at Renegade HR take a slightly different approach and suggest that you shouldn’t focus on employee retention at all. Instead, “recruit great people and inspire them to do amazing things.”


• And for a little laugh, check out the top three retention strategies that didn’t quite make the cut from Upstart HR. One tip: Don’t use a hitman.

Top employee retention tips and advice

What if your employees were volunteers?

There are thousands of ideas out there on how to improve employee performance without having to spend a dime, but “sometimes incentive and motivation programs aren’t necessary.”

That’s the message from Paul Hebert at Incentive Intelligence, ironically a blog dedicated to aligning behaviors and goals through motivation, rewards and recognition.

Last week, Hebert proposed an experiment that any manager, supervisor and coworker can try, that simply involves asking yourself one question:

“What would you do different if everyone you relied on for your business success was a volunteer?”

Volunteers are tied to their work with passion, not pay. They’re able to walk out of an organization whenever they please because they’re working because they want to, not because they have to.

Looking at your employees as volunteers forces you to identify their passion and discover why they’re working at your organization. Whatever their passion or reason for working, managers should create a mission and set goals that are aligned with employees’ passion.

“Managing volunteers means valuing contribution and working to match desire to function within the team to achieve the stated mission. Managing volunteers isn't about directing effort as much as it is about allowing effort to find it's best path.”

Hebert suggests that every manager ask themselves - “What would I do different if all my staff could just walk out tomorrow?”

What if your employees were volunteers?

Employees hit the road for National Start! Walking Day, tomorrow April 8

Thousands of Americans will bring along a pair of sneakers to work tomorrow and embark on a new journey to fitness that starts with one 30-minute walk.

The initiative is part of the American Heart Association’s National Start! Walking Day, a nation-wide effort to get more people of all physical ability levels on the path to wellness.

The American Heart Association chose walking as the main activity in their program because it’s the most accessible, affordable and successful of any type of exercise routine.

"With over 66 percent of Americans considered overweight and obese and nearly 70 percent of the population not engaging in regular light to moderate physical activity five times a week or vigorous activity three or more times per week, we realized there was a dire need to incorporate more walking into people's daily routines," said Timothy Gardner, M.D., American Heart Association president. "Just a few extra steps each day is a simple and easy way to take an active role in maintaining a significantly healthier life."

Research has proven that walking programs have the lowest dropout rate of any physical activity and are the most effective method to get employees to exercise during the workday without hurting productivity, according the the American College of Sports Medicine.

“It’s good business to have physically fit workers,” says David Josserand, executive vice president and chief strategic officer of The Dalton Agency in Jacksonville, Fla., and 2008-2009 national chairman for the American Heart Association.

“A recent four-year sutdy reported in the Journal of Occupational and Environmentla Medicine found that employers can save $1.65 in healthcare expenses for every dollar they invest in fitness programs. Reducing just one health risk in a workplace can increase productivity by 9%,” Josserand said in a Forbes magazine article (pdf).

In addition to healthcare savings, studies also suggest that implementing a workplace physical activity program can help companies reduce absenteeism and lower turnover rates.

Businesses can register for the Start! Fit-Friendly Companies Recognition Program, which recognizes employers who advocate the health of their employees and work to create a culture of physical activity in the workplace. Nearly 1,000 companies were designated Fit-Friendly since the program was launched in 2007.

Participants in the Start! Fit-Friendly Companies Recognition Program are given free access to program resources, including materials to promote employee wellness programs, internal newsletter templates and consultation on CPR/AED programs.

Encourage employees to wear their sneakers to work tomorrow and take a 30-minute walk outside. Even if you can't pull things together to get started tomorrow, set a date in the near future and put your company on the road to wellness.

You can find free, downloadable walking plans and a list of walking paths in various cities at startwalkingnow.org.


Related posts:

Obesity linked to more expensive workers’ comp claims

Economic stress impacts employee health, productivity

Employee wellness best practices: Offset the rise in health care costs

Rising health care costs motivate employee wellness programs

Employees hit the road for National Start! Walking Day, tomorrow April 8

Can an employer fire an employee for being too buff?

During a recent conversation with a friend in the HR industry, an interesting story came up about a situation at a past employer. To keep it simple, we’ll call our friendly HR-pro “Jane.” (Note: Names, dates and company information have all been omitted to protect the innocent.)

Years ago, Jane was recruiting physicians for the medical clinic she worked at when she thought she came across the perfect doctor to fill an open position. The applicant filled all the necessary qualifications, was well-educated, well-spoken, energetic and self-motivated. Jane offered the job to the doctor the day after the interview. He accepted and was hired.

After about a week on the job, Jane unexpectedly found the doctor showing off to some of the medical assistants in the employee lounge. The doctor, dressed in scrub pants and an undershirt, was having the medical assistants count off how many one-handed push ups he could complete in one minute. After the push-up routine, he proudly took off his shirt and asked for volunteers to hang on his biceps as part of another strength test.

Jane fired Dr. Muscle a week later and some of the female assistants seemed to be rather upset. However, Jane thought the office was better off without someone revealing their muscles and working out when they should be focused on their job.

While Jane may think she did her office a favor by getting rid of Dr. Muscle, could she have potentially put her clinic in serious legal trouble for the firing? A list of questions ran through my brain:

Can an employer fire an employee for being too buff? Could that warrant a sexual discrimination claim? Behavior is one thing, but what about just looking too hot and that being a distraction to the other employees? Is there a discrimination lawsuit in there? Is it the same for a good looking man or a good looking woman?

According the G.Neil legal team, unless you are a government employer or operate under a contract, your company is most likely an at-will employer. At-will simply means the employment relationship may be terminated at any time for any reason by either the employer or the employee. The only “catch” is that the “any reason” really means any reason except for an illegal one. In other words, you can terminate an employee because of absenteeism, poor work performance or simply because he/she isn’t a good fit for your company. However, you cannot fire someone for being Asian, a female, too old, etc. Firing someone because of race, color, national origin, religion, age, gender, disability or other legally protected characteristic is prohibited by law and may result in a claim of wrongful discharge.

Although there is no law that prohibits discrimination based on personal appearance, appearance-based litigation arises under several discrimination laws. These days employees and former employees are bringing lawsuits, which are in essence appearance-based discrimination claims, alleging violations of the ADA, ADEA, Title VII, and state fair employment statutes. By tying an unprotected physical characteristic to race, sex, national origin, religion, or disability, plaintiffs are able to get their appearance-based complaints in front of a judge or jury.

Can a particular employee be asked/required to cover up more than other employees because of appearance (good or bad)? Possible situations … large breasts, ugly scars, big muscles, deformities, etc. Is there a level of distraction that could justify such a request as part of a legitimate business need on the part of the employer?

Employers generally have the right to establish dress code and appearance standards for appropriate business reasons. Common business reasons include sustaining a positive public image, promoting productivity, and complying with health and safety standards. Legal claims can arise when an employer enforces dress code or appearance standards that are not business-related or applied uniformly, or when the standards affect one group of individuals more than another, in violation of federal or state anti-discrimination laws.

In some cases, a company might be required to make an exception to its established dress code or appearance standards for legal reasons. For example, employers are required to reasonably accommodate an employee’s religious beliefs and employees generally should be permitted to wear head coverings, religious insignia and other tokens of faith. Religious accommodations are not required, however, if they present a safety risk, public health concern, or other undue hardship on the employer. For example, employees may be prohibited from wearing long hair or flowing garments near machinery, or they may be required to wear hats or ponytails in a food service establishment.

We know that firing an employee is never an easy thing to do, but knowing how to handle each stage of the process can make it go much smoother. The ComplyRight How to Fire Anyone: Your Guide to Fair and Legal Terminations will give you a clear explanation of the legal do’s and don’ts when it comes to firing employees.

Can an employer fire an employee for being too buff? Leave a comment and let us know what you think.

Can an employer fire an employee for being too buff?

How losing can inspire motivation

As this year’s March Madness college basketball competition comes to a close and those lucky few employees collect their winnings from the office NCAA pool, some may be saddened to know they may have picked better brackets if they would have paid attention to a recent study.

A new study out of the Wharton School of the University of Pennsylvania examined 6,000 college basketball teams and found that teams that were slightly behind their opponent at half-time were more likely to win the game.

Wharton professors Jonah Berger and Devin Pope who conducted the survey, titled “When Losing Leads to Winning,” suggest that their findings directly tie into the workplace and how we set employee performance goals.

The researchers compare employees to basketball players in that they both will show more motivation and perform better when they are close to, but still short of, achieving a goal.

"Take any situation where someone is so close to a goal that they can almost taste it," said Berger in a recent Human Resources Executive Online article. "The fact that they're almost there makes them work harder."

Similar to the idea of setting “whisker” goals, Berger recommends that managers set milestones that are within reach of employees’ efforts. While “stretch” goals may be effective in motivating employees when confidence is high, setting smaller goals can spark an increase in performance when times are tough and confidence is waning.

"A lot of tools are used in the workforce to motivate people, such as wages, bonuses, etc. While surely these things can have motivating effects, one should not underestimate the potential importance of psychological motivation as well. This paper shows that the psychological impact of being behind by a small amount can cause significant increases in performance," said Pope.

Whether it’s on the basketball court or in the workplace, the Wharton study shows that small goals have the power to motivate. Pair those small goals with positive employee recognition for their shining accomplishments and help employees get moving on the road to success.

How losing can inspire motivation

Achieve more with small goals?

The recession has been creating adverse effects across the business world, from a severe drop in sales to stressed-out employees. Right now, everyone seems to be feeling the pain.

Research shows that financial stress has a direct impact on employee performance and morale, landing many businesses in a state of immobility. Whether it’s from shock or stress, it’s difficult to get moving.

Companies across the country are searching for a stimulus that will cure the paralysis that has been plaguing employees and motivate them to move forward. Instead of overwhelming yourself and looking at it as one giant task, some experts suggest that baby steps are the best way to go.

Setting smaller goals is the secret to improving employee performance during tough times, as Dan Heath and Chip Heath explain in their Fast Company article, Set Smaller Goals: Get Bigger Results.

Dan and Chip believe that during times when we feel empowered, stretch goals are a great way to spark motivation. However, when we're feeling overwhelmed, stretch goals can cause immobility.

They recommend setting "whisker" goals, with targets that fall just slightly lower than average.

From the Fast Company article:

We need these more modest steps because they help us get past the "startup costs" -- the apprehension and fear -- that deter us from doing the tasks we hate.

Adversity calls for change, and change doesn't arrive via a miracle: It arrives via a kick start.

For most organizations, now is not the time to make major changes. Many are focused on working through the adversity in order to land safely on the other side.

Whisker goals could be the solution to kick starting any team that is stuck in a rut. It takes small steps to get the ball rolling.

Start a movement in your organization with small goals and keep that movement going with small recognition. By focusing on the small stuff, you may find that the big problems just don't seem so big anymore.

Do you think it’s possible to achieve more at work with small goals? How does your organization work to get employees motivated during difficult times?

For more information on goal setting and employee recognition, take a look at a few of these posts and HR Library articles:

• How to beat stress in the workplace
• Remodeling morale at Home Depot
• Build employee morale during good times and bad
• 7 low- to no-cost employee incentive ideas
• Raise the bar with effective performance management

Achieve more with small goals?

Test employee engagement with a new sensitivity survey

Employee engagement is a main factor in determining the long-term success of a business. Studies show that engaged employees perform as much as 20 to 28 percentage points higher than disengaged employees, making them one of your business’ best assets during tough times.

"When employees witness corporate downsizing and start to fear for their own jobs they often lose their motivation, which in turn affects their job performance, thereby causing them to become less productive and less of an asset to the company," said Greg Harris, president of Quantum Workplace, a market research company that surveys employee engagement, loyalty and retention.

So, what's the easiest way to find out if employees in your organization are engaged in their work? Ask them.

Start a conversation with employees to find out how they are handling the recession and how it may be affecting their work. To get a better sense of how engaged employees are across the entire company, you can take it one step further and ask them to complete a survey.

We recently came across a great format to follow when testing employee engagement levels in the 10-question Economic Sensitivity Survey developed by Quantum Workplace, a market research company that surveys employee engagement, loyalty and retention.

The survey measures employee engagement by an employee's "ability and willingness of individuals to exert effort for the benefit of the company, their tendency to speak highly of the organization and their intent to stay."

Quantum suggests you can determine how engaged your employees are by asking them to rate these 10 statements:

1. Management is providing good leadership and guidance during difficult economic conditions.
2. My job is mentally stimulating.
3. I understand how my work contributes to the company's performance.
4. There are future opportunities for growth at my company.
5. My company affords me the opportunity to develop my skills.
6. I receive recognition and reward for my contributions.
7. There is open and honest communication between employees and managers.
8. I see professional growth and career development opportunities for myself in this organization.
9. I know how I fit into the organization's future plans.
10. Considering the value I bring to the organization, I feel I am paid fairly.

Employee engagement should be at the top of your list of key business objectives, especially if your organization has experienced layoffs since the economic downturn began. An engaged workforce is a productive workforce, something every business needs during tough times.

"Now, more than ever, employers should be helping employees know how they're part of the future of the company. You need to quell any negative or fatalistic attitudes that might be present and educate the staff that this isn't something that's going to last forever, and that we need to be prepared for better times once the economy turns around," emphasizes Harris.

If you're looking for ways to let your staff know you appreciate their hard work, you can find a variety of new employee recognition ideas from G.Neil. Even playful gifts like a silly-looking stress ball can show an employee that you notice and are grateful for the extra effort they've been putting in recently.

Test employee engagement with a new sensitivity survey