We’ve covered a lot of ground in this series about retaining employees in a rebounding economy. Just because this is the last of the five topics, it certainly is not the least important. When I teach HR Management classes, I ask students about how motivating pay is. They generally feel that pay is very motivating. And, surprisingly or not, pay is not very motivating for most of the work that is done.
I’m always fascinated at studies that show how paying someone for something they enjoy doing actually demotivates him or her. Does that mean that we shouldn’t pay people just because they enjoy their work? Of course not. People work to live and make a life. Pay can also be a very important status issue for people. It’s a way to know where you stand. But, whenever someone has approached me and said that they’d be happy if only they were paid more, I always know that increasing the wage or salary may very likely not result in the intended consequence.
That’s why this last item for retention focuses on “recognition.” Yes, pay is a form of recognition. But, recognition is so much more than that. So, what I’m referring to is the every day recognition that people should be receiving. Recognition that is tailored to each person’s personality. That means that supervisors have to know and understand what is important to each person in his/her department. How do you find out? You ask each employee. Is that awkward? Maybe. But not if it’s a mode of operation in the department. Supervisors should know that a pat on the back will do wonders for one person, a public display of gratitude will stir up others, a coffee gift card will motivate another, etc.
How often should a person be recognized? Well, that reminds me of the old saying, “I love you and until you hear otherwise just believe it’s so.” That is not a successful approach outside of work and we shouldn’t expect it to be successful at work either. Studies show that people need to be recognized on average at least once per week to keep them engaged. Think about it. Once per week. How well is your organization doing on that?
Organizations should also create a culture of recognition in which not only the supervisors are doing the recognizing. Co-workers should be recognizing each other in meaningful ways. Having a strong culture is so important to most people. We want to work at organizations where we feel recognized and supported. So, if my co-worker is recognizing me with a pat on the back or by letting others know I’m really coming through for him/her, it strengthens the community within the company, which strengthens the engagement levels.
Particularly in a difficult economy, recognition is more important than ever to retain and engage valued employees. Less focus on formal rewards and more on building meaningful, customized recognition will appeal to individuals and keep them pumped up. We might not otherwise consider it, but small, more frequent displays of appreciation will go miles further than the occasional big bash. The recognition doesn’t have to cost a lot of money. It just has to occur more frequently, be sincere and tailored to each person in a way that has meaning for them.