NFIB

Giving Employees a Pat on the Back
06/ 19/ 2002

by Vicki Gerson

Although critics of employee incentive programs argue that they ruin the work ethic, many businesses find that giving out cash bonuses, merchandise, stock or other awards can result in less absenteeism, higher morale, more productivity and lower employee turnover. Clearly, employees are not the only ones benefiting from such programs.

However, do some research before you establish an award system. Determine what you can afford to spend. Once you decide on the dollar amount, figure out what achievements you will recognize. For example, you could award employees who achieve 20 percent or more above their sales goals or those who haven't missed a day of work all year.

Here are some ideas to help you establish an employee recognition program.

Make sure all employees know the award criteria.

ItÆs important that other employees know why someone is getting a pat on the back and to understand that the same opportunity for recognition exists for them as well.

Openly deliver recognition and awards.

Personally extend your warm wishes for a job well done. If you have a company newsletter, make sure employee achievements are recognized. And send an email asking everyone to congratulate the employee receiving the award.

Tailor the incentives.

Businesses on a very tight budget can still find ways to tailor the reward to each employee. Baseball fans would appreciate an afternoon away from the office to attend a game courtesy of the boss. Others may enjoy theater tickets to a college or regional production. Tailoring bonuses to specific interests also builds morale in showing employees that you know them as individuals.

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