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Forget Money, Focus on Praise
11/ 17/ 2005

by John Tschohl

Motivating Employees is Crucial

A motivated employee is a productive employee, and productive employees can do wonders for a company’s bottom line. They provide exceptional customer service, which creates customer loyalty and results in increased sales. They also stay with the company longer, which decreases the costs of hiring and training new employees.

Unfortunately, many companies focus more on maintaining their equipment than motivating their employees, says John Tschohl, founder and president of the Service Quality Institute in Minneapolis, Minn. And often, those who do attempt to motivate their employees do so with money.

Money, however, is not a motivator. “There is little correlation between pay and performance,” Tschohl says. “Recognition is much more effective. People have an incredible need for recognition.”

Motivation doesn’t have to carry a hefty price tag. It doesn’t have to be a huge bonus or a trip to Tahiti. In fact, in some cases, it can cost nothing. It can be something as simple as a word of praise, a note of thanks, a special parking spot or a sincere round of applause. Tschohl offers the following ideas to motivate employees, improve their performance and increase their productivity.

Use positive reinforcement and public praise. Too often, employees get attention only when they make a mistake. They need to know that you notice and appreciate their contributions. A well-deserved word of praise sets the standard for quality service at a company. Deliver “thank yous” in person and as often as possible, Tschohl says. Recognize exceptional employees in the company publication and acknowledge them at company functions.

Be timely, specific and sincere. Acknowledgement of a job well done must be timely in order to be effective. A word of praise delivered a month after the employee has performed exceptionally doesn’t have the same impact it would if delivered immediately after the fact. And, Tschohl says, “the more specific you make it, the more sincere it will be.”

Train employees. When you take the time and make the investment to train employees, they will feel valued. Employees who feel valued not only are more motivated, they are also more productive. Give them the training and the tools they need to do their jobs and to do them well.

Empower employees. Empowerment is a powerful motivator. Employees who are given the authority to handle customer complaints and concerns on the spot­­––and to bend company rules in the process––are crucial to the success of any business. “When you empower employees, you are telling them that you trust them,” Tschohl says. “It’s also important that you let them know they won’t be fired if they make a mistake in serving the customer.”

Coaching and counseling are critical. Encourage employees to set goals and help them accomplish those goals. “When you do, you develop a cohesive team that will drive your business,” Tschohl says. “Many employees have self-imposed limitations that prevent them from reaching their goals. If you want to build a high-performing dream team, you must help to build the self-confidence and self-esteem of your employees.”

Treat employees well. The way you treat your employees is the way your employees will treat your customers. When employees feel good about their jobs and the company, they perform efficiently, effectively and enthusiastically.

Become a great leader. “A great leader spends time every day trying to catch employees doing great things,” Tschohl says. “A great leader then reinforces that behavior through recognition and praise.”


John Tschohl is an international service strategist and speaker who has written several books on customer service, including Loyal for Life, e-Service; The Customer is Boss, Achieving Excellence Through Customer Service and Cashing In: Make More Money, Get a Promotion, Love Your Job. Tschohl has developed more than 26 customer service training programs that have been distributed and presented throughout the world. His bimonthly strategic newsletter is available online at no charge.

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