Recognizing employees is not just a nice thing to do—it’s a way to encourage and reward hard work and positive results at your company. And according to a recent Accountemps survey of 2,000 chief financial officers, small businesses do a better job of thanking their employees than their larger counterparts.
The survey found that 69 percent of CFOs at small companies say they thank their staffs often for doing great work, compared with only 34 percent of CFOs at large companies who reported doing so.
“CFOs need to recognize that recognition and appreciation of employees is an important component in retention and engagement,” says Brett Good, a senior district president for Robert Half, Accountemps’ parent company. “As the market continues to improve, if employees become disenfranchised and disengaged with the organization, they will have other opportunities and options to leave.”
NFIB member and president of San Jose, Calif.-based KBM Workspace Stan Vuckovich says recognizing his employees has had a positive effect within his company. “We have a good culture at the office and a low turnover rate in an industry [sales] that has high turnover,” he says. Some of the most effective recognition techniques Vuckovich has used include sending companywide emails that recognize individuals, hosting happy hours and treating employees to sporting events. “We also recognize our employees at weekly team meetings and at our quarterly meetings,” he says.
To effectively recognize employees, small business owners should try these tips:
1.Praise employees at regularly scheduled staff meetings
2.Make your recognition efforts noteworthy and timely
3.Do not over-applaud; it could lose its impact
4.Make your praise sincere and honest
5.Create an encouraging environment by supporting strong corporate culture
6.Reward employees with fun activities like ice cream socials and picnics
7.Avoid “Employee of the Month” programs; they can be ineffective, predictable and too routine