Harvard Business Publishing

In this economic climate, it is more critical than ever to make your staff feel recognized for their contributions. Harvard Management Update sought the advice of best-selling author and employee motivation expert Bob Nelson, who has worked with such companies as FedEx, Time Warner, and IBM, on how to best handle this.

1.What's so important about informal, manager-initiated recognition?

It's important because recognition is about feeling special, and more times than not, it is hard to feel special from a corporate program where everyone gets the same thing, like a five-year pin. To be effective, recognition needs to come from those we hold in high esteem, such as one's manager.

2.What is necessary for delivering effective informal recognition?

Timing is important. The sooner you acknowledge employees' performance, the clearer they get the message, the more likely they are to repeat the desired performance.

Recognition is most powerful when it's contingent. Companies will bring in doughnuts on Friday and give people cards on their birthday, and all of a sudden you've got an entitlement culture. If you do stuff just to be nice, people end up expecting more. So make recognition contingent upon desired behavior and performance; they'll value the recognition more and you'll get better results.

And you have got to keep it fresh, relevant, and sincere. Any incentive has less punch with repeated use.

3.What kinds of recognition and rewards do employees want most?

I conducted an Internet survey that gave people choices of 52 items. The No. 1 factor they valued was "managerial support and involvement"--asking employees their opinions, involving them in decisions, giving them authority to do their jobs, supporting them when they make a mistake, and so forth. Also important were flexible working hours, learning and development opportunities, manager availability, and time.

Employees also want basic praise. In the top 10 factors, there were four types of praise: personal praise, written praise, public praise, and electronic praise. Those are the hottest ones for people, and none of them costs a dime!

4.How do you choose what type of praise to use in a given situation?

Weigh these factors:

• Availability of the medium: How often do you actually see the individual-- do you manage him from a distance or does he telecommute? Do you have occasion for public praise such as periodic staff meetings?

• Employee preference: Do you know how the employee prefers to be praised--have you ever discussed it with her? For example, an introverted employee would likely prefer a written or electronic note versus public recognition.

• Manager comfort zone: What forms of praise are you comfortable giving? If you feel awkward giving face to- face praise, for example, you probably won't do it even if you feel you should. If you are uncomfortable speaking publicly, it might be better to skip public praise for something that is more personal and sincere.

5.Are there special considerations to delivering recognition in tough economic conditions?

Yes. The times when we need to do it the most, we tend to do it least. Say you give a team award that used to come with $250 but because you can't afford the $250, you stop giving the team award anymore. I say still give the team award. Say something like, "We've had to drop the financial aspect to hunker down, but it doesn't diminish the value of the job that this team did, especially at this time." When we are up against it, just a word of support, a team lunch, a "hang in there," can go a very long way.

Nelson's Must-Reads

• Make Their Day! Employee Recognition That Works, by Cindy Ventrice (Berrett-Koehler, 2003). "She got to some of the core issues."
• The Magic of Employee Recognition: 10 Proven Tactics from CalPERS and Disney, by Dee Hansford (WorldatWork, 2003). "She gives you a little bit more depth."
• Other People's Habits: How to Use Positive Reinforcement to Bring Out the Best in People Around You, by Aubrey C. Daniels (McGraw- Hill, 2000). "Practical, but firmly based in theory."

Bob Nelson is the Coauthor of 1001 Ways to Reward Employees and President of San Diego-based Nelson Motivation.

This article appeared in the September 2003 issue of Harvard Management Update.