At the 18th Annual Ambulatory Surgery Centers Conference in Chicago on Oct. 28, Adrian Gostick, author of "The Carrot Principle" and a global thought leader on workplace strategy, discussed the importance of recognition and employee engagement in an organization's success.
Mr. Gostick began by making a case for the importance of recognition, discussing two studies performed by Towers Watson. Both studies suggest top drivers of engagement are employees' belief senior managers are interested in their well-being and their ability to grow and develop at work. According to Mr. Gostick, the studies also found "the number one driver of the number one driver" is receiving recognition and feeling appreciated. Therefore, to create engaged employees, leaders must create a "carrot culture," he said. That is, leaders must recognize and appreciate employees instead of trying to improve their performance with "the stick."
While employee engagement can sometimes seem a "soft" business principle, Mr. Gostick argues engaged employees can greatly impact a company's financial and operational success. He pointed to a study of Best Buy employees published in Harvard Business Review, which found that just a 0.1 percent increase in employee engagement in just one store equated to a $100,000 increase in revenue. "You want to create an environment where people like coming to work, not where they like going home," he said.
However, research also suggests U.S. managers are not that great at actually providing recognition. Mr. Gostick cited research performed on behalf of the Carrot Culture Group that found 67 percent of managers think they are "above average" in providing recognition, but only 23 percent of employees agree.
The disconnect is troublesome because recognition isn't difficult to give. However, to be really impactful, Mr. Gostick said, managers should consider these three principles when providing recognition:
1. Praise Effort. "There is a difference between praising and rewarding," said Mr. Gostick. Effort should be praised but not rewarded. Praise for effort can include simple, informal actions such as writing the employee or his or her family a handwritten note or providing verbal praise. Managers should mention how the employee's behavior relates back to the organization's values, he added.
2. Reward Results. Recognize results in front of other workers. Mr. Gostick recommends managers hold a reward presentation that draws on what he calls the "VIP" method of recognition: Share the company Value the accomplishment reflects, discuss the Impact it had on the organization and make the reward Personal.
3. Be frequent, specific and timely. In terms of frequency, Mr. Gostick recommends employees receive recognition for a very specific behavior every seven days. "Nobody sticks around for a once a year recognition," he said. It should also be given as soon as possible after the behavior is observed.
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Mr. Gostick began by making a case for the importance of recognition, discussing two studies performed by Towers Watson. Both studies suggest top drivers of engagement are employees' belief senior managers are interested in their well-being and their ability to grow and develop at work. According to Mr. Gostick, the studies also found "the number one driver of the number one driver" is receiving recognition and feeling appreciated. Therefore, to create engaged employees, leaders must create a "carrot culture," he said. That is, leaders must recognize and appreciate employees instead of trying to improve their performance with "the stick."
While employee engagement can sometimes seem a "soft" business principle, Mr. Gostick argues engaged employees can greatly impact a company's financial and operational success. He pointed to a study of Best Buy employees published in Harvard Business Review, which found that just a 0.1 percent increase in employee engagement in just one store equated to a $100,000 increase in revenue. "You want to create an environment where people like coming to work, not where they like going home," he said.
However, research also suggests U.S. managers are not that great at actually providing recognition. Mr. Gostick cited research performed on behalf of the Carrot Culture Group that found 67 percent of managers think they are "above average" in providing recognition, but only 23 percent of employees agree.
The disconnect is troublesome because recognition isn't difficult to give. However, to be really impactful, Mr. Gostick said, managers should consider these three principles when providing recognition:
1. Praise Effort. "There is a difference between praising and rewarding," said Mr. Gostick. Effort should be praised but not rewarded. Praise for effort can include simple, informal actions such as writing the employee or his or her family a handwritten note or providing verbal praise. Managers should mention how the employee's behavior relates back to the organization's values, he added.
2. Reward Results. Recognize results in front of other workers. Mr. Gostick recommends managers hold a reward presentation that draws on what he calls the "VIP" method of recognition: Share the company Value the accomplishment reflects, discuss the Impact it had on the organization and make the reward Personal.
3. Be frequent, specific and timely. In terms of frequency, Mr. Gostick recommends employees receive recognition for a very specific behavior every seven days. "Nobody sticks around for a once a year recognition," he said. It should also be given as soon as possible after the behavior is observed.
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