Business

How to improve employee morale in a bad economy

According to a recent Time magazine study, approximately 80% of people feel disrespected at work. In today’s economy, it’s getting harder to find work, but it’s also very important to maintain employee happiness to maximize company efficiency in preparation for long-term success. A few years ago, I attended a private leadership training seminar in Louisville, Kentucky, taught by Adrian Gostick, author of “A Carrot a Day.” Gostick, who teaches the importance of maintaining employee morale through rewards and recognition, is one of the best public speakers I’ve ever seen. He runs the websites Carrots.com and OCTanner.com along with his business partner Chester Elton. The two travel the world speaking publicly and offering advice on implementing higher standards of employee recognition in the corporate world. During the session, he shared some of his tips for keeping employees happy in organizations of almost any size. Smart Money magazine recently reported that “optimistic die-hards” are more successful in the business world, but anyone who has worked in that world knows how difficult it can be to stay positive at times.

Negativity is contagious and once it sinks into the corporate environment, it can spread like wildfire. So how do we combat it? With appreciation, she says. A lively and witty presenter with an infectious sense of optimism, Gostick recommended praising the efforts of employees trying to improve their own performance and rewarding them when those efforts deliver measured results. Recognition is a very important factor in boosting employee morale. If he thinks his employees could use a fresh breath of positivity, he’ll try personal or token recognition, or positive reinforcement for good behaviors. PERSONAL RECOGNITION Personal recognition is exactly what it sounds like: recognition for a job well done. It can be in the form of a “good job” or a pat on the back. Sometimes it might go one step further and emerge as a thank you card passed from a grateful boss to an employee who simply went above and beyond. These types of recognition are almost always welcome and can put a smile on someone’s face for the rest of the day. SYMBOLIC RECOGNITION Of course, to be effective, you must avoid exaggeration. Too much of a good thing can become redundant or seem insincere. If you constantly pray to your employees, your words may lose meaning. Employees may come to expect praise and see it as a minor “reward” or, worse yet, feel hurt when you forget to praise them for doing what they consider to be a good job. Be sure to praise often, but not TOO MUCH.

Give praise when it’s needed and when recognition is due, when you build rapport, or when a particular employee needs a morale boost. And try different kinds of compliments. Personal recognition is very effective, but symbolic recognition can also be very helpful. Token recognition involves going one step further and rewarding an employee with more than just words, a smile, a handshake, or a friendly pat on the back. Symbolic recognition is usually tangible and involves gifts or prizes. I’ve seen companies offer everything from badges to an employee’s favorite food, or even something as simple as a stress ball or wristbands. If you really want to make the employee feel special (and if it’s within your company’s budget), a personalized trophy can be awarded to an outstanding worker to proudly display on their desk. Now that we’ve discussed some ways to recognize the best, let’s examine how to be effective in our recognition. For recognition to be successful, Adrian Gostick says you need to follow these three rules: – frequent – specific – timely In his book “A Carrot a Day” (which I highly recommend to anyone in a leadership or management role) Gostick recommends do something to boost morale once a day. The theory here is that if you continually work to improve employee morale and keep your best employees satisfied, they will continue to work hard and keep your business running smoothly. However, if the best are neglected, they may lose interest in working for your company.

This should not be underestimated, as the best workers generally realize their own worth and know that, even in a tough economy, they have a better than average chance of finding another job. Another reason recognition is important, Gostick says, is because “customers base their opinions of a company on its front-line employees.” Think about it. Front-line employees are often the first to see customers, often dealing with them face-to-face in person. Unfortunately, they are also often the lowest paid. Because studies have shown that people associate more money with happiness, this also means that frontline employees are often at risk of becoming dissatisfied with their jobs and even quitting to pursue other options. If your frontline employees aren’t happy, are they going to provide top quality customer service? Probably not. “Customers will drive farther and pay more for better services or cheaper prices,” says Gostick. The key to employee retention is making your employees happy. Certainly, some idealism comes into play, but the theory itself is good, and raising employee morale can never be bad for business. In fact, Gostick claims in his book that employees who are regularly praised and/or rewarded “focus better on company goals. Spot new opportunities faster. Have longer work lives.” The book even offers ideas for managers looking for new ways to praise, recognize, and reward employees. It’s no wonder, then, that it quickly became a bestseller on the Wall Street Journal and Business Week lists. Some of the top tips:

  • Remember to thank the people who have influenced you. This is too often overlooked. Don’t just boost the morale of front-line employees; promote it at all levels of your company.
  • Bring out the star that you carry within your co-workers. Reward publicly when appropriate and see the change in attitudes and performance it creates.
  • Have a formal recognition event. Host a ceremony at least once a year to publicly praise the best and turn them into stars. This also gives employees something to work for throughout the year.
  • Keep track of what your employees like and dislike. This doesn’t just refer to your feelings about the work environment. It can also help you think of creative ways to reward them. Get more personal with your reward ideas by asking them what motivates them. You could even do an anonymous (or otherwise) written survey of all employees for prize ideas. If possible, tailor your rewards to each specific person you’re honoring. They will appreciate the personal touch, knowing that you listened to their needs and wants. This is a great way to build rapport by letting them know you care!

Rewards don’t just have to come from top management, so don’t wear yourself out trying to think of new ideas! Create a formal employee recognition and rewards program that allows employees to nominate and possibly even reward each other when they appreciate something a co-worker has done or note a job well done. This increases morale, team rapport, and takes some weight off your shoulders so you can focus on other important management tasks. Just make sure you’re not relying on your employees to provide 100% of the recognition. Most of it should still start with you! Don’t underestimate the power of recognition. It is extremely important in the business world. Without it, you could actually lose employees. The best employees are the ones most able to leave because they have the same skills other employers are looking for, and they KNOW it! If you don’t show your best people how valuable they are, they may leave you looking for another opportunity, should one arise. However, if an employee is truly happy with their surroundings, or feels respected and appreciated in the workplace, they may settle for less pay or longer travel just for those feelings of value. To further illustrate this point, Gostick shared a story about his recent travel experience in China. During his trip, he met a young Chinese woman who spoke a little English.

Deciding to strike up a conversation with her, he asked, “Have you ever been to America?” The girl replied that not only had she never visited the United States, but she had never even left her hometown. Understandably astonished, Gostick decided to dig deeper, asking, “Why have you never been out of this town? Don’t you want to see the rest of the world?” “If I’m happy here,” answered the girl without hesitation, “why would I want to leave?” It seems that companies could learn a lot from this story.

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