Employee Recognition on a Budget: 5 Ways to Motivate on the Cheap

The first Friday in March is Employee Recognition Day, but you don't have to wait until then to show your employees how much you appreciate them. Though the economy is on the upswing -- finally -- many employers are still feeling pinched, especially when it comes to budgeting for pay increases and other employee-motivating benefits. But even if you can't afford a grand gesture, showing your employees how much you value their contributions is still a must. Why is Employee Recognition So Important? It may help to think of employee recognition efforts as an investment in your company's success. While it's true that motivated employees work harder and take more pride in their work, empirical evidence also supports the benefits of recognition. A study of more than 4 million employees found that regular praise and recognition has a positive impact on employee performance, specifically resulting in: An increase in individual productivity More engagement between colleagues Increased employee retention A decreased number of on-the-job accidents A better safety record A greater number of positive comments and loyalty scores from customers Now that you know how important recognition is, here are a few budget-friendly ways to honor your hard-working employees. 1. Just Say Thanks A survey by Dr. Bob Nelson, noted author and motivational guru, asked employees to rate their most-desired and least-desired forms of recognition. Guess where "cash or cash substitutes" finished? Near the bottom. You heard that right. Only 42 percent of those surveyed deemed monetary reward as very or extremely important. So what grabbed the top spot? Ninety-two percent of those surveyed rated "support and involvement" from their supervisor as the most desired motivator. Similarly, "personal praise" took second place with 79 percent describing it as very or extremely important. These statistics underscore the impact an employer can have, even without the backing of a huge budget. Sometimes, it's enough just to express your gratitude. Make it public by posting a handwritten note on their office door or wall, sending out a company-wide email, mentioning them in a newsletter, or praising your employee at the beginning of a meeting. 2. Break Time Maybe you can't afford to give them a raise, but can you spare an hour here or there? Instituting a recognition program based on off-time shows you care without cutting into payroll too sharply. Consider offering an extra hour at lunch, providing an early dismissal on a day of their choosing, or adding a few extra minutes to breaks every day for a week. If you can afford it, comp time is always appreciated and gives employees the break they need to recharge and come back re-motivated and ready to work. 3. Take 'em to Lunch Recognize hard work by treating that special honoree to lunch. Find out their favorite eatery and order take-out, or go all out and have a sit-down nosh together. 4. Added Perks Some incentives come at absolutely no cost to your bottom line, but can make a big difference to an employee. Reserve that prime parking space for them for a week -- or a month, if you're feeling generous. Ask one of the top managers or execs to stop by the employee's desk and offer a personal "thank you." Post a congrats message to Facebook or tweet it out -- with your employee's permission, of course. 5. Gifting If you have a small slush fund available, purchase some small gifts from nearby businesses. What employee wouldn't love being surprised with a free car wash, movie passes, or a gift card to Starbucks? Whichever low-budget option you choose, be sure to tailor it to each individual employee. After all, thanking your workers in cookie-cutter style doesn't exactly scream, "You're special! I value you as an individual!" With a bit of forethought and planning, you can give morale -- and productivity -- a boost.

Making Business Sweet: The Benefits of Delayed Gratification

Imagine taking several children, one at a time, into a room, where you've placed a tantalizing marshmallow on a table. You tell the children that if they can resist eating the delicious sweet sitting in front of them while you step out of the room for a few minutes, they can have two when you return. If the child can't wait, they can eat the first marshmallow whenever they want, but they won't get the second marshmallow when you return. That's exactly the experiment researchers at Stanford performed in the late 1960s. The footage they obtained of the children was quite fascinating. Some children looked away from the treat in front of them, while others tried to distract themselves by kicking the table or fiddling with their hair. Some of the children poked or stroked the marshmallow. Years later, the researchers were able to make the connection that the children most capable of delaying gratification were the ones who were also more likely to succeed in school, resist other temptations in life (such as drugs or excessive alcohol), and avoid having behavioral problems. Clearly, the ability to delay gratification is significantly linked to personal success. Adults and delayed gratification Hopefully, most adults can be left alone with a marshmallow and avoid eating it when the situation calls for it, but that doesn't mean most adults have mastered self control and delayed gratification. It's always tempting to accept immediate pleasure or reward rather than wait for something more important down the line. We all have different areas where we know we would struggle to resist temptation. Just like the children in this experiment, however, we need to keep in mind the larger picture and see the good that can come from waiting. What marshmallows have to do with business success Business is all about being able to see the big picture. For companies to be successful, they have to be able to look beyond the current options and see where they want to go in the future. Sometimes, achieving these long-term goals means being able to pass over smaller rewards and delay gratification for the greater good. For example, some companies may find themselves tempted to maintain their traditional marketing techniques rather than branching out into social media and inbound marketing. Sure, the company may continue to find occasional new customers, but that's the small reward. The fact is the Internet is now critical for reaching an ever-growing portion of the consumer base. While entering the world of Internet marketing may require patience and extra work upfront, the reward companies receive from reaching their customers online can be enormous. Children are not known for their patience, and an experiment first done in the 1960s has shown that many struggle with delayed gratification, even when the promised reward is sweet. While adults may have more self control than a child, we can still struggle sometimes to wait for potential opportunities to come to fruition. When making business decisions, it's always important to determine goals and then keep your eyes on the prize. Opportunities abound for companies that exercise patience and work toward a larger reward. Don't settle for mediocrity. Instead, challenge yourself to think big and build the business of your dreams.

Protecting Reputations in the Limelight of Social Media

Thomas Paine once said, "Reputation is much easier kept than recovered." There are two groups who understand this better than anyone else: businesses and celebrities. Both groups spend a considerable amount of energy protecting their reputations and promoting the image they want to portray. And both groups have seen this task grow increasingly complicated thanks to the Internet and social media. Celebrity Reputations Quick, when you think about Angelina Jolie, what word comes to mind? Probably something like 'humanitarian.' What about Paris Hilton? Her reputation revolves largely around being a party girl. These celebrity reputations are not organically developed. They're carefully orchestrated by publicists and marketing teams, who help the celebrity determine what to say, when they should be seen in public, and what types of stories should be given to the media. Hugh Grant's experience Today, Hugh Grant has a carefully cultivated image as a British gentleman and has starred in a variety of romantic comedies. During the mid 1990s, however, the star faced a considerable amount of unfavorable press following his participation in some illegal activities. He managed to save his image, and his career, by giving candid interviews about his own stupidity and then going on to make a variety of hit movies. Now, most younger fans probably don't even remember that past. How businesses can apply the same concept As companies grow, some types of negative press are inevitable. It's impossible to make all customers happy 100 percent of the time. Sooner or later, a disgruntled customer will complain about prices, service, or something similar. The trick to successfully maintaining a positive reputation is to address the issue head-on. Social media and the reputation Social media has changed customer service. Now, when customers have something to complain about, they're not forced to call a special hotline. Instead, all they need to do is take to the company social media page or blog. They can rip the company to shreds and make their dissatisfaction known for all the world to see. The customer now has much more control over the reputation of a company. Consider how Hugh Grant planned his comeback. His team worked to help him plan his interviews and create popular movies. He worked past the problem by addressing it bluntly and then looking toward the future. That's also how companies must work. Celebrities carefully construct their reputations by guarding everything that goes online, similar to how a company guards their own brand and what is posted online. When problems arise, however, they must be addressed, not glossed over. Once the celebrity or company has addressed the problem, they must then focus on providing quality in the future to give people something else to talk about. For example, if a customer has written a blog post about a genuine grievance, reach out to them to see how the matter can be corrected. If customers post remarks on social media pages, show genuine concern that the customer had such a negative experience and try to make it right. Correct misunderstandings whenever they arise. Customer service now takes place in the public sphere, and new clients will know if the company doesn't care about past customers. At the same time, once a company has made genuine attempts at restitution, they must focus on providing quality for the future. Protecting a reputation can be a difficult task in the age of social media, but it's essential if you hope to survive. It involves carefully engaging the public while producing quality services or products that people can appreciate.