Tales from the Corporate Frontlines: The Best Incentives are Free

This article relates to the Recognition competency, commonly evaluated in employee satisfaction surveys. It tells the story of how the performance of one team was affected when the powerful motivator of daily praise and recognition disappeared. This competency also explores what type of behavior is appreciated and rewarded within your organization. Studies show that employees who receive regular recognition and praise are more likely to increase their individual productivity levels, increase engagement with their colleagues, and stay longer at the organization. Evaluating this competency can be especially useful if your organization is experiencing low productivity levels or ineffective teamwork.

This short story, The Best Incentives Are Free, was part of EngagedMetrics' compilation, Tales from the Corporate Frontlines. It illustrates the value of praise and recognition as a powerful, cost-effective motivator available to managers on a daily basis.

Anonymous Submission

I work at a company that prides itself on the exceptional quality of its customer service. As employees, we handle a variety of customer issues and concerns by phone, as well as mail and e-mail. In the past, my team has won several awards due to the enormous amount of positive feedback we consistently received from satisfied clients.

Recently, the situation changed. Our manager informed us that for some reason, our productivity was down. We would need to direct our focus toward handling a larger number of customers per hour each day. We were told that quantity was of the utmost importance. Since our team already demonstrated that it could excel in terms of quality, the change in focus should present no problem.

We operated under this direction for a time, focusing only on the number of customers serviced each hour. After a while, the service awards stopped. We no longer received the daily praise and recognition for a situation expertly handled or a glowing review e-mailed to our manager from a valued customer.

When the company examined the results of an employee satisfaction survey, they showed that our team members experienced a substantial decrease in motivation when the daily recognition and praise stopped. Our team, as well as other employees throughout the company, ranked it as one of their most powerful incentives to providing the highest quality service - and for meeting the required quotas of cases handled. The team members expressed the opinion that superb customer service was their job description - no extra reward was needed, but praise and recognition for a job well done was billed as the most effective motivator.

Upon review of the employee survey results, management realized the mistake made. Ignoring or minimizing the importance of our achievements in quality had caused our team morale to decline, as well as the quality of our work, even though we had produced the required numbers.

The solution? Daily praise and recognition, given sincerely, positively, and specifically, must be reinstituted. Smart managers use this powerful motivational tool as often as possible. It's a cost-effective (free), proven productivity booster that enhances morale and creates a better all around workplace environment.

© 2005 EngagedMetrics, Inc. - All Rights Reserved

This article may be reprinted, provided it is published in its entirety, includes the author bio information, and all links remain active.

b>Measure. Report. Improve your organization with EngagedMetrics Employee Survey System.

Josh Greenberg is President of EngagedMetrics, Inc.

EngagedMetrics provides organizations of all sizes a powerful web based method for measuring employee satisfaction, determining employee engagement, and increasing employee retention.

Launch your EngagedMetrics Employee Survey System with EngagedMetrics.

In The News:


pen paper and inkwell


cat break through


Never Punish Yourself or Others for Failures

If you want to find success in various ramifications, be... Read More

Use Noncompete Agreements To Protect Your Business

Q: One of my former employees has launched an online... Read More

Encouraging Behavior That Gets Results

You're the boss, and you have every reason to feel... Read More

Are You the Culprit?

Are you a business, non-profit or association manager who pretty... Read More

Employee Turnover: Is It Eating Up Your Profits?

Keeping the cost of doing business down, yet providing a... Read More

You Get the Behavior You Reward

On consulting assignments, here are some of the questions I... Read More

How to Manage Your People Well: Tips for Managers of Training

As a training manager, there are two important aspects to... Read More

Tales from the Corporate Frontlines: Ideas for Everyday Training

This article relates to the Training competency, commonly evaluated in... Read More

Diversity Training: The Worst Possible Reasons to Request Executive Funding

You're on your organization's diversity committee. You have the best... Read More

Your Blueprint For Business Success

Before you start your own business one of the first... Read More

Are You Ready to Sell Your Business

Make Sure You Understand Your Motivation for SellingAre you thinking... Read More

Its Not Always What You Say

A major source of communication breakdowns is incongruence between the... Read More

How to do SWOT Analysis for your Business

SWOT analysis is needed for all business to understand how... Read More

Having Your Phil

February 2nd, at approximately 7:30 a.m. local time on Gobbler's... Read More

The Three-Dimensional Communication System

Human communication is always three-dimensional. No spoken or written message... Read More

Working with Hearing Impaired Employees - Giving Them a Fair Go

Hearing impaired people often encounter difficulty at work because their... Read More

Top 5 Services Your Company?s Accounting Department Should Outsource

Accounting is one area which every company has to maintain... Read More

A Management Strategy

I witnessed some interesting behaviour from one of our premier... Read More

Give Yourself a Boss? Day Gift

Become a better boss and reap the benefitsAnother interesting study... Read More

How Managers Can Turn Failures Into Successes

Although there are real, external reasons for managerial difficulty ?... Read More

Managing Meetings

Plan/prepare - lack of purpose causes aimless meetings. Know why... Read More

Problem-Solving Success Tip: Use Your Project Management Skills

Solving a big problem is a project: you're far more... Read More

Communicating In Chaotic Environments

How do you, or would you, communicate in a chaotic... Read More

Innovation, Idea Selection, Valuation

There is no sure fire route to commercial success, but... Read More

One Thing You Cant Hide

One of the most important of all motivators at work... Read More

People Skills: Eight Essential People Skills

Being able to communicate effectively with others requires people skills,... Read More

Five Tips for Analyzing an Income Statement

In today's article, we'll be looking at the income statement,... Read More

ISO 9001 the Process Approach to Quality Assurance

What is the Process Approach to Quality?The ISO 9001 2000... Read More

The Seven Cs: Partnership Danger Signs - The 5th C: Control Issues

A series of articles exploring the seven critical areas that... Read More

5 Steps to Identify Core Processes

Part Two of Creating Well-Defined Processes SeriesNext Week: ImplementationLast week,... Read More

Problem-Solving Success Tip: Test Your Assumptions About Everything

Test your assumptions about everything.Assumptions have a way of creeping... Read More

The Ivory Tower Syndrome

"His cardinal mistake is that he isolates himself, and allows... Read More

Holding Effective Meetings Can Be Easier than You Think!

I'm sure you've experienced those typical "headache" meetings! You know... Read More