Keeping your
employees continuously engaged (as we discussed in last month’s
issue) might seem like a time-consuming, tedious process on the
surface. There are many
simple ways to address engagement, ways that take little time and
effort, but reap numerous rewards and benefits in the long
term. One of these ways
is recognition.
Recruiters learn a
great deal about the culture and values of their different
clients. They also
discover that those clients that do a great job of identifying their
core values—and then practicing them—are the ones that enjoy the
most success hiring and retaining top preformers. When you think of core
values, you might not immediately think of this one: “recognition
motivates.” Not
only does it motivate, it also effectively engages employees and
raises retention rates
significantly.
Recently, I was a
guest speaker for a college’s Human Resource Management class. A segment of my talk was
about recognizing and rewarding top performers. As an example, I addressed
how recognition not only motivates people to be even better, but
also how it’s a highly effective retention tool. I asked the audience members
to imagine my recruiting call to two top-producing sales reps at two
different companies.
Play along with me as I examine this
scenario.
The first call goes
to Adam at Company A, whose boss takes him for granted, who doesn’t
hear from the CEO, and who needs a vacation. This guy wants to
talk to me. He’s hoping
that a recruiter is going to call to discuss a great opportunity,
and he’s ready to interview.
He’s driven to succeed by his internal engine, but his
company isn’t fueling that engine and he’s burning
out.
Now imagine my call
to Bill, a top-producing sales rep at Company B. This guy was recently
mentioned in the company newsletter for adding a new customer and
was listed in a press release as being the #1 salesperson in his
region. In addition, he
just hung the President’s Award on his office wall and came back
from a rubber chicken banquet, where the CEO thanked him for his
contributions while presenting the award. Bill and his spouse are
going on the company trip for award winners: five days and nights in
the Bahamas, and he’s also been asked to mentor the new hire, who
starts next week.
Bill is motivated,
not only internally, but also because his company appreciates
him. Bill doesn’t
want to interview; Bill doesn’t have time to interview. His company is keeping him
interested with new challenges and with pats on the
back.
Which of these two
gentlemen is going to have the most success in the coming
months? Which company will reap the biggest rewards?
Which is happier in his job? If you guessed Bill and Company
B, you’re right. Who makes more money? Who knows?
I don’t. My guess would be Adam. You normally have to
pay people more to keep them working if they aren’t having fun, and
Bill is having more fun than Adam. It’s been my experience
that companies that do not reward and recognize their employees have
to pay top dollar to recruit and retain
them.
If you’re looking
at recognition costs, let’s add them up. The cost of an award to hang
on the wall: $29. The
five days and nights in the Bahamas for two with airfare and
spending cash: $1,500.
The value of a motivated top performer who is not only loyal
and happy, but also fully engaged in his position:
priceless.
Recognition
motivates people to accomplish more through effective engagement,
and it also helps retain talent. Turnover is extremely
costly. It can cost
tens of thousands of dollars for most positions. Recognition is the most
cost-effective motivation, engagement, and retention tool that I
know. The more ways you
find to use it and the more people you use it with, the more
powerful it becomes and the more prosperous your team will
become.
(Recognition increases
retention, but there’s no foolproof way to retain all of your top
people. The fact of the
matter is that you’re still going to have turnover. In next month’s issue, we’re
going to talk about best practices in selecting and partnering with
a recruiter for optimal results.)
