Billionaire entrepreneur Richard Branson once said, “Lavish praise on people and people will flourish; criticize and they shrivel up.” Branson may have discovered the secret to successful relationships in both business and in life.
Asked why they quit their jobs and many employees – up to 79 percent in one study—cite a lack of appreciation. The same reason is often given when a spouse decides to end a marriage. A recent Wall Street Journal article featured marriage and family experts who said, “A common cause of divorce is the feeling of being unappreciated by one’s spouse…it is essential to show appreciation to your spouse regularly, as in every day.”
Appreciation, praise, and recognition hold relationships together. The business compact is a relationship and most employees want the same feeling they get from a supportive spouse—they want to be shown appreciation. They want to be “celebrated every day.” I’m constantly amazed at how many bosses fail to utilize one of the most powerful retention and engagement tools at their disposal and that’s praise. I’ve yet to meet an employee who says they get up Monday morning because their company offers free snacks in the vending machine or a discount on gym memberships. However, I do get an earful from employees who are thinking about leaving or actively looking for a new job because they fail to receive simple recognition.
For example, a friend recently attended her company’s “President’s club” trip as a reward for the company’s top salespeople. My friend has been the number one salesperson at this particular company for several years in a row. She loves her work. She loves the product. She takes pride in her accomplishments. She’s also actively talking to recruiters despite the fact that salary and bonuses add up to the mid six-figures. She’s willing to take a pay cut to leave. Why? She feels as though she’s never recognized publicly for her accomplishments. Her boss has never sent out a company-wide email nor has he ever said anything to praise her either in a private conversation or at a sales event. Some might suggest that her salary is recognition enough. I’d argue that’s an old-school philosophy. The fact is that regardless of how much people make, most of us want to be singled out and recognized for our accomplishments.
In another recent example my wife and I were having dinner with friends. One of the people in our group works in the health insurance field and, since I was preparing to deliver a keynote to insurance executives, I asked her what she was missing—if anything—from the relationship she has with her superiors. “I’d appreciate more recognition for the role I play,” she immediately answered. “The salespeople bring new accounts through the door, but I retain them. I don’t feel as though my contributions are recognized.”
“In what way would you like to be recognized?” I asked. “Do you want more money?”
“Of course more money would be nice, but even public praise would be huge!”
In both of the examples I’ve cited, the word “public” has come up. Praise is good. Making it public is even better. The Ritz-Carlton hotel chain has institutionalized public praise. Every day at every Ritz-Carlton hotel each department meets for a “line-up,” a 15-minute staff meeting where managers share stories of employees exceeding the expectations of the hotel’s guests. A former president of the Ritz-Carlton chain once told me that the stories serve two purposes. First, the stories are learning opportunities, providing employees specific examples of exceptional customer service. Second, the stories provide a means of publicly praising those employees who provided the service. The Ritz-Carlton has invited me to attend some of these meetings as an observer. In my experience I’ve rarely seen a more enthusiastic, committed, and engaged group of employees. To a person they enjoy the stories and they especially love being recognized in front of their peers.
A study conducted by Wichita State University found that of sixty-five motivating factors in the workplace the top five were “praise related,” yet 81 percent of employees “seldom or never received public praise.” As the economy improves many of your best employees might start looking for new opportunities. Praise might just be the perk your company or department is missing.
Carmine Gallo is a keynote speaker and bestselling author of The Apple Experience and Talk Like TED.
