Saturday, April 14, 2007

Showing appreciation for employees leads to profits


A 10-year study of 200,000 managers and employees suggests that praising people for a job well done may lead to bigger profits

Dear Annie: I changed jobs last year, going from a small company (where I had worked since the start-up phase, over a decade ago) to an organization about 10 times bigger. I've made the adjustment pretty well, except for one thing. My old employer was very gung-ho about recognizing people for their achievements. If someone met a tough deadline or went above and beyond for a client, that person got a public pat on the back and maybe even a "prize" like a free dinner for two at a nice local restaurant.

My new company is completely different. No one ever says "thanks" for anything or shows any appreciation for extra effort, and as a result people don't do anything more than the minimum required to get the job (sort of) done. I think this hurts the business, but I can't convince my boss. Any thoughts? - Trying to Help

Dear Trying: I'd be willing to bet we've all worked in organizations like yours, at one time or another. Many years ago, Fortune had a top editor who made a point of never praising anyone for anything. Asked why not, he replied, "People who are good know they're good. They don't need to hear it." Well, if any proof is needed that that approach to managing people is wrongheaded, here's where to find it: "The Carrot Principle" (Free Press, $21.00), a fascinating book by Adrian Gostick and Chester Elton, both consultants at Salt Lake City-based consulting firm O.C. Tanner (www.octanner.com).

See full Article.