Is Money A Motivator? No!

    MINNEAPOLIS, MN, January 15, 2009 /24-7PressRelease/ -- By John Tschohl

The economy is in a dismal state not only in the United States but throughout the world. As companies downsize and freeze salaries in order to survive, they are faced with a crucial question: How do you motivate employees without having to spend money?

My answer is this: Recognize them. Recognition is the most powerful tool you have and it costs you nothing. We all have a basic need to feel valued and important, to feel that what we do is appreciated and noticed. The more you recognize your employees' efforts, the more productive and loyal they will be.

Most executives think only money or fringe benefits will motivate employees, but I would bet you could double the money and benefits you give your employees and you wouldn't see their performance increase even 1 percent. Money is not a prime motivator. Sure, we all like to be paid for our efforts, but studies show that 'more money' is ranked anywhere from third to tenth as employee motivators.

I've been championing the power of recognition as a motivator ever since 1976, when I introduced my first training program, Better Than Money. The principals I taught in that program as just as relevant, if not more so, today.

Most people underestimate the power of recognition and, yet, it's something we all want, even crave. And we don't want it once a month or once a year; we want it every day. Too often, however, the only time most employees get any attention is when they make a mistake. If you want to motivate your employees and, at the same time increase their self-confidence - take these four steps:

Be sincere. If you spew forth compliments to anyone and everyone, regardless of whether or not they deserve it, none of your employees will take you seriously. When you praise indiscriminately, you lessen the impact of that praise.

Be timely. If recognition is not timely, it will have little or no impact. If you wait a month to recognize Bob for the report he prepared for you, it will be meaningless. During that month, his feelings probably moved from disappointment to frustration to resentment. "I worked like a dog, including an entire weekend on my own time, to complete that report and to ensure it was perfect," Bob might think, "and I didn't even get a 'thank you.' I'll never do that again."

Be specific. Merely saying, "Thanks for a good job," isn't enough. Set the stage. If Suzanne had record sales for the month, mention the actual sales figure and maybe even compare it to the record she broke.

Be public. A word of praise in private is nice; a word of praise in public is powerful. When you recognize employees in front of their coworkers and supervisors, it does much to motivate them and build their self-confidence, which will in turn result in even better performance. A byproduct of public praise is that it motivates other employees to do well so they can earn their own time in the spotlight.

While verbal recognition is great, written recognition can be even more powerful. Write a letter to a deserving employee and then copy it to her supervisor and manager. Feature that employee in the company newsletter. Think back to a letter of recognition you might have received from a top executive - I bet you still have it. We don't throw those letters away; we save them as validation of our efforts and performance.

Another way to recognize employees is to train them. When you do - especially with programs that focus on building self-confidence and self-esteem - you let employees know that you care about them. And, when they get that message, they will go above and beyond the call of duty to increase their performance and to show you they are worthy of the value you place on them.

Don't forget to recognize people who work in other departments in the company, as well as your vendors. You will be surprised at the results. Your coworkers will bend over backwards to help you when you need it, and your vendors will work miracles for you.

It's also important that you encourage your employees to recognize each other. Doing so will build a sense of camaraderie, which will result in a strong team that is commitment to excellence. Recognition improves employees' self-esteem, which results in increased pride, productivity, and loyalty. When you master the art of recognition, you will motivate your employees and improve the performance of your total workforce.

About Service Quality Institute

An international service strategist and speaker, John Tschohl also is the founder and president of the Service Quality Institute in Minneapolis, Minnesota. Described by Time and Entrepreneur magazines as a customer service guru, he has written several books on customer service, including Achieving Excellence Through Customer Service, e-Service, Loyal for Life, The Customer is Boss, and Ca$hing In: Make More Money, Get a Promotion, Love Your Job. The Service Quality Institute has developed more than 26 customer-service training programs that have been distributed and presented throughout the world. John's bimonthly strategic newsletter is available online at no charge.

Contact: John Tschohl
(952) 884-33411
Email: [email protected]
Web: www.customer-service.com

# # #