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Small Business Reward and Recognition Tips

By Lorraine Grubbs

In a recent SBT article, I learned that “more than 60% of small businesses have fewer than five employees”.  That means, “all hands must be on deck” to keep things running smoothly.  Employees of these small companies are cross-trained to do several jobs in order to maximize efficiency. The question is, how do you keep these seemingly overworked employees engaged?  Research from industry experts such as Mercer, Gallup, and Hewitt proves the best way to show employees that you care is to recognize and reward them.

Successful small business owners make recognition of employees an important part of the business plan. They know that having a consistent recognition program results in higher employee loyalty, enviable productivity and award-winning customer service. Altogether, this adds up to increased profitability.

Recognition and reward programs (R&R) should be standard operating procedure for any company, regardless of size. After all, who complains that they get too much recognition?  But, you will “hear” when employees are not recognized for their efforts when you experience high turnover and lackluster performance.

Many small companies don’t have R&R programs because they think they can’t afford it.  My argument is that if you want to be successful, you cannot “not” do it. There are many things a small business can do to recognize employees and it doesn’t have to cost much.  I’m talking about the small stuff…the stuff that lets employees know that you saw what they did and you appreciate it. . Here are the top three things that successful small business owners practice to make employees feel valued and ultimately create a sense of loyalty to the business.

 

1) Recognize the Milestones 

Recognize all milestones no matter how big or small.  Just a word to your employee is sometimes all he or she needs, to know that you care.  Paying attention to events like a child’s graduation from school, adoption of an animal, promotion of a spouse or partner, achievement of an anniversary with the company, birthday, etc. shows them you’re paying attention to what is important to them.   The small stuff also includes the bad:  deaths, illnesses, loss of spouse’s job, etc. A cupcake on their birthday or anniversary can go a long way.  One hug or card during difficult times will mean a lot.  Ultimately, you want the employee to know two things:  One: I value what’s going on in your life; and Two: I care.

 

2):  Acknowledgement of a Job Well Done 

Consider creating a batch of multi-colored business card-sized handouts with a different message on each:  Great Job!  Excellent Service!, Thanks…couldn’t have done it without you!, etc.  Every time you see an employee doing something special, whip one of these out, jot a quick personal message on it and put it on their desk. Sound hokey?  Well, it did to me too when the program was introduced at Southwest Airlines.  One morning a few months later, I was walking through my department and I noticed how many of the little cards were pinned up on people’s walls…I was amazed.  This little “program” really worked.

 

3):  Awards 

Create special awards that can be rotated from person to person. No matter what business you are in, customer service is important.  Create a plaque with some clever name such as “Voice of the Customer”.  Give the award to the person who best represented the “voice” that quarter.  Did they come up with an improvement for a product?  Did they go above and beyond for a customer? Add a $10 Gift Card and you’ve just made that person feel special…for a whole quarter!

Ask employees to come up with award ideas…low cost being the key.  By doing this you are making them feel like they have a voice in this all-important initiative and you also will give them things they really want, not things they don’t value.  One business owner I know keeps a treasure chest in her office.  Any time an employee sees another doing something special for a customer or team member, they bring that person to the treasure chest and let them pick out something.  Inside the treasure chest are gift cards for local vendors, a free lunch on the company, and cards with “get off an hour early”, etc.  As a way to keep the cost low, ask your vendors for donations to the treasure chest.

By showing your employees that you care enough to recognize the little things they do, you will be creating a culture of caring which ultimately leads to loyal employees and a better bottom line.  Utilizing the ideas mentioned in this article, you can do it within a budget.  So go ahead, give them a pat on the back for a job well done or a hug for a loss…they’ll appreciate it and will go above and beyond for you.  And, if for no other reason, it’s the right thing to do.

Lorraine is an author, speaker and business consultant on "How to Create Happy Workplaces".  Learn more about her work at:

www.lorrainegrubbs.com