What if I told you there’s a way to improve your employee retention and customer experience quickly and drastically? That without spending a penny, you too can totally reshape your company’s culture in a way that creates better products and better outcomes for your business, customers, and employees?
Well, I’m here to introduce you to this one magical tool that every business owner, manager, and company culture influencer should know.
Recognition!
Think back to the last time you received a genuine compliment or a handwritten thank you card. Can you recall how that compliment made you feel? Remember your thoughts and thinking afterwards? Did you notice any changes in your body or brain? Chances are you did—and there’s a scientific reason for that!
Receiving a compliment or positive feedback releases a rush of dopamine in our brains. Dopamine is a neurotransmitter that makes us feel great while also making us feel rewarded, acknowledged, and motivated. Now, our brains are really good at figuring out patterns and quickly form habits to ensure that the next bit of dopamine isn’t far off. Being strategic with this information can help you shape your company’s culture in a way that leads to better production, better customer experience, and better retention, just to start.
When we look at this idea with that business owner mindset, it’s easy to see where a culture of recognition could save your business a lot of money. Speaking of money, the professionals over at Gallup state that focusing on recognition is one of the best low cost, high impact strategies business owners can employ. Meanwhile, findings from workhuman show that employees who receive recognition only a couple times through the year are…
- 5x more like to be actively disengaged
- 74% more likely to say they plan to leave their org in one year
- 27% more likely to be struggling
In other words, a lack of employee recognition hinders productivity, turnover, and morale. So, rather than spending your time and energy on re-staffing or re-energizing your team, try adopting a recognition mindset and watch the magic happen!
The basics of employee recognition
Let’s be real, no one can change their mindset in a day or even a week. To get started, keep these tips in mind.
1. This isn’t a conversation about participation trophies.
Rather, we’re leveraging the knowledge of how our brains work to achieve positive, healthy outcomes for your people and your business.
2. Send individualized recognition to your team members bi-weekly to start.
Set yourself a calendar reminder or repeating task to keep you honest.
3. Don’t break the bank!
Recognition could be a handwritten notecard, a genuine compliment at the end of a meeting, or a personalized email showing your gratitude. Sure, there are times when a small gift or spend may be warranted. However, regular, impactful, small recognition is more important than a big price tag.
4. Recognition should always be honest, authentic, and individualized.
Though hard to define, we are all pretty good at spotting inauthenticity. Don’t overinflate or use hyperbole. Keep it simple and kind. It’s a smart idea to know how folx like to receive recognition. Some people may flourish with a big public thank you and others may not. Knowing these preferences ensures that your kind words are received in the best way possible.
5. Use recognition to drive your company’s culture or build skills.
Big or small, by recognizing the habits that help your team connect and succeed, you are helping build positive neural pathways that lead to higher performance. Consider these positive employee recognition phrases, for example:
- “You are always so prepared for our weekly meeting. That’s so great! How do you do it?”
- “It was nice to see you at yesterday’s networking event! Thank you for coming, I know our events team really appreciates it. How was your time?”
These kinds of recognition not only validate and encourage employees, but can also help you capture feedback while promoting ongoing improvement.
6. Give recognition freely and equitably.
Okay, this one may seem like a bold statement. General thinking and the sources I found state that you should use recognition to drive competition among your team. And that may work in certain industries, or certain job functions. However, I challenge that belief and argue that every employee on your team, whether high performer or at-risk, could benefit from some positive reinforcement. Moreover, psychologists generally agree that positive reinforcement is more effective than the alternative.
If you are still on the recognition fence, let’s remember that we all create the environments that we inhabit. Do you want to work with a collaborative, motivated, and driven team? I know I do! Reflect on the practices you engage in that further those aspirations. How about those practices that hinder them? How does recognition fit into your current practices?
For more thoughts and tips about boosting customer satisfaction and following your small business dreams, be sure to check out the Ruby blog and subscribe to our monthly newsletter, Minutes!
