What underlies employee engagement is a series of ‘productive’ behaviours that may not be captured adequately by an annual survey, according to Paul White, a business coach and psychologist. Business managers want to instil positive behaviours in the workplace – for people to show up at work, follow instructions and procedures, accomplish tasks they have to do, get along well with others co-workers, vendors or customers.
Employee engagement is a natural aggregation of these behaviours, which is possible when employees know the purpose of their work and how it ties in with the organization’s vision and mission. Managers usually cover these when orientating new hires, but tend to overlook one area: building of a culture of appreciation, a big part of engagement that doesn’t take much effort.
Why Should You Care About Appreciation as a Business Owner or Manager?
How does this tie in with profits and costs – the practical realities of running a business or organization?
Research done across industries and countries consistently show that valuing employees reduces absenteeism and conflict, lowers staff replacement costs, improves customer satisfaction and productivity, and creates positive work environments and greater work enjoyment (White, 2012).
When the department of labour in the US asked people who left their jobs why they left, 64% of respondents said they don’t feel appreciated for what they do. Researchers and authors in business publishing and management, David Sturt and Todd Nordstrom (2016), reported the same finding.
Appreciation isn’t about rewarding employees with ‘Sales Champion’ plaques, or hosting a company dinner. That’s recognition. Appreciation focuses on the value of the individual; recognition focuses on achievement and performance. Appreciation is expressed daily through small actions; recognition is often expressed annually at large-scale events.
A study investigating what motivates productivity at work at the University of California Berkeley shows the difference between appreciation versus recognition. When people feel recognised for the work they do, they were 23% more effective and productive than when they didn’t. When people felt valued and cared for by people around them, especially the people they report to, they were 43% more effective. That’s a 20% increase in productivity!
Being valued and cared for simply means a ‘literal or figurative pat on the back’ – Mike Robbins
Reward Structures Can Hinder Appreciative-Culture Building
Building a culture of appreciation requires examining organizational systems beyond simply having the intention to express appreciation. I’ll use an example given by Simon Sinek in his book “Start with Why” to explain.
Fresh out of university, Christina Harbridge worked in a debt collection company and was taken aback by the harsh manner her colleagues used on the phone to chase debtors for debt. Yet, the owner of the company and her colleagues were kind and gracious people who actively helped and listened to each other, and even sponsored a homeless family together.
It’s not because they were bad people, it’s because they were incentivized to be that way. The collectors received bonuses based on the amount of money they collected. This motivational source led to callous behaviour on phone calls to debtors, rudeness, threats, and provoking. As renowned sales coach Jack Daly said, “What gets measured, gets done.”
Nevertheless, holding firm to the belief in treating people with respect, Christina started her own debt collection company, where bonuses were given not for the amount of money collected, but the amount of ‘thank you’ cards staff sent out to debtors. Think about the effort required from each of her collectors to truly understand and value the debtors’ perspective! This created a culture of compassion that resulted in 300% more successful debt collections.
Note however that from a motivational standpoint, this method isn’t ideal since the motive for showing appreciation is contrived, driven by external contingencies instead of arising with genuine intent. But at the very least, the move toward building an appreciative culture in Christina’s company isn’t stonewalled by misdirected incentive systems.
How can we implement a culture of appreciation in the workplace then? I’ll elaborate on how appreciation can be expressed in meaningful ways for different individuals in my article next month.
References
- Robbins, M. (2013, Nov 15). The power of appreciation, TEDxBellevue. Retrieved from https://www.youtube.com/watch?v=a3wX8nmvlZ0
- Sinek, S. (2009). Start with why. United States: Portfolio Penguin.
- Sturt, D. & Nordstrom, T. (2016, Jan 15). Facing the facts of employee turnover. Retrieved from http://blog.octanner.com/appreciation-2/facing-the-facts-of-employee-turnover.
- White, P. (2016). Why employee engagement isn’t really what you want. Retrieved from http://www.drpaulwhite.com/free-resources/
- White, P. (2012). Appreciating your staff makes business sense. Do Well, 24-25.
