Over 90% of all North American companies have recognition programs. Yet 60% of all employees do not feel recognized.

These stats speak volumes and are a powerful indictment against how we have traditionally approached recognition in the workplace.

I believe most companies are way too concerned with “what” rewards they give as opposed to “why” they give them in the first place.

Don’t get me wrong. Rewards are very important. However, they must be strategically thought out. They must complement the recognition that is being given. Many times, companies will offer rewards that are inappropriate to a recognition program’s objectives.

What drives companies to include inappropriate rewards in their programs? Often, it’s simply a case of employees pressuring senior management. Program administrators should push back on “shot gun reward” requests by explaining the strategy behind their recognition strategy. Make sure that your senior management understand that their job is to explain “why” these rewards are being given in the first place.

Don’t let inappropriate rewards become your recognition program’s kiss of death!

Yes, you read it right! But let me explain.

It’s a question of putting the “why” before the “how” in terms of the recognition paradigm.

All too often we try and train managers “how” to recognize employees before they fully understand “why” they are recognizing them in the first place!

Simply put, we must educate managers “why” recognition is important before we train them “how” to do it.

In my experience there are three broad categories of recognition education:

1. There are those managers who understand the why and “get it” completely. They make recognition a part of their daily lives.
2. The second category consists of the managers who do recognize others in the workplace but do not consciously realize it.
3. The last group consists of managers who do not recognize others. They believe recognition has no value and create a variety of reasons not to use this strategic tool. More often than not, they don’t understand why recognition is important because they never experienced it themselves.

Obviously, recognition education must be tailored to suit the needs of each group but it is CRITICAL to educate managers “why” recognition is important before you start training them “how” to do it.

I believe recognition often fails because we have trained too many managers to go through the motions without understanding the real reasons why we do it. This understanding leads to Real Recognition… a phrase my friend and colleague Roy Saunderson coined many years ago.

I'd love it if someone would write the history of the recognition industry.

If they did, it would have to come from two completely different aspects.

The first, would be from the perspective of Academics and OD types who realized that recognition played a key role in a person's individual well being and collectively, to the well being of an organization.

The second would be from the perspective of companies supplying recognition and reward programs. Many of these suppliers got into the business because they were seeking an outlet for their manufactured products.

I confess that my company was no different... we were a manufacturer of emblematic jewelry and corporate award programs were a great outlet for our products.

I think there was and still is a wide gulf between the two groups and is reflected by the fact that over 90% of corporations have recognition programs yet 60% of employees don't feel recognized.

There has been far too much focus on the material and not enough on the ethereal.

Fortunately people are starting to connect the dots. People like my colleague Roy Saunderson of the Recognition Management Institute and Christophe Laval of VPHR are teaching people that recognition is about feelings and emotions.

I believe there are two types of employees... those who I categorize as "mercenaries" and those who I call "patriots."

Which do you have?

Because the choice is entirely up to you... if you or your senior management think all your employees care about is cold hard cash you most likely will have a lot of mercenaries.

The problem with these folks is they have a bad habit of quitting the company if someone offers them more money.

Perhaps even worse, is when employee mercenaries stay with your company but disengage when they feel you don't pay them enough!

Great companies hire employee patriots who realize that employees want much more than cash. They want the opportunity to do exciting work, to feel part of a team, to develop and advance and to be recognized for who they are and what they do each and every day.

Employee patriots aren't just there for the money and they are truly committed.

In World at Work’s Trends in Employee Recognition 2008 survey, it was found that nearly 90% companies in North America have recognition programs. Yet, according to research by Gallup, only 35% of people surveyed said they received recognition for good work in the last year. Why is there such a huge gap?

I believe most companies place far too much emphasis on “rewards” and far too little “real recognition.”

I live in Montreal, a wonderful multi-cultural and multi-lingual city (great food too!). Our local newspaper, The Gazette, is currently running an ad campaign to boost circulation and readership. Their full page ads feature lots of white space and the simple slogan “Words Matter.”

I couldn’t agree more… especially in the recognition business.

Words are the most powerful recognition tool in the world. If spoken from the heart, they can inspire us, lift us up and take us to a higher place.

In my opinion, it's not about “what” you give... it's about “how” you give it! And words play a huge role in the “how”!

 Today's post is for those managers who think cash is the most powerful motivational tool available.

I do agree that cash compensation is important. It forms the foundation in Maslow's hierarchy of needs pyramid.

However, I think it is significant to note that cash sits at the "base" of the pyramid. It is certainly not king of the pyramid!

Cash alone will never take you to the top of Maslow's pyramid. And that's where you want your employees to be... at the top!

Happy! Satisfied! Engaged! Productive!

So how do you get employees to the top?

I believe managers need to "pull" employees up the pyramid! They need to "lend a hand" and they can do this by practicing "Real Recognition" techniques.

Real Recognition is a concept invented by my friend and colleague Roy Saunderson who is the Founder and Chief Learning Officer of the Recognition Management Institute. Real Recognition is simple enough, all you have to do is remember to actually practice it. For example, he’s blogged about the steps you should take to recognize employees who work from home. “Even a simple question asked in a P.S. tag line in an email can keep you in touch,” says Roy. This of course does not cost anything, and is a lot more meaningful than a check.

Real recognition, while not the only factor, can help managers pull employees up Maslow's pyramid and take them to a higher place.