The Art of Showing Appreciation

An expression of gratitude. The act of acknowledging. Providing public recognition. These are all aspects of appreciation. If you genuinely show appreciation for someone's work it is hard to go wrong. Towers Perrin found in their 2008 Global Recognition Study that manager recognition of employee performance can lift engagement scores anywhere from 20% to 60%, depending on the program.

Other studies show that some forms of appreciation and recognition, such as tangible rewards, work better than others, such as cash. Goodyear Tire & Rubber Company had a study done that demonstrated that the performance of both groups of participants, one rewarded with cash and the other with tangible incentives improved during the program. While both groups saw improvement, the increase shown by the group receiving tangible rewards was almost 50 percent more than those of the other group. In a poll conducted by AEIS, seventeen percent of the American employees said they had received a year-end cash bonus. A fair amount of these respondents, 32%, admitted that the cash bonus did not improve their work performance. Similarly, a World at Work study found than non-cash rewards programs achieved three times the return on investment compared with cash-based programs.

Whether recognition is provided in the form or cash, tangible incentives, or simply just verbal recognition the impact is in the message. The Towers Perrin study identified three basic requirements for effective appreciation from managers: inclusiveness, communication, and trust. Inclusiveness refers to the managers need to ensure wide availability of recognition opportunities, which in turn requires following a specific set of requirements that assure fairness. Having favorites would be counterproductive to strong inclusiveness. Providing recognition on a regular on-going basis is the toughest of the three requirements.

The Towers research showed that an important aspect of exercising appreciation is how it is communicated. Appreciation should be clear and have a direct connection to the performance being acknowledged. Communicating openly is important for effective appreciation. This reinforces our belief that the regularity and what is communicated to show appreciation weighs heavily in the overall effectiveness of the recognition. This is truly where the art of showing appreciation comes into play.

Here are four ideas on how to effectively show appreciation in the workplace.

• Be clear about what behaviors or actions are being rewarded up front. It should not be a guessing game or a secret. Outline clearly what is expected and what kind of behavior is appreciated.
• Communicate appreciation in a timely fashion. Provide the recognition as near to the actual performance as possible. Showing appreciation while an event or project is still fresh in someone's brain helps them to make the connection between the behaviors and actions they took and what was appreciated.
• Be very specific in communicating what you appreciate. Give examples of the behavior or action that was appreciated. Being as specific as possible helps to clarify and articluate what behavior is rewarded.
• Get into the habit of thanking people for their work even when it seems like it is their job and should not need accolades. When the everyday things are appreciated, employees can see that the manager does not take them for granted and sincerely cares about them and their performance. This leads to a higher level of trust.

The third basic requirement for effective appreciation according to the Towers Perrin study was trust. When the manager engages in personal, candid conversations with the employee, defines clear and relevant performance targets, and holds people accountable for the results trust increases. The personal and candid conversations should include showing appreciation.

In summary, the art of showing appreciation is in how and when the appreciation is communicated and less about whether some monetary or tangible reward is attached. Make showing appreciation a habit. Look for opportunities to show appreciation. Catch employees or co-workers doing something right and point it out. Remember, there is no downside in showing appreciation as a regular part of your management style.

Written by Jennifer Mounce, President, Coach Effect. Coach Effect is a coaching, consulting and development firm focused on engaging employees through leadership and organizational effectiveness. For more information, please contact us.