Take Ko, a SO-year-old former employee of a dot-com in California. Her company proudly instituted a
rewards program designed to motivate employees. What were the rewards for a job well-done?
Employees would receive a badge which read "U Done Good" and, each year, would receive a T-shirt as a
means of annual recognition. Once an employee received 10 "U Done Good" badges, he or she could
trade them in for something bigger and better-a paperweight. Ko states that she would have preferred
a raise. "It was patronizing. There wasn't any deep thought involved in any of this." To make matters
worse, she says, the badges were handed out arbitrarily and were not tied to performance. And what
about those T-shirts? Ko
states that the company instilled a strict dress code, so employees couldn't even wear the shirts if they
wanted to. Needless to say, the employee recognition program seemed like an empty gesture rather
than a motivator.
Even programs that provide employees with more expensive rewards can backfire, especially if the
rewards are given insincerely. Eric Lange, an employee of a trucking company, recalls the time when one
of the company's vice presidents achieved a major financial goal for the company. The vice president,
who worked in an office next to Lange, received a Cadillac Seville as his company car and a new Rolex
wristwatch that cost the company $10,000. Both were lavish gifts, but the way they were distributed left
a sour taste in the vice president's mouth. He entered his office to find the Rolex in a cheap cardboard
box sitting on his desk, along with a brief letter explaining that he would be receiving a 1099 tax form in
order to pay taxes on the watch. Lange states of the vice president, "He came into my office, which was
right next door, and said, 'Can you believe this?"' A mere 2 months later, the vice president pawned the
watch. Lange explains, "It had absolutely no meaning for him."
Such experiences resonate with employees who may find more value in a sincere pat on the back than
gifts from management that either are meaningless or aren't conveyed with respect or sincerity.
However, sincere pats on the back may be hard to come by. Gallup's poll found that 61 percent of
employees stated that they haven't received a sincere "thank you" from management in the past year.
Findings such as these are troubling, as verbal rewards are not only inexpensive for companies to hand
out but also are quick and easy to distribute. Of course, verbal rewards do need to be paired sometimes
with tangible benefits that employees value-after all, money talks. In addition, when praising
employees for a job well-done, managers need to ensure that the praise is given in conjunction with the
7