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The Carrot Principle: How the Best Managers Use Recognition to Engage Their Employees, Retain Talent, and Drive Performance
Taken from inside the "The Carrot Principle reveals the groundbreaking results of one of the most in-depth management studies ever undertaken, showing definitively that the central characteristic of the most successful managers is that they provide their employees with frequent and effective recognition...Drawing from case studies of leading companies..(the authors) show how the transformative power of purpose-based recognition produces astonishing increases in operating results...they show how great managers lead with carrots, not sticks, and in doing so achieve higher productivity, engagement, retention and customer satisfaction.
176 pages, Hardcover
First published March 20, 2001
150 people are currently reading
1600 people want to read
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Displaying 1 - 30 of 104 reviews
April 5, 2023
Excellent book on how to 'feed' your employees the carrots they need to grow - instead of constantly showing them the stick of discipline. In my 30 years in the private sector I can tell you that the stick is almost always the choice; sadly carrots are given to the wrong people all the time.
June 18, 2011
See downloadable forms at carrots.com
When recognition is considered effective, managers:
1) Have lower turnover rates
2) Achieve enhanced business results
3) Are seen as much stronger in the Basic Four areas of leadership:
a) goal setting
b) communication
c) trust
d) accountability
Goal setting:
- My manager gives me measurable goals to achieve
Communication:
- I can rely on my manager to answer my questions
- My manager listens to employees in our department
- My manager keeps me informed of the progress of my performance
- My manager shares all the information my coworkers and I need to feel part of the team
- My manager is available when workers need to talk
- My manager encourages me to suggest new ideas and methods for doing things
- I feel completely free to express my views to my manager
- My coworkers' ideas are often accepted by my manager
- My opinions matter to my manager
- My manager encourages and supports my learning and growth
Trust:
- I trust my immediate manager
- I trust my department's head
- My manager is fair to all employees
- My manager treats employees as more than "just a member" or a "cog in the wheel"
- My manager treats me with respect
- I believe my manager cares about me as a person
- My manager stresses the importance of teamwork
Accountability:
- My manager holds everyone in our department accountable for their work
Management concepts:
- Help the organization succeed by getting everyone on board with meaningful goals and then rewards for achievement
- Maintain an open and consultative communication style that provides an environment where employees have the opportunity to do what they do best every day
- Build trust by being ever vigilant to "find someone in the act of caring," and then share the credit by recognizing this person publicly and in a timely manner
- Believe that people can create and succeed, and hold them accountable for great results
Leaders who openly communicate:
- set clear guiding values and goals
- discuss issues facing the company and the team - not just the big decisions and announcements
- pass on all useful bits of information to employees, especially those that involve change initiatives or that personally affect employees
- make time for employees and listen intently when they express opinions and concerns
- welcome open discussion from team members about rumors they hear
- respond promptly to team member requests for more information
- go up their own chain of command to fill in the details they don't know
- introduce employees to other key individuals in the organization, sparking dialogue
- give employees online access to relevant databases
A leader who is trusted displays the following characteristics:
- Publicly owning up to his mistakes
- Keeping her word and commitments
- Surrounding himself with people who can be trusted
- Consistently taking the high road in ethically gray areas
- Refusing to participate in any level of deception
- Actively contributing to the positive reputation of the firm
Altruists:
- Have a deeper understanding of and higher regard for the underlying human need for recognition in their team members
- Are compelled to improve the overall lives of their employees and in turn reap greater loyalty, respect, and trust from their people
- Are able to achieve better performance for the company than Expector managers and nonrecognizing managers, but that is secondary to their sensitivity toward the individuals in their charge
- Are either driven internally or influenced by a senior leadership group that uniquely cares for their people and gives managers the tools to effectively recognize
Effective managers create work-life success for their employees when personal goals are linked to work well-being.
The best workplace has employees that are both engaged and satisfied.
Strongest indicators of employee engagement:
1) Employees in my department consistently put in extra effort beyond what is expected
2) Employees in my department are highly motivated to contribute to the success of the organization
3) Employees in my department consistently look for more efficient and effective ways of getting the job done
4) Employees in my department have a strong sense of personal accomplishment from their work
5) Employees in my department understand how their roles help the organization meet its goals
6) Employees in my department always have a positive attitude when performing their duties at work
7) My manager does a good job of recognizing employee contributions
Strongest indicators of employee satisfaction:
1) At work, I have the opportunity to do what I do best every day
2) My performance is evaluated in a manner that makes me feel positive about working
3) Conflicts are managed in a way that results in positive solutions
4) My opinions seem to matter to my manager
5) My manager shares all the information my coworkers and I need in order to feel part of the team
6) I receive the information I need to do my job
7) The organization has developed work/life policies that address my needs
8) I trust my immediate manager
9) During the past year, communication between leadership and employees has improved
10) My manager does a good job of recognizing employee contributions
11) I have recently received praise for my work
Carrot Principle managers build employee engagement and satisfaction by answering three of the most common questions employees have about their work environment:
1) What's important around here?
2) How can I make a difference?
3) What's in it for me when I do make a difference?
The 4 Building Blocks of Recognition
1) Day-to-day recognition. These are the pats on the back, the handwritten notes, the team lunches, on-the-spot award certificates, the gifts of thanks, and other ways you regularly praise and express gratitude to employees. This is often low-cost but always high-touch recognition.
2) Above-and-beyond recognition. When your people go above and beyond, they deserve a more formal response from the organization. These awards provide a structured way to reward significant achievements that support the company's core values and business goals - whether the achievement of a sales goal, the implementation of an innovative idea, or providing exceptional customer service, for example.
3) Career recognition. Most organizations provide a formal program to recognize people on the anniversary of their hiring date, giving managers a prime opportunity to highlight cumulative contributions. In most organizations, this is the most underused vehicle for rewarding and engaging employees.
4) Celebration events. These celebrations reinforce your brand and thank everyone in a team, division, or an entire organization. Events to celebrate include the successful completion of a key project, achievement of record results, company anniversaries, or new product launches.
Day-to-day recognition must be
- Frequent
- Specific
- Timely
Make it frequent: try making a list of direct reports and record the number of times you recognize each of them (this will make it a habit and it will become natural).
Be specific: tell the employee exactly what it is that he did that deserved praise.
Make it timely: immediate recognition is the best. Try not to put it off more than a day at the latest.
Get to know each employee and what motivates him. Consider documenting:
- Career aspiration
- What is most important to this person
- Strengths to develop
- What forms of recognition and awards does this person value most
- Recognition ideas
In focusing on improving above-and-beyond awards, it's best to focus on three words: value, impact, and personal (VIP).
Value: awards should be presented for:
- Significant achievements: Great performances, excellent results, and actions that further your team or organization's core values
- Ideas: Generating a cost-saving or improvement idea that provides real financial benefit to your organization
- Sales: Achieving overall or area sales targets, winning new accounts, retaining your best customers, upgrading existing customers, selling a specific product, and so on
Impact: to have impact, an award should fairly represent the impact of the achievement (Italian dinner appropriate for employee who restores phone system in minutes rather than hours; not appropriate for employee who just completed an arduous year-long ISO registration process, working long hours and mastering difficult processes in achieving this important milestone for your firm)
Personal: find an award that matches the employee's interests, tastes, and sensibilities. The award presentation should be personal too. Choose someone to present the award who knows the employee well and works with her regularly (direct supervisor usually the best option). Take time to prepare for the presentation - don't just wing it.
When presenting an award, tell a specific, informed story about the accomplishment - talk about the:
- Situation: the problem or opportunity
- Action: what was done, in specific terms
- Impact: the result of the action
- Link to company values: how the action contributed to the company
Career recognition - try recognizing much sooner than 5 years. After 3 months of service, ask new employee these questions:
1) "You've been here for three months now. Let me ask you, have we lived up to our promises to you? After all, when we recruited you, we told you that this would be a great place to work. We said you would do cool things, work with fascinating people on fun projects. Are we what we told you we would be?" Then listen. Ask more probing questions if necessary, but no rebuttals allowed.
2) "What do you think we do best here? I think I know what we do best, but you have a fresh perspective. I want do know what you think we do best." By this point, the conversation should really be rolling. These are great open-ended questions as long as you keep an open mind.
3) "At your other jobs, I'm sure you saw some things that worked really well. Is there anything you've seen elsewhere that we might be able to use here to make our company better?" Isn't that a great engagement question? You are asking the person to be actively involved in solving the probles of your company and making his or her work life better. You are showing how open you are to new ideas. And you are rewarding the person for the knowledge he or she brings to the job.
4) "Have we done anything in the past ninety days that might cause you to leave us?" Right up front, you are asking: Are you going to stay?
Celebration events: important moments in your company history can build employee commitment and loyalty, and focus employees toward the next accomplishment.
Make sure your recognition program is:
- Strategic: Aligned with your core values and goals
- Simple: Easy to use and understand
- Measured: Providing a return on your investment
- Owned: By your managers and senior leaders
Level: What level of award is appropriate for what behavior?
Spending: How much should you budget for recognition?
Awards: What creative rewards can you offer for excellent performance?
Levels
1) Thank-you: Small step toward living your values
2) Bronze: One-time above-and-beyond action, linked to your values, which makes you more successful
3) Silver: Ongoing above-and-beyond demonstration of your values in action, which is making your organization more successful
4) Gold: Action, project, or behavior that has a significant impact on the bottom line
1) Thank you recognition is for daily, ongoing encouragement of the small steps that lead us to success. After all, it's rarely the large things that differentiate us in our customers' minds from the competition; it's the little things employees do that make all the difference. Thank-you recognition is the most frequent type offered by effective managers. It is given to an employee who meets (but not necessarily exceeds) performance expectations. It is day-to-day encouragement for the person who is a consistent and steady performer, who always gets the report in on time, who is always courteous when making a deliver to a customer's home or business, who always has a positive attitude, who is the consummate team player, who gave an admirable try but didn't quite make it, and so on. Thank-you praise might be given publicly or privately by sending an e-card or a handwritten note, by giving something of de minimis value typically costing $50 or less, such as movie tickets, a gift basket, coffee and doughnuts, by using some of the 125 ideas we list in the next chapter, or in some cases, by rewarding with a more valuable gift if you deem the person's effort important enough.
2) Bronze awards recognize one-time above-and-beyond behaviors related to your core values, which might include an employee who cares for an angry customer and saves the day, takes on an additional duty, stays late to get out an important project, finds a way to improve a routine process, comes up with a creative solution to a problem, puts together a great pitch for a prospective client, finds the glitch in the server, and so on. Most bronze awards are tangible items in the $50 to $100 range. This could include the presentation of a personalized award, dinner for two, tickets to a ball game or symphony, a selection from a catalogue of merchandise, or anything else you can dream up.
3) Silver awards reward ongoing above-and-beyond behaviors. Employees are eligible for these awards if they consistently demonstrate your values by taking on challenging customer issues, work late weeks in a row, develop sophisticated changes to improve important processes, demonstrate outstanding leadership, improve the way you pitch prospective clients, mentor a new employee to productivity, provide exceptional customer care, and so on. If you know that at 5:05 PM, after closing, Susan doesn't hesitate in opening the doors when a frantic customer shows up, she's worthy of a silver award. You do this with a tangible merchandise award, publicly presented, and typically valued from $100 to $500.
4) Gold awards recognize behaviors that produce bottom-line results. These may be one-time or ongoing achievements and are the highest level of above-and-beyond awards. These rewards recognize an employee who has clearly influenced your financial statement, perhaps by developing a new system that saves money, being granted a patent, winning an important industry award, breaking a performance record, landing a new account, introducing a new process to significantly improve efficiency, achieving a top sales goal, being part of a team that came together with the innovative pitch that won a big deal, or working from a customer service position to keep a big client in the fold. The level of award will depend on the impact. If the idea saves millions of dollars, they the sky is the limit when it comes to how much you will spend to recognize this person or team. These awards may include a cash component, but there is always a valuable tangible reminder of the achievement, typically worth $500 or more. Neglect to present an heirloom award, and the recognition may be reduced to a simple business transaction.
Spending
Most organizations we work with budget 2 percent of payroll or about $1000 per employee per year for day-to-day recognition, team event gifts, above-and-beyond, and service awards. Of course, that spending can vary, but we think $1000 is a good basic starting point that will help move the needle on employee performance, engagement, and satisfaction. Here's a breakout of anticipated annual spending per employee:
Day-to-Day (Thank-You Level)
- $0 annually. Every seven business days (or thirty five times a year) you will thank with something free - a handwritten note, verbal praise, or an email of thanks, for example.
- $100 to $200 annually. Four to six times a year on average, you will award with something of tangible but often de minimis value - a gift from a selection, movie tickets, a basket of food, or dinner or coffee certificates, for example.
Above-and-Beyond Awards (Bronze, Silver, and Gold Levels)
- $250 to $500 annually. On average at least every two years, an employee should receive a tangible performance award for above-and-beyond behavior. Of course, there are many outstanding employees in your organization who will receive several performance awards annually.
Event Recognition
- $100 annually. At least semiannually, you should be celebrating team victories with a gift, party, or outing.
Service Awards
- $200 annually. At ninety days, one year, three years, five years, seven years, ten years, and then every five years thereafter, it's important to recognize loyalty with a lasting award appropriate to their achievement.
Awards
With money to spend and an idea of the behaviors to recognize, it's time to begin handing out praise and recognition awards. To keep things fresh, you'll probably need some idea of what to give and a few good ways to remember to recognize. Fortunately, we've got a few ideas for you: 125 to be exact.
Goal Setting
1) On a new employee's first day, set expectations high by planning a small celebration. Then send out an email to employees about the new person and why she was chosen to join the team. Invite coworkers to stop by. Even better, present the new person with a card signed by everyone on the team, welcoming her aboard.
2) What makes your employees tick? Why not ask? Ask each employee to list the values that guide his or her daily decisions. During a private meeting, discuss how these lists compare with and contrast to the company mission and value statements.
3) Take exercise 2 a step further by encouraging employees to post their values list conspicuously at the office or on the job site. Set the example. Put a note on your bathroom mirror to see before you leave for work. Tape it inside your checkbook. Move the notes frequently so they are always unexpected. Remember that what is out of sight is out of mind.
4) As a reward, bring in a fortune-teller to tell positive fortunes that relate to your core work goals.
5) The next time your employee scans the "What They're Doing Now" section of his or her college alumni publication, make sure he sees a familiar face...his own. Just because an employee doesn't blow his horn doesn't mean he wouldn't like you to make some noise.
6) Turn a responsibility into a reward. Ask an employee to help train a new employee in a job function where the employee excels. Explain in detail what qualifies the employee for this important assignment.
7) Tell employees frequently and sincerely: "I know you can do it." Victor Vroom's expectancy theory teaches that employees work toward goals that they 1) want and 2) believe they have a realistic chance of obtaining. If you don't believe your team can achieve a goal, it's almost certain they won't.
8) Invite an employee to take his spouse along on a business trip. Pay for the spouse's airplane ticket and extend the trip by one day for some sightseeing.
9) When employees have to work on a weekend, provide a catered lunch for them. Make it even better by inviting their families to join them for lunch.
10) Surprise your people by taking them to a blockbuster film matinee on opening day. Choose a flick that won't offend anyone, and, if possible, double the impact by choosing a movie that shows a team working together to achieve a difficult goal.
11) Variety is the spice of life. Give employees important tasks that stretch their abilities and are outside their job descriptions. Give them the training, resources, and contacts they require to succeed.
12) Recognition is a great vehicle to help achieve results and propel your people to greater things - but only if you remember. At the beginning of each day, put three coins in your right pocket. Transfer one to the left each time you reward an employee for a behavior that is critical to your goals, customers, employees, and company.
13-50) see book
When recognition is considered effective, managers:
1) Have lower turnover rates
2) Achieve enhanced business results
3) Are seen as much stronger in the Basic Four areas of leadership:
a) goal setting
b) communication
c) trust
d) accountability
Goal setting:
- My manager gives me measurable goals to achieve
Communication:
- I can rely on my manager to answer my questions
- My manager listens to employees in our department
- My manager keeps me informed of the progress of my performance
- My manager shares all the information my coworkers and I need to feel part of the team
- My manager is available when workers need to talk
- My manager encourages me to suggest new ideas and methods for doing things
- I feel completely free to express my views to my manager
- My coworkers' ideas are often accepted by my manager
- My opinions matter to my manager
- My manager encourages and supports my learning and growth
Trust:
- I trust my immediate manager
- I trust my department's head
- My manager is fair to all employees
- My manager treats employees as more than "just a member" or a "cog in the wheel"
- My manager treats me with respect
- I believe my manager cares about me as a person
- My manager stresses the importance of teamwork
Accountability:
- My manager holds everyone in our department accountable for their work
Management concepts:
- Help the organization succeed by getting everyone on board with meaningful goals and then rewards for achievement
- Maintain an open and consultative communication style that provides an environment where employees have the opportunity to do what they do best every day
- Build trust by being ever vigilant to "find someone in the act of caring," and then share the credit by recognizing this person publicly and in a timely manner
- Believe that people can create and succeed, and hold them accountable for great results
Leaders who openly communicate:
- set clear guiding values and goals
- discuss issues facing the company and the team - not just the big decisions and announcements
- pass on all useful bits of information to employees, especially those that involve change initiatives or that personally affect employees
- make time for employees and listen intently when they express opinions and concerns
- welcome open discussion from team members about rumors they hear
- respond promptly to team member requests for more information
- go up their own chain of command to fill in the details they don't know
- introduce employees to other key individuals in the organization, sparking dialogue
- give employees online access to relevant databases
A leader who is trusted displays the following characteristics:
- Publicly owning up to his mistakes
- Keeping her word and commitments
- Surrounding himself with people who can be trusted
- Consistently taking the high road in ethically gray areas
- Refusing to participate in any level of deception
- Actively contributing to the positive reputation of the firm
Altruists:
- Have a deeper understanding of and higher regard for the underlying human need for recognition in their team members
- Are compelled to improve the overall lives of their employees and in turn reap greater loyalty, respect, and trust from their people
- Are able to achieve better performance for the company than Expector managers and nonrecognizing managers, but that is secondary to their sensitivity toward the individuals in their charge
- Are either driven internally or influenced by a senior leadership group that uniquely cares for their people and gives managers the tools to effectively recognize
Effective managers create work-life success for their employees when personal goals are linked to work well-being.
The best workplace has employees that are both engaged and satisfied.
Strongest indicators of employee engagement:
1) Employees in my department consistently put in extra effort beyond what is expected
2) Employees in my department are highly motivated to contribute to the success of the organization
3) Employees in my department consistently look for more efficient and effective ways of getting the job done
4) Employees in my department have a strong sense of personal accomplishment from their work
5) Employees in my department understand how their roles help the organization meet its goals
6) Employees in my department always have a positive attitude when performing their duties at work
7) My manager does a good job of recognizing employee contributions
Strongest indicators of employee satisfaction:
1) At work, I have the opportunity to do what I do best every day
2) My performance is evaluated in a manner that makes me feel positive about working
3) Conflicts are managed in a way that results in positive solutions
4) My opinions seem to matter to my manager
5) My manager shares all the information my coworkers and I need in order to feel part of the team
6) I receive the information I need to do my job
7) The organization has developed work/life policies that address my needs
8) I trust my immediate manager
9) During the past year, communication between leadership and employees has improved
10) My manager does a good job of recognizing employee contributions
11) I have recently received praise for my work
Carrot Principle managers build employee engagement and satisfaction by answering three of the most common questions employees have about their work environment:
1) What's important around here?
2) How can I make a difference?
3) What's in it for me when I do make a difference?
The 4 Building Blocks of Recognition
1) Day-to-day recognition. These are the pats on the back, the handwritten notes, the team lunches, on-the-spot award certificates, the gifts of thanks, and other ways you regularly praise and express gratitude to employees. This is often low-cost but always high-touch recognition.
2) Above-and-beyond recognition. When your people go above and beyond, they deserve a more formal response from the organization. These awards provide a structured way to reward significant achievements that support the company's core values and business goals - whether the achievement of a sales goal, the implementation of an innovative idea, or providing exceptional customer service, for example.
3) Career recognition. Most organizations provide a formal program to recognize people on the anniversary of their hiring date, giving managers a prime opportunity to highlight cumulative contributions. In most organizations, this is the most underused vehicle for rewarding and engaging employees.
4) Celebration events. These celebrations reinforce your brand and thank everyone in a team, division, or an entire organization. Events to celebrate include the successful completion of a key project, achievement of record results, company anniversaries, or new product launches.
Day-to-day recognition must be
- Frequent
- Specific
- Timely
Make it frequent: try making a list of direct reports and record the number of times you recognize each of them (this will make it a habit and it will become natural).
Be specific: tell the employee exactly what it is that he did that deserved praise.
Make it timely: immediate recognition is the best. Try not to put it off more than a day at the latest.
Get to know each employee and what motivates him. Consider documenting:
- Career aspiration
- What is most important to this person
- Strengths to develop
- What forms of recognition and awards does this person value most
- Recognition ideas
In focusing on improving above-and-beyond awards, it's best to focus on three words: value, impact, and personal (VIP).
Value: awards should be presented for:
- Significant achievements: Great performances, excellent results, and actions that further your team or organization's core values
- Ideas: Generating a cost-saving or improvement idea that provides real financial benefit to your organization
- Sales: Achieving overall or area sales targets, winning new accounts, retaining your best customers, upgrading existing customers, selling a specific product, and so on
Impact: to have impact, an award should fairly represent the impact of the achievement (Italian dinner appropriate for employee who restores phone system in minutes rather than hours; not appropriate for employee who just completed an arduous year-long ISO registration process, working long hours and mastering difficult processes in achieving this important milestone for your firm)
Personal: find an award that matches the employee's interests, tastes, and sensibilities. The award presentation should be personal too. Choose someone to present the award who knows the employee well and works with her regularly (direct supervisor usually the best option). Take time to prepare for the presentation - don't just wing it.
When presenting an award, tell a specific, informed story about the accomplishment - talk about the:
- Situation: the problem or opportunity
- Action: what was done, in specific terms
- Impact: the result of the action
- Link to company values: how the action contributed to the company
Career recognition - try recognizing much sooner than 5 years. After 3 months of service, ask new employee these questions:
1) "You've been here for three months now. Let me ask you, have we lived up to our promises to you? After all, when we recruited you, we told you that this would be a great place to work. We said you would do cool things, work with fascinating people on fun projects. Are we what we told you we would be?" Then listen. Ask more probing questions if necessary, but no rebuttals allowed.
2) "What do you think we do best here? I think I know what we do best, but you have a fresh perspective. I want do know what you think we do best." By this point, the conversation should really be rolling. These are great open-ended questions as long as you keep an open mind.
3) "At your other jobs, I'm sure you saw some things that worked really well. Is there anything you've seen elsewhere that we might be able to use here to make our company better?" Isn't that a great engagement question? You are asking the person to be actively involved in solving the probles of your company and making his or her work life better. You are showing how open you are to new ideas. And you are rewarding the person for the knowledge he or she brings to the job.
4) "Have we done anything in the past ninety days that might cause you to leave us?" Right up front, you are asking: Are you going to stay?
Celebration events: important moments in your company history can build employee commitment and loyalty, and focus employees toward the next accomplishment.
Make sure your recognition program is:
- Strategic: Aligned with your core values and goals
- Simple: Easy to use and understand
- Measured: Providing a return on your investment
- Owned: By your managers and senior leaders
Level: What level of award is appropriate for what behavior?
Spending: How much should you budget for recognition?
Awards: What creative rewards can you offer for excellent performance?
Levels
1) Thank-you: Small step toward living your values
2) Bronze: One-time above-and-beyond action, linked to your values, which makes you more successful
3) Silver: Ongoing above-and-beyond demonstration of your values in action, which is making your organization more successful
4) Gold: Action, project, or behavior that has a significant impact on the bottom line
1) Thank you recognition is for daily, ongoing encouragement of the small steps that lead us to success. After all, it's rarely the large things that differentiate us in our customers' minds from the competition; it's the little things employees do that make all the difference. Thank-you recognition is the most frequent type offered by effective managers. It is given to an employee who meets (but not necessarily exceeds) performance expectations. It is day-to-day encouragement for the person who is a consistent and steady performer, who always gets the report in on time, who is always courteous when making a deliver to a customer's home or business, who always has a positive attitude, who is the consummate team player, who gave an admirable try but didn't quite make it, and so on. Thank-you praise might be given publicly or privately by sending an e-card or a handwritten note, by giving something of de minimis value typically costing $50 or less, such as movie tickets, a gift basket, coffee and doughnuts, by using some of the 125 ideas we list in the next chapter, or in some cases, by rewarding with a more valuable gift if you deem the person's effort important enough.
2) Bronze awards recognize one-time above-and-beyond behaviors related to your core values, which might include an employee who cares for an angry customer and saves the day, takes on an additional duty, stays late to get out an important project, finds a way to improve a routine process, comes up with a creative solution to a problem, puts together a great pitch for a prospective client, finds the glitch in the server, and so on. Most bronze awards are tangible items in the $50 to $100 range. This could include the presentation of a personalized award, dinner for two, tickets to a ball game or symphony, a selection from a catalogue of merchandise, or anything else you can dream up.
3) Silver awards reward ongoing above-and-beyond behaviors. Employees are eligible for these awards if they consistently demonstrate your values by taking on challenging customer issues, work late weeks in a row, develop sophisticated changes to improve important processes, demonstrate outstanding leadership, improve the way you pitch prospective clients, mentor a new employee to productivity, provide exceptional customer care, and so on. If you know that at 5:05 PM, after closing, Susan doesn't hesitate in opening the doors when a frantic customer shows up, she's worthy of a silver award. You do this with a tangible merchandise award, publicly presented, and typically valued from $100 to $500.
4) Gold awards recognize behaviors that produce bottom-line results. These may be one-time or ongoing achievements and are the highest level of above-and-beyond awards. These rewards recognize an employee who has clearly influenced your financial statement, perhaps by developing a new system that saves money, being granted a patent, winning an important industry award, breaking a performance record, landing a new account, introducing a new process to significantly improve efficiency, achieving a top sales goal, being part of a team that came together with the innovative pitch that won a big deal, or working from a customer service position to keep a big client in the fold. The level of award will depend on the impact. If the idea saves millions of dollars, they the sky is the limit when it comes to how much you will spend to recognize this person or team. These awards may include a cash component, but there is always a valuable tangible reminder of the achievement, typically worth $500 or more. Neglect to present an heirloom award, and the recognition may be reduced to a simple business transaction.
Spending
Most organizations we work with budget 2 percent of payroll or about $1000 per employee per year for day-to-day recognition, team event gifts, above-and-beyond, and service awards. Of course, that spending can vary, but we think $1000 is a good basic starting point that will help move the needle on employee performance, engagement, and satisfaction. Here's a breakout of anticipated annual spending per employee:
Day-to-Day (Thank-You Level)
- $0 annually. Every seven business days (or thirty five times a year) you will thank with something free - a handwritten note, verbal praise, or an email of thanks, for example.
- $100 to $200 annually. Four to six times a year on average, you will award with something of tangible but often de minimis value - a gift from a selection, movie tickets, a basket of food, or dinner or coffee certificates, for example.
Above-and-Beyond Awards (Bronze, Silver, and Gold Levels)
- $250 to $500 annually. On average at least every two years, an employee should receive a tangible performance award for above-and-beyond behavior. Of course, there are many outstanding employees in your organization who will receive several performance awards annually.
Event Recognition
- $100 annually. At least semiannually, you should be celebrating team victories with a gift, party, or outing.
Service Awards
- $200 annually. At ninety days, one year, three years, five years, seven years, ten years, and then every five years thereafter, it's important to recognize loyalty with a lasting award appropriate to their achievement.
Awards
With money to spend and an idea of the behaviors to recognize, it's time to begin handing out praise and recognition awards. To keep things fresh, you'll probably need some idea of what to give and a few good ways to remember to recognize. Fortunately, we've got a few ideas for you: 125 to be exact.
Goal Setting
1) On a new employee's first day, set expectations high by planning a small celebration. Then send out an email to employees about the new person and why she was chosen to join the team. Invite coworkers to stop by. Even better, present the new person with a card signed by everyone on the team, welcoming her aboard.
2) What makes your employees tick? Why not ask? Ask each employee to list the values that guide his or her daily decisions. During a private meeting, discuss how these lists compare with and contrast to the company mission and value statements.
3) Take exercise 2 a step further by encouraging employees to post their values list conspicuously at the office or on the job site. Set the example. Put a note on your bathroom mirror to see before you leave for work. Tape it inside your checkbook. Move the notes frequently so they are always unexpected. Remember that what is out of sight is out of mind.
4) As a reward, bring in a fortune-teller to tell positive fortunes that relate to your core work goals.
5) The next time your employee scans the "What They're Doing Now" section of his or her college alumni publication, make sure he sees a familiar face...his own. Just because an employee doesn't blow his horn doesn't mean he wouldn't like you to make some noise.
6) Turn a responsibility into a reward. Ask an employee to help train a new employee in a job function where the employee excels. Explain in detail what qualifies the employee for this important assignment.
7) Tell employees frequently and sincerely: "I know you can do it." Victor Vroom's expectancy theory teaches that employees work toward goals that they 1) want and 2) believe they have a realistic chance of obtaining. If you don't believe your team can achieve a goal, it's almost certain they won't.
8) Invite an employee to take his spouse along on a business trip. Pay for the spouse's airplane ticket and extend the trip by one day for some sightseeing.
9) When employees have to work on a weekend, provide a catered lunch for them. Make it even better by inviting their families to join them for lunch.
10) Surprise your people by taking them to a blockbuster film matinee on opening day. Choose a flick that won't offend anyone, and, if possible, double the impact by choosing a movie that shows a team working together to achieve a difficult goal.
11) Variety is the spice of life. Give employees important tasks that stretch their abilities and are outside their job descriptions. Give them the training, resources, and contacts they require to succeed.
12) Recognition is a great vehicle to help achieve results and propel your people to greater things - but only if you remember. At the beginning of each day, put three coins in your right pocket. Transfer one to the left each time you reward an employee for a behavior that is critical to your goals, customers, employees, and company.
13-50) see book
June 6, 2018
Very inspiring
April 10, 2018
Quality book for any manager/leader of teams. Simple acts of recognition CAN make a huge difference in an employee’s performance and trust in an organization. While I’ve heard of much of this before, I still found the book full of great ideas/quotes. Will be a book I recommend to struggling leaders. Key excerpts below:
- Scientists have known the secret of accelerants for decades, adding them to speed up chemical reactions, achieving results more quickly. Accelerators work the same way in business, making the things you’re doing work better, faster, and more smoothly, without throwing you (or your organization) off balance.
- … corporate turnover absorbs resources at an astonishing rate. It is far and away the most significant uncalculated expense in corporate America. Some estimates to replace a departing employee range up to a stunning 250 percent of that person’s annual salary.
- leaders communicate on many other levels as well… but one thing they can’t do is communicate from their offices.
- When I make a mistake I’m recognized 100% of the time; when I do something great, I’m not recognized 99 percent of the time.
- We communicate with the masses, but we manage to the one.
- An average American or Canadian worker puts in a full month of hours more each year than a generation ago, more than the citizens of any other Western/European country, and even longer hours than medieval peasants in servitude did.
- In many cases, it’s insecurity that drives many high achievers to perform so well and so consistently.
- At a football game, do they hold applause ‘til the end? Or when a running back gets a touchdown, do you say “He’s supposed to score?” … but in sports, there’s a reason the home team usually wins. It’s because somebody is cheering for them.
- Remember, however, that it’s important to keep praise and coaching separate. Take time to thank and recognize, but don’t fall into the trap of praising in one sentence, and then reminding of needed improvements in the next. They’ll only remember the “but.”
- Scientists have known the secret of accelerants for decades, adding them to speed up chemical reactions, achieving results more quickly. Accelerators work the same way in business, making the things you’re doing work better, faster, and more smoothly, without throwing you (or your organization) off balance.
- … corporate turnover absorbs resources at an astonishing rate. It is far and away the most significant uncalculated expense in corporate America. Some estimates to replace a departing employee range up to a stunning 250 percent of that person’s annual salary.
- leaders communicate on many other levels as well… but one thing they can’t do is communicate from their offices.
- When I make a mistake I’m recognized 100% of the time; when I do something great, I’m not recognized 99 percent of the time.
- We communicate with the masses, but we manage to the one.
- An average American or Canadian worker puts in a full month of hours more each year than a generation ago, more than the citizens of any other Western/European country, and even longer hours than medieval peasants in servitude did.
- In many cases, it’s insecurity that drives many high achievers to perform so well and so consistently.
- At a football game, do they hold applause ‘til the end? Or when a running back gets a touchdown, do you say “He’s supposed to score?” … but in sports, there’s a reason the home team usually wins. It’s because somebody is cheering for them.
- Remember, however, that it’s important to keep praise and coaching separate. Take time to thank and recognize, but don’t fall into the trap of praising in one sentence, and then reminding of needed improvements in the next. They’ll only remember the “but.”
May 1, 2013
I gave this book 5 stars because of the first several chapters. There it describes the underlying principle of the entire book: that setting well thought-out goals and then rewarding behavior that supports those goals leads to achieving those goals. It was brilliantly written, and I think if more people lived those principles, the world (especially the professional world) would be a much better place. The authors started to lose me towards the end of the book, when they went into the application of those principles, and suggested behaviors. They created what was to me a very elaborate and confusing protocols for determining how valuable a reward should be and what kind of gift to give the person Many of the suggestions involve the giving of elaborate gifts and trinkets (conveniently provided by the company that sponsored the research and the book), which I thought complicated the otherwise simple concept of praising desired action. When it comes to recognition, I almost feel like it's so rare, most people could start with simply saying "thank you", and there would be a dramatic increase in results. The elaborate gifts could be useful, but only after the basic idea of rewarding good behavior has become of habit. That being said however, I think the principles were spot on, and I hope I can be the type of leader that embraces this concept. I already wrote out two "thank you" emails to friends this afternoon.
July 2, 2017
This book does an outstanding job of explaining the problem faced by all managers - how to have happy, satisfied, engaged employees who give their all and contribute to the organization's success - and offering the solution. Recognition. Done properly and with the right foundation in place, recognition is what has the biggest impact on the employees. This book explains why, using data and anecdotes from research, without feeling dry or technical. Then it goes further, providing specific and practical guidance on how to implement recognition. It is a pretty quick read, with useful information on every page.
November 20, 2018
Книга, която всеки един мениджър би трябвало да прочете. Не ми е първата прочетена книга на подобна тематика, но определено я слагам в моите топ 3. Предлагат се ефективни методи, изпитани и при мен самата :)
January 12, 2019
This business advice sounds like some parenting advice that I received years ago--Focus on the positive and ignore the negative. Reward the behavior that you want to have repeated. It works with kids, so it should work with adults. I like this book a lot!
September 2, 2022
Nearly four out of five employees who quit their jobs cite a lack of recognition as a key reason for leaving. If you are a business leader, or aspire to become one, this book offers practical guidance on how to effectively lead your workforce.
Here are the two things your workers want most:
~ career/learning development opportunities
~ recognition
Failing to acknowledge and support your workers leads to low morale and turnover. In a competitive business environment this leads to an underperforming business.
The Carrot Principle details the Basic Four areas of business leadership:
~ goal setting
~ communication
~ trust
~ accountability
Great management is born when recognition is added to these four fundamentals of leadership.
If you are looking for an action plan to energize the team you lead, this book is a keeper and should be referred to daily.
Access Gene Babon's reviews of books on Business Leadership and Business Strategy at Pinterest.
Here are the two things your workers want most:
~ career/learning development opportunities
~ recognition
Failing to acknowledge and support your workers leads to low morale and turnover. In a competitive business environment this leads to an underperforming business.
The Carrot Principle details the Basic Four areas of business leadership:
~ goal setting
~ communication
~ trust
~ accountability
Great management is born when recognition is added to these four fundamentals of leadership.
If you are looking for an action plan to energize the team you lead, this book is a keeper and should be referred to daily.
"When I make a mistake I'm recognized 100 percent of the time; when I do something great, I'm not recognized 99 percent of the time."If this statement describes the culture where you work, then start reading The Carrot Principle and start making a positive difference in your culture—or become one of the employees who quits their jobs citing a lack of recognition as a key reason for leaving.
Access Gene Babon's reviews of books on Business Leadership and Business Strategy at Pinterest.
March 22, 2016
The Carrot Principle is an excellent book for managers and a helpful book for anyone who is a leader in any sense (teacher, coach, parent, etc.) Adrian Gostick and Chester Elton argue that competent managers can use recognition as an accelerator that helps spur people on to a greater quality and quantity of work. They makes a strong case, using various studies to prove their point. The best thing about the book is how specific it is about the use of recognition. The authors tell the qualities of effective recognition (timely, specific, etc.) They identify the frequency (once a week) and the key milestones (starting at one month) when formal recognition should begin. They describe four levels of contribution that an employee might make to the company and the dollar amounts that are appropriate for each level. They mention common mistakes made by bosses who attempt recognition (for example, never say, "That was good, but...") And they give over 150 specific, creative ideas for recognizing employees (members of the management hand-washing employee cars was one of my favorites). The book is thought-provoking and very practical.
August 4, 2011
The first addition of Adrian Gostick and Chester Elton’s The Carrot Principle convincingly demonstrated the relationship between rewards/recognition and results. This second addition, through additional data provided by Towers Watson, provides even more proof that feedback and recognition are powerful tools for engaging employees and achieving higher levels of productivity.
From my work as a management consultant, it is clear that managers do not recognize and reward people as much as they should. The Carrot Principle shines a light on the principle that people exhibit behaviors that they are rewarded to exhibit. And once this insight is illuminated, as Gostick and Elton so eloquently demonstrate through data and case studies, readers will have bridged the gap between something they know (I need to provide feedback) and something they do (I must give feedback).
The Carrot Principle should inspire everyone to go out and seek people doing things right…then tell them!
From my work as a management consultant, it is clear that managers do not recognize and reward people as much as they should. The Carrot Principle shines a light on the principle that people exhibit behaviors that they are rewarded to exhibit. And once this insight is illuminated, as Gostick and Elton so eloquently demonstrate through data and case studies, readers will have bridged the gap between something they know (I need to provide feedback) and something they do (I must give feedback).
The Carrot Principle should inspire everyone to go out and seek people doing things right…then tell them!
August 20, 2009
Great premise, proof and application.
1. Recognition is the 'relationship bridge' between management and talent that seeks to achieve (pg 68)
2. 4-Quads of Engagement/Satisfaction (drives turnover): Hi/Lo 14%; Hi/Hi 40%; Lo/Hi 20%, Lo/Lo 26%.
3. Building Blocks of Recognition: Day-to-day, Above-and-beyond, careeer and celebration recognition. (pg 100)
4. Predictors of Engagement:
a. Recognition > Opp & Wellbeing > Engagement
b. Communication > Trust > Engagement
c. Alignment > Org Symbol > Engagement (pg 148).
5. Power of Recognition is global; must improve 2-way comm; use corp symbol in recognition (pg 160)
6. 125 recognition ideas (pg 172)
1. Recognition is the 'relationship bridge' between management and talent that seeks to achieve (pg 68)
2. 4-Quads of Engagement/Satisfaction (drives turnover): Hi/Lo 14%; Hi/Hi 40%; Lo/Hi 20%, Lo/Lo 26%.
3. Building Blocks of Recognition: Day-to-day, Above-and-beyond, careeer and celebration recognition. (pg 100)
4. Predictors of Engagement:
a. Recognition > Opp & Wellbeing > Engagement
b. Communication > Trust > Engagement
c. Alignment > Org Symbol > Engagement (pg 148).
5. Power of Recognition is global; must improve 2-way comm; use corp symbol in recognition (pg 160)
6. 125 recognition ideas (pg 172)
December 26, 2011
This book provided some great points and thought provoking ideas. While I'd recommend it to anyone looking to up their engagement level through recognition, I can't say I enjoyed every chapter.
With any business related book now, it seems that the first few chapters are spent explaining the data and why you need what the book is talking about. I've never enjoyed those chapters because if I'm reading the book, I obviously already want the information so I don't need to be "sold" on it. So skip the first chapters and get to the meat of it.
With any business related book now, it seems that the first few chapters are spent explaining the data and why you need what the book is talking about. I've never enjoyed those chapters because if I'm reading the book, I obviously already want the information so I don't need to be "sold" on it. So skip the first chapters and get to the meat of it.
August 5, 2011
This was an interesting book regarding recognition in the work place. I was an interesting take on the little expense it is to recognize your employees and how far that recognition goes to help improve a business. An insightful, interesting read. Recognition isn't hard, but it's not a normal human habit either. I recommend anyone read this book who manages employees or is in charge of a team or class.
July 23, 2007
Another one I picked up at the public library. It was in the New Books area, and the title sounded catchy, so I picked it up. Definitely a book more managers should be reading and acting upon.
Here is the note I made about it on my personal blog:
[http://itinerantlibrarian.blogspot.co...]
Here is the note I made about it on my personal blog:
[http://itinerantlibrarian.blogspot.co...]
January 12, 2011
I gave this book five stars because it provides the data to back up everything heard on Manager Tools related to one-on-ones, feedback, delegation and coaching. Someday after I have a year of blow out results I plan to pull out this book and use the numbers in here to put together my 'how I killed it' presentation.
January 21, 2012
This genial book tells us that we should recognize our employees to bring out the best in them, and increase the productivity of our companies. That's not surprising, but what is important about this book is that it proves what we instinctively know to be true. Lots of research and examples reinforce the basic idea that people should be nice to each other to succeed.
January 18, 2021
HIGHLIGHTS:
1. Clear goal-setting-align w/ bigger purpose small daily actions, a meaningful job, values hard-wired into decisions and policies, optimistic future. Career dev of Individual in connection to company goals.
2. Noble purpose.
3. Accountability
4. Trust
5. VIP – employee appreciation, value impact personalization
1. Clear goal-setting-align w/ bigger purpose small daily actions, a meaningful job, values hard-wired into decisions and policies, optimistic future. Career dev of Individual in connection to company goals.
2. Noble purpose.
3. Accountability
4. Trust
5. VIP – employee appreciation, value impact personalization
July 22, 2009
A great principle that none of the companies that I've been working with practiced...
September 28, 2018
Probably the most actionable book on leadership I have read. Cant wait to start practicing the Carrot Principle!
August 17, 2021
This book is not unique in presenting the main theme, that beyond a basic point, additional monetary rewards are not the most powerful force keeping employees happy. That point has been made in many books and articles about the art of people management. What the employees want is challenging, meaningful work and being told that they did it well. Hence the main title of this book.
Most of the standard, yet simple actions to used to inform people of a job well done are stated, as well as how not to do them. Nearly all are monetarily inexpensive yet require some effort and at times humility by a manager. Some managers are reluctant, even to the point of refusal, to acknowledge that the success of the team is due to the actions of underlings.
Short, but effective, this is a book that should be read and intellectually digested by all managers.
Most of the standard, yet simple actions to used to inform people of a job well done are stated, as well as how not to do them. Nearly all are monetarily inexpensive yet require some effort and at times humility by a manager. Some managers are reluctant, even to the point of refusal, to acknowledge that the success of the team is due to the actions of underlings.
Short, but effective, this is a book that should be read and intellectually digested by all managers.
April 29, 2021
This book easily represents a 5 star opportunity. It is loaded with reminders about how important recognition is to all human beings. This vegetable is definitely a highly desired dietary supplement on everyone's hierarchy of need, and if anyone denies a need to be recognized then they are fibbing.
This book is a must for every "real" leaders professional development library as a resource to help light off the boiler of motivation in the organization. Learn about the many reasons why managers make excuses about NOT recognizing their employees.
Get this book and KEEP it so you will never need to memorize the ideas. It is packed with fresh new and bold ideas on the topic. Just frequently refer to it from your book shelf before your organizational morale takes a dive towards the basement.
This book is a must for every "real" leaders professional development library as a resource to help light off the boiler of motivation in the organization. Learn about the many reasons why managers make excuses about NOT recognizing their employees.
Get this book and KEEP it so you will never need to memorize the ideas. It is packed with fresh new and bold ideas on the topic. Just frequently refer to it from your book shelf before your organizational morale takes a dive towards the basement.
April 4, 2022
Fundamentally sound. Having read quite a few business books there weren't too many ideas here that are mind-blowing, it is more of a reminder about focusing on recognition and committing to it. I found that memorable stories were somewhat lacking and the data sections on why you should use recognition I mostly breezed through (as I am already convinced on the power of recognition). I recommend for those interested in learning more about recognition and some practical tools to get started.
January 12, 2022
Taking the time to recognize the results that turn about from the work and dedication of those in our teams no wonder results in better employee engagement and improved overall business results.
This is a must read and tool to have for those in need of learning how to inspire everyone in a company to not just work towards but actually achieving company goals.
This is a must read and tool to have for those in need of learning how to inspire everyone in a company to not just work towards but actually achieving company goals.
May 12, 2018
I read it specifically for my Rewards and Recognition project at work. For that initiative, it was useful for some of the nuts and bolts of what I was working on. For the average reader, I would say it's probably not a great read.
May 12, 2021
Insightful
Starting with research, builds a picture of practical approaches to develop the principle. Fascinating read and impetus to make personal changes to improve management style.
Starting with research, builds a picture of practical approaches to develop the principle. Fascinating read and impetus to make personal changes to improve management style.
January 23, 2023
Read this for work. A little outdated and most of the formerly free content is now either home completely or behind a paywall. The data is good though, helpful in working on my company’s recognition program.
March 2, 2023
Most people are horrible at Recognition. It's really something you need to work on (like a muscle) frequently to better engage your employees.
If you're a people manager or work on Employee Engagement, this is not one to miss!
If you're a people manager or work on Employee Engagement, this is not one to miss!
July 16, 2023
Lots of repetitive points. Takes a long time to get to constructive examples of implementation. I felt like a lot of this was filler that could have been edited out to get to the point faster. I would have rated it lower but the last 1/4 of the book was very informative.
February 18, 2025
It’s a lot to take in, but I definitely think they make a strong case for more recognition in the workplace. They use data to back it up, with real world examples and realistic action items for things that you can do. It’s a little out of date, but the bones are really solid.
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