“You do not lead by hitting people over the head. That’s assault, not leadership.”
~Dwight D. Eisenhower
Authors Adrian Gostick and Chester Elton in their book, The Carrot Principle, found the optimal way to motivate employees.
How? By conducting a study involving 200,000 people over a ten-year period.
Importantly, their study showed that the key characteristic of the most successful entrepreneurial managers is that they provide their employees with frequent and effective recognition.
That’s right, significantly better business results were realized when managers offered recognition in the form of constructive praise and meaningful rewards (typically non-monetary).
The authors found that recognition is most effective when it is:
- Positive (don’t mention any negatives when giving praise)
- Immediate (comes soon after the job well done)
- Close (presented to employee(s) with their peers in attendance)
- Specific (precisely recognizes why the task/job they performed merited recognition)
- Shared (allows employee’s peers to also comment during the recognition presentation)
Carrots are needed to motivate employees. But what I found most interesting about the author’s findings was that recognition is more effective than monetary rewards. This is a critical finding for all managers, and particularly entrepreneurial managers who typically operate in cash-restrained environments.
Knowing how to motivate your employees will allow you to build a team that is as passionate about success as you are. And this will ultimately lead to your company achieving its goals. So, while it may not seem like a mission-critical focus today, it’s definitely worth your time and effort.
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Today’s Question: What was the name of the first commercial desktop computer?
Previous Question: In the U.S. what does the term “Take-out Finance” refer to?
Previous Answer: Take-out Finance is a commitment to provide permanent financing following construction of a planned project. The takeout commitment is generally predicated upon specific conditions, such as a certain percentage of unit sales or leases, for the permanent loan to “takeout” the construction loan. Most construction lenders require takeout financing.
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