Employee Appreciation: How Do You Balance Praise and Pay to Keep Top Talent?

The Importance of Employee Appreciation

Appreciating may be expensive— not appreciating is a disaster! Which one would you prefer?

If an employee is doing well and you do not acknowledge it, frustration will build up, and ultimately, she will leave. Competition and headhunters are keeping a close eye on them already. So, if you don't appreciate them, someone else will. Every week, I receive a number of requests from my clients to suggest a good candidate. When you want just employees, thousands are available. But when you want good employees, very few are there.

How to Appreciate Effectively

When you appreciate them, tell them the reason why you are doing so. Just saying "Well Done" is not enough. Praising them does not mean that you should not address their weak points. Provide them with negative feedback as well.

Appreciation vs. Compensation

If you feel that by appreciating the employee, you do not need to pay them more—think again! Appreciation is a motivator. However, it cannot replace money in absolute terms. You will have to pay more if the person is truly deserving. There are no shortcuts when it comes to this.

So, please appreciate and also, please pay. Only one of them is not enough!

Be straightforward with your employees and show empathy as well. Make them understand the facts rather than just trying to convince them.

As per human psychology of behavior, we humans have high expectations and can never satisfy ourselves. Even the cost of living is increasing day by day. We need to make them realize the facts:

1. Where they stand.
2. What is the status of the organization when it comes to Performance-Based Compensation.

With profound regards.