Recognition is a basic human need. Employees need to know that what they have done has had an impact and is appreciated. Employees who feel good about their work typically experience higher motivation and job satisfaction.

To help staff feel positive about their work, managers need to strike a balance between discipline and reward. Managing by praise is much more effective than by punishment. Sometimes small awards accompany praise, but they are not necessary. Monetary rewards may be forgotten as soon as they are spent, but personalized gestures, like a hand-written thank you note, are likely to be remembered.

Publicly thanking staff or inviting employees to nominate their peers for an award can encourage others to strive for similar recognition. Be sure that employees know why they are being thanked, however. Recognition must be immediate, employees should have input into rewards, and awards should be matched to individual interests.