Why training is a bad way to recognize good employees

My first job was in a clothing store.

It was a great place for a high school kid like me to learn new skills. I started in the men's department, but was eager to learn everything I could.

Fortunately, my boss noticed my initiative and quickly trained me on a variety of functions:

  • Women's department

  • Shoe department

  • Stock department

  • Cashier

  • New hire trainer

All this training made me feel recognized for my hard work. It was only later that I realized my boss saw it differently.

My manager didn't train me for recognition. She was investing in my development because it made me a more valuable employee. Budgets were tight, and my boss didn’t have the luxury of frivolous training.

Read this post before you recognize your good employees with a training class, seminar, or conference. You might save a lot of hassle.

A group of employees participate in a workshop. A facilitator stands at a flip chart with a marker in hand.

Why training is not good recognition

Years after working in retail, I found myself managing a department that trained thousands of employees.

When I arrived, we had a recognition program in place. Employees could attend various training programs if they did a good job. There was even special recognition for the employees who completed the most training classes each quarter.

None of it worked.

The program cost a lot of money, but there was nothing to show for it. The employees who were recognized with training weren't any more loyal or more productive than the employees who didn’t attend.

The model was broken.

Training is fundamentally about problem solving. It works best when someone needs to do a particular task, but lacks the knowledge, skills, or ability to do it.

There's no problem to be solved when training is used purely for recognition. The employee doesn't learn anything that they can implement, so that training often ends up wasted.

My boss at the clothing store understood this.

She offered me the chance to learn new skills because I could work a wider variety of shifts, which gave her more flexibility when creating schedules. She had to hire fewer employees for each department because I could fill in anywhere. I became more productive and helped increase sales.

How to use training effectively

The best employee development occurs at the intersection of two things.

  1. There's a clear business need.

  2. The employee is eager to learn.

That's what happened at the clothing store.

Learning new skills made me feel good about the work I did. I felt recognized not by the training itself, but by the new assignments and responsibilities that came as a result. The training was a means to an end.

I also received tangible benefits from learning new skills:

  • I was able to pick up more shifts.

  • My skills allowed me to work more desirable hours.

  • The job was more interesting because I worked in a variety of departments.

Those lessons from my first boss stayed in my head when I managed a training department that used training for recognition. I was under pressure from senior leaders to cut costs and generate more results.

We quickly altered the recognition model and focused on creating more individual development plans. Some got training to solve a specific challenge in their current role. Others were trained to prepare them for a promotion.

Employees loved it.

The targeted training helped improve their performance at work. They got bigger raises and earned faster promotions.

There was one more surprising result.

Some employees were happy to never attend any training beyond what was absolutely required. These employees typically had worked competently in the same job for years. They were content exactly where they were and had no further ambitions.

The recognition model made them look like bad employees if they weren't going to training, but that wasn't the case at all. They were good employees who didn't often need to learn new skills.

These employees loved the new model, too, because it dramatically cut down on the amount of training classes their bosses expected them to take.

Finally, senior leaders loved the new model. Productivity increased, we had more promotion-ready employees, and they could see exactly what their training investment was producing.

Conclusion

Imagine sending an employee to a conference or seminar that's related to their job or industry. What if you knew in advance they would implement absolutely nothing of value as a result of the training?

You might hesitate to send them, even if they really wanted to go.

The fix is easy. Whenever you plan for employee development, look for the intersection between what the employee wants and the business needs.

That's where the magic happens. The employee might enjoy going to training, but they’ll feel even better when they come back to work and can use that training to solve a problem.

Once you identify a clear training need and an eager employee, you can use this guide to prepare them for success.

What is the Difference Between Rewards and Recognition?

Advertising disclosure: This blog participates in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means to earn fees by linking to Amazon and affiliated sites.

A healthcare CEO recently wrote to me with a question about incentives.

He had read The Service Culture Handbook, and was surprised that I did not include a section on incentivizing employees to align with the culture. The CEO was looking for resources to motivate and reward his team.

A lot of leaders have this same question. My advice is surprising.

  • A rewards program is a very bad idea.

  • Employees don't need to be motivated.

  • Recognition can be helpful, if you do it right.

I've covered this topic in previous posts, so here are a few links if you'd like a refresher:

It's important to note that none of the customer-focused companies I researched for The Service Culture Handbook emphasized rewards to incentivize employees. Recognition, however, often does play a role.

This post focuses on the critical difference between those two terms: rewards and recognition.

An employee being applauded by coworkers.

What are employee rewards?

Rewards and recognition often get conflated, but they're really two different concepts. Recognition can be useful if done correctly, but rewards generally cause harm.

Here's a definition of rewards from my book, Getting Service Right:

Rewards are if-then propositions that are designed to incentivize employees to engage in certain behaviors. The actions or results required to earn the reward are spelled out ahead of time so employees know how to win the prize.

Examples of rewards I've seen customer service leaders use include:

  • Cash incentives for earning good survey scores.

  • Contests to see who can reply to the most emails.

  • Prizes for getting good mystery shopper results.

  • Games where employees can earn badges for completing training modules.

  • Company swag for achieving perfect attendance for a month.

Rewards typically cause two big problems.

The first is rewards can diminish employees' natural motivation. Offer a $100 gift card for good survey scores one month, and employees will come to expect a $100 gift card for good survey scores going forward. 

The second problem is even worse. Rewards often incentivize the wrong behaviors. For example, offering a reward for good survey scores often leads to manipulated survey results, not better service.

What is employee recognition?

Recognition can be very helpful, if used correctly. Here's a definition from Getting Service Right:

Recognition is given when an employee does something positive as a way of encouraging the employee to repeat the behavior. It can be something tangible—like a gift card or a day off—or something intangible, such as praise from the boss or an employee-of-the-month award. Unlike rewards, the path to earning recognition isn't shared with employees beforehand. It's an unexpected surprise for a job well done.

Examples of recognition I’ve seen customer service leaders use include:

  • Praise for helping an upset customer.

  • A gift card as a thank you for solving a tough problem.

  • Lunch for the team to celebrate a successful project.

  • A “wall of fame” where positive customer feedback is displayed.

  • Company swag to commemorate a big accomplishment.

Unlike rewards, recognition is difficult to game. That’s because it happens after the behavior occurs and is not predictable. Used in this way, rewards are a clear signal to employees that their performance is valued.

Customer-focused companies I've studied often use peer recognition programs where employees are recognized by coworkers for outstanding contributions. 


Infographic

In summary, rewards often promote unhealthy behaviors while recognition encourages employees to continue positive behaviors.

Here's an infographic you can use to share this concept.

Amazingly Simple Graphic Design Software - Canva


How to Harness the Power of Peer Recognition 

Employee recognition can be a minefield.

One key distinction is to decide between rewarding or recognizing good performance. Rewards are a pre-determined "if-then" proposition. If you achieve X result, you get Y as a prize. 

There's a volume of data that proves rewards often unexpectedly lead to poor performance. Check out Daniel Pink's excellent book, Drive: The Surprising Truth About What Motivates Us, for an easy-to-read overview of some of the many studies that show rewards don't work in a customer service context.

Recognition can be healthy if done right. It's unexpected and delivered after the performance occurs to let employees know their performance is valued and appreciated. 

So where to start?

The Pitfalls of Recognition

Formal recognition programs are fraught with pitfalls that can demoralize employees. Take the venerable employee of the month program as an example:

  • How do you make the selection process seem transparent and fair?

  • Can you allow repeat winners without prompting feelings of favoritism?

  • What is the impact on morale of not winning?

Even informal recognition can backfire. 

A manager I know once bought his employees donuts to recognize the team for some extra effort. It was so well received that he bought donuts a week later, which quickly started a weekly tradition. 

Soon, the weekly donuts were expected rather than a treat. A few people even grumbled about not getting their favorite kind.

Remember: recognition is unexpected. The donuts no longer recognized good performance once the team expected to receive them.

While researching customer-focused companies for The Service Culture Handbook, I noticed several companies were putting a twist on traditional recognition.

They were using peer recognition to drive culture.

 

The Power of Peer Recognition

According to a 2014 employee engagement study by the employee feedback company TINYpulse, peer recognition is the top reason why employees go the extra mile at work.

Shawn Anchor, bestselling author of The Happiness Advantage, wrote an article for the Harvard Business Review detailing a study on JetBlue that he co-authored. This study found that "for every 10% increase in people reporting being recognized, JetBlue saw a 3% increase in retention and a 2% increase in engagement."

Coincidentally, I profiled JetBlue in The Service Culture Handbook for their employee engagement best practices.

There are a couple of easy explanations for why peer recognition is so powerful.

One is Maslow's Hierarchy of Human Needs. Psychologist Abraham Maslow developed his now famous ranking of basic human needs in 1943. They are, in order:

  1. Physiological 

  2. Safety

  3. Love and belonging

  4. Esteem

  5. Self-actualization

I've written about this hierarchy before, as a way to explain why employees provide better service (priority #5, self-actualization) when they feel like they're part of a team (priority #3, love and belonging). Peer recognition is powerful because it reinforces a sense of love and belonging.

There's one more explanation: we take our social cues from others.

Experiments by Solomon Asch and other psychologists demonstrate that we humans instinctively try to conform to the groups we're a part of. Conformity is often thought of as a negative trait, but it doesn't have to be.

Imagine a team of employees conforming to a group norm that values outstanding customer service! Peer recognition helps promote this positive conformity.

 

Practical Examples

I reached out to the Inside Customer Service LinkedIn group for some practical examples of peer recognition programs.

Two members shared excellent examples:

Jeremy Hyde, Customer Service Manager at UCare, wrote: "We have a 'hats off' program where people can fill out a brief form on our intranet. Then something is delivered to the Supervisor with the details on who nominated them and why with a little 'hat' pin. A lot of people put the pins on their lanyards or tack them up on their cube walls. After you collect 10 you can redeem them for a gift card."

Jenny Dempsey, former Customer Service Manager at Phone.com, wrote: "At Phone.com, I developed the Smiles peer recognition program. Anyone could write a note of gratitude for a coworker and drop it in the Smile box. At each CSR meeting, we would draw a few entries from the box and read them aloud. The people they were writing about would receive gift cards. The team loved it!"

Both examples are simple, practical, and don't require a lot of input from management. They're also easy to implement.

But wait! You don't even need a formal program. As a customer service leader, you can lead by example. 

Recognize your employees for a job well done by thanking them one-on-one, writing a short handwritten note or email, or praising them in a team meeting. At the same time, encourage employees to pay the compliment forward!

Even a simple "Thank you!" from a colleague can be a powerful form of recognition.

Never reward employees for outstanding survey scores

The Westin Portland is one of my favorite hotels. Their warm and attentive associates always make me feel welcome and you can’t beat their location in the heart of downtown Portland, Oregon. I’ve stayed their many times over the years and have come to feel like the hotel is my home away from home.

When I started writing my customer service book in 2011, I interviewed then General Manager Chris Lorino to learn some of the hotel’s service secrets. One of Lorino’s strongest beliefs was that you should never reward employees for achieving outstanding survey scores. He felt it was important to build a team of people who naturally wanted to serve guests at the highest level. In Lorino's opinion, a reward system would inevitably get in the way.

Both leading research on employee motivation and Lorino’s own success as a General Manager suggest that he is absolutely correct.

Rewards vs. Recognition

It’s important to differentiate between rewards and recognition. The purpose of this post is to demonstrate that employees shouldn’t be rewarded for outstanding service, but go ahead and recognize them all you want.

Rewards are if-then propositions. The prize and the criteria for earning the prize are spelled out ahead of time. For example, if you average a certain score on your customer service survey, then you will get a gift card.

Recognition is unexpected reinforcement of results that have already been achieved. An example would be giving an employee a gift card out of the blue to thank them for achieving a high average score on their customer service survey.

Eyes On the Prize

The biggest problem with rewarding employees for good customer service is it takes their attention away from providing outstanding service and re-focuses them on winning the prize.

We’ve probably all seen examples of the behavior changes this can cause:

  • Directly asking customers to provide the top score on a survey
  • Selectively encouraging only highly satisfied customers to complete a survey
  • Submitting phony surveys to bolster scores (yes, this happens)

The Goal is not the Goal

What’s the purpose of conducting a customer service survey?

When employees are rewarded for achieving a certain score they may act as though achieving that score is the ultimate goal. However, most customer service professionals will tell you that the survey is really a tool that can be used for continuous improvement.

Here are a few ways that focusing solely on a survey goal might prevent continuous improvement:

  • Employees may care less about service failures if the average looks good.
  • It lessens the need for analysis to identify customer pain points.
  • Employees may stop trying if they feel there’s nothing left to prove.

Let’s imagine a survey of 100 customers where 90 are satisfied and 10 are unhappy. If my employees are focused on achieving a specific target, they may feel great about a 90% customer satisfaction level. However, they’ll be much more eager to find out how to win over the other 10% if their true focus is continuous improvement.

So, how do I motivate the team?

If you want to learn more about the science behind rewards and employee motivation, check out Daniel Pink’s fascinating book, Drive. Pink's biggest point is that the true motivating factors are purpose, autonomy, and mastery. Let's look at each one in a customer service context:

Purpose
The very best organizations have a clear and compelling customer service vision that describes the type of service they're hoping to provide. It's amazing what happens when the whole team is unified around a common objective. 

Autonomy
Nobody wants to be micromanaged. Give people the resources, training, and authority to get the job done right and then get out of their way and you'll see people taking responsibility for the results they achieve.

Mastery
We all want to be good at what we do. Help bring out the best in employees through coaching, training, and continuous feedback and you'll find that people will step up to the challenge of becoming the very best they can be.