A Japanese study confirms something I’ve been preaching for a few years: People would rather receive authentic praise than cash.
Sure, when you need money only money will do. But in most cases, the lack of praise can cause someone to quit a well paying job.
The takeaway from this study is that you need to offer your employees an ’emotional compensation plan’ that includes authentic praise on a regular basis. In my view, this will do more than spiffs or spot bonuses to increase retention of talent.
Parents: This is also a lesson too. Learn how to praise without reservation (like Simon Cowell does). It’s better than an allowance or a handout at creating a positive relationship with your kids.