Michael Saltzstein Explains Why Employee Recognition Matters

In all his years helping companies grow, Michael Saltzstein has noticed that, in many instances, disasters that bring down entire businesses begin as minor problems. This is why it's essential for business owners and their management teams to take a closer look at issues that may affect an entire company.

Today, Michael Saltzstein turns our attention toward how recognizing employees' efforts can be enough to stave off a catastrophe and save a business.

Imagine a small distribution business with about a dozen office workers taking in calls and plotting schedules, so the company delivers products on time. In the office, all the employees work hard for eight hours a day, five or six days a week.

Naturally, not everyone works at the same pace. Michael Saltzstein says that some employees get the job done faster than others. Others, unfortunately, get sick at times, delaying the accomplishment of their work. However, even with slight differences in productivity, tasks get done, and products get delivered.

By the end of the year, management decides to reward four of its employees who they deem to have worked the hardest. That's less than half. They make a huge deal of their efforts, while the rest of the team goes unrecognized for their actions. They know they've fought tooth and nail for their gains but feel they were never given credit.

What happens now? Feeling dejected, the remaining eight employees decide to secretly look for new jobs. These employees hand in their resignation papers at the same time -- at the start of the following year.

Michael Saltzstein suggests an alternative take on it – where everyone is recognized for their efforts, and only one outstanding employee is given a much-deserved award. Preferably it's the employee who needs the award the most. This way, nobody is alienated, and everyone feels appreciated. This way, your employees all know they are valued even if they aren't the top performer in the entire company.

Michael Saltzstein spearheads global risk services, financial structures, multi-line claims, and strategic planning and enterprise initiatives. More on Michael and his expertise here.