to gain insight than inviting anonymous comments in a suggestion box, because if you are sitting next to your employee as they take you through their job, they will automatically comment on things that don't work so well, and offer ways in which they feel the process could be improved. Even if you used to do the same job yourself, returning to the coal face occasionally can keep you up to speed with developments outside that effect the employee, and makes the employee feel like they are really being noticed and listened to.
Give staff projects that you know they can succeed in. Building staff confidence is key to gaining motivated staff. Of course most people do want to be stretched and challenged in their work, but within the concepts they have for themselves. Older staff may become intimidated by new technology and be unwilling to use new processes regularly. For them, a project to document the procedures will help them gain a better knowledge of the system and gain in confidence to use it, plus they will be more willing and able to help others learn the system and remain a useful member of the team because of their new expertise.
Praise motivates people as long as they feel it is genuine and not just a conditioned response. Try not only to praise staff when they do a particularly good job or achieve a set target, but also at random times too. Just a few words about how well they are doing in general as they are leaving to go home, or mid morning at the coffee machine, can stay with the employee for days afterwards. Encouraging employees to take pride in their work is also a great aid to motivation. As President Obama said, they may only be a floor sweeper, but they can aim to be the best floor sweeper there is.
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