A little bit of praise goes a long way toward developing star performers. People want to feel valued in the workplace, and they can't feel valued if they think no one notices what they're doing. While financial recognition is appreciated by employees, it really isn't necessary, so long as the employee is already being fairly compensated for his or her work. I have managed as many as thirty employees at a time. Frankly, neither the budget nor my wallet allows the occasional pizza party or spot award that I've been able to give in the past, and I find myself having to find ways to recognize people without budgetary dollars.
I've discovered something interesting as I've made the transition to non-financial rewards. It's forcing me to recognize individuals more for their specific contributions instead of the whole team for meeting global goals. Don't get me wrong, teamwork is important and should be recognized. But I wasn't investing the time in seeing what the individuals on my team were doing, or if I did see it, I didn't say anything, because I took for granted that the employee was simply doing his or her job. Now that I don't have money for pizza parties, which recognizes the team, or spot awards, which recognize individuals for really exceptional achievements, I'm having to recognize the little things employees do, even when it falls within established job expectations.
It's amazing how easy it is to make someone's day by just saying "thank you." It's a paradigm shift, because, yes, it's her job and she should be doing it anyway, but if you never say thank you, people start to think you don't notice or don't care until the work stops getting done. As a manager, my thinking was, if I'm paying you, obviously I care that you're getting your work done. But that's not how human relations work. If you want to retain your employees and keep them motivated, you need to notice their contributions, and let them know that you notice.
Kudos can be public or private. I'm careful to note that some employees are embarrassed by public recognition, and I avoid it in those cases, because embarrassment is not a good motivator. I've said thank you via email, verbally, or with a handwritten note. I've printed thank you cards from my printer, using a Microsoft Word template, and left it on the employee's desk for him to find in the morning or after lunch.
I try to do these things as often I feel like an employee did something to make my job easier, please an internal or external customer, or keep the place running smoothly. It amounts to once a week or so, depending on the employee. Too much, and you might begin to sound insincere. But if you don't too it often enough, the effects of the last thank-you are faded away before you do it again.
Just try to find the balance that works, and definitely make sure you're thanking people as often as you're counseling them. People want to be appreciated, so appreciate them, because it doesn't cost you a dime.