E-couragement: Return on Praise (ROP)

“The deepest principle in human nature is the craving to be appreciated.”  William James Over the last five years, nearly every organization has become hyper vigilant in watching expenses, monitoring margins, and maximizing return on investments (ROI). These same companies have failed to cash in on the highly profitable concept of return on praise (ROP). Until now  it’s been difficult to pinpoint the specific financial benefit from praise and appreciation. Based on two recent experiences, I’m armed with irrefutable data, which uncovers the exact ROP of sincere praise and appreciation.

Over time I’ve written blogs praising companies for delivering exceptional customer experience. The Little Things and The NAME of the Game are two such entries. Local Jiffy Lube and Starbucks stores earned the praise I lauded on them. I made sure that the right people within these organizations received the blogs so they might also recognize their staff for extraordinary service.

On a recent Saturday morning I pulled into Jiffy Lube, I asked the service technician a question about my loyalty coupon. She stared at my name on the coupon, paused, turned her head curiously, and joyfully shouted, “You’re Rich Schlentz! You wrote that nice blog about us. You don’t need a coupon; you get half-off today.” Cha-Ching, I saved $35.00. Next stop, my local Starbucks Coffee.  Greeted by Melissa, my favorite barista, I prepared to order my usual Grande Americano. With a Cheshire cat-like grin, she said, “Good morning Rich, we haven’t seen you in a while. This one’s on us.” BAM, a $2.72 savings. There you have it. Two blogs expressing genuine praise and appreciation, one morning of errands, and a $37.72 ROP!

Here’s the sad part. Most organizations fail to harness this powerful human relations principle. A Gallup poll reported 65% of Americans received no praise or recognition in the workplace last year. The US Department of Labor notes that the number-one reason people leave organizations is lack of appreciation. Finally, another Gallup study reveals companies that foster recognition and praise, outperform their competition in several key business metrics. I’ve already pocketed my $37.72 ROP, yet companies across the globe are leaving millions on the table in the form of lower turnover, higher customer satisfaction scores, and increased overall productivity. Engaging Leaders, let’s turn this around. It’s time to cash in on your ROP. Today is the perfect day to begin.

Leave your comments: How have you experienced a ROP in your personal or professional life?