Power of Thank You Report 2014 - UK

INTRODUCTION

We all like to feel that our efforts are noticed and appreciated by those around us. In the workplace this is crucial to our motivation and performance.

Therefore, understanding how to harness the power of ‘thank Therefore, understanding how to harness the power of ‘thank you’ is crucial to good leadership and the efficient operation of any organisation.

In this report we show you the results of a research study* into how businesses say ‘thank you’ to their staff and how to do so in the most effective way possible.

At One4all, helping organisations to say thank you effectively At One4all, helping organisations to say thank you effectively is our business. We help structure and fulfill programmes of rewards and incentives that help stimulate desired behaviours.

We can only do this by understanding the power of saying ‘thank you’ effectively.

So thank you for taking time out to read this report. So thank you for taking time out to read this report. We believe that it contains some simple lessons that will help your organi-sation to be a more efficient, motivated and happy place to work.

Michael DawsonCEOOne4all Group

*Survey of a representative sample of 1,000 Irish employees, carried out in August 2014

DO EMPLOYERS SAY ‘THANK YOU’ ENOUGH?

Over a third of Irish employees say they do not receive any kind of thanks from their boss, so there is clearly some room for improvement when it comes to harnessing the power of thank you.

Of those that are recognised, 31% said that they are thanked Of those that are recognised, 31% said that they are thanked on an annual basis, and 14% said they are thanked very rarely.

The majority of respondents (68%) believe that they should be thanked more often, highlighting the potential for employers to make a big impact by showing gratitude more often.


HOW DO YOU CURRENTLY RECEIVE A ‘THANK YOU’ FROM YOUR BOSS?

HOW TO USE ‘THANK YOU’ AS A MOTIVATIONAL TOOL

ClearlClearly, we want to be rewarded for the work that we do, but ultimately it's the personal recognition that makes a ‘thank you’ so powerful. We want to know that we are seen as an individual, not just one of a number, and that the personal time and dedication we have committed has been noticed.

The research shows that the key to using ‘thank youThe research shows that the key to using ‘thank you’ to increase motivation is for it to be sincere and based on a per-son’s individual efforts.

For example, when a ‘thank you’ is in the form of cash or gifts, having a reward linked to individual effort or attainment is twice as important to employees than the actual size of the reward.

And yet, only 15% of bonuses or rewards given to people in our study were linked to individual efforts.

Our findings indicate that such schemes can actually under-mine motivation, making people think that their individual contribution does not matter as much and that the ‘thank you’ is not meant sincerely.



Just one in four employees in the UK feel that they receive sufficient thanks for the work that they do, so there is clearly some room for improvement when it comes to harnessing the power of thank you.

The most common form of recognition experienced by workers The most common form of recognition experienced by workers is a simple ‘thank you’ from their boss when work is done well (32%).

Just under a quarter of employees (24%) receive a tangible thank you in the form of cash or gifts at least once a year.

Incentive schemes, linked to hitting set goals or milestones, Incentive schemes, linked to hitting set goals or milestones, are the most common form of tangible reward (11% of work-places).

Just 7% of workplaces still abide to the tradition of a Christ-mas bonus.

20% of employees say that they never receive any form of thanks from their employer

WHICH OF THE FOLLOWING ASPECTS OF BEING THANKED WOULD HAVE MOST IMPACT ON HOW MOTIVATED YOU WERE TO DO A GOOD JOB OR HIT AGREED TARGETS?

USING ‘THANK YOU’ TO BOOST RECRUITMENT AND RETENTION OF STAFF

When assessing a new job, 61% of people would be more likely to choose an employer that regularly thanks its staff for their efforts.

Gratitude has a big impact on staff retention too, with 53% of Gratitude has a big impact on staff retention too, with 53% of employees saying they would be very unlikely to leave a job where they were regularly thanked.

34% said it would make them less likely to look elsewhere if they were thanked often.








WHICH OF THE FOLLOWING ASPECTS OF BEING THANKED WOULD HAVE MOST IMPACT ON HOW MOTIVATED YOU WERE TO DO A GOOD JOB OR HIT AGREED TARGETS?

SAYING ‘THANK YOU’ BUILDS REPUTATION

As well as the immediate benefits of saying ‘thank you’ effec-tively – higher staff motivation and better retention and recruit-ment – it is also an excellent way of building an organisation’s reputation.

Reputation is an intangible asset, but one that can represent up to 80% of a company’s value. It is based on how an organi-sation is perceived against a wide set of positive attributes.

Organisations that regularly say ‘thank you’ are believed to also be better in a number of ways according to our study.

They are perceived to be:

• better at caring for employees.• better at treating their customers well.• better at being fair.• better led and managed than other organisations.• better able to be trusted.









WHICH OF THE FOLLOWING CHARACTERISTICS DO YOU THINK ARE MORE LIKELY TO BE TRUE OF AN EMPLOYER WHO REGULARLY AND EFFECTIVELY THANKS ITS EMPLOYEES?

HOW SAYING ‘THANK YOU’ BENEFITS THE BOTTOM LINE

There are very tangible and measurable financial benefits to organisations that can learn how to say ‘thank you’ effectively.

Here’s a collection of facts and figures that underline the business case.

MOTIVATED STAFFGreater motivation can boost performance by as much as 44% Greater motivation can boost performance by as much as 44% source: Incentive Research Foundation

RETENTIONEvery staff member you retain saves your business 30 to 50% of that person’s annual salary (more if it's a senior member of the team) Source: Society for Human Resource Management

TRUTRUSTPeople place a large value on working for an organisation where they trust their bosses. Research shows that a 10% increase in trust in management is equivalent to a 30% increase in paysource: National Bureau of Economic Research


CONCLUSIONS

Learning to say ‘thank you’ effectively is clearly a powerful tool to growing a successful, efficient and happy business. Harnessing this power will set you apart from other organisations, making sure yours is one of the few companies that gets it right.

Showing gratitude is so important that it can’t be relied upon just to happen out of politeness and good Showing gratitude is so important that it can’t be relied upon just to happen out of politeness and good relationships. To be effective, each ‘thank you’ should be part of a clear and consistent internal procedure, given in consideration of an individual doing a great job.

Size is not the crucial factor – sincerity is. Saying ‘thank you’ in this way let’s people know that they are playing an important role in the overall success of the organisation and would be missed if they weren’t there. This is a deeply rewarding emotional ‘bonus’ that can’t simply be measured in terms of money.

So how do you know if you're doing it right? Start by asking yourself the following questions:

• Who in my organisation would I miss most if they weren’t there?• Who in my organisation would I miss most if they weren’t there?• When was that person last made aware of how grateful I am for the work that they do? (If it’s less than once a week, that’s below the national average).• Are this person’s efforts regularly acknowledged and rewarded over and above the level that they would be for someone who did that job less well?• If not, how could they be?• How could I extend that same approach to everyone in the businesses, whether I have sight of their daily contribution to the organisation or not? contribution to the organisation or not?

Recruiting & HR

Power of Thank You Report 2014 - UK