My parents taught me the importance of saying “thank you.” They passed the importance of appreciation along to me. Recently, when I read about a 2012 research study “Turning Thank You into Performance,” I thought how amused my parents would be to hear that “thank you” is now credited as one of the keys to corporate success! The study found that companies that provide ample employee recognition and appreciation have 31% lower voluntary turnover rates than companies that don’t.

Creating a culture of appreciation in your workplace

So how do you make your company environment a culture of recognition and appreciation? You make employee recognition common practice—starting from the top leaders and managers.

The first step is basic praise. When studying the employee engagement, world expert Bob Nelson found that basic praise was one of the top ten factors. Never, ever underestimate its impact. We’re talking here about phrases like “good job”, “nice work,” “you really made a difference in this project.” Your can express your appreciation face to face, in writing, electronically or publically. None of it costs anything besides a few minutes of your time!

Appreciation and recognition is contagious

There is scientific evidence to support the fact that when leaders and managers give praise and appreciation, their efforts are contagious. Once employees hear it from the boss, they are more apt to pass it on to others. A research paper on workplace gratitude concluded that it’s up to the people with power to clearly, consistently, and authentically say “thank you” in both public and private settings.

So what are the various forms of informal recognition? It depends on the internal culture of your company, the company size, what was accomplished, and of course the available budget.

• Take someone out to lunch or for a coffee
• Post customer thank you notes in the lunchroom
• Impromptu celebrations at the end of a project, or when quarterly results are announced
• Thank you in the form of a gift card, pizza lunch, flowers, box of chocolates, etc.
• Gifts like a trip to a spa or afternoon of golf
• A bottle of champagne

There also are more formal recognition programs and awards that cover various milestones or achievements such as length of service, achievement of sales targets, personal achievements, graduations, etc. Although these may seem like routine tasks for a manager, each act of recognition makes a difference.

From my tool box

Throughout my career, I’ve always encouraged my managers to be creative with recognition. Matching the action to the individual’s personality is an additional way of showing recognition. For example, when I was working at a company in France, I rented a red Ferrari for a weekend for a sales manager. I knew he loved cars and I’ll always remember the look on his face, and that of his staff! The celebration did not only motivate the recipient but the action motivated the entire company. It signaled a new way of celebrating WIN's. This triggered a new team spirit throughout the ranks of the company.

Another time, a Manager had suffered a house burglary and among the things that were stolen from his home was a ROLEX watch that the Manager's father had given him. The watch was also engraved. When several months later, that Manager received a promotion and was being transferred to a sister company, we offered him a ROLEX watch engraved with our appreciation for his work. We could neither give him the same watch nor have his dad's engraving but we touched his heart. The gift was symbolic and did not only touch him but was a "boost" to all staff in the company that they were working in a place that recognized their contribution.

In another example, an employee with several years of service was retiring. The employee had neither a managerial position nor a key job. She was the front desk attendant. Instead of just having a retirement lunch for her - as was the customary - we secretly flew in her son and spouse for the lunch, booked a stretch limousine for the ride home and added a weekend stay at a spa and retreat. The special recognition had a morale steroid effect on all company personnel.

Using some imagination and creativity to recognize special occasions is a strong motivator when done properly and with the right intent.

Making it genuine

Watch though for recognition that isn’t sincere. If the recognition is not sincere it isn’t a thank you at all. You can’t legislate appreciation. It has to be genuine.

Timing can also make a difference. If a thank you comes months after the fact, it won’t have the same impact. Lastly, to make sure that the celebration is genuine and sincere, it should be done by a Manager that knows the person well, can pronounce the person's name correctly, that have a somewhat close working relationship and know who they are and what they did. Otherwise, your effects come off as insincere —and others will see this as well.

There is no doubt that employee recognition makes a workplace happier, and more productive. But beyond all that, saying thank you in a sincere manner is just the right thing to do! For more practical advice for entrepreneurs, general managers and CEO's on how to manage people and get above average results from average people, check my new book MAVERICK LEADERSHIP.