9 Things That Motivate Employees More Than Money

The ability to motivate employees is one of the greatest skills an entrepreneur can possess. Two years ago, I realized I didn't have this skill. So I hired a CEO who did.

Josh had 12 years in the corporate world, which included running a major department at Comcast. I knew he was seasoned, but I was still skeptical at first. We were going through some tough growing pains, and I thought that a lack of cash would make it extremely difficult to improve the company morale.

I was wrong.

With his help and the help of the great team leaders he put in place, Josh not only rebuilt the culture, but also created a passionate, hard-working team that is as committed to growing and improving the company as I am. 

Here are nine things I learned from him:

1. Be generous with praise. Everyone wants it and it's one of the easiest things to give. Plus, praise from the CEO goes a lot farther than you might think. Praise every improvement that you see your team members make. Once you're comfortable delivering praise one-on-one to an employee, try praising them in front of others.
2. Get rid of the managers. Projects without project managers? That doesn't seem right! Try it. Removing the project lead or supervisor and empowering your staff to work together as a team rather then everyone reporting to one individual can do wonders. Think about it. What's worse than letting your supervisor down? Letting your team down! Allowing people to work together as a team, on an equal level with their co-workers, will often produce better projects faster. People will come in early, stay late, and devote more of their energy to solving problems.  
3. Make your ideas theirs. People hate being told what to do. Instead of telling people what you want done; ask them in a way that will make them feel like they came up with the idea. "I'd like you to do it this way" turns into "Do you think it's a good idea if we do it this way?"  
4. Never criticize or correct. No one, and I mean no one, wants to hear that they did something wrong. If you're looking for a de-motivator, this is it. Try an indirect approach to get people to improve, learn from their mistakes, and fix them. Ask, "Was that the best way to approach the problem? Why not? Have any ideas on what you could have done differently?" Then you're having a conversation and talking through solutions, not pointing a finger.  
5. Make everyone a leader. Highlight your top performers' strengths and let them know that because of their excellence, you want them to be the example for others. You'll set the bar high and they'll be motivated to live up to their reputation as a leader.  
6. Take an employee to lunch once a week. Surprise them. Don't make an announcement that you're establishing a new policy. Literally walk up to one of your employees, and invite them to lunch with you. It's an easy way to remind them that you notice and appreciate their work.  
7. Give recognition and small rewards. These two things come in many forms: Give a shout out to someone in a company meeting for what she has accomplished. Run contests or internal games and keep track of the results on a whiteboard that everyone can see. Tangible awards that don't break the bank can work too. Try things like dinner, trophies, spa services, and plaques. 
8. Throw company parties. Doing things as a group can go a long way. Have a company picnic. Organize birthday parties. Hold a happy hour. Don't just wait until the holidays to do a company activity; organize events throughout the year to remind your staff that you're all in it together. 
9. Share the rewards—and the pain. When your company does well, celebrate. This is the best time to let everyone know that you're thankful for their hard work. Go out of your way to show how far you will go when people help your company succeed. If there are disappointments, share those too. If you expect high performance, your team deserves to know where the company stands. Be honest and transparent. 

7 Things Your Employees Never Want to Hear

Sure, actions speak louder than words, but where your employees are concerned, words can still be motivation and morale killers—especially when you use the wrong words.

Here are seven things you should never say to your employees:

1. "Good idea—now if we also…." Successful—and unsuccessful—people often try too hard to add value. While you may be able to improve on an employee's idea, and while it may be easy for you to map out an implementation plan based on that idea, when you do you run the risk of killing their motivation.

Try this instead. Say, "Wow, that's a really good idea," and then ask questions. Ask how they thought of the idea. Ask about the reasoning behind the idea. Ask how they think the idea should be implemented. Often the employee will already have the answers, and if not, you can gently guide them in the right direction.

From an employee’s point of view the best ideas are almost never your ideas. The best ideas are their ideas, and deservedly so. When an employee comes to you with an idea, make sure it stays their idea.

2. "Look. I’m in charge here." Dealing with different opinions or even open dissent is challenging for any small business owner. It’s easy to feel defensive and insecure. When that happens you might be tempted to fall back on the golden rule: He who has the gold, makes the rules.

Never fall back on, “I’m in charge,” to end a discussion with employees. Every employee knows you're in charge; saying so destroys any feelings of collaboration, teamwork, and “we’re all in this together.” When you can't back up a decision with data or logic that decision probably isn't the right decision.

Don't be afraid to back down. Don’t be afraid to say your initial opinions or decisions are wrong. Employees respect you even more when you admit you make a mistake.

3. "I have a great opportunity for you." Great opportunities are almost never great, since the phrase is typically followed by the “opportunity” take on additional work or handle a project no one wants. Say, "Susan, next week you’ll start working on a new project with our best customer," and Susan knows it’s a great opportunity for her. Say, "Susan, this will be a great opportunity for you: Next week you’ll start sorting out all the problems in our warehouse," and Susan knows she just got stuck.

Truly great opportunities require no setup. Don’t sell or you’ll leave your employees feeling sold.

4. "Man, I’m looking forward to my trip to Europe." Some business owners assume their employees will be inspired by their (conspicuous) success. Most employees are not.

The more you talk about how successful you are, whether overtly or implicitly, the more your employees will resent the fact your success is based on their hard work.

Is that fair? No. Does it happen? Absolutely. Never brag about your success to your employees. Be humble.

5. "I’ve had enough. I’m out of here." Perspective is everything. From your perspective, owning a business can be stressful, draining, and overwhelming. From the employee's perspective you have it made.

Employees don’t want to feel your pain. Never expect employees to empathize with you. If you must talk about a hard day’s work, talk about how the day was challenging and everyone pulled together to make stuff happen. Or share how much you appreciate your employees’ help. Always turn a difficult day into a way to recognize how hard your employees worked, not how hard you worked.

6. "No." Saying no is okay as long as the word “no” is never followed by a period. Explanations are always required when you refuse a request or turn down an idea—even if the reasoning behind your decision seems obvious to you.

As a business owner you probably don’t have a job description, but if you did, “Explain, explain, explain,” would appear near the top of your list of duties.

7. "We." We is a powerful word—except when it’s not. Employees can tell when you pay lip service to “we.”

In public, say “I” when your company makes a mistake. Say “we” when your company does something well.

Inside your company, say “you” when employees do something well. Say “we” when you do something well—because your success is always built by and based on the efforts of your employees.

The 5 Qualities of Remarkable Bosses

Remarkable bosses aren’t great on paper. Great bosses are remarkable based on their actions.

Results are everything—but not the results you might think.

Consistently do these five things and everything else follows. You and your business benefit greatly.

More importantly, so do your employees.

1. Develop every employee. Sure, you can put your primary focus on reaching targets, achieving results, and accomplishing concrete goals—but do that and you put your leadership cart before your achievement horse.

Without great employees, no amount of focus on goals and targets will ever pay off. Employees can only achieve what they are capable of achieving, so it’s your job to help all your employees be more capable so they—and your business—can achieve more.

It's your job to provide the training, mentoring, and opportunities your employees need and deserve. When you do, you transform the relatively boring process of reviewing results and tracking performance into something a lot more meaningful for your employees: Progress, improvement, and personal achievement.

So don’t worry about reaching performance goals. Spend the bulk of your time developing the skills of your employees and achieving goals will be a natural outcome.

Plus it’s a lot more fun.

2. Deal with problems immediately. Nothing kills team morale more quickly than problems that don't get addressed. Interpersonal squabbles, performance issues, feuds between departments... all negatively impact employee motivation and enthusiasm.

And they're distracting, because small problems never go away. Small problems always fester and grow into bigger problems. Plus, when you ignore a problem your employees immediately lose respect for you, and without respect, you can't lead.

Never hope a problem will magically go away, or that someone else will deal with it. Deal with every issue head-on, no matter how small.

3. Rescue your worst employee. Almost every business has at least one employee who has fallen out of grace: Publicly failed to complete a task, lost his cool in a meeting, or just can’t seem to keep up. Over time that employee comes to be seen by his peers—and by you—as a weak link.

While that employee may desperately want to “rehabilitate” himself, it's almost impossible. The weight of team disapproval is too heavy for one person to move.

But it’s not too heavy for you.

Before you remove your weak link from the chain, put your full effort into trying to rescue that person instead. Say, "John, I know you've been struggling but I also know you're trying. Let's find ways together that can get you where you need to be." Express confidence. Be reassuring. Most of all, tell him you'll be there every step of the way.

Don't relax your standards. Just step up the mentoring and coaching you provide.

If that seems like too much work for too little potential outcome, think of it this way. Your remarkable employees don’t need a lot of your time; they’re remarkable because they already have these qualities. If you’re lucky, you can get a few percentage points of extra performance from them. But a struggling employee has tons of upside; rescue him and you make a tremendous difference.

Granted, sometimes it won't work out. When it doesn't, don't worry about it. The effort is its own reward.

And occasionally an employee will succeed—and you will have made a tremendous difference in a person's professional and personal life.

Can’t beat that.

4. Serve others, not yourself. You can get away with being selfish or self-serving once or twice... but that's it.

Never say or do anything that in any way puts you in the spotlight, however briefly. Never congratulate employees and digress for a few moments to discuss what you did.

If it should go without saying, don't say it. Your glory should always be reflected, never direct.

When employees excel, you and your business excel. When your team succeeds, you and your business succeed. When you rescue a struggling employee and they become remarkable, remember they should be congratulated, not you.

You were just doing your job the way a remarkable boss should.

When you consistently act as if you are less important than your employees—and when you never ask employees to do something you don’t do—everyone knows how important you really are.

5. Always remember where you came from. See an autograph seeker blown off by a famous athlete and you might think, “If I was in a similar position I would never do that.”

Oops. Actually, you do. To some of your employees, especially new employees, you are at least slightly famous. You’re in charge. You’re the boss.

That's why an employee who wants to talk about something that seems inconsequential may just want to spend a few moments with you.

When that happens, you have a choice. You can blow the employee off... or you can see the moment for its true importance: A chance to inspire, reassure, motivate, and even give someone hope for greater things in their life. The higher you rise the greater the impact you can make—and the greater your responsibility to make that impact.

In the eyes of his or her employees, a remarkable boss is a star.

Remember where you came from, and be gracious with your stardom.