As a small business owner, you have to realize that your employees should be treated as though they were the customers of your business. Why? Because it is as important that you keep your employees happy as you would your customers - if you don't have happy employees, then you most certainly won't have happy customers!

Recognition System

It is important that every small business have a recognition system in place to motivate and encourage employees. The type of recognition system depends upon your business and its culture. Before initiating any kind of recognition system, make sure that there is no hostility or distrust among the employees and management - this makes it very difficult to effectively put into place any kind of recognition system.

The recognition system that you put into place should revolve around the fact that in every organization there is teamwork and yet there is healthy competition. Without competition, there is no point of having a recognition system.

A Mix Of Formal And Informal

Your recognition system should be a mix of formal and informal recognition methods. These two are complimentary to each other. There is no sense of having an informal recognition system if its not going to be supported by a formal recognition system.
It is nice to have a formal recognition system where awards and recognition is given to employees for their dedication and hard work.

Your recognition system should be a peer based one, where peers are responsible for the recognition received. A more informal recognition system is one where a manager or supervisor acknowledges achievements and work done by employees. An informal recognition is usually a pat on the back or a comment on the appreciation of the work well done.

Recognition is an integral part of any organization. Make the recognition process an integrated one, which involves the employees and makes them feel like they are also involved in the system.