Why Recognition Matters More Than You Think

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It’s tempting to think that cash is king when it comes to keeping your sales team motivated. But here’s the kicker: 44% of employees are likely to leave their jobs simply because they don’t feel recognised. That’s right—not because of money, not because of benefits, but because no one bothered to say, “Well done.”

There’s a long-standing assumption that salespeople are solely driven by commission, bonuses, and the prospect of raking in the big bucks. But, in my experience, that couldn’t be further from the truth. Sure, money matters (no one’s arguing that), but for most, it’s not the primary motivator. Salespeople are human, after all—they thrive on recognition, respect, and, frankly, a bit of appreciation.

The Recognition Trap: Where It Goes Wrong

Recognition might sound like the easiest win in a manager’s toolkit, but it can easily go sideways. In fact, there’s historical proof. Take a 1994 study, for instance, where recognition bonuses actually lowered morale. Why? Because people felt it set a bar they had to “earn.” It transformed what should be a positive reinforcement into a looming expectation. No one wants to feel like they’re in a never-ending race just to be told they’re doing a good job.

It brings to mind the classic phrase: people don’t leave jobs, they leave managers. And if we look at this in the context of recognition, it becomes clear why. Managers who fail to acknowledge good work—or worse, who offer hollow praise—are pushing their top talent towards the exit.

The Key to Recognition: Authenticity and Timing

The problem isn’t that managers don’t recognise their team’s achievements—it’s often that they do it badly. They either don’t say anything at all, or they try too hard, laying it on so thick that the praise feels insincere. Here’s the trick: authenticity and timing are everything.

Your team can spot disingenuous praise a mile off. When you start gushing over minor wins, or worse, use praise as a cushion to soften an upcoming critique, you lose credibility. And let’s be honest, there’s nothing worse than being praised with an ulterior motive.

A well-placed, genuine “Well done” can go a long way. It doesn’t need to come with fanfare or a gold star. In fact, the less performative, the better. A simple acknowledgment in the moment can do more than any quarterly bonus scheme.

Has Remote Work Thrown a Spanner in the Works?

With so many of us working remotely, here’s the big question: Has remote working affected a manager’s ability to give recognition? It’s a tricky one. In an office, you can pop by someone’s desk or call out their success in a meeting. But in a remote environment, it’s a different beast entirely. The distance can make recognition feel transactional, or worse, non-existent.

Yet, this distance doesn’t have to spell the end of meaningful recognition. In fact, it gives managers the opportunity to be more deliberate in their approach. Whether it’s a quick message on Slack, a shout-out in a team meeting, or a personal email, the key is to maintain that personal connection. Don’t let the lack of face time become an excuse to stop recognising your team’s hard work.

How People Are Motivated: It’s Not What You Think

It’s easy to assume that people are motivated by money, but research paints a much more nuanced picture. A study from McKinsey, for example, found that non-financial incentives—such as praise from managers, attention from leadership, and opportunities to lead projects—were more effective motivators than financial incentives like bonuses and raises.

Here’s a look at what actually motivates people, according to research:

1. Recognition and Praise – Studies consistently rank recognition at the top of the list. A Gallup poll showed that employees who receive regular recognition are more engaged, more productive, and less likely to leave.
2. Purpose and Meaning – Employees who feel connected to their company’s mission and values are more motivated. A study by BetterUp found that employees who experience meaning in their work are 93% more engaged.
3. Autonomy – People want to feel like they have control over how they do their jobs. A study published in Harvard Business Review found that giving employees more control over their work increased motivation and job satisfaction significantly.
4. Career Development – Providing opportunities for personal and professional growth is a powerful motivator. LinkedIn’s Workforce Learning Report found that 94% of employees would stay at a company longer if it invested in their career development.
5. Compensation – While not at the very top, financial rewards are still a factor. However, they’re rarely the driving force that keeps people loyal or engaged for the long term.

When you break it down, it’s clear that people are motivated by things that are more personal than simply cash in hand. Recognition, autonomy, and a sense of purpose are all things that money can’t buy but play a crucial role in keeping employees happy and engaged.

Recognition Is About Connection, Not Compensation

Ultimately, people want to feel valued—whether they’re in sales, marketing, or any other role. Recognition, when done right, can be a powerful motivator, far outweighing any financial reward. The best managers know how to deliver authentic praise at just the right time, building loyalty and trust within their teams.

So next time you’re tempted to throw money at a problem, take a step back. A thoughtful, well-timed “Well done” might just be the recognition your team needs—and it won’t cost you a penny.