Book Review: The Carrot Principle

The Carrot Principle: How the Best Managers Use Recognition to Engage Their Employees, Retain Talent, and Drive Performance is authors' Adrian Gostick and Chester Elton's exploration of employee motivation, primarily in the form of praise and rewards. The book is based on an expansive study by the Jackson Organization of 200,000 people over the course of ten years in various companies and what the outcome of certain incentive programs were over time.

There is a lot of business discussion about productivity and employee engagement. Most studies show that money is not the primary element in workplace satisfaction. In fact, the study cited in The Carrot Principle indicates that nearly 95% of employees who report being happiest say their managers are great at recognizing them.

Effective managers must have established themselves in four key areas for employees to trust and want their recognition: goal setting, communication, trust and accountability. If a manager has these four qualities, some of the recognitions that are effective include

• "day-to-day recognitions"-the authors say not to underestimate the small but frequent gesture: a handwritten note or even email, a visit to the employee to say thanks or very small gifts


• "above and beyond recognitions" - these are for more significant successes and should be personalized and presented in front of co-workers


• "career recognition" - these are based more on longevity and an acknowledgment of the employee's loyalty to the company, say every two - five years


• "celebration events" - on-site or off-site corporate events to celebrate employee and company success are additional ways to build employee esteem

It's important to be a manager who motivates through altruism vs. intimidation. To be a respected leader, you must genuinely care about your team. Rewards do not have to be expensive and the one least used (day to day recognition) is the one that is least expensive-or free.26 Amazon reviewers give The Carrot Principle more than 4 out of 5 stars and say that it "opened my mind up to some big ideas" and that it "should be required reading for ALL managers".

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Image source Simon & Schuster, Inc.