Is Appreciation the Key to a Higher Net Promoter Score?

When you think about ways to improve your credit union’s Net Promoter Score, stop thinking about your members and start thinking about your team.

There are many management best practices that have a direct impact on your NPS, including establishing key performance measures. But another, often overlooked, best practice is employee motivation. Specifically, motivation through appreciation. Call it appreciation, recognition or praise – people just want to be acknowledged for their efforts.

Employees who feel appreciated are more likely to be engaged and that means they will make your members feel valued. Energy and enthusiasm come through in their choice of words, tone of voice and body language regardless of whether the interaction is virtual or in person. Engaged employees who greet members, use their names and smile leave the members feeling good about their choice in doing business with your credit union.

The problem is that most employees don’t feel appreciated. In fact, a Gallup survey revealed that 65% of employees haven’t received recognition (appreciation) in the last year. Because of the high impact recognition has on your NPS, it’s worth exploring this important management best practice.

Appreciation – a few sincere words of praise – costs nothing and has a high return on investment. So why isn’t it happening more often? Most leaders don’t know where to start. Here are the five most common questions leaders have about giving praise:

1. Why should I praise someone for just doing their job?

Two words – positive reinforcement. What gets rewarded gets repeated. If you want them to keep doing a great job, let them know that their work is appreciated. The next time you notice a teller ­creating a positive member experience, tell them.

One study concluded that 81% of employees would produce better work more often if they received personal recognition for their efforts. That seems like a good return on investment for a few sincere words of appreciation.

2. I don’t need praise, so why do they?

Everyone has different internal drives that determine what motivates them. The top workplace motivators are appreciation, growth opportunities, job security and being part of a team.

If you happen to be motivated by something other than appreciation, you may not understand why someone needs a pat on the back. You might even think they are being needy. That’s probably not the case. They just have a different motivational need than you.

The best leaders motivate people where they’re at without judgement.

3. How do I give praise without sounding phony?

The secret to meaningful recognition is to make it specific, timely and sincere:

• Specific: Instead of a generic, “Good job!”, try saying, “I noticed that you used the member’s name twice during the transaction. That made them feel valued and important.”

• Timely: Say it as close to the event as possible. If you wait, it loses its impact. Make this your motto: When you see it, say it.

• Sincere: If you are specific and timely and you are genuine with your praise, you will automatically come across as sincere.

4. Should I praise in public or in private?

Some leaders are hesitant to give recognition in public. They worry that it will create jealousy or resentment. Forget those fears.

When you praise a teller in public for using a member’s name, it shows the other tellers what’s important. You might even notice employees praising each other, which will result in increased morale and trust.

5. How often should I offer praise?

We know that once-a-year praise is not enough, but many leaders don’t know how often they should acknowledge good work. This is a good question because praising too often can be as bad as not praising often enough. Running around giving high-fives, thumbs up, and a generic “thanks” is exhausting for you and uninspiring to your team.

A good rule of thumb is to provide positive praise to each person on your team once a week.

In summary, the correlation to employees who feel appreciated and a member’s willingness to recommend your credit union to others is clear. So, start catching people in the act of doing something right and watch your employees’ energy and enthusiasm improve along with your NPS.

Liz Uram Owner The Coach & Mentor Group Cedar, Minn.