I like to start my work week with a quick review of the business press. One line I read about the leadership development efforts at IBM struck me.  An employee involved in their development program which includes lateral assignments for experience said this, “I don’t want to be groomed, I want to be paid.”

I am a big fan of giving top talent an opportunity to experience a wide range of organizational assignments. I have written before about my concern that currently too many financial people are running companies with little or no understanding of operations, sales, research and development, human resources, and other critical aspects of business. I honestly believe this has hurt decision making at the top. I praise IBM’s efforts to move their talent around to build a broader view. It is part of a formula for success.

However, we should hear the voice of this employee.  The intrinsic rewards of work that offers interesting challenges, opportunities for achievement and recognition, and professional growth are still powerful motivators. They are not be enough. People must be paid equitably or they become dissatisfied and their results show it.

It has been over forty years since Frederick Herzberg published his findings on motivation. (‘One more time: How do you motivate employees?’, Harvard Business Review, Sep/Oct87, Vol. 65 Issue 5, p109-120).  He pointed out the negative affect of “dissatisfiers” on employee performance. Compensation is an extrinsic reward, and one that increasingly matters, if people feel they are not being paid equitably compared to others.  Companies have taken some extreme measures to cut labor costs to boost their profits. Let me be one of the first to say, enough is enough. Our companies’ leadership must be smart enough to recognize that changing one cell in an excel spreadsheet (labor costs) does not equal long term success.

Like the employee cited above, many talented people are bombarded daily with news of excessive executive compensation. Executives are being rewarded for improving the bottom line at the expense of their employee’s livelihood. In some cases, executives are being rewarded for a loss in performance! An exaggerated concern for shareholder wealth has employees openly questioning why they should continue to sacrifice for other’s gains.  Wage and salary administrators need to provide predictive data to executives on what the real cost of wage reductions are instead of chasing the short term numbers. Ultimately, talent is going to move to organizations that reward their efforts the good old fashioned American way….more dollars. If companies don’t act soon, they may find themselves with a mediocre workforce paid a mediocre wage. I don’t think it is worth the gamble.

Thanksgiving…a time to reflect on all the things we are grateful for.  If you are a leader in your organization, that means the people that show up each day and contribute their efforts.  This year has been tough for many us. Perhaps you can’t afford the luxury of passing out turkeys, but never underestimate the value of a sincere, one to one, thank you.

In the Leadership Challenge, based on the book by James Kouzes and Barry Posner, we talk about Encouraging the Heart as one of the five practices exemplary leaders habitually do. Whether it is the individual thank you for excellent work, or the group celebration, we all benefit from knowing that what we do matters.

Look around your workspace.  Odds are, you will see something there that you received as memorable recognition. I am not talking about the box full of certificates, plaques, or company logo’ed key chains.  I am talking about that really meaningful symbol that lifts your spirits whenever you look at it. When you look at it, you recall the moment and the sentiment behind it. It refuels you. It matters.

My guess is that many of you have had to make remarkable demands of the workforce, adding even more to full plates, to keep margins above the water line. I can tell you that people are tired. Even on the verge of burnout.  That thank you offered their way fuels the battle for another day. They may not need recognition. But, like you, they want it.

Here are a couple of practical suggestions:

• Buy yourself some note cards with matching envelopes.  Drop a note in your own hand, recognizing a specific contribution for each team member and a hearty thank you.

• Find the time (just do it or it won’t happen) to sit with a cup of coffee with each employee and thank them face to face.  For added power, ask them what you can do as a leader that will help them achieve their goals, or what you need to stop.

• At the next staff meeting (hopefully before Thanksgiving) park the normal performance and budget review, and instead give your team a presentation of all the things you are thankful for they have produced as a team.  Trust me, your business will survive a day without the normal staff meeting.

• Ask them to share their stories with you of what they are most proud of during the year.  Then share those stories up the organization structure.

You can never go wrong with the hearty handshake accompanied by a look the person straight in the eyes “thank you.”