The “Employee of the Month” award is an old standby. While it recognizes individuals, it often makes some other employees feel overlooked, mainly because there are no specific standards to meet. At worst, it’s nothing more than a “manager’s pet” popularity contest. Yet studies show that it is critical to recognize employees for their good work. There’s a direct link between employee satisfaction and customer satisfaction, and between customer satisfaction and improved financial performance, studies say. So what kind of recognition will satisfy employees?

More often than not, a simple “good job” or “congratulations” from a peer or supervisor can go a long way. A written thank you or compliment is even better, especially when it’s from upper level workers and it’s genuine and heartfelt. Often tangible rewards lead to a higher level of satisfaction. It’s best to set up a program for recognition that clearly constitutes what is rewardable behavior within the company. For instance, set standards for achievement, then have a rewards ceremony with certificates or employee gifts. Or start a sales competition and offer a bonus or a prize. Rewarding positive behavior is a great way to encourage positive attitudes in the workplace as well as decent or superior efforts in doing their jobs.

Positive reinforcement must start at the top, though it shouldn’t stop there. CEOs and supervisors alike should begin the chain of recognition. Over time, the company as a whole will develop a firm understanding that each employee should participate in recognizing accomplishments and hard work in the workplace.

In a recent Maritz Poll, only 10 percent of 1,000 full-time employees surveyed strongly agree that they are completely satisfied with their company’s employee recognition efforts. What would employees of your company say?