Research shows that using carrots, or employee recognition, can be an effective method of gaining loyalty and commitment. It is also an inexpensive way to retain the best people. 

Employees can be recognized by peers, other departments or by managers for any actions that help achieve significant results. Carrots can come in the form of handshakes, e-mails, plaques or ceremonies. 

What’s important is that employees understand that their work isn’t going unnoticed. 

Here are some tips on the best times to offer carrots: 

• During new-employee orientation. A small reward during the first few weeks on the job will help bond new hires to the operation, especially during training. 

• For service or career achievement. This is a good opportunity to recognize every employee. Many companies give such an award for every five years of dedicated service. 

• During retirement. A beautiful, symbolic retirement award can put the finishing touches on a career and be remembered for years to come. 

• For performance. These awards recognize and encourage activities that accomplish the operation’s goals.

Source: “Managing With Carrots” by Adrian Gostick and Chester Elton