Adrian Gostick

Financial titans today are being brought before Congress to explain how they spent billions on executives’ bonuses even as they received a taxpayer bailout. Perhaps that’s why there’s been little media attention about Leonard Abess Jr.

After selling Miami-based City National Bancshares recently, he took $60 million out of his own pocket and handed it to his tellers, bookkeepers, clerks, everyone on the payroll. All 400 staff members received bonuses, and he even tracked down 72 former employees so they could share in the windfall.

The bonus—based on years of service—amounted to tens of thousands of dollars, and in some cases, more than $100,000.

‘'I was shocked,‘’ William Perry told the Miami Herald. In 43 years at City National, he climbed from janitor to vice president.

Abess didn’t publicize what he had done. He didn’t even show up at the bank to bask in his employees’ gratitude on the day the bonus envelopes were distributed. Asked later what motivated him, Abess said he had long dreamed of a way to reward employees.

Abess’ father founded City National in 1946. Abess Jr. started his career in the bank’s print shop. Working his way up the ladder gave him an appreciation for the role that employees play in the success of an enterprise. “I saw that if the president doesn’t come to work, it’s not a big deal,‘’ he said. ``But if the tellers don’t show up, it’s a serious problem.‘’

That quote from Mr. Abess may be the most profound thing I’ve ever heard a president say.

Fans of the NBC show “The Office” are abuzz this week after Michael Scott apparently quit when company brass cancelled a celebration for his 15-year service anniversary. While some pundits are saying Michael actually said, “I acquit,” at the end of last week’s show—perhaps accepting his leader’s about-face and once again using a word he didn’t know the meaning of—the point is still valid: He was upset because he’d reached an important milestone and management didn’t want to acknowledge it.

Chester Elton and I have spent the last two decades working in the employee recognition arena; and while this TV comedy typically shows extremes, the feelings the main character had are actually very real and common. Our research shows a majority of employees with 10 years or more of tenure in an organization remain engaged foremost because of the respect they are shown and the appreciation they receive. A lack of acknowledgement of a 15-year milestone for a long-tenured employee is usually considered an affront to that person’s important contributions.
Remember that nine out of 10 employees can tell you the exact date they were hired, whether it be a year ago or 30 (while most of men can’t remember the date of their wedding anniversaries). So when an organization fails to recognize a milestone with an appropriate award and celebration, management ends up alienating those very employees who helped build their organization.
The good news is service anniversary celebrations are a great chance to publicly catch up on the thank yous that have been missed along the way. And a public celebration shows everyone in attendance that you value specific contributions achieved over a career.

Check out the Purdue Compliment Guys. They are getting a lot of national publicity for doing the right thing. And they are hilarious.

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Chester Elton and I met with some leaders of a great healthcare organization last week. The executives we spoke with were first rate, their company is profitable (even in this economy) and their patient care is exceptional. But they have a problem: Employee turnover.

While the media is reporting daily on the nation’s 8 percent unemployment, what the pundits seem to miss is that we still have a 92 percent employment rate. And some industries—healthcare at the forefront—continue to struggle to retain their best talent. At this organization, nursing assistants will leave for a nickel more an hour—especially if they are relatively new hires who don’t feel appreciated.

Before we spoke, our assessment team had spent days within the organization, conducting surveys and interviewing team members and leaders. What they found was an engaged workforce; that is, if you could get through the initial weeks. Some senior members of the nursing staff admitted that they, “Eat their own young.” In other words, team members would determine in the first hours if a new nurse assistant was going to make it or not; and if they felt the recruit didn’t have the right stuff they would ignore her or give her every dirty job until the new hire quit.

As a result, leaders have been spending an inordinate amount of time interviewing, hiring and training new people: All for the lack of an effective way to onboard their hires.

The answer lies in the Carrot Principle. Managers at this organization are now embracing the Basic Four—clear Goal-setting, Communicating openly and honestly, building Trust and holding people Accountable in a positive way through Recognition. It sounds simple, but few managers actually take a personal interest in bringing new hires up to speed. When it does happen, new people not only stay, but stay more productive and engaged.

Whether your turnover is at record high or low, the principle still applies. If you Onboard with Carrots you’ll spend less time interviewing and training and more time serving your customers.

We see symbols every day: the flag of our country, corporate logos, wedding bands, sports team logos, Olympic rings. Symbols evoke emotion. In fact, symbols are so powerful that thoughtful gift-givers use them in their expressions of thanks. Here’s a great example: On Thursday British Prime Minister Gordon Brown gave President Obama and his children several unique historical gifts.

The first gift was a pen holder fashioned from the oak timber of HMS Gannet, a Navy vessel that served on anti-slavery missions off Africa.

Another treasure was a framed commissioning paper for the HMS Resolute, a Royal Navy ship that came to symbolize British-American goodwill when it was rescued by the U.S. from icebergs and given to Queen Victoria.

Finally, Brown gave Obama a first edition of Martin Gilbert’s biography of Winston Churchill, whose World War II partnership with President Franklin Roosevelt symbolized the U.S.-English alliance.

But London’s Evening Standard newspaper reported that Obama’s gift back was, “Markedly less generous and thoughtful than the presents taken to Washington by the Prime Minister.”

What did our President’s staff decide to gift to Brown to mark his first visit to the Obama White House? A set of 25 DVDs.

Now, I’m sure President Obama is not to blame for this misstep; his handlers are. And what they should be learning from this situation is the power of thoughtfulness and symbolism in gift giving.

Copies of “Encino Man,” and “Meet the Parents”—even when accompanied by a chocolate orange—are hardly fitting symbols of friendship to the leader of one of America’s most important allies. Not to mention the fact that the gift wasn’t personalized. Brown is not a movie buff and probably won’t appreciate the flicks!

When it comes to giving a gift, do your homework. Make sure your expression of thanks, welcome or congratulations symbolizes the relationship you hope to have.