The Carrot Principle: Book Review

by Adrian Gostick and Chester Elton

Even though there have been hundreds of books written about motivating employees, these two writers somehow manage to find something fresh to say. Best of all, they have quantified the value of recognizing and rewarding employees by completing a thorough study of hundreds of companies.

From the motivational story about Goodyear discovering the vulcanization process while experimenting with rubber to the 125 Recognition Ideas in the final chapters, this book only took about two hours to read.

With independent research from The Jackson Organization and analysis by Gostick and Elton, this study of 200,000 people over ten years found dramatically greater business results when managers offered constructive praise and meaningful rewards in ways that motivated employees to excel.

Using case studies from Disney, DHL, KPMG and Pepsi, the authors examine the relationship between employee recognition and return on assets. They show how great managers lead with carrots, not sticks, and in doing so achieve higher productivity, engagement, retention and customer satisfaction.

The only negative aspect of the book is the rather weak illustrations of "models" and theories (see example). At least they didn't resort to three interlocking circles (a standard in this genre).

Like any good professional development book, there's a survey you can take (page 86) that will assess your levels of engagement and satisfaction.

In the face of serious employee retention issues due in part to the aging of the workforce and the transience of Generation X and Y employees, this book is worth a read.