Rule #19 – You Must Continually Recognize and Reward Your Team

With the pace of business today, it’s easy to get swept up in the endless chase for the next project, the next milestone, the next dollar. But here’s the danger: if you spend all your energy looking forward without pausing to look around, you risk losing sight of what truly matters.

Success as a leader isn’t just about hitting targets. It’s about balancing three forces: your people, your customers, and your financial results. And while we’d all love to believe we can have it all, the reality is that tradeoffs are inevitable. When they come, the sequence must always be: people first, customers second, results third.

I know, not everyone will agree.

• The customer-centric camp will say: “Without customers, we don’t exist. Customer is king.”

• The profit-centric camp will argue: “We’re not a charity; the bottom line rules. No profit, no business.”

Both have a point—but both miss the bigger truth.

What is a business without people? Processes, playbooks, and systems can be copied, automated, or outsourced. But the creativity, judgment, and humanity of your team cannot. When a company treats its people as interchangeable parts, it becomes a commodity—and commodities get replaced. The end begins when people no longer matter.

Seth Godin often writes about this. If you haven’t already, grab Purple Cow, Tribes, and Linchpin. His message is clear: the only sustainable advantage in business is attracting and keeping the best people. Ignore this, and eventually, a more agile competitor will leave you behind.

So let’s be very clear: your people are your greatest asset.

Which brings us to Rule #19:

Continually recognize and reward your team.

Why Recognition Matters More Than You Think

From the time we’re toddlers, we crave approval. Parents, teachers, friends—every stage of life builds on this need for reassurance. The workplace is no different. Employees don’t just want a paycheck; they want to know their work matters. They want to feel seen.

As a leader, it’s your job to deliver that feedback consistently and authentically. But here’s the tricky part: everyone receives recognition differently.

Two guideposts I’ve found useful:

1. Recognition: Start small. Begin with one-on-one acknowledgment, then move outward—small groups, larger groups—until you sense the employee is hitting their comfort ceiling. Some thrive on the spotlight; others shrink from it. The “concentric circle” approach helps you find the sweet spot.

2. Rewards: Keep them private. Money, bonuses, or perks don’t need a public stage. Deliver them quietly, in a way that honors the individual without making others uncomfortable.

Of course, rules are meant to bend. Exceptional accomplishments deserve exceptional recognition. Sometimes that means going beyond an employee’s normal comfort zone—because treating extraordinary as ordinary diminishes the achievement.

Recognition = Engagement = Retention

Here’s the big takeaway: recognition is one of the simplest, cheapest, and most powerful ways to fuel engagement. Yet it’s also one of the most underused. And that’s a shame.

Failing to recognize employees doesn’t just shortchange them—it robs you, the leader, of an opportunity to strengthen trust and culture. The old saying is true: it really is better to give than to receive.

ACTION ITEM 19

Create a simple spreadsheet with your team members’ names. Every time you give recognition or a reward, log it:

• Who you recognized

• What the recognition or reward was

• How they responded

At month’s end, review your notes. You’ll uncover patterns—what resonates, what doesn’t—and you’ll sharpen your instincts as a leader.