Beyond Cash Rewards: The Power of Recognition in the Workplace
In this episode of The Recognition Factor podcast, James Kell speaks with Yusuf Khoja, founder of Resilient Leaders and author of "The DNA of Great Storytellers," about the multifaceted nature of workplace recognition and how it drives engagement, retention, and overall organizational success.
The Journey from Law Student to Leadership Expert
Yusuf Khoja's path to becoming a recognition and leadership expert wasn't conventional. After failing his law school entrance exam three times, he found himself at a crossroads at age 19. Following a professor's advice to explore other interests, he joined his entrepreneur brother who had purchased a Tony Robbins franchise in the early 1990s.
This unexpected detour launched Khoja on a three-decade journey promoting leadership events featuring prominent figures like Tony Robbins, Oprah Winfrey, and Richard Branson. Today, as the founder of Resilient Leaders and Partnerships Manager at GoodLife Fitness, Khoja helps organizations transform obstacles into stepping stones for growth.
Recognition: The Foundation of Organizational Sustainability
During our conversation, Khoja emphasized that sustainable success—whether for an individual career or an entire organization—depends on meaningful recognition.
"In order for sustainability to happen in our lives or in our organization... it's important to recognize people for their contributions in terms of new ideas that they may bring forward, but also for the effort that they bring forward," explains Khoja.
He notes a common problem in Western workplaces: we tend to recognize only top performers with bonuses, trips, and promotions. This narrow focus can inadvertently devalue others who contribute in different but equally valuable ways.
The Recognition Spectrum: Beyond Money
One of the most impactful insights from our discussion was Khoja's emphasis on the different forms recognition can take. While some employees are motivated by extrinsic rewards like money and status, others seek intrinsic satisfaction through learning opportunities, new responsibilities, or the chance to launch innovative initiatives.
"For somebody else, the fact that you're willing to allow them to present their idea and run with it could be the reward in itself," Khoja points out.
Recognition isn't one-size-fits-all, and effective leaders understand the need to personalize recognition approaches. As recent statistics reveal, this personalization pays off: employees who feel meaningfully recognized are 19% less likely to search for new jobs, and 88% say recognition increases their likelihood to stay with their company.
The Costly Mistake of Not Listening
Khoja shared a powerful cautionary tale from his own business experience. His team had developed a habit of rewarding employees financially but stopped truly listening to their ideas and innovations. The result? Those employees left, started competing businesses, and took substantial market share away.
"Any business who's not listening to their talent that's out there showing up every day... it's really important from a recognition standpoint to identify how do they want to be recognized," Khoja reflects.
This experience mirrors what many organizations face today. In Australia, while 52% of employees receive monthly recognition, only 15% feel meaningfully recognized. In the US, despite 86% of employees reporting some form of recognition, only 33% feel truly engaged.
Reframing "Soft Skills" as "Superpower Skills"
Another key theme in our conversation was the importance of emotional intelligence and so-called "soft skills" in effective recognition. Khoja suggests renaming these as "superpower skills" to better reflect their true value.
"It is the soft skills, things like empathy, being authentic, being transparent, being a better communicator that ultimately is going to enable our organization from a cultural standpoint to elevate itself," he explains.
These skills create psychological safety, allowing team members to offer ideas without fear of judgment. Interestingly, even leaders known for being tough, like Elon Musk, demonstrate certain soft skills like authenticity—supporting Khoja's point that these abilities aren't about being "soft" but about being effective.
Scratchie: A Vehicle for Recognition Conversations
During our discussion, I shared how my company, Scratchie, addresses the recognition gap, particularly in industries like construction where explicit recognition doesn't always come naturally.
Scratchie provides supervisors with a tool to give instant rewards (typically $5-50) when they notice positive behaviors. But as I explained to Khoja, "The actual cash award for us is very much secondary... what it does is it sets it up for everything that you speak of. And that is the conversation, the positivity, the recognition."
The genius of this approach, which Khoja enthusiastically endorsed, is that it creates a measurable way to track recognition. When a manager claims they recognize their team but team members disagree, Scratchie provides objective data: "How many Scratchies have you given out?"
Finding the Right Balance
Khoja raised an important consideration about balancing immediate rewards with deeper engagement. "If we're too motivated on these instant rewards and we're not recognizing the intrinsic value, then when tough times happen, how many of these people are going to stick with us?"
His observation points to the need for a recognition strategy that combines:
- Immediate appreciation for specific behaviors
- Meaningful involvement in ideas and decision-making
- Understanding what motivates each individual
- Creating systems that deliver recognition consistently
This balanced approach addresses what contemporary workers seek. As Khoja noted, "Today, when we look at organizations... the world has certainly evolved in so many ways where the audiences that we deal with are multi-language, multi-faith, multi-generational."
The Communication Connection
Toward the end of our conversation, Khoja discussed his new book, "The DNA of Great Storytellers," which explores how communication skills build human connection. This ties directly to effective recognition—the ability to communicate appreciation in ways that resonate with different personality types.
Great communicators, like great recognizers, understand their audience. They adapt their approach based on what motivates different individuals rather than using a one-size-fits-all approach.
Key Takeaways for Leaders
- Diversify your recognition approach: Understand that different team members are motivated by different forms of recognition.
- Listen actively: Some of your most valuable team members don't want bonuses—they want to be heard.
- Ask what fires them up: Rather than assuming what will motivate someone, ask directly what would make them feel valued.
- Create recognition systems: Don't leave recognition to chance—implement structured programs that ensure consistent appreciation.
- Focus on "superpower skills": Develop the emotional intelligence needed to connect authentically with your team.
As organizations continue to navigate changing workplace dynamics, those that master the art of meaningful recognition will have a significant competitive advantage in attracting and retaining top talent. The statistics are clear: recognition works, but only when it's done right.
Have you experienced the power of recognition in your workplace? Share your story in the comments below, or reach out to learn more about implementing effective recognition systems in your organization.
About Yusuf Khoja: Yusuf is the founder of Resilient Leaders and Partnerships Manager at GoodLife Fitness. With over 30 years of experience in leadership development, he helps organizations and individuals transform obstacles into opportunities for growth. His book, "The DNA of Great Storytellers," explores how communication skills build human connection and foster team effectiveness.
About The Recognition Factor: Hosted by James Kell, founder of Scratchie, this podcast explores how recognition transforms workplace culture, safety, and performance across industries.
