“When people know their ideas matter, they want to do a better job.”
Many leaders believe that the only way to get employees to take true ownership of an operation is to implement a complex monetary reward system. We often assume that cash prizes are the ultimate driver for frontline innovation. But tying financial payouts to individual ideas can quickly become a complicated mess. In my years as a leader, I found it does more to damage morale than help it.
Years ago, Disney experimented with a system where cast members could submit ideas for monetary rewards based on calculated company savings. However, they ultimately halted the program because the engineering teams won every single time. Why? They had direct access to new technologies. It left the rest of the 40,000 cast members feeling completely left out of the equation.
Instead of trying to evaluate every small suggestion with a dollar sign, Disney shifted its focus toward building a culture of appreciation, recognition, and encouragement. The real magic happens when your team knows that leadership is listening. I saw the improvement in process and morale when a frontline cast member’s suggestion was implemented. They found a way to keep a quick-service location from running out of food trays.
Not every idea will get implemented. But I found that giving someone a genuine, five-minute block of time to listen, it builds immediate trust. Positive recognition is a powerful emotional tool that fundamentally builds self-confidence and self-esteem.
When employees feel secure and valued, their brains shift. They become willing to take bigger risks, make hard decisions, and actively hunt for operational excellence. Training teaches someone how to do a job, but development builds the self-esteem they need to make hard choices.
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Episode Chapters
[00:02:10] Should employees be rewarded for solving problems?
[00:03:45] Why listening builds a stronger culture than incentives
[00:06:06] How recognition increases confidence and engagement
[00:08:14] The connection between ownership and self-confidence
[00:10:20] Practical ways leaders can encourage better ideas