Savvy managers understand how much a well-timed pat on the back or the words “job well done” can mean to a hardworking sales rep. These unexpected expressions of appreciation, along with other surprise rewards, such as handwritten thank-you notes from the boss, plaques, merchandise, cash, and gift cards, represent the many different forms of on-the-spot recognition sales managers use to inspire and reward their sales teams.

Globoforce CEO and cofounder Eric Mosley believes that on-the-spot recognition serves an important motivational role in sales, in particular with middle tier performers who tend not to win the big sales incentive prizes but stand to gain the most from additional encouragement and direction. He cautions, however, that on-the-spot recognition should not be confused with more traditional sales incentives.

“Incentives provide direction as to what sales should be working toward [in the short term],” he says. “Whereas on-the-spot recognition and rewards are given to recognize hard work and accomplishments that reinforce behaviors or skill sets that are needed to achieve strategic objectives. The end goal of recognition is longer term: to promote company values and acknowledge how the goal is achieved rather than how it’s fulfilled.”

As Mosley observes, a sales rep who closes 30 new deals will likely be rewarded for superior performance through existing incentive and compensation plans. By contrast, on-the-spot recognition is well suited to recognizing that rep for what he or she may have done along the way, he says, such as mentoring a junior representative, improving a sales process that saved the company time or money, or proactively finding an opportunity overseas.

Other benefits of on-the-spot recognition Mosley mentions:

• Flexibility to recognize representatives year-round, instead of at the end of a sales cycle only
• Ability to recognize salespeople in the moment, immediately following a noteworthy achievement
• Opening of rewards to all employees, regardless of department, geography, or management
• Ability to use the element of surprise to make the rewards more memorable and appreciated

“There is a sense of camaraderie and positive chatter that develops when an employee is rewarded this way,” Mosley says. “It encourages other employees to perform similar positive tasks and can help shape desirable employee behaviors in the long term.”

John Watts, sales director for Avenue100 Media Solutions, a Boston-based performance marketing company, says on-the-spot recognition works best when focusing on such issues as teamwork, promoting the company culture, and building morale. Recalling his time as VP of sales leading a sales team of 25 reps at a newspaper chain, Watts says he offered spot rewards at least once or twice a month.

“I would usually go down to a local gift store, pick out a clock with a plaque on it, then come back to the office and say, ‘This is for Joe Walsh, who went above and beyond the call of duty when Judy Smith was on maternity leave and he filled in and took care of her accounts,'” he says. “I found it really helped build morale. Salespeople particularly appreciate recognition, so if 24 reps see Joe Walsh get an award for doing something exemplary, they’re going to step up and try to emulate that.”

Watts reinforces the notion that on-the-spot recognition should be used as a reward, not as an incentive. And, he says, that reward should be very specific and unrelated to sales numbers.

“Much like the example of someone who fills in for a co-worker who’s out sick or on maternity leave,” he says, “on-the-spot recognition works best as a sort of unsung-hero award. If you give them somewhat infrequently and genuinely off the cuff, then your people will really respond. It builds morale, lowers turnover, and engenders loyalty, not only to the company, but personally to you, the manager, as well.”

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