Here's a snippet from the Forbes.com article:
"[Chester Elton] insists that appreciation works, especially during these recessionary times when companies have cut monetary bonuses and awards. Though it costs a company nothing, verbal praise can be as effective as a cash award, he says. Hard Rock Café, the restaurant chain, did a study on the effect of managers welcoming their shifts, thanking employees for coming in and making a few inquiries about their personal lives and families. Just a minute a day of verbal appreciation reduced employee turnover by 3%, Elton says."
Now, I'm not sure a 3% decrease in attrition is enough to make me jump up and down, but directionally, it certainly points to the influence that praise can have on employees. Keep in mind that the praise/appreciation has to sound authentic in order to be effective. So have a gander the Forbes.com article and let me know what you think about praise.
To read my previous article on motivation, click here.
To go to the "In Praise of Praise article from Forbes, click here.