Everyone appreciates a Christmas bonus but there are better ways to motivate and energize your employees. Below are 5 great ways to help them realize their full potential, make them happier and increase the profits for your company.

Be generous with praise. Everyone wants and loves praise and it doesn’t cost you a cent. Praise from the boss goes a lot farther than you might think. Praise improvements and good work that you see your employees make. Example one of your employees did a great job of handling a difficult customer, just walk up to her and say, “Linda I was really impressed with the way you dealt with that upset customer”. Once you’re comfortable delivering praise one-on-one to an employee, try praising them in front of others.

Encourage people to work together as a team, on an equal level with their co-workers. People will come in early, stay late, and devote more of their energy to solving problems.

Make your ideas theirs. People hate being told what to do. If an employee creates an idea, they will work overtime to ensure its success.

Take an employee to lunch once a week. Surprise them. Just walk up to one of your employees, and invite them to lunch with you. It’s an easy way to remind them that you notice and appreciate their work. During lunch try to avoid discussing business and focus on them.

Christmas and other company parties are great for team building and galvanizing your team. Have a company picnic, organize birthday parties, etc. Don’t just wait until the holidays hold company activities, organize events throughout the year to remind your staff that you’re all in it together.

Ok I had to add one more. But it’s included free of charge ;-0

This is perhaps the most important share the good and the bad. When your company does well, celebrate. This is the best time to let everyone know that you’re thankful for their hard work. Go out of your way to show your appreciation when people help your company succeed. If there are disappointments, share those too. You expect high performance, your team deserves to know where the company stands. Be honest and transparent.