Your employees' motivation has a direct effect on how well your business operates. Motivation can be so powerful in a service business since highly motivated employees are always working to perform at their highest level for your customers. Figuring out how to motivate your employees, however, is the tough part. Here are three simple, yet powerful, things that go a long way towards motivating your team.

#1: Show your team how much you respect them
Treat those around you with respect and you will get loyalty and confidence, quality work and happy people. The old saying of "you can get more bees with honey than with salt" is applicable when discussing your behavior towards other people. By treating others with respect, you are showing them that you believe in them and their abilities and they, in turn, will want to help you in any way they can.

Respect should be the driving behavior you have with everyone you interact with – receptionists, sub–contractors, your staff, and your customers. They will appreciate it if you let them know that they matter to you, and will be encouraged to put 110% of their effort into getting things done.

Giving 100% of your attention to someone when you are listening to them shows respect. Asking someone their opinion or approach on how they would handle a specific challenge shows respect. Or, one of the easiest way to recognize someone and show respect is with a simple "thank you". Increase the value even more by saying it in front of others. For more examples on how to show respect click here. A great book on this subject is The Manager’s Book of Decencies, by Steve Harrison.

#2: Recognize your team with praise and reward them often
We've probably all heard the saying "A little bit of recognition goes a long way," and it's true. Praising and rewarding employees is probably one of the most simple of things to do, yet it is often overlooked.

Giving praise is simply communicating with your employees about how much you appreciate how well they did their job. Praise can be a simple "Great job on X." For many employees, just knowing that someone recognizes their efforts is a huge motivator, and, in turn, this recognition fuels an even more vigorous commitment to the job. In order for praise to be effective, it must be individualized, it must be specific, and it must be deserved. Praising employees is often cited as one of the most inexpensive, yet most effective, methods of employee motivation.

For more ideas on how to praise your employees, check out "Five ways to praise employees" and "Appreciate Your Employees Today and Every Day: The Keys to a Happier, More Productive Staff".

Following up your praise with a reward makes an even greater impact on your employees. Rewards don't have to cost much, as there are so many other great ways to reward your employees. For example, some great ways to reward employees include taking an employee out to lunch, giving them an afternoon off, reserving a parking space for them, or providing a gift certificate to a local restaurant or movie theater. A special pin of recognition for a staff member to wear on their uniform could work too (see http://www.lapelpinsrus.com/custom.html). For more great suggestions on how to reward your employees check out 1001 Ways to Reward Your Employees.

Be sure, though, to be clear and constructive with employees when you're not happy too. They will believe that your praise is sincere if you do.

#3: Set the right compensation strategy for your team
Your team needs to know that you value them. Oftentimes employees will associate how much you "value" them with how much you "compensate" them. How do you know how much to compensate your employees so they know they are valued by you?

Make sure you take the time to understand what compensation is being offered in your market and develop the right compensation strategy for your business with this information in mind. Compensation includes paid time off in addition to hourly wages, as well as the benefits you offer.

To understand your market's compensation structure, find out how many vacation, sick and holidays are offered. Find out the pay scales for similar positions. Understand the benefits your competitors are offering – do they offer short or long–term disability benefits? 401k retirement plans? Educational reimbursement? And, structure the right compensation strategy for your business and your team. You might not be able to offer everything your competitor does, but with a little effort you can structure a compensation plan that will let your employees know just how much you value them.

Remember, having a reputation for superior service can really set you apart from your competition. And, the best way to ensure that your team delivers superior service is by keeping them highly motivated.