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When I want to encourage person for his initiative, what is the correct way to say it?

1) Well done on your initiative!"

or

2) Well done for your initiative!"

n.b. If you have better option how to phrase it, kindly let me know, thanks.

2

You can use either, but "on" is better. If you were to use "for", it would be borrowing from

He earned a "Well Done!" from his boss for his initiative.

Most people won't notice a difference, however.

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