Employee Recognition: Definition and Its Importance

Meanwhile, engaged employees are beneficial for workplaces in every way: they’re higher performers, they’re connected and committed to their company, and they’re willing to go above and beyond their role. In organizations that put a heavy emphasis on praising and recognizing employee achievements, engagement levels increase by nearly 60%.

Between writing and posting a job description, screening and interviewing candidates, negotiating relocation packages, paying referral or signing bonuses…just the cost of finding a new employee adds up. You can use our cost of employee turnover calculator to establish a cost baseline, but its important to remember that like an iceberg, much of the cost associated with turnover is hidden.

Indirect costs of employee turnover include decreased productivity, lost institutional knowledge, and lower morale. When an employee leaves, their team absorbs additional work, which hurts company culture in the form of unhappy team members who are less productive. Even once an organization has hired someone to fill an open position, that new employee needs to be oriented and trained. While welcoming a new team member is typically an exciting time, it’s important to note that productivity might drop with the addition of a new team member before it goes up.

In a study by Bersin & Associates, organizations with recognition programs that were highly effective at improving employee engagement had 31% lower voluntary turnover than those with ineffective recognition programs. As it stands, 66% of workers are likely to leave their job if they feel unappreciated.

Productive employees benefit companies in every way, from increasing profitability to optimising resources. Productivity is very closely tied to companies’ profitability, and is a top driver of success at modern companies. According to Bain & Company, the best companies are 40% more productive than the rest, and have operating margins 30%-50% higher than their industry peers.

Giving employees the right feedback to know which of their efforts are most appreciated helps everyone better understand the impact of their work and what to prioritize. This doesnt mean you need to give a standing ovation to every employee who made it to work on time, but its crucial to let everyone know exactly how (and how much) each of their contributions move the organization forward.

Employee morale is the glue that holds your company together. It’s a crucial part of any organization, and should be a top concern on your priorities list. With low morale, nearly every aspect of an employees contributions will suffer. High morale, on the other hand, tends to inspire greater productivity, creativity, and overall satisfaction.

It’s a subtle difference, but it’s there. Engaged employees may be satisfied with their jobs, but contented employees are not necessarily engaged with their work. These workers risk losing any emotional connection to their work that they may have had, and their organizations suffer from poor productivity. These are the clock-watchers and the hangers-on. They can become dead weight for the company. Thus, having high employee morale is the foundation upon which employee engagement can grow and thrive.

So how do you build that foundation? A recent SHRM survey found that 65% of employees say respectful treatment of employees at all levels is a very important contributor to their job satisfaction. Because respect can be shown in many ways, personalized approaches make a considerable difference. For example, frequent and visible praise promotes inclusion and a sense of belonging at work that increases job satisfaction.

Along those same lines, Reward Gateway study revealed that, “[a]lthough more than 22% of senior decision-makers don’t think that regular recognition and thanking employees at work has a big influence on staff retention, 70% of employees say that motivation and morale would improve massively with managers saying thank you more.”

Recognizing employees’ work and their impact on the team encourages a sense of purpose. This type of transparency helps employees understand how their work ties into the bigger picture of the company and how their contributions matter. Purpose is important, and 57% of younger Americans said that they wanted to be part of something that was enjoyable or made a difference in society.

Why is recognition so important?

Why Recognition is Important

Importance of employee recognition

Giving your employees the recognition comes with several benefits for both you and your employees. Understanding these advantages can help you determine whether implementing an employee recognition program at your organization is worthwhile. Here are the reasons employee recognition is important:

What is employee recognition?

Employee recognition refers to a companys acknowledgement of their staff for exceeding expectations. Companies recognize their employees to reinforce good behavior, performance or practices that result in positive effects and results for the business.

When should you offer employee recognition?

When it comes to employee recognition, its important to recognize your employees during key moments. For example, you can offer employees recognition after they completed a large project or on their work anniversary. Heres an in-depth look at when you should offer employee recognition:

Types of recognition in the workplace

Recognition can take several forms in the workplace. No matter your resources or financial means, you have many ways to provide your employees with the recognition they deserve. Here are the various types of recognition in the workplace:

Monetary bonuses

Whether large or small, monetary bonuses show employees you appreciate their hard work. You can offer this type of recognition on-the-spot or offer an end-of-the-year bonus.

Company-branded gifts

As an employer or manager, you can offer your employees company-branded swag such as sweatshirts, T-shirts, bags or coffee mugs. Not only does this serve as a gift for their hard work, but it also raises brand awareness when people outside of your company see them with their company-branded swag.

Free lunch

Many people enjoy free food. Treat your employees to a food truck for a day, take them to a local restaurant for lunch or provide them with a catered lunch from a local restaurant.

Employee recognition wall

Employee recognition walls let you recognize your staff in a public setting. This involves setting up a board and having people in your office fill it with sticky notes that offer congratulatory messages or praise to employees who exceeded expectations. Since its in a public setting, employee recognition walls inspire other employees to do well enough to gain recognition in the future.

Verbal praise

Many employers or colleagues offer employees praise with their verbal words. For example, they can walk up to them and give them a compliment for their work on a recent project. Not only is this recognition quick, but it also allows you to offer recognition in a public setting which employees may appreciate.

Written praise

Not only can you show your employees verbal appreciation, but you can also write them a note. Writing thank-you notes, in particular, shows your appreciation while also offering tangible proof of their contributions.

You can also send your employees a thank-you email instead of a written note, however, a handwritten note shows extra effort on your part. It also lets you add your own creativity and personalization. Not only do employees appreciate this type of praise, but they also appreciate the time you took to physically write the note yourself.

Tips for building an employee recognition program

As you develop your employee recognition program, its important to keep several things in mind. Use these tips to help you create a more effective employee recognition for your organization:


Why is recognition important in society?

Increased productivity and motivation. The act of recognising desired behaviour increases the repetition of the desired behaviour, and therefore boosts productivity. Better employee satisfaction and enjoyment of work. There will be much more time spent focusing on the job and less time complaining.

What does recognition mean for you?

Evidently the various ways we are recognised (and recognise others) play an important role in shaping our quality of life. Recognition theorists go further than this, arguing that recognition can help form, or even determine, our sense of who we are and the value accorded to us as individuals.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *