The Power of Employee Recognition: 5 Ways It Helps Business Thrive

BY Jules Dalmacio Compensation

The Power of Employee Recognition: 5 Ways It Helps Business Thrive

In ever evolving fast-paced working cultures, recognizing employees can sometimes take a backseat. But that’s exactly why it’s also so important; because employees that feel unseen feel will feel more like cogs in the machine rather than people who actually play important roles in improving the company.

Enhanced Motivation & Productivity

Imagine being a rank & file employee and hearing about a recognition program that not only gets you a little bit of recognition in the company but also incentivizes you for doing a good job. Reactions can range from at the very least a “meh” to a resounding “bring it on!”

Even if you don’t get the initial reaction of motivating employees at the outset, employees that start see their peers “win” will likely feel that they can do it to. Who knows; a recognition and rewards program might also be what turns underperformers into go-getter underdogs.

Healthy Competition & Cooperation

A wall of top performers is a reminder for employees that they could be the next person to be seen for all their contribution. However, a prize for doing recognition-worthy feats will take your program to another level. Investing in nice prizes and incentives will help foster a sense of healthy competition among employees.

Of course it is always important to build recognition around lifting people up instead of putting people down. It’s important to tailor your programs in such a way that great employees are recognized but supporting employees that help get them there are never unseen.

Better Retention; Fewer Turnover

Recognizing employees’ efforts and achievements increases their loyalty and commitment. Employees who feel appreciated are more likely to stay with the company, while also performing at the level they are recognized for or better.

When recognition through great work becomes a goal, you might see a reduction in turnover. Employees that have invested skills in the company, and are recognized and rewarding for it will likely try to better their craft. And because recognition is important in keeping up employee morale, having a well tailored recognitions program in place will make employees want to look for recognition elsewhere.

Builds Trust Between Employees & The Business

Recognizing employees is a company’s way of saying “hey, we see you.” It’s one thing for a supervisor or a manager to tell an employee that they are doing a good job. It’s another thing to have the company give them a shoutout to let them know that their best efforts will not go unrewarded.

Employees that know that their good work does not go unseen are more likely to trust the company. While they know that doing baseline work earn them a paycheck, they also feel that with a little more effort, they could bag a bigger sense of accomplishment that will not go unrecognized.

Aspirational & Inspirational

While not every employee might be able to get recognized, having a recognitions program in place still play a vital role in inspiring employees to put in great work. This is especially true if you let recognized employees talk about their journey so that their story can be something that other employees can aspire for.

While recognition programs do have it’s share of challenges, like not being enought to engage each employee or having difficulties in keeping the program 100% totally free of oversight, the benefits of having it definitely outweighs some of the challenges. Not only that, but by having a recognition program also forces business to have effective evaluation mechanism for employees.

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