Many companies are now starting to discuss employee recognition more frequently lately as they try to improve the employee experience and create a culture of appreciation. An essential ingredient to the recipe of success, appreciating employees keeps orgs running smoothly—in more ways than one. Let’s learn more about how companies can see the benefits of employee recognition.
What Is Employee Recognition?
Employee recognition is acknowledging and appreciating an employee’s efforts and contributions within the workplace. It involves expressing gratitude for an employee and acknowledging individual or team accomplishments. Employee recognition and employee appreciation go hand in hand, the key difference being that appreciation is a way to show gratitude for someone’s value.
In contrast, recognition shows gratitude for someone’s actions. Employee recognition is more formal, and employee appreciation is less structured (a simple thank you or a note sent via email).
What are Key Aspects of Employee Recognition?
Management and leadership can improve their usage of employee recognition through these seven key aspects. Following these aspects can ensure that companies get the most out of the benefits of employee recognition.
- Have An Employee Recognition Program
- Find Out What You Want To Recognize
- Provide The Right Tools For Recognition
- Spread The Word
- Be Timely With Recognition
- Include Peer to Peer Recognition
- Integrate Company Values and Culture
13 Benefits Of Employee Recognition
Increased Motivation and Morale
Companies can expect to see an increase in motivation and morale when incorporating employee recognition in the workplace. When employees are recognized and feel valued for their work, they are more likely to work harder. When they receive praise, they feel good about the recognition and will likely work harder to earn more. Higher levels of gratitude in the workplace lead to improved morale, which helps have a positive impact on employees’ overall happiness.
Enhanced Employee Experience
Recognizing employees makes a big difference in the employee experience. The employee experience includes a variety of aspects, such as the work environment, relationships, growth opportunities, and more. When recognition is more frequent in the workplace, the environment is more positive, and employees are excited to come to work. Recognition helps improve relationships between the employee and management/leadership, improving the employee experience.
Improved Employee Engagement
Employees who are recognized authentically feel more valued, leading to employees being more engaged at work. Employees who feel their work is valued are more likely to step up and take more responsibility.
Recognition helps employees feel empowered and are more productive because of this empowerment. The happier people are at work, the better their performance will be. Recognition fills an innate need and leads to significant workplace engagement results.
Improved Workplace Culture
Workplace culture plays a massive role in the happiness of employees. Companies must realize that employees spend a large chunk of their lives at work, and it would be better for everyone if the workplace is positive. Recognizing employees is a simple way to help encourage a positive work environment.
Boosted Productivity
Through consistent recognition, companies typically see increased productivity from their employees. The positive reinforcement that employees gain from recognition leads them to work harder and be more productive in the workplace. Another reason why employees might be more productive after recognition is because they have more job satisfaction. Recognition also helps. Recognition helps employees realize that the company they work for values their contributions, which makes employees more confident.
Positive Team Engagement
Companies with a strong recognition program, especially one that encourages peer-to-peer recognition, generally see an improvement in team engagement. Peer-to-peer recognition helps employees see one another’s success and encourages them to express appreciation. This type of lateral recognition allows employees to be in charge of boosting workplace morale, as well as helps unite teams by gaining trust in one another.
Increased Employee Retention
Did you know that the #3 reason most people leave their jobs is a lack of recognition? By incorporating employee recognition, companies can expect less turnover. Employee retention is significantly impacted by recognition because the appreciation of employees helps build better relationships and creates more loyal employees.
Greater Talent Attraction
Companies with a history of employee recognition are more likely to hire top talent. Employees are looking for companies that pay well and have a great company culture. Employee recognition plays a large part in the company’s culture, and if future employees can see that their work would be recognized in a positive workplace, they would want to join that team.
Decreased Burnout
Many employees feel burnt out in their jobs, and some of this is due to the need for recognition. It is exhausting to work hard at a job where one isn’t appreciated. Companies can utilize employee recognition to combat this burnout and show employees how they value their work.
Improved Well-being and Mental Health
Being recognized and appreciated for a job well done feels good, and that improves employees’ mental health. The way companies treat their employees has a significant impact on their mental health.
Decreased Workplace Stress
Companies that have a habit of appreciating employees typically have a less stressful environment. Reward Gateway states, “Gratitude has a well-known impact on stress reduction.” Additionally, employee recognition helps employees feel more in control and supported in their roles, which also helps reduce workplace stress.
Why Is Employee Recognition Important?
Employees crave recognition and appreciation. These cravings are human nature and essential in all aspects of life, including the workplace. According to the Kudoboard Employee Happiness Trends Report, employees have struggled to find a sense of belonging, especially within remote and hybrid work. Employee recognition significantly impacts employee well-being, including that sense of belonging that employees crave. Employee recognition is also important because it dramatically affects the company’s culture.
For examples of employee recognition in the workplace, let’s look at two hypothetical companies, Company A and Company B.
Employee Recognition Examples: A Tale Of Two Companies
Company A has a pattern of recognizing employees in the workplace. This company utilizes an employee recognition program, encourages peer-to-peer recognition, and encourages a culture of appreciation. This impact is happier and more engaged employees, which has led to a more successful business overall.
Company B occasionally throws out a random thank you, but the recognition doesn’t feel authentic and feels a bit forced. Peers don’t recognize each other and instead focus on looking out for themselves and their careers. The company is doing okay business-wise, but their employees feel burnt out, and morale could be higher.
Which two companies will likely have higher retention rates and more engaged employees? If you guessed Company A, you’d be right. There is no replacement for employee recognition’s impact in a workplace setting.
Types Of Employee Recognition
There are a few different types of employee recognition that companies can utilize. The following types of recognition can help companies access the many benefits of employee recognition.
Peer to Peer Recognition
Peer-to-peer recognition is an essential cornerstone of employee recognition. It is a genuine expression of appreciation from one peer to another. Peer-to-peer recognition is a great way to encourage employee recognition that differs from the typical “top-down” (or leader-to-employee). Peer-to-peer recognition messages are a simple way to promote this desired behavior.
Top-Down Recognition
This type of recognition is the most common, where their management or other leadership recognizes employees in the company. Companies can utilize top-down recognition formally or informally, which greatly impacts the employees’ happiness and encourages employee engagement and retention.
Attributed vs Anonymous Recognition
Most people that get recognition know who gave the recognition. However, there are times when an anonymous shout-out or thank-you card on an employee’s desk can have just as much impact as the employee knowing who gave the recognition.
Private Recognition
Private recognition is when a company recognizes an employee in a private setting. This type of recognition could be through a personal email (be sure it is still thoughtful, specific, and genuine) or pulling them aside after a meeting or into the manager’s office for a quick thank you. Written thank you cards are also great for private recognition.
Public Recognition
As suggested, public recognition is when management or leadership recognizes an employee in a public setting. This recognition could be done in a meeting, with a group Kudoboard, through a group email, or at more significant events such as an employee reward ceremony.
To learn more about employee recognition awards, check out these 72 employee recognition examples.
How Do I Make Employee Recognition Meaningful?
Employees will gain more from recognition if it is meaningful. In order to create a culture of appreciation in the workplace and truly make employees feel valued for their contributions, companies can follow a few key tips to make their recognition efforts meaningful.
- Be specific and relevant in recognition.
- Be timely with the recognition (recognition that comes late means less to employees).
- Remember the different types of recognition.
- Recognition doesn’t always have to be big, little gestures of recognition also matter.
- Connect recognition to company values and organizational goals.
When companies remember the essential tips, they are more likely to be successful in their recognition and help enhance their company culture through genuine recognition.
Employee Recognition Matters
Employee recognition is an essential part of the overall employee experience. Authentically recognizing employees for their contributions to the company has many benefits, including improved engagement, positive company culture, less workplace stress, increased motivation, and more. There are different types of recognition and ways to make recognition meaningful. The critical thing is to make sure recognition is frequent and personal.
Recognize Your Employees and Improve Your Workplace
Empower team members to recognize collaborators and create a culture of appreciation.
FAQ About Employee Recognition
Should Recognition Be Public Or Private?
Employee recognition can happen publicly or privately, depending on why an employee receives recognition. Many companies recognize employees publicly, especially if they played a prominent role in a project or have made significant contributions within the workplace.
Remember, public recognition can be small and simple. Kudoboard is a great way to praise employees publicly, while still playing it simple and cost-effective.
What Is The Difference Between Recognition And Rewards?
Employee recognition and rewards share similarities but are different. For example, employee recognition is a broader concept that includes acknowledging an employee’s efforts and contributions to the company. Employee rewards are more formal; companies usually give these rewards after achieving a specific goal or after a certain amount of time spent at a company. Employee recognition is less formal and can be more spontaneous (think the verbal phrases, thank you notes, or possibly public acknowledgment during team meetings). Employee rewards are typically more formal and structured and may involve certificates or plaques. Generally, recognition is more tied to day-to-day achievements, while companies give awards for specific accomplishments and milestones.
What Role Does Leadership Play In Employee Recognition?
Leadership plays a significant role in employee recognition. Leadership and management typically play a role in starting recognition, but they also play a crucial role in the effectiveness of recognition. Leadership sets the tone on whether employee recognition is essential to the company’s culture. If leadership doesn’t act as if recognition is essential (by not encouraging it or showing recognition frequently), then employee recognition will not be as present (or present at all). Leadership is also in charge of modeling desired recognition behavior. When employees see management and leadership consistently recognizing employees, the employees will start to recognize each other, and this reinforces the importance of recognition. Finally, leadership plays a huge role in creating recognition programs. It is the leadership of the company that is usually involved and responsible for creating formalized recognition programs.
