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Why Employee Recognition Matters

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Employees are the building block for the success of any company or organization. Their hard work, productivity, ideas, etc., are what launch a company into success. So, it is essential to recognize their contribution. Many do not know what employee recognition entails and why employee recognition matters.

Employee recognition is the acknowledgment of employees’ contributions to the workplace. It refers to appreciating their dedication, performance, efforts, and achievements. Employee recognition results in higher productivity, efficiency, motivation, and job satisfaction. After implementing a recognition culture, companies observe lower turnover rates and higher retention rates. It also improves team bonding, creates trust and respect among peers and authority, and ensures a positive work environment.

Interested to know more? Let’s dive in! 

What is Employee Recognition?

Employee recognition refers to the open acknowledgment of the employees’ contribution, achievement, dedication, and effort.

Employee recognition encourages particular employee behaviors and creates a more productive work environment. As a leader or authoritative figure, you can recognize your employees for their achievements, milestones, performance, dedication and effort, exhibiting certain behaviors, etc.

Employee recognition can be in any form, from praise or compliment to a standing ovation at the office, a raise or bonus, monetary compensation, paid days off or vacation, etc. Genuine recognition from peers and superiors motivates employees to work harder and unlock their full potential.

Why Employee Recognition Matters

Employee recognition can help your work environment in more ways than you can imagine. Here are a few primary benefits to help you understand why employee recognition matters and why it’s important:

1.  Increased Productivity and Motivation

When employees are recognized for their dedication, effort, and hard work, they feel valued and appreciated. They are motivated and driven to put in their best effort and repeat the behavior/work they got recognized for. They are more likely to develop creative ideas, solutions, and new projects.

2.  Higher Job Satisfaction and Engagement

When employees are recognized for their work, they feel valued and satisfied. They’re more content and enthusiastic about their duties, responsibilities, and contributions. This leads to a higher rate of job satisfaction. Not only that, motivated employees with higher job satisfaction are more likely to have higher drive and enthusiasm towards their work. Hence, the rate of engagement is also higher. The number of absenteeism, sick call, and leave requests reduce significantly.

3.  Lower Employee Turnover Rate & Higher Retention Rate

Employee turnover refers to the number of employees that leave the workplace during a specific period, generally a year. On the other hand, employee retention refers to the number of employees (both new and old) retained.

When employees are adequately recognized for their work, it creates a positive and motivating work environment. Employees are more engaged and satisfied with their work and workplace. Employee recognition results in a lower employee turnover rate and higher retention rate.

4.  Improved Team Culture

A culture of recognition in the workplace encourages employees to see the positive attributes in each other. It creates respect and trust among peers as they recognize each others’ values and strengths. So, working in a team becomes easier because employees have a better idea of who can complete which duty better. As they rely on each other and respect each other’s work ethic, it creates team bonds and bonds among the employees.

5.  Creates Trust & Respect Between Managers & Employees

When superiors such as managers, leaders, or bosses recognize employees’ efforts publicly, it creates trust and respect between employees and their superiors. In many cases, employees are suspicious of favoritism in the workplace. But when a culture of recognition is in motion, employees are more likely to trust their superiors and respect their decisions and rules.

6.  Positive Work Environment

All the results of implementing a culture of employee recognition mentioned above ensure a positive work environment. Peers have a trusting, supportive bond and are more motivated and satisfied with their job. They’re also more dedicated, productive, and efficient. Employees have a healthy, respectful relationship with the authorities. All these amount to a workplace with less conflict and a positive environment. Employees are less likely to be stressed, overworked, or overwhelmed.

By the way, if you are looking forward to automating the employee recognition process in your organization, Yammer integration can be a very good choice.

How You Can Recognize Employees Properly

Employee recognition aims to make your employees feel valued, recognized, and appreciated for their efforts. Remember that each employee has a different personality, and hence, they all require different types or methods of recognition. For some, a heartfelt thank you note might suffice, while others may feel more appreciated with tangible acknowledgments like glass trophies. Ensure that you recognize each employee in the way that works best for them, whether it’s through verbal praise, professional development opportunities, or awards.

To efficiently implement a culture of employee recognition, you may want to follow these few tips:

1.  Make It Personal/Unique

Employee recognition aims to make your employees feel valued, recognized and appreciated for their efforts. Remember that each employee has a different personality. Hence, they all require different types or methods of recognition. Ensure that you recognize each employee in the way that works best for them.

Don’t repeat or reuse the same recognition techniques with every employee. Doing so dilutes the value of the recognition and makes it generalized. Employees will not feel individually appreciated, recognized, or valued. Recognize employees how they want to be recognized, ensuring authenticity and genuineness.

2.  Recognize Efforts

Employee recognition doesn’t only refer to recognizing their achievement, such as closing a big deal, a big sale, etc. It also refers to all the dedication and efforts they put into their work. You need to recognize their efforts more than anything. The best result may not always be the outcome, but by recognizing their effort, you encourage them to always try their best.

Each employee has a different limitation. Some can put more creative effort; some can put in more hours, some can provide better solutions. Recognize every kind of effort and dedication they showcase. Some of your employees may become overwhelmed at times. Make sure to let them know you recognize their efforts despite being stressed or burnt out.

3.  Ensure Healthy Competition

A culture of employee recognition aims to create a positive, encouraging work environment. Make sure you recognize each employee in their ways, for their outstanding efforts and dedication. Every employee is a valuable asset to the company. But, if employees get the wrong idea from their leaders that only the ‘best few’ gets appreciated, it might create unhealthy competition. So, make sure you’re taking the time to get to know all the employees and fairly recognize their work.

Bottom Line

Employees are one of the most valuable assets of each company and the pillars to success. It is essential to keep your employees motivated by recognizing their hard work, effort, and dedication. We hope this article has given you a clear understanding of what employee recognition is and why employee recognition matters in the workplace.



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