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Why Employee Recognition Is Important

marketing communication concept

Recognition makes a strong impact, especially within the workforce, and can lead to a strong company culture.

Openly acknowledging employees for a job well done expresses appreciation and motivates employees. Highlighting the achievements and positive attributes of employees creates a more robust, healthier workplace.

Employee recognition is important because it boosts morale, increases productivity, and builds positive relationships. Praising employees for their achievements reinforces quality performance—benefitting both the staff and the organization.

A feeling of accomplishment at work is elevating, but when others notice your achievements, it amplifies that sense of success.

Read on to learn more about employee recognition, why it’s important, why you should have an employee recognition program, and how to utilize it in the workplace.

Why It’s Important To Recognize Good Employees

When employees feel appreciated, they put in more effort, are more engaged and, in turn, are happier.

According to the Society for Human Resource Management, 79% of employees work harder due to recognition in the workplace.

Emphasizing strong work performance can be the difference between a content employee and one who goes above and beyond.

Employees who go the extra mile make employee recognition highly beneficial to co-employees and the organization.

Improves Work Environment

A common reason that people leave their jobs is that they feel overworked and unappreciated. Showing employees they’re valuable reduces turnover rates and draws in new, eager employees.

A Gallup poll suggests that engagement leads to greater productivity and an increase in profitability of 21%.

Employees that feel appreciated can significantly improve the workplace environment. It boosts morale, leads to fewer accidents, and motivates employees to work harder.

Increase Productivity and Profitability

According to a study conducted by Oxford University, when employees are happy, they are more productive. One way to improve the overall mood of your employees is through workplace recognition.

When rewarding substantial work and achievement, employees work more efficiently. Celebrating employee performance encourages employees to succeed.

Employees aren’t the only ones who benefit from employee recognition, however.

Harvard Business Publication says that the key to happy customers is happy employees. As a result, employee recognition can improve customer satisfaction. Customer satisfaction is the backbone of a business, and taking care of your employees can help achieve that.

Build Connections Among Team Members

Managers and other leaders can improve trust in the workplace through employee recognition. Employees in high-trust environments tend to be more productive and thrive better within their working environments.

Recognition among peers can also benefit the organization. When employee performance is recognized publicly, it encourages other employees to take note of positive characteristics in each other.

These celebrations have the potential to inspire other team members. A team is not a team unless it works together, and peer recognition drives teamwork.

Strengthen Core Values

Favorable treatment of employees should be a core value of all companies. An organization that cares about its employees will empower them, and when employees grow, the company grows.

Treating employees well and incentivizing hard work shows them what is valued within the organization and leaves no questions about where they stand. Companies can strengthen their core values simply by caring about their employees.

Reduce Employee Stress

The American Psychiatric Association says that one of the most common causes of stress is the workplace. Creating opportunities for employee recognition can help manage stress in the workplace by showcasing a job well done. This type of praise can lead to more engaged employees.

The only thing worse than not having an employee recognition system in place is having one but not using it. A stagnant recognition system is essentially a metaphor for “you don’t matter.”

Employees that feel unappreciated will reflect poorly on business and productivity. Some workers might wonder about their job performance and, in turn, stress about whether they’re meeting company standards.

How To Show Recognition for Employees

Reflecting on and rewarding employees for their positive achievements and actions holds numerous benefits for the employee, the team, and the business.

There are hundreds of ways to recognize employees for their efforts. Knowing your employees will better help you gauge which type of employee recognition is best for your crew.

Host Monthly Recognition Meetings

Peer-to-peer recognition is vital for building relationships within the company and making employees feel valued. Hosting monthly recognition meetings encourages staff to come together and recognize one another’s achievements.

Allowing employees to nominate one another for different achievements is both uplifting and motivating. It also shines a light on the type of performance expected from the team.

Encourage Goal Setting and Recognize Goal Achievements

Set goals as a team and inspire team members to reach those goals through goal achievement programs.

These programs can offer prizes, bonuses, or other incentives to show employees that they’re valued. It also spotlights their hard work.

Hitting that goal feels excellent, but when others celebrate that success, the feeling is multiplied exponentially.

Allow employees to get involved with the program. Let them set challenging, realistic goals and ask them for their input on incentives.

Getting the staff involved enables a company to tailor the program to the unique workplace and team members.

Thank the Team as a Group

After a big project has ended, thank the group as a whole. Send customized eCards or emails to all team members, expressing gratitude for their help.

In recognizing the significant achievements of team members, presenting a top crystal award can enhance the sense of accomplishment and appreciation. Such awards not only celebrate success but also stand as a testament to quality and excellence, embodying the values and dedication that drive employees to go above and beyond.

Mention specific achievements wherever possible, as this will allow other members to see the accomplishments of their team members and their own.

Provide Positive Feedback Immediately

Praising immediately and specifically is highly effective, especially when explaining how their work contributed to the organization’s betterment.

A grand gesture isn’t always needed to show employees that they’re valued. In some cases, extreme displays of appreciation can be viewed as insincere. Knowing your employees is key to recognizing their efforts in a way that works for them. 

Sometimes, all it takes is positive feedback from a manager or higher-up to make an employee feel heard and validated. Instead of only telling employees what they can improve on, make it a point to mention what they’re doing right.

A Simple Thank You

For employees that prefer private recognition, something as simple as a thank you card on their desk can hold a lot of weight. It is essentially a quiet celebration of their efforts. It reminds them that they’re an asset within the workplace and they matter.

Employees who know that their actions are noticed will create a more profound, positive workplace connection.

Take Care of Your Employees

Treat employees with dignity and respect. Staff should feel as though their work is valued and that they contribute to a cause that matters.

When they speak, listen. Let them know that their voices are heard and they are an asset to the organization. They are, after all, the wheels that keep the machine turning. For smaller companies, there are many low-cost options for employee appreciation.

There are also a lot of employee recognition software programs on the market that can take care of some of the administration issues for you.


Employers who reward achievement, new behaviors, anniversaries, and milestones through employee recognition programs have higher retention rates and employee engagement than those who don’t.

Employee recognition is critical to employee happiness, which is linked with customer satisfaction. Elevating employees is essential to the overall success of a business, and it doesn’t have to be grandiose.

Something as simple as a thank you card can boost morale, increase productivity, and build positive relationships within the workspace.

As one of the leading atlanta engineering staffing agencies, we help employers recruit engineering, design, and IT Talent. Contact us about our Engineering recruiting services or IT staffing services

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