Here’s Why You Shouldn’t Skimp on Employee Recognition

There’s one simple thing you can give your employees that will make them happier, more engaged with their work, and more productive. And no, it isn’t necessarily money. It’s recognition. A little praise, some gratitude, and acknowledgment of your employees’ contributions can help them feel like a valued members of the team. Eighty-two percent of employees surveyed say that they’d rather have praise from their bosses than a prize.

But only one out of three American workers say that they’ve received recognition for good work in the past week, according to a Gallup poll. You don’t want your workers to feel like they’re undervalued, and that’s why it’s so important to commit to a solid employee recognition program. Effective employee recognition keeps workers happy and engaged, improves retention, contributes to positive company culture, and boosts productivity.

Recognition Keeps Employees Happy and Engaged

Actively engaged employees are loyal to your company and willing to work harder for the company’s success. They’re not out looking for other jobs and sneaking in interviews on their lunch breaks. They’re not phoning it in out of boredom. They’re interested in what they’re doing and they want to go the extra mile to do a good job. They show up in the morning feeling enthusiastic, and they go home at night in a good mood.

Frequent recognition makes workers feel more connected to their work and their colleagues. It helps them feel a greater sense of belonging to the team, which lays the foundation for enhanced productivity and increased loyalty. It builds trust in leadership – 90 percent of employees surveyed who received recognition or expressions of gratitude from a boss in the last month said they trusted their bosses, compared to just 48 percent who trusted their bosses without getting recognition.

A Recognition Program Can Improve Your Company Culture

Strong, healthy company culture makes yours the kind of place where people love to work. Not only will employees want to stick around, but you’ll also have a real chance of attracting the most desirable candidates when you can offer a healthy company culture. Implement an effective employee recognition program because it will help you achieve that kind of culture in your company.

Employee recognition establishes your company’s cultural expectations. Peer-to-peer employee recognition is especially beneficial when it comes to building a healthy company culture. It strengthens relationships between team members, and even between departments. Regular recognition from management shows employees that they’re not replaceable, but instead valued for their individuality and what they can bring to the table personally and professionally.

Appropriate Recognition Encourages Employees to Stay

According to Gallup, the cost of replacing an employee can add up to one-half to two times that person’s salary – and if you only pay that much, you’re doing well. If you’re not willing to make your employees feel appreciated, then you’re going to have high turnover and high turnover costs. The cost of an employee recognition program is well worth it when you stack it up against the cost of finding, hiring, and training replacements for employees who don’t feel valued by your company. Employee recognition programs quickly pay for themselves in terms of decreased turnover, and that can boost your company’s bottom line.

Employees Are More Productive When Their Efforts Are Recognized

Reduced turnover isn’t the only way employee recognition programs improve profits. They can also make employees more productive, which means you make more money without having to change anything else.

A commitment to employee recognition, and the willingness to thank employees for their contributions to the company, will make the vast majority of employees want to work for your company and work harder. In fact, other than paying more, recognizing your employees’ accomplishments and contributions is the most effective thing you can do to boost productivity and profits. The more often you shower your employees with praise and gratitude, the more productive they will be and the more likely they to stay with your company.

Employee recognition programs aren’t something you should skimp out on. They have a lot of value for your company because they can go so far in keeping employees satisfied, committed to their roles and to the company, productive, and engaged. By all means, if you want a listless, bored workforce made up of people who are actively looking to jump ship as soon as possible, then skip employee recognition. But if you want to build a company that current employees will love and job candidates will jump at the chance to work for, make employee recognition one of your top priorities.

Fawad Malik

Fawad Malik Technology geek by heart, blogger by passion, and founder of, He regularly explores ideas and ways how advanced technology helps individuals, brands and businesses survive and thrive in this competitive landscape. He tends to share the latest tech news, trends, and updates with the community built around Nogentech.

Related Articles

Back to top button