Why Employee Recognition is Crucial for Business Success

Everyone loves to get applause… or public recognition of any kind. This is especially true for employees who dedicate almost a third of their life to a company. If you’re running a business, employee recognition is crucial to your success and profits.

But why is this the case? Here, we’re going to talk about some reasons why employee appreciation matters. Read on to make your business more productive and make bank with happy employees.

There Are Tons of Options

Positive reinforcement comes in many forms. When you choose to start rewarding your employees, there are tons of ways that you can begin recognising them. Giveaways, cash bonuses, and social events like parties are all good options. You also could give out recognition pins that people can pin onto their clothes or uniforms.

There’s also no reason to limit yourself to one type of recognition. You could give out awards publicly one day and do a raffle the next. Experiment with different things and see what works out best for your business.

It Motivates People

Recognition programs that give employees cash bonuses are awesome. Everyone likes them and they motivate people to work quickly and efficiently.

But they can also backfire sometimes. Over 50 studies found that they can make employees naturally less interested in work. They could stop people from being happy that they completed tasks and made accomplishments. It’ll all be about the money.

Luckily, you can also recognise employees in the form of appreciation. These systems don’t reward specific tasks or milestones. They just show the person you care because they’re a human being that you like and have a good professional relationship with.

This’ll get people to feel more loyal to you and your business. They’ll be happy to work for you because they feel valued for who they are.


Companies with good employee recognition programs make way more money than those that don’t. Research shows that they’re 31% faster and more productive than other businesses that have similar sizes and audiences. Engagement and productivity also go up by around 14% on an individual level.

Time is money, and faster work and higher productivity can save you a lot of it. In the end you won’t need to pay to have things done slowly. You also will probably have lower levels of human error and won’t need to pay to fix things.

Happier Clients

When your employees are happier, they’re going to be in a better mood than ever before. This is going to reflect in their work and productivity, but it’s also going to come through when they talk to customers.

About 9 in 10 Americans think customer service is the most important thing when looking to work with a business. If you can’t provide them with fast, easy, and comprehensive service, they’re going to go somewhere else. Having employees that are faster and more willing to help will keep clients coming back to your business.

It’s way more expensive to find and nurture new leads than it is to keep someone loyal and interested. Don’t let the good ones get away.

It Brings Employees Together

When you consistently recognise employees in front of each other, they’re going to feel a sense of camaraderie. After all, they see each other every day. They’re bound to be happy for each other’s accomplishments and grow closer.

They’re also going to work harder so that they can be the next employee to get publicly recognised. They’ll want to get some appreciation, too.

This combination of happiness and motivation can really bring people together over time. Make sure that you’re public about the recognition. Give some kind of speech and hang a certificate on the wall for a week or two. This will interest all your employees so that they work smarter and harder.

It Encourages Contributions

People who go above and beyond will always get more recognition. Since people like being appreciated, they’re more likely to go the extra mile for you. If you’re timely and give them the right amount of attention, they’ll feel some instant payoff for their effort.

Immediate gratification releases good chemicals in the brain. They’ll associate those positive feelings with hard work. They’re more likely to put their all into future tasks.

Make a Great Employee Recognition Program ASAP

Employee recognition can bring your business to new heights. When people feel valued, they’ll be more productive and feel greater loyalty to your organisation. Do your research and figure out some ways to make your workers feel important. It’ll be well worth it!

The Key Benefits of Employee Recognition

Employee recognition is a vital part of ensuring your workplace thrives and operates at capacity at all times. The more employees feel recognised and acknowledged, the lower your turnover rate will be, and the higher employee satisfaction is.

Are you wondering what the benefits of employee recognition are? We’re here to fill in the blanks for you below. Get ready to watch the frowns on your employee’s faces turn upside down after you check out these benefits now.

Improves Employee Engagement

There are several levels of engagement that employees take on when they are working for a company. When they aren’t satisfied, they show up to work and do the bare minimum to complete their jobs.

Essentially they are there to collect a check and do nothing else. However, when employees are excited about going to work because their employer appreciates them, it changes how they come to work daily.

They come in ready to put their best foot forward and are more willing to participate in things like employee surveys. This is because they know what they’re saying in the surveys will be heard and that they aren’t just a number to their employer.

Helps Improve Employee Health

There are going to be seasons at work that are considered busy seasons. During these times, stress runs high, which can affect your employees’ health. This can lead to them feeling rundown, but if you begin writing a letter of recognition to employees, you can turn this around. Employees can hang this letter in their work area or reread it at home when they need a motivation boost.

It can act as a motivator for each day to help them continue working toward the goal of the busy season until everything has been completed.

Breeds Healthy Competition

You don’t want people to compete to the point that they become jealous of each other, but it’s not wrong to have employees working hard to achieve recognition and rewards. Employee recognition can be the way to breed and help competition thrive.

If the prize is becoming an employee of the month, who wouldn’t want everyone to see their photo when they walk into the workplace each day for work? It’s a significant pat on the back for everyone to see.

Aids in the Customer Experience

When you own a business, the people who will interact with customers the most are the employees. If they aren’t satisfied with their jobs and not being recognised for what they do, it can affect the overall customer experience.

One bad experience with an employee can lead to the customer never returning to your business again. But, when employees feel like their employers acknowledge what they’re doing, it can put them in a better mood.

This mood will carry through every part of what they do during the workday.

Employee Recognition Benefits Not To Miss

Employee recognition is essential, and it’s not something you want to take for granted. Recognising employees can improve their mental health, and it can make the experience customers have with your business better than it ever could be.