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!