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Why you need a Formal Employee Recognition program
Mandar Bhagwat | February 16th, 2018, 7:59 am

Employee engagement is no longer an obscure term. According to a study by Deloitte, around 87% companies have stated that employee engagement is one of their top priorities. It is what drives them to perform better and give their best to the company in return. This is one of the reasons why more and more companies are investing in a formal employee recognition platform to improve employee engagement process.

Employee Recognition highly valued

Out of all the employee engagement initiatives, recognition is one factor that is highly undervalued. Yet many studies have shown that it is one of the most powerful performance enhancer in the workplace. Companies are increasingly investing in a formal employee recognition platform to improve employee engagement Before you look for the next big thing to inspire and engage your employees to be more productive, this is something you should definitely consider!  You might also want to read Apt Recognition programs can drive 10x engagement

To explain it more scientifically, consider this: When you receive good feedback, your serotonin and dopamine levels rise, making you ‘feel good.’ You crave to repeat those things that brought about this wonderful feeling.

When people are financially invested, they want a return. When people are emotionally invested, they want to contribute – Simon Sinek

Importance of employee recognition in the organization

Increase in productivity:

This one is fairly easy to relate. When employees are appreciated for their efforts, there are further motivated to complete their responsibilities well within time. Everyone is willing to go the extra mile to make sure fewer deadlines are missed. The quality of work getting done too improves over a period of time.

These simple steps make a huge difference to an employee’s productivity which has subsequent impact on the team’s profitability.[irp]

Increase in happiness levels:

Nobody wants to drag themselves to office where they aren’t even noticed for their contributions. There’s a popular saying, ‘Good employees do not quit their jobs, they quit their managers.’ And it is easy to understand why.

Appreciation and recognition are fundamental needs of all employees. Irrespective of their position/designation, they are always hungry for appreciation. Those who are rewarded in this manner are more loyal and seek to contribute proactively. They are happy to be associated with their company, as simple as that.

Decrease in employee turnover:

Employees who get due recognition, are more likely to continue working with the same company for a longer period of time. So the overall costs incurred due to attrition too decreases. It is said that it takes 3 times more expenditure to recruit a new employee as compared to retaining the existing ones. That’s quite a number if we consider the average rate of attrition.

Employees who are happy and willingly stay back act as your brand ambassadors. No matter how much you advertise about your work culture, it is much more believable when your own employees talk positive about the company. It is also beneficial for your reputation in the market and you are able to hire faster.[irp]

Better Communication:

You will be surprised to know that those archaic measures of announcing and awarding ‘Employee of the month’ titles did more harm than good. Team members competed among themselves to win this coveted title. Often at the expense of sabotaging each other’s work or deliberately not helping others when most needed. This adversely affected their team productivity almost all the times.

When individuals are publicly appreciated for their work, it sends out a message to the rest of the team that if they reach such milestones, they too are capable of being recognized by everyone. It is not about competing against each other but actually helping each other to get better so that everyone becomes a winner ultimately. There is a definite increase in teamwork within the organization.


The intent here is to make your employees feel that you recognize their contribution to the company. It is sure to help them feel more valued members of a team that consistently achieves its goals and helps each other out. By doing this, you are also portraying an outlook that their company is much more than just a place of work. It is a lot easier to manage all of this through an formal employee recognition platform to improve employee engagement

Important note:
One thing that the company needs to make sure is that, don’t carry out an initiative just for the sake of it. Often times, some give out hollow appreciation is either not relevant or is not true.  This will never work beyond a level. Your feedback for employee recognition should be contextual and in real-time

Still, many companies overlook this simple step. They are so focused on achieving their goals, or making profits, that they forget their employees are the ones who can make these things possible.

Recognition is priceless. It takes minimal efforts on the part of the management yet it has a huge impact on the employee’s psyche. Start taking the right steps and you will immediately notice a significant change in your work environment.

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