Why is employee recognition important? 7 benefits of successful schemes
More and more companies are making employee recognition and rewards a priority in their business. After all, where would you be without the people who dedicate their time and talent to your business goals?
Employee recognition and rewards should always be a priority — they’re not sneaky tricks to boost sales for the next quarter. Instead, recognition should be routine. When you recognise and reward hard work on a regular basis, you’ll reap more benefits than just those temporary peaks in productivity.
Let’s look at how long-term and regular employee recognition will improve the happiness of your employees and your business.
Recognition and reward — why is it important?
Recognising hard work and rewarding your employees is important for both them and your business because:
- It boosts teamwork and productivity
- It promotes a collaborative environment
- It helps retain top talent
- It makes your business more value-oriented
We all want to feel valued and appreciated, and a pat on the back from our peers and managers feels good. Recognition and reward are two of the most powerful motivators for productivity. Moreover, when employees receive appreciation for their work, it gives them a sense of fulfilment because they know what they do matters.
![smiling woman at meeting with colleagues]()
Recognise, reward and retain
When working on employee recognition, think recognise, reward, and retain.
Imagine a Maslow-like pyramid. At the bottom there is recognition, the most basic need. Next is reward, and eventually, at the top is retain.
However, rewards should only be given if there’s already a general culture of recognising hard work. If this is not the case, and rewards are only achieved for exceptional sales results for example, this isn't a good employee experience.
People who can't contribute to sales, such as HR managers, will feel left out. They could never win that voucher or bottle of champagne simply because of their job description.
So, start building an environment where recognition is given everywhere, and rewards can be earned by everyone.
The benefits of successful employee recognition programs
Here are what companies often see happening once they start giving their employees the praise and perks they deserve.
1. Boosts workplace culture
Are you looking for a way to boost morale and, more importantly, maintain it? A recognition programme is the solution.
When employees lack motivation, and their spirits are down, it’s very likely they don't feel they get the recognition they deserve.
To break this cycle, start rewarding employees for actions that promote company values. So, reward employees not just for how they handle things with customers, but for how they treat each other.
This improved workplace culture won't go unnoticed outside of the office. It will also positively impact customer relationships.
2. Increases productivity
Be clear about what people can expect when they work harder.
It’s quite simple. When a manager recognises an employee for a job well done and rewards them for it, the employee is more likely to do that again.
Choose to give employees rewards for work that really matters and contributes to long-term goals. This helps everyone see how their efforts fit into the bigger picture.
3. Boosts employee morale
When employees are not properly rewarded, they may feel like they’re being taken for granted, especially when going above and beyond.
Often when people work extremely hard and feel it’s for nothing, they'll leave or drop their can-do attitude after a while. Prevent these negative feelings by proactively rewarding your employees with things that matter to them.
4. Engages employees
Disengagement is estimated to cost companies an average of $17,000 per year based on the average salary ($50,000).
Disengaged employees don't just lack in productivity, creativity and innovation — they also take more sick days and need to be replaced more often.
The good news is that it doesn't have to be this way, and it doesn't require insane perks or company trips to the Bahamas.
Employees who are disengaged often don't see the value of their work, and it's often because their work is not valued. Sure, they get paid, but everyone does.
When employees are disengaged, the disengagement seeps into workplace culture. People do the bare minimum or less because they feel it doesn't matter, and customers are faced with lethargic employees who are clearly ready to go home.
Turn that frown upside down by making recognition part of the employee engagement strategy. Truly engaged employees will lift the business to the next level, by presenting the best version of themselves.
5. Retains talent
If someone is disengaged at their current job, they’re four times more likely to leave. Oftentimes, a lack of appreciation and recognition is responsible.
An organisation can spend all the time, money, and energy on the recruitment process by presenting its company as a great place to work, but once people are settled, they’ll still need to feel valued and wanted.
Employee retention efforts actually start during the hiring process. It's much cheaper to reward employees regularly than to replace them. Plus, when employees stay longer they could become industry experts.
6. Positively impacts teamwork
Recognition and rewards should target individuals as well as teams.
When done right, employees can meaningfully recognise each other’s hard work and not just rely on managers for appreciation.
With Perkbox, employees can show each other recognition, which is recorded in a real-time recognition feed.
Furthermore, managers can attach points to each recognition they send, which employees can save or redeem right away on thousands of rewards.
This will have a huge impact on the way people work together. They can really push each other to show up as the best version of themselves.
7. Instills a sense of purpose
Last but definitely not least — employee recognition will help employees understand how their work ties into the bigger picture. If you reward them for actions related to the values and purpose of your business — rather than just for sales and speed, you will help them see how their work is meaningful.
What is the best way to implement rewards and recognition in the workplace?
Are you thinking this all sounds great but don’t know what’s next? Don’t worry.
Working with a simple tool can make recognition and reward easier to implement for everyone involved. Perkbox enables employees to recognise each other, whether they’re across the desk or on the other side of the world. It also offers thousands of rewards to choose from.
If you’re excited about starting with employee recognition, the next part of our guide will give you some practical tips for making the implementation a huge success.