Employees are the backbone of every company. Not only do the employees complete multiple tasks and objectives given to them, but they also communicate and assist the customers and clients daily.

There are multiple methods to recognize and reward the team for their hard work. The benefits of employee recognition programs stretch as far as employee retention, boosted productivity, and increased employee morale and motivation.

There are multiple benefits that a company can access through the recognition of its employees. The aim, however, should not be solely to access the benefits but to enhance the employee experience and motivation within the company.

Why Do Employees Need Recognition and Appreciation?

Employees want to feel seen, valued, and recognized throughout their professional careers. The appreciation and recognition that employers show to their employees will allow them to feel validated. There are multiple methods to display recognition, and employers must adjust their methods to each employee or team.

The open acknowledgment and praise of employee behavior or achievement will show the expression of appreciation to the employees. This will ensure they continue with their current behavior. The employee will receive a reward for their hard work, encouraging them to continue the work and performance they are currently completing.

Statistics of Employee Recognition

Employers have argued against the use of recognition programs. The statistics, however, provide every manager, employer, and team leader that recognition and appreciation are vital to enhancing and increasing productivity and performance.

According to Zappia, companies in the top 20% of those with solid employee recognition programs have a 31% lower turnover rate than their competitors. These companies see a 14% increase in employee performance, engagement, and productivity.

A little effort can go a long way, as Zippia states that an improvement of employee recognition of 15% can increase margins by 2%. The increase in appreciation of hard work and performance will enhance how employees feel about their occupation.

65% of Americans did not receive any recognition in the last year. Employers can start with peer-to-peer recognition, which will have a 37% bigger impact on the employees than financial results. The mere fact that public recognition is not used often leads many employees to find other jobs.

63% of employees will not change their occupation if they receive recognition. However, employers can increase employee performance by 60% if they show recognition every seven days.

Although many companies disregard recognition due to the financial impact on the company, many need to remember that public recognition will cost the company no financial loss. Businesses will lose money to unmotivated employees, underperforming and doing the bare minimum.

List of Benefits Of An Employee Recognition And Appreciation Program

There are many benefits connected to rewarding employees with appreciation and recognition. These benefits are not solely aimed at the employee but will benefit the company in many ways. Each benefit will be achieved through the various programs the employees want.

Healthy Competition Among Employees

Public rewards and recognition are something many employees strive for. Not only will this boost employee morale, more however will create healthy competition among employees. Competition will drive employees to improve their performance through hard work and productivity.

Once an employee is awarded for performance and hard work, other employees will increase their performance to receive rewards and recognition. The key to healthy competition is to reward the employees with recognition in front of the entire team or company. Healthy competition among employees will only grow if the employer appreciates and recognize employees in front of one.

Employee Empowerment

Empowerment enables employees to increase their performance and strive to meet higher goals and objectives. Employees that are empowered aim to complete tasks in record time and will work exceptionally hard to ensure that they grow within a business.

Empowerment, however, starts with the employer or manager. These individuals must build an empowered employee or team by consistently and continuously rewarding them with recognition or appreciation.

The consistent recognition of their hard work will enable them to feel empowered, taking on complex tasks and knowing that they can tackle any objective that comes their way. Employers must provide employees with a stable foundation of recognition programs to empower them.

Enhances Team Spirit

The spirit of a team refers to the atmosphere and the connection between a group. If the team constantly fights, argues, or struggles to work together, the team spirit is low and will decrease motivation, productivity, and teamwork.

Teamwork is of utmost importance in every business. And employers or managers can boost team spirit by regularly recognizing an entire team or members in a particular team. The appreciation will make the team aware of their progress and hard work, enhancing the team spirit.

As the team receives more praise for completing tasks, every member will increase their tasks to ensure they are part of why the entire team receives the praise. No member wants to be the reason why the team does not receive any recognition.

Better Relationship Among Managers and Employee

A strong employee and manager relationship is key to the success of any business. As the CEO or top management sets clear goals and objectives for their managers, these managers must communicate these goals to the employees. As the entire company work towards the goals set by the company’s top management.

Strong relationships between the manager and employee will enhance productivity, communication, and motivation. When the relationship between these two parties is strong, both will respect each other and ensure they assist every member when possible.

Continued recognition and appreciation will improve the relationship between managers and employees within any company.

Check Out Why is Employee Recognition Important? I Explainer Video:

Increases Employee Retention & Loyalty

One of the main benefits a company receives from employee recognition programs is the retention of employees. Managers and leaders must work hard to find competence when employees leave a business. They will spend many hours incorporating the new team member into the company, which will take time, money, and energy.

Employees will stay at a company when they feel validated and appreciated. Consistent recognition will leave employees feeling that their job is essential, leading to staying and working harder than before. With recognition comes loyalty. The employees know they are appreciated and will stay loyal to a company even when other opportunities arise.

Reduces Turnover

Reduction in turnover refers to the decrease in financial spending for the business. This sounds counterintuitive because many connect recognition programs with spending money. A recognition program will make employees feel validated and appreciated throughout the year.

This means that companies can save money on new trainees or employees. The current employees will stay within the company due to the salary and the recognition programs. The aim, however, is to ensure that every individual has high performance, and this can be secured by recognition and validation programs throughout the business.

Alignment with Core Values

Core values are the principles and rules of a company. The company values are the principles and standards used to judge the business’s importance. Through recognition programs, managers and employers can align employees with the company’s core values and culture.

Many companies state that taking care of their employees is a core value of the company. As the statics showed earlier, many employees do not receive any recognition. Companies can reaffirm and align their core values with the employees by creating incentive programs and showing them that they are a critical part of the company.

Increases Employee Engagement

Employee engagement is critical. These individuals work directly with the customers and experience various problems, issues, and ideas daily. The employees know what is happening in their team and will have valuable input to provide to the managers and company leaders.

Many employees, however, avoid sharing or raising any concerns that they face. Through recognition programs, managers can affirm that they are supportive and will assist employees through every step of the occupation. Praising them for their hard work will leave employees motivated and productive. Feeling heard will increase employee engagement and raise the standard of the entire team.

Improves Recruitment By Attracting Top Talent

Word of mouth is a vital tool. This is the same when attracting or recruiting talent from outside the company. A regular recognition program will provide talent with a clear indication of the company’s core values and culture. Many of these talented applicants will fight to work for a company that regularly recognizes and rewards its employees.

Increases Employee Job Satisfaction

Job satisfaction is critical for a recognition program. Employees must be aware of the difference they make within the team and the company. When employees are dissatisfied, they are not rewarded for their hard work. This will lead to low productivity and motivation for even the simplest tasks.

Recognition programs will provide employees with a reward that will boost their job satisfaction. They will feel and witness their job’s impact on others, increasing motivation. High Job satisfaction will also increase engagement, positivity, and emotional well-being.

Improve Well-being and Mental Health

Employee wellness and mental health will impact an entire business. The lack of good mental health will make employees feel tired, negative, and slow throughout the day. There are many reasons for impaired mental health, including the lack of effective recognition.

Employers and managers can increase employee mental health by rewarding individuals or teams with social recognition, showing the employees that they are of utmost importance to the company. This reward program is a step in raising their mental healthy, leading to a positive impact and a productive company.

Does Employee Recognition Drive Business Goals and Employee Morale?

Employee recognition programs are the backbone and drive behind company goals and team morale. The program is set to reward hard-working employees that achieve high performance and complete multiple objectives and tasks within a company. This showcases the importance of these programs to ensure that the company moves forward and closer to its business goals.

Employee morale and positive attributes will be dependent on employee recognition. Employees will lose motivation when there is a lack of recognition and support. Thus providing the employees with recognition rewards is critical to keep a positive, high-functioning, and motivated team within a business.

Is Recognition Important For Leadership?

Leadership aims to lead employees to achieve their highest possible outcome. A leader cannot lead a team when they feel undervalued, demotivated, and tired. Recognition will enable team leaders to focus on complex tasks and aim to complete as many objectives and tasks as possible. Leadership is dependent on recognition.

Leaders must recognize their team through various types of recognition regularly and vice versa. This is also true for top managers and company leaders. They must regularly and consistently recognize their leaders to ensure the company employee and leaders are positive and motivated.

How Can You Improve Employee Recognition at Your Organization?

A company can start small and work up to drastic recognition measures. According to the office vibe, employers can start with peer-to-peer recognition. This is as simple as organizing a meeting with the entire team, in which they will recognize and praise an employee in front of the others.

Another method is through regular one on one meetings where employers and managers can praise their employees for the work that they have completed. The employer must provide straightforward business development programs and opportunities for their employees.

The company can start by acknowledging milestones, tasks, and objective completions, birthdays, and anniversaries of its staff members.

What Can Conference Source Do For You?

Conference Source can solve the problems companies face with recognition programs. The team has experience in team-building events, meeting planning, and employee incentive programs. The team will identify critical aspects within the company, enabling them to identify essential programs impacting it.

Conference Source can take it one step further and plan any incentive programs and trips that the company desires. Their vast network allows them to create, design, and plan an incentive and recognition program to meet company needs.


Why Some Employee Recognition Programs Don’t Work?

Employees are all different. Employee recognition programs that do not work are generally not customized and adapted for the entire team. Recognition programs must be adjusted to a specific employee or team. Some employees want public appreciation, while others enjoy silent recognition. The team managers and leaders must evaluate and analyze their entire team to ensure they know what every employee needs.

What Companies Have the Best Employee Recognition Programs?

Google, Deloitte, and Nike are some companies with the best recognition programs. Companies do not have to compete with companies that have more money. Small businesses can use meaningful recognition programs that are customized for their team. This is what will lead to effective employee recognition programs.

Final Thoughts

A thriving company takes time and effort. Employers, managers, and company leaders must use the time to identify critical personal recognition programs for every employee and team within the company. These programs will boost the employees’ morale, productivity, and motivation and enable every team member to feel validated and appreciated when they perform at their highest possible level.

Sabine Ghali

Kelly Murphy


Certified Meeting planner with 20+ years of event management experience, founder of ConferenceSource, expert in meeting facility sourcing & contracting in North America, Europe, South America and Asia. Kelly will manage your budget as if they were her own, negotiating the best possible rate and hotel contract to benefit and protect every client and exceed all expectations for all planning aspects for sales meetings, educational meetings, product launches, incentive trips down to a small board of directors meeting. We make meetings easy understanding your meeting objectives and delivering meeting matched components.