The Recognize Book
Benefits of Great Employee Recognition Programs
Recognizing and valuing employees’ efforts is a basic human need. By acknowledging and appreciating their unique contributions, employees will develop stronger bonds with their work, team, and the organization as a whole.
Better Employee Engagement
Studies (See graphic) indicate that a significant portion of the American workforce, only around 30-35%, are engaged in their job.
This highlights the need for organizations to improve employee engagement. One effective way to do this is through employee recognition programs.
Research has shown that when employees are acknowledged and rewarded for their efforts, it increases engagement and motivation. This leads to higher productivity levels and a more positive work environment. Employee engagement is vital as it is closely linked to overall employee performance and satisfaction. Engaged employees are more committed, productive, and motivated to achieve their goals.
To improve employee engagement, it’s crucial to consistently recognize and celebrate their accomplishments and express appreciation for their contributions to the organization.
A 2005 study from Yale found that employees who received praise, even when automatic, worked harder than those who didn’t receive recognition. Even a simple acknowledgment from a peer or manager can increase productivity. You can read more about the study here.
For employees, recognition is reassuring that their efforts are noticed, acknowledged, and appreciated. Praising employees for their outstanding performance on specific tasks sends the message that this type of work is valued and desired, increasing the likelihood of it being repeated.
Here are a few tips for increasing productivity:
- Recognize based on your values and behaviors that warrant recognition
- Ensure recognition is immediate
- Ensure managers are empowered to give recognition to their team. Give monthly training
- Tie recognition to company goals
- Make recognition consistent
Malcolm Gladwell, the author of “The Tipping Point,” explains how even a small act of appreciation and recognition can significantly impact human behavior. This idea is also relevant in the workplace, where showing employees they are valued and appreciated will have a positive effect on employee retention and recruitment; therefore, setting up an effective employee recognition program can be a crucial tool for businesses to hold onto their top performers and attract new talents looking for a positive work environment.
Employee loyalty and recognition can be measured by tools such as the Employee Net Promoter Score (eNPS), which measures the likelihood of an employee recommending their company as a place to work. It is a way to determine how happy and loyal your employees are to your company. Research shows that the happier your employees are, the better your business will do.
A good eNPS score varies by industry, but generally, a score of 50 or above is considered excellent, while a score of 10 or below is considered poor. Companies can improve their eNPS score by addressing the concerns of Detractors and working to increase the number of Promoters. This can be done by providing opportunities for professional development, improving communication and feedback, recognizing and rewarding employees, and fostering a positive work culture.
See more about Recognize’s eNPS
Better Core Values Alignment
A survey by Gallup shows that only 27% of employees strongly believe in their company’s values. Less than half strongly agree that they know what makes their organization stand for and what makes it different. This highlights the importance of reinforcing company values and creating a culture in which they are actively practiced and valued.
One way to achieve this is by implementing an employee recognition program that rewards employees who exemplify the most important values that the organization holds. This reinforces the values in employees’ minds and motivates them to embody these values.
Darius Mirshahzadeh, in a recent podcast, highlights this as an essential element in creating a strong company culture and maintaining a cohesive team. You can check that out here.
Many CEOs recognize the importance of employee recognition in reinforcing company values. According to Mark Zuckerberg, CEO of Facebook, “We want to create a culture where people are rewarded for building and maintaining the culture we want.” Tony Hsieh, CEO of Zappos, said, “Culture is not just one aspect of the game – it is the game.”
By attaching rewards to the core competencies, you empower your employees to bring what the company values most to life. This makes the rewards significant because they’re connected to the beliefs and culture of the organization.
Improved Employee Retention
Managing employee turnover is a common challenge for organizations, as high turnover rates can eat into the bottom line. Employee recognition programs can be an effective tool for reducing turnover.
- According to a study conducted by Office Team, the aim was to determine the significance of appreciation in the workplace, and it was discovered that 66% of employees would resign from their job if they did not feel valued.
- A survey by Gallop that companies with a strong culture of employee recognition have a 31% lower voluntary turnover rate than companies with weak recognition.
The key is building a culture that prioritizes recognizing and rewarding employees for their hard work and achievements. When employees feel that their contributions are acknowledged and valued, it leads to higher engagement, job satisfaction and, ultimately, reduce turnover.
With Recognize, companies find it easy to celebrate, award, and share appreciative feedback with employees.
“96% of staff who used the Recognize employee recognition platform feel more connected with their employer and 90% want to stay longer with their employer.”
Alex Grande, CEO of Recognize
Improved Customer Satisfaction
As employees are often the first point of contact for customers and potential customers, it is essential to ensure that they are motivated and engaged in their work. Recognition programs are crucial in promoting a culture where employees are recognized and valued for their contributions.
Using badges on the Recognize platform is a way to encourage employees to exhibit behaviors that align with company values, such as prioritizing exceptional customer service and e collaborating on projects that positively impact the customer experience. By recognizing and rewarding employees for these behaviors, organizations can motivate their workforce to prioritize customer satisfaction, contribute to a positive work culture, and ultimately enhance the customer experience.
According to, Data from SHRM, 35% of companies with formal employee recognition strategies see an increase in customer satisfaction.
Better Management-Employee Relationship
Research by Cicero Group shows that 50% of employees believe they improve their workplace relationships and develop trust in the higher-ups when managers appreciate them.
Recognize allows managers to be notified every month of which employees to recognize. This ensure managers show appreciation and build relationships with their team members.