What Is Employee Recognition? Motivation Is The Key To Success

Employee recognition is an act of acknowledging and showing gratitude to employees for their endeavors.

Normally people think of recognition as an in-person “thank you” or a publicly announced achievement. 

Truth be told, employee recognition comes in many different forms, and can be considered one of the most valuable aspects a team or company can use for better results. If you are looking for a way step above your competitors, consider giving an employee recognition. According to Harvard Business Review, employee recognition can lead to a positive effect on motivation, production, culture, and employee retention rate.

Where Should Recognition Come From?

In a perfect world, every person within the company should be giving employee recognition to others. With that in mind, the best recognition comes from a situation or circumstance that required a great deal of effort or going beyond the normal expectation. 

Top-Down Recognition

Traditional methods of recognition in from the top down top-down. Recognition will come from a manager or boss who witnesses an employees hard work and gives appreciation to their contribution.

Top-Down recognition has been a successful model for years. It involves an employee being recognized by someone in a higher position. It creates an incentive for hard work because it often leads to a promotion or raises. 

However, giving recognition on every given instance warrants it is not easy for management. It requires managers to constantly see everything around them and catalog the events in order to give constant recognition to employees that deserve it.

In truth, there are too many valuable contributions that need to be made every day. It is nearly impossible for a single person to give recognition to everyone who deserves it. This is the main con to a top-down approach.

Peer Recognition

The peer recognition system allows for both managers and co-workers to give recognition and rewards. Peer recognition is effective because managers can congratulate employees based on their overall performance and contribution to the company, while coworkers can also give recognition and rewards to their peers for hard work that is often overlooked by management. Co-workers that work alongside other employees are in a much better position to notice and recognize employees’ specific contributions and how it helps make the company better.

It’s simple. You witness a co-worker’s hard work and you praise them for it.

The pros and cons of bottom-up recognition is noticeably different when compared to a top-down approach! Not to mention, managers should also be recognized. Giving praise for hard work is motivating for everyone. Managers can even benefit from bottom-up recognition because it provides valuable insight to what is working. 

Can A Recognition Program Work For My Team

The short answer is YES!

Here is great example of an employee recognition platform that can help boost motivation.

With a recognition program, employees can praise coworkers for their hard work and give recognition to their achievements. It can create cohesiveness within the company and promote healthy communication, build a better culture and working environment, and motivate employees to do their best work. If done correctly, the recognition program will help inspire good work and welcome employees to show their true value within the company.

When it comes down to it, companies with the best employee recognition systems have seen a 31% lower turnover rate than those without. Not to mention, employees that feel unappreciated are more likely to quit.

It goes without saying, it feels good to be appreciated.

What will it cost?

Companies that don’t have an official recognition program are already spending money to keep the turnover rate lower. Some companies do lunches, organize events, and give company merchandise. This type of recognition can be at random times and takes time to plan and execute. An employee recognition program should be an ongoing process, but also not be a heavy burden on cost.

That being said, it is evident that there is a budget for employee recognition. But the most effective employee recognition program is one that pays for itself. An employee recognition program should have a positive effect on productivity and culture.