The Importance of Recognition in the Workplace

Recognition in the workplace is a necessary aspect of a robust and healthy company culture. It impacts everything from employee productivity to annual retention rates and engagement. But what does an effective recognition policy look like? 

Read on to learn more about how your organization can utilize recognition to promote a healthier workplace. 

The Benefits of Recognition in the Workplace

Recognition is a powerful tool for employers to improve employee motivation, engagement, and productivity. Employees' recognition for their hard work and contributions grants them a sense of purpose and value within the company. This, in turn, can lead to increased job satisfaction and motivation to continue performing well. Recognition also helps foster a positive company culture, as employees feel appreciated and valued for their contributions to the team.

Another critical benefit of recognition in the workplace is improved employee retention. When employees feel their hard work is acknowledged and appreciated, they are more likely to feel committed to the company and less likely to leave for another job opportunity. This can save employers time and money that would otherwise be spent on recruitment and training new employees. Recognition can also lead to improved employee engagement, as employees are more likely to be invested in the company's success.

Overall, recognition is a crucial component of a healthy and productive workplace. Employers can show employees they are valued and appreciated by implementing formal and informal recognition programs. This can lead to increased motivation, engagement, and productivity, as well as improved employee retention and positive company culture. 

Employers should consider the various types of recognition, such as verbal and written recognition, rewards and incentives, promotion opportunities, and development and training opportunities, to find the best fit for their organization and employees.

Types of Recognition in the Workplace

Employers can use several types of recognition to show employees that their hard work and contributions are valued. One of the most common types is verbal recognition, which involves acknowledging an employee's work through praise or a simple thank you. This can be done in person, over the phone, or in writing and can be a powerful way to show appreciation for an employee's efforts.

Written recognition is another effective way to acknowledge employees. Written recognition can be a manager's or colleague's note, email, or message. This type of recognition is more permanent than verbal recognition, reminding employees that their hard work has been noticed and appreciated.

Employers can also provide rewards and incentives as a form of recognition, such as gift cards or bonuses. This can be a great way to motivate employees to go above and beyond in their work. It also promotes a sense of camaraderie and healthy competition within the workplace. Promotion, development, and training opportunities are also forms of recognition that can show employees their contributions are valued. These elements can build a sense of career growth and progression within the organization.

Employers should be open to utilizing many types of recognition to show their employees they are valued and appreciated. By using various forms of recognition, employers can create a positive and supportive work environment that promotes motivation, engagement, and productivity.

Ways to Use Recognition in the Workplace

There are several ways that recognition can be used in the workplace to show employees that their hard work and contributions are valued. One approach is implementing formal recognition programs, such as employee of the month awards or annual recognition ceremonies. These programs can provide a clear structure for recognizing employees who have gone above and beyond in their work and can be a great way to acknowledge their achievements publicly.

Arnie Malham, Founder of cj Advertising and BetterBookClub, is known for his excellence in workplace culture. One example of recognition he used in his business was providing gifts to tenured employees. At the five-year marker, he would gift employees a letterman jacket. And this wasn't simply a gift they received while walking in the door. Malham would present the jacket to them as a part of a celebration in front of the entire staff. It was a way to say thank you for being with the company for five years. Even if employees didn't care much for a letterman jacket, the idea was that everyone knew they had worked 10,000 hours with the organization and earned the right to be looked up to. 

Upon reaching 10 years with his company, Malham would provide employees with a Rolex watch. He even gifted one employee a baby grand piano. It sounds like an extravagant gift, but Malham understood that having the expertise of employees who have spent an entire decade with an organization is invaluable. In this way, Malham sets an excellent precedent for how companies should reward employees who have devoted so much of their lives to the betterment of their organizations. 

Another way to recognize employees is through informal methods, such as saying thank you or providing positive feedback. This can be done in 1:1 meetings, team meetings, or company meetings and can help build positive relationships between managers and employees. 

Peer-to-peer recognition is another effective way to recognize employees, as it allows colleagues to show appreciation for one another's contributions to the team.

In addition to these methods, there are other ways to recognize employees, such as team and manager-to-employee recognition. Team recognition can be a great way to acknowledge the hard work of an entire team. In contrast, manager-to-employee recognition can provide more personalized feedback and support. Employers should consider the varying ways recognition can be used in their workplace and find the best fit for their employees and organizational culture.

Additional Resources

You can also stay informed, educated, and up-to-date with all things HR by using BerniePortal’s comprehensive resources:

• BernieU—free online HR courses, approved for SHRM and HRCI recertification credit

• BerniePortal Blog—a one-stop-shop for HR industry news

• HR Glossary—featuring the most common HR terms, acronyms, and compliance

• HR Guides—essential pillars covering an extensive list of comprehensive HR topics

• HR Party of One—our popular YouTube series and podcast, covering emerging HR trends and enduring HR topics