Why Frequently Recognizing Employee Contributions Is Essential

What is employee recognition and why is it Important?

Employee recognition is defined as the act of managers and other leaders publicly recognizing and appreciating the accomplishments of their team members. The success of a firm depends heavily on recognizing employee contributions, which can come in many different forms. The type of employee recognition program that a firm chooses is crucial in fostering workplace engagement, increasing productivity, and retaining talent.

A carefully planned and executed employee recognition programme can do wonders for a company. It can have a favourable effect on motivation, purpose, morale, performance, and production. Employee engagement levels increase even further when their contributions are acknowledged.

Key is to recognise employees. They won’t give it their all if the company doesn’t value their efforts and treats its personnel with respect. Thus, rewarding employees is essential to success. These are some reasons why it’s crucial to recognise your workers.

Five benefits of recognizing employee contributions

Promotes excellence

Employee appreciation and empowerment are encouraged by employee recognition, which improves relationships and gives people in the workplace a sense of direction and purpose. All of this leads to developing an excellent culture where team members constantly strive to improve and advance the business.

Increases engagement

Employee engagement is influenced favorably by employee recognition. Giving credit to employees who are already engaged has a greater impact. Recognizing employee contributions can go a long way toward making workers feel valued for their accomplishments.

Creates a sense of shared purpose

Employees feel more grateful and committed to the company when their efforts and contributions are acknowledged, and this fosters a feeling of purpose among the workforce as a whole. Their shared sense of purpose, beliefs, and ideals, which they share with one another and the entire firm, become profoundly ingrained in their behaviour and perspective, leading the organization toward success.

Profitability and trust are interdependent

Trust follows dedication. Profitability will come after there is trust in the company. It follows that trust in the organization and profitability are closely related because employees who have confidence in management and its leaders are more likely to love their work and be engaged. In showing their appreciation for their employees, employers can foster a culture of trust that encourages job satisfaction and improved performance.

Provides objective performance information

An employee recognition programme provides management with unbiased, real-world performance data that may be used to pinpoint top performers and get insight into the team dynamics and corporate culture.

Benefits of Employee recognition (1)

Also Read: 10 Ideas For Employee Recognition Programs For Remote Teams

What is the best way to recognize employees?

Employee awards and recognition will differ depending on the organization. Depending on the organization’s needs, different employees receive different awards and recognition. Depending on its particular requirements as well as the requirements of its employees, the business must determine the most meaningful approach to show its appreciation for its staff.

Written gratitude

Writing a thank you note may seem elementary, but it may go a long way toward expressing gratitude for an employee’s effort. Receiving a thank-you note, whether it’s written by hand or delivered by email, is incredibly encouraging. It serves as evidence of the worker’s contributions.

Applauding in words

Verbal praise is a peer-to-peer type of appreciation for a team member’s efforts at work, delivered by coworkers. It is still a part of an employee recognition program even though it is informal and unwritten and has great potential.

Spot rewards

The name “spot bonuses” refers to bonuses that are awarded immediately. These are usually tiny bonuses offered in appreciation for contributions. Spot bonuses have a significant impact since they are provided right away, as soon as the contribution is made; “now” is the greatest time to express gratitude or appreciation.

Applaud employees for good workAlso Read: Tips for Employee Recognition and Rewards

Few employee recognition ideas that can work in your business:

10 effective suggestions for rewarding employees –

There are several options for rewarding employees. Some of them can appear to be extremely simple. They can, however, be exceedingly powerful. Companies must carefully craft their concepts and make sure their employees find value in them. Here are a few noteworthy suggestions:

  • A system of awards based on points
  • Employee feedback surveys on recognition
  • Recognizing employee efforts in public
  • Celebrate achievements
  • Honor individual accomplishments.
  • Integrate employee appreciation into the corporate culture.
  • Write a thank-you note
  • Motivate managers to recognize others
  • Encourage peer-to-peer praise
  • Reward career advancement

Celebrate milestones

Celebrate significant career milestones for employees. An employee’s dedication to the organization, for instance, can be shown by celebrating a work anniversary. Unquestionably something to be honoured for and compensated for as a thank-you gift. Give the worker the chance to choose the gift they desire. Add a note from coworkers, managers, or the CEO to make it more special and significant. This will help to create a milestone that will be remembered.

Celebrate personal achievements

Remember that employees are more than just workers at all times. Since they are unique people, acknowledge them for both professional and personal accomplishments. Examples include:

  • Gaining fresh knowledge
  • Working together with a teammate
  • Fulfilling a target
  • Achieving a goal for health and wellness

Integrate employee appreciation into the corporate culture

A strong corporate culture is built on the foundation of employee recognition. It has a favorable effect on the company’s success. When a company promotes a positive workplace culture, it not only wins over its workers and has higher employee retention, but it also wins over job searchers. It consequently becomes a highly sought-after workplace and draws top talent. The actions listed below are some that a company can do to begin establishing a culture of recognizing employee contributions:

3 ideas to promote employee appreciation in your company

  • Make team, leadership, management, and peer-to-peer appreciation a regular occurrence.
  • Decide on a few positive qualities that align with the values of the firm, and then link recognition to those particular traits. When employees are praised for their good work, it inspires them to continue acting in that way, which in turn affects the culture of the organization.
  • Social recognition involves expressing gratitude to staff members verbally or in writing. This is yet another method of incorporating employee recognition into organizational culture. For social recognition to be effective, it must be provided immediately after an employee performs something deserving of it, rather than waiting until the next internal meeting to bring it up. When it is done at the moment, it is more memorable and effective, and it is also more likely to be repeated.


Also Read: Is Employee Recognition Only About Employee Perks?

Compliment the person

A straightforward thank-you message can convey a lot. It has a personal touch and the potential to be quite profound. It may be typewritten or computerized. It’s a technique of communicating to the employees that they are valued and that the management and company appreciate what they have done. While composing the note, keep the following in mind:

  • Be thorough when describing the work or contribution.
  • Describe the impact the work had on the organization.
  • Truly thank them for their efforts.

Motivate leaders in recognizing employee contributions

It has a good effect on their morale and productivity when top management acknowledges their employees’ efforts. The recommendations that are given below are for commendation:

  • By frequently praising staff, leaders can serve as examples for their group.
  • Organize gatherings to thank the best performances in front of the public.
  • Encourage and promote a recognition culture across the entire firm in meetings with top management.
  • Find out whether financial or social rewards are the most effective method of employee recognition.
  • Provide leaders with simple ways to recognize team members, such as one-click recognitions, so they can choose that choice if they are too busy to go through more involved recognition procedures.

Promote peer-to-peer recognition

Recognition from peers is equally as vital as acknowledgment from leadership. They work with these people, and thus being acknowledged by them fosters feelings of comradery, trust, belonging, and well-being. It aids in fostering a positive work atmosphere and can improve employee performance. These are some suggestions for implementing peer recognition in the workplace:

  • Ensure that all employees, whether on-site, traveling, or working remotely, can participate in the employee recognition program.
  • Ensure that all employees have the opportunity to comment on and be a part of employee recognition celebrations, whether it’s an anniversary or a personal achievement. This can also be done digitally, with all team members signing and personalizing the digital card with a special message of thanks.
  • Make it simple for colleagues to recognize team members, such as one-click recognition.

Recognize and reward professional development

Excellence in performance must be recognized. It is a way for the organization to show their employees that their contributions and exemplary work are appreciated. It encourages employees to stay with the company in the long run, resulting in higher retention. Rewarding employees do not always have to take the form of a promotion; there are other options. More autonomy, for example, or more responsibilities. It’s a way of putting faith in the employee.

If the employee earns a new certification, give them new business cards that display their new certification credentials and a gift to show them how delighted the company is with them. Give an employee the chance to attend a conference or training if they have reached or exceeded the target.

Make sure to publicly recognize them across the entire organization; this encourages others to adopt similarly admirable traits and demonstrates to them the company’s commitment to employee success.

Top Employee Recognition Statistics 2023

  • Surprisingly, 65% of Americans were not recognized in any way last year.
  • Only 31.5% of US workers report feeling engaged.
  • The most typical form of appreciation is for years of service.
  • Employee engagement is higher in the first six months of employment.
  • If they received at least one recognition per month, 75% of workers would be happy with their jobs.
  • Productivity is boosted by happiness by 13%.
  • According to some estimates, peer-to-peer recognition has a 35.7% greater effect on financial outcomes.
  • If recognized, 63% of workers would remain in their current position.


Also Read: Why Do Employee Recognition Programs Fail?

Demographics-Related Statistics on Employee Recognition

  • According to Canadian studies, just 12% of workers switch jobs in search of a higher salary-

Businesses assume that individuals leave their jobs in order to make more money elsewhere, but 88% of Canadians identified 11 additional reasons, including poor management, a lack of professional advancement, poor cooperation and communication, a lack of training, a ton of work, and inadequate tools and resources. The fifth-place finisher was a lack of recognition at work.

  • According to the most recent employee recognition statistics for the United Kingdom, engaging employees outside of the workplace has a significant impact on performance –

This does not mean engaging your employees outside of work; rather, it means caring for and catering to employees outside of the business aspect. For example, Specsavers, a British company, wants to provide optometric services to its employees and is collaborating with Reward Gateway, a company that offers its engagement platform in the form of eVouchers. Employees can use the vouchers to get the necessary eye care.

  • The Australian HR Institute strongly recommends customising employee benefits –

Ben Thompson, the CEO of the HR platform Employment Hero, asserts that giving younger employees access to a gym membership, a fancy gadget like Bluetooth headphones or a tablet, or even a cheap mobile phone plan will increase their productivity.

Employee recognition statistics for Australia show that as employees enter their late twenties and thirties, health and life insurance, credit cards, and restaurant discounts become increasingly important, whereas older employees will be looking for more leisure time, such as vacations, which is why different types of benefits should be available within the company.

Also Read: Best Employee Recognition Ideas For 2023


As previously stated, there are numerous methods for implementing employee recognition in the workplace. But, at the most fundamental level, what matters is the company culture; a company culture that believes in its employees and recognizes the value of recognizing employee contributions. This is the foundation of any successful organization.

Furthermore, employee recognition statistics show that, while monetary compensation is appealing, it is not the only option. Other alternatives to employee recognition in the workplace can do just as much for your company while costing less and making your team happy and satisfied at work.


Frequently Asked Questions

Q1. Why do employees need both recognition and appreciation?

Ans. Employees need both recognition and appreciation for several reasons:

  • Motivation and Engagement: Recognizing and appreciating employees’ efforts boosts their motivation and engagement with their work.
  • Job Satisfaction: Acknowledgment and appreciation contribute to employees’ overall job satisfaction.
  • Psychological Well-being: Recognition and appreciation positively impact employees’ psychological well-being, reducing stress and enhancing mental health.
  • Building a Positive Culture: A culture of recognition and appreciation fosters a positive work environment, teamwork, and morale.
  • Retention and Loyalty: Recognized and appreciated employees are more likely to stay loyal to the organization.
  • Performance and Productivity: Recognition and appreciation directly influence performance and productivity.

Providing verbal praise, rewards, career development opportunities, and meaningful feedback helps create a positive work environment, enhancing engagement, satisfaction, and business outcomes.

Q2. Recognizing employee contributions examples: 

Ans. Some examples of recognizing employee contributions include:

  1. Verbal praise and acknowledgment in team meetings or one-on-one conversations.
  2. Employee appreciation events or celebrations.
  3. Employee of the Month or other recognition programs.
  4. Awards, certificates, or plaques honoring achievements.
  5. Publicly recognizing employees through newsletters, internal communications, or social media.
  6. Providing opportunities for professional development or advancement.
  7. Monetary rewards, such as bonuses or performance-based incentives.
  8. Offering flexible work arrangements or additional time off as a token of appreciation.
  9. Giving personalized thank-you notes or messages.
  10. Providing opportunities for employees to share their expertise or lead projects.

These examples demonstrate various ways to recognize and appreciate employees’ contributions, fostering a positive work environment and motivating them to excel.

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5 Keys To A Successful Employee Recognition Program

Employee retention is very important for every organization and an employee recognition program is the key tool to retaining employees. An employee recognition program allows employees to appreciate each other for their contributions to the organization. It improves employee engagement, reduces turnover, and boosts morale.

But most employers, even if they know the importance of employee recognition programs at the workplace, cannot get employee recognition done right. To be successful, every recognition program should follow a few simple guidelines.

Continue reading “5 Keys To A Successful Employee Recognition Program”

How to create an employee recognition program that works?

Acknowledging an employee’s achievements can have an excellent impact on return on investments. Not only it improves productivity levels, but also boosts business outcomes. This itself is a good reason for organizations to focus on employee recognition program.

But it is a tedious process and not a one day activity. An organization needs to plan for the right and effective programs and recognition ideas in order to achieve the best possible outcome. Effective recognition strategies can help enhance engagement levels and boost employee morale. Before we look into tips to create employee recognition programs, let us understand more about employee recognition.

Also read: Creating a Performance Based Culture in Your Organization

What is employee recognition? 

An employee  recognition program is mainly about acknowledging the dedication and effort an employee puts in as an individual or as a team member. Based on this, one’s contribution to the organization gets evaluated and an employee gets suitably rewarded, which consequently helps to build a motivated workforce for the company. This involves establishing an emotional connection between employee and company, supporting their work and contribution towards the company as long as they maintain the company’s standards. The idea behind an employee recognition program is to make the employee feel that they are valued in the organization.  

Why are employee recognition programs important?

The employee recognition initiatives should have that spark and element of surprise to appreciate the contribution of employees and talk about their subjective behavioral approach. Intangible reward and recognition programs create a lasting impression on an employee and to create memories better than monetary benefits. It drives in value and impacts on company culture, with better employee engagement. 

What are the benefits of recognition programs?

The more satisfied an employee feels, the higher his performance would be, which impacts productivity. Increase the positive mindset among workers and encourage them to notice each other’s accomplishments. It improves work culture, contributing to the success of the organization and promotes a healthy work environment. Other than that, it is a key component in building a successful team. 

  • Boosts Morale 

A well-thought employee appreciation program is sure to boost employee morale, especially after difficult times. Recognizing an employee’s contribution at any point in time is advantageous for the company. It motivates them to put in their best. 

  • Higher engagement 

Engagement states the emotional commitment of an employee with organization and dedication to achieve goals. When an employee feels valued at work, it will increase desire to go the extra mile for the company and accomplish his mission, boosting the engagement level with the company. 

  • Helps Perpetuate Company Culture 

Employee recognition program helps perpetuate a positive work culture. New talent value workplaces which focus on culture along with the financial benefits. A culture of rewards and recognition creates a culture where employees are valued for their hard work.

  • Lowers turnover 

Bad bosses are often the reason for employees to leave a team or company. This potentially impacts overall turnover, which can be rectified by working on employee manager relationships. Employee recognition initiatives can revive the lost spark with appreciation and communication. It is certain to help the employee decide on staying.

Also read: 5 Best Tips To Reduce Employee Turnover

How are rewards and recognition different?

Tangible rewards with financial value are more appreciated by employees, however, money alone cannot make up for a memorable company recognition program. Intangible rewards are also appreciated in organization, and turns out to be a memorable moment. To make it significant, adding cash rewards can help. 

According to study, ‘Getting beyond Money’ it is praiseworthy to note that rewards and recognition from managers motivate and work wonders. An organization has to think creatively to appreciate employee’s hard work and plan for recognition or reward programs, adding monetary benefits to it. The main reason for investment is to get a good ROI initiative. 

How to plan for employee recognition programs?

Employee recognition initiatives should be impactful, engaging and ultimately help in improving retention. This would help employees to connect with rewards, knowing their personal contribution and the value it brings to the company.  

  • Have a standard framework for rewards and recognition approved by the leaders
  • Try to plan for the employee recognition program on a consistent and regular basis to keep up employees’ motivation 
  • Employees should know the criterion for recognition and rewards    
  • Don’t settle on a one size fits all approach

10 Employee recognition program ideas

Some innovative employee appreciation programs can make your employees feel loved and cherished for the work they have done for your organization. 

  • Spot bonus

When an individual meets goals, do something admirable on the spot, beyond what they could imagine. It is to appreciate their effort, with something more than just words of praise. This is where a spot bonus works the best. It is a great option to appreciate and encourage teams for their collaborative approach, and it especially means a lot for a distributed team.  

  • Employee care package 

Reward employees with a suitable care package filled with items that show how much the organization cares for them. It should include gifts, certificates, notes, wholesome snacks, games, and others. The items should be carefully selected and lovingly arranged to deliver an impact which turns out to be bigger than any other gift. You can also prepare packages to be sent to employees via logistics service and get customized ones that suit your requirements. This makes it a lot easier to prepare for a care package and will have a great impact on recognition of employees. 

  • Peer-to-peer appreciation

Recognition from leaders is as important as from colleagues and peer-to-peer recognition and works as the key to engagement and retaining it, impacting on a positive work culture. Make peer-to-peer recognition an easy thing to encourage with Engagedly’s recognition and rewards tool. Give badges and value points to drive in attention, and appreciate hard work in the best way possible. Encourage employees to appreciate any instance of positive contribution.  

Also read: A Guide To Share Effective Peer Feedback
  • Give Surprise Leave 

Given the present situation, work from home is not an easy thing to do. With extended work time boundaries, work-life balance can be challenging. However, when it is time for employee recognition in such situations, giving a surprise day off is the best thing you can do to appreciate one’s hard work. The benefits enjoyed by this make it one of the best virtual recognition ideas to value an employee.  

  • Performer’s HAT

A performer’s HAT, or a badge, can be gifted to top employee performers and show them respect and value. It is a proud moment for the achiever and other employees will feel motivated to get the HAT in future. 

  • Give a shout-out

Given the present virtual mode of work, shout-outs on social platforms can be impactful. Try to send the note written in heartfelt words, and it is a super effective way to recognize employees. The congratulatory announcement should have elements of surprise, making the employee or the team happy and they are grateful to the company for recognition of their victory. 

Also read: Tips To Manage Stress Of Your Remote Team
  • Digital recognition works

In-house recognition is definitely special, but digital recognition can also do wonders. Technology helps you recognize an employee’s hard work in such a way that customers also get to know about the achievement. 

Other than having leaders’ names on company websites, including a section to mention names of top performers, showcasing their achievement is good to recognize them. This is a great option of digital recognition that acts as a powerful motivator for an employee. 

  • Virtual wall of fame 

It increases the chance of social recognition of an employee by publishing rewards for the employee. Try to create a live feed section where employees and colleagues can post about success stories of achievement and congratulate each other virtually. Social participation through likes and comments will make the recognition worth it. 

  • Help Setup Employees Workspace

It is both a fun filled and practical approach to celebrate victory and value them for employees. Try to get something for a workspace and it is a daily reminder of how much they are valued and appreciated for hard work. To boost up the overall sentimental effect of gifting the person, try customized options. 

  • Take advantage of employee recognition platform

Incorporating Engagedly’s recognition platform is an excellent way to practice recognition in the workplace. A good platform makes social recognition smooth and it can become fun and hassle-free with these mobile friendly platform options. Try to showcase the recognition in such a way that it highlights the positive behavior of the employee. It can boost the result by allowing employees to add and contribute to colleague’s recognition for better appreciation. 

How creative feedback can motivate employees?

If you have received it once, you must know its magic and how it can work wonders on an employee. Try to give feedback publicly as it is a great motivator for employees and helps them earn confidence in what they have succeeded and achieved for the company. A creative and consistent feedback to employees will help them know where they actually stand and where they should improve. 

Besides, it gives direction to a team to understand how much they have progressed towards their goal. It can encourage an employee, motivate him and help him identify his strengths better. Focusing on result-oriented feedback can develop better connections and thus, a good choice for recognition program ideas. 

Also read: Continuous Feedback: What Is It And Its Benefits

How can rewards be a part of an employee recognition program?

One should understand the value of rewards for encouraging employee motivation. Rewards, more than monetary benefits, can drive people to contribute more and get effective results from recognition programs. As rewards are directly connected to productivity and achieving goals, it spurs one to dedicate effectively and try to be productive. People will be happy to work hard when they get appreciation via excellent recognition plans, and study states the same. It also results in high morale. And a happy employee will maintain the productivity level and put in more dedication to achieve success at work. 

List of reward programs for employees 

1. Custom made option 

Standard rewards are good to appreciate, but customized rewards have a higher chance to motivate. It can be something of specific interest to the employee and the HR team has to keep a close watch on every individual in the team and reward accordingly. 

2. Creative reward 

Creative approach to appreciate efforts and hard work always creates lasting impressions and keeps one motivated. A creative way to reward is to show the caricature of an employee’s achievement and mood.  

3. Monetary incentive 

Monetary incentive is always a lucrative option and boosts employment engagement greatly. A well thought incentive program can boost performance level to a great extent. If an employee helps increase the sales funnel or cut on expenditure, part of the benefit should be shared with the performer. This incentive program should be like rewarding the contribution of the person who will be motivated to perform well and drive in future goals for the company. 

4. Development and learning event 

Encourage and arrange for scopes of learning and development events for employees as part of reward programs. If they are part of an online developmental course, it will motivate them and can become a competent person, contributing positively to the company. However, this motivates the employees to take up bigger responsibilities for the good of the company.  

5. Personalized gifts and gift cards 

 As rewards can have lasting and personal impressions, a custom-made gift item or card can be the best option. In this virtual organization setup, gift cards are sure to work the best. They will have the option to encash it from their favorite ecommerce site. 

Also read: Employee Burnout: What You Need To Know About It

Therefore, rewards and recognition are an excellent approach on part of HR’s strategy and boost the organization’s culture. An employee’s motivation and interest will make him dedicated to work. Given the present work mode and culture, this emerges as an effective tool and helps with enhanced participation, increases motivation, helps improve team efficacy and helps organizations to foster a better work culture. 

Learn how Engagedly can help you implement employee recognition programs in your organization by requesting  a demo with us.

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5 Creative Employee Recognition Program Ideas

Regular employee recognition has many benefits. When employees are recognized, employee retention, engagement, and motivation are increased.

Continue reading “5 Creative Employee Recognition Program Ideas”