Why Employee Recognition Matters & How to Create a Culture of Recognition

Source: 9Dot Education Solutions

Why employee recognition matters:

As humans, we are goal-striving beings who are always going to seek advancement. However, we are also wired for connection and we seek the same fundamental needs as everyone else: recognition and appreciation.

According to Worcester Business Journal, “When employees believe leaders are actively trying to create a more human workplace, overall culture metrics improve, including 89 percent of employees who said they felt their company cares about them as a person. This is compared to only 31 percent of employees who did not feel their leaders were creating a more human workplace.”

This continues to hold true as we move into the workplace. According to Great Place to Work, Employee recognition helps to:

  • Retain top talent
  • Increase employee engagement
  • Encourage high performance
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1. Retain Top Talent

According to a SurveyMonkey partnered with Bonusly, “63% of employees who are recognized are very unlikely to look for a new job”. It is important to recognize your best workers to instill a sense of purpose and belonging in an organization. This in turn, encourages positive retention.

2. Increase Employee Engagement

In a survey conducted by OGO, “40% of employed Americans would put energy into their work if they were recognized more often”. The research also shows that it’s important to make recognition in a timely manner. Do not wait until annual performance reviews or monthly meetings. Acknowledge the accomplishments around you when they arrive.

3. Encourage High Performance

According to Gallup, “Recognition not only boosts individual employee engagement, but it also has been found to increase productivity and loyalty to the company, leading to higher retention”. In fact, according to a study by Great Place to Work, “37% of respondents said that more personal recognition would encourage them to produce better work more often. "This demonstrates a positive correlation between recognition and higher performance.

How to Create a Culture of Recognition:

1. Non-cash awards and incentives

Although bonuses and raises are necessary rewards for employee recognition, research suggests that money is not a good incentive. London School of Economics found that financial incentives can actually backfire when it comes to motivating employees. In fact, “these incentives may reduce an employee’s natural inclination to complete a task and derive pleasure from doing so.” In fact, “Non-cash awards and incentives lower stress, absenteeism, and turnover, and raise morale, productivity, competitiveness, revenue, and profit.” (Workforce) It is recommended that employees receive quality recognition such as a hand-written note.

Source: Forbes

2. Hold recognition ceremonies or events

According to 9Dot, holding recognition ceremonies have helped boost employee engagement and build connection. 9Dot holds award events such as “The Spirit Award” which is awarded to individuals who have a highly successful approach to helping students achieve success and make progress towards graduation.

Source: 9Dot Education Solutions

3. Gratitude shout-outs

A simple thank you goes a long way. One study from Harvard University and Wharton showed that receiving a “thank you” from a supervisor boosted productivity by more than 50 percent. Not only is gratitude important for productivity, it also benefits company culture and morale.

Source: Miguel Bautista

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Other Sources:

Great Place to Work

HR Technologist

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