Employee Recognition: What, Why, & How to Use It Effectively

Employee recognition is the timely and professional acknowledgement of one’s short-term or long-term achievements with the company. 

Admit it. It feels good to be recognized. To be seen and heard. We have all been there – a job where we feel the boss didn’t seem to appreciate the work we had done or the hours that had been put into making sure the project was completed to a high standard. That drained feeling and the creaky sounds of a depleted motivation tank the next time we were asked to work on another project. 

This isn’t just based off a feeling. Studies show that happy workers are 13% more productive. Recognizing when your employees have excelled in their work is a great way to increase team morale and productivity.

Behind every great business is a team of even greater employees. They are the backbone of company success. So why wouldn’t you treat them accordingly?  

Why is it Important to Recognize Employees in the Workplace?

As an employer, you have a duty of care to your employees. Inspiring a healthy environment and reinforcing your corporate culture should be your first mission. Should you succeed in this, all your other objectives will follow. 

An improving bottom line within the business will be a natural by-product of happy workers. Recognizing the good work of your team doesn’t have to mean throwing an elaborate end of year party or having unsustainable raises and bonuses, it can be as easy as a small act of kindness, like a thank you card or buying your workers coffee and some of those delicious donuts from the cafe downstairs.

Read more on employee rewards and recognition

There are loads of subtle ways to show employees your appreciation. 

Recognizing your employees will fuel their desire to continue doing great work for your business. Used effectively, employee recognition can be a useful tool to help drive your team onwards and upwards.

4 Ways to Show Employees the Recognition They Deserve

1.  Celebrate employee milestones

When employees have shown repeated dedication to the cause, do not let it go unnoticed. Where appropriate, be sure to celebrate both work-related and personal milestones with your employees. 

Congratulating workers on long-service, marriages, the birth of children or closing important deals are all powerful indicators that you want the best for them in all aspects of life. 

Take the time to get to know your staff, so you can better understand what is important to them.  

1. Upgrade essential and non-essential items

Upgrading tools that can help your team achieve their goals is a great way to show that you recognize the work they are doing is worth investing in. Downloading the effective employee scheduling software that your management team has been asking to implement says you value employee requests and will honour them where feasible. 

Purchasing non-essential items like stocking the fridge with fresh drinks or buying a new coffee machine when the old one has seen one too many lattes is a smart way of showing recognition. Although some will debate whether or not coffee is an essential item, all will agree that a new coffee machine is a great idea. 

1. Display meaningful gestures of recognition – privately and publicly

Broadcasting your support to employees when they have exceeded in their roles is a powerful way of displaying recognition.

Because you know your employees on a personal level, adapt these gestures to their personality. Some may thrive off their achievements being publicly displayed in group emails or on the notice board in shared office areas. Others may gain greater value from hearing your feedback privately while screen sharing.

1. Offer employees financial rewards and incentives

Extrinsic motivators do play a part in employee recognition. Offering work-based financial rewards and incentives is an effective way to show your employees their work has brought financial success to the company.

Make sure to offer these bonuses fairly and responsibly. Applying the other ways of recognition to this method can heighten the effects of this gesture – if an employee is reaching a long-service milestone a small bonus to spend on a retreat is a tasteful way of boosting morale. Or if a parent is taking leave to look after a newborn and has been working well up till their leave a small gift could also be appropriate.

Here are some tips to find out which kind of bonuses are best for your business.

Employee Recognition Matters

Happy workers are better for business. Everyone wants to come to work and feel needed, valued and motivated. Recognizing your employees for the hard work they do will be one of the best things you can do to ensure the success of your business.