Understanding Why Employee Recognition Is Important

show your talent Appreciation is a basic human need. Taking the time to understand this basic psychological principle, and applying it, can have several beneficial effects for a business. All workers in a business look for appreciation through the work they do, whether it is individually, or a part of a team. Before looking at what ways a business can benefit from properly giving their employees recognition for their work, let’s take a look at how to actually give the appreciation correctly in the first place.


Giving Employee Recognition

As a manager, giving out spontaneous recognition to staff is a great way to start. People appreciate heartfelt thanks. This day to day type of recognition is effective in maintaining a high morale in the workplace. Other ways to give appreciation include:

  • Thanking the person by name, at the start and end of a conversation really gets across your satisfaction relating to their work. It makes it personal to them.
  • Telling a person that you felt proud, or satisfied with how they work is another great way to inspire people to continue making the effort to do the best they can.
  • Specifically mentioning which part of their work is being praised lets the employee know they have worked in the correct way for the right results. This reinforces the desired behaviour you wish to see in them.
  • You may say that the way they worked has benefitted the organization as a whole, or that a team department has been improved due to their best efforts and work.


Business Benefits

Giving out appropriate appreciation will have benefits for the business as a whole. These can include:

  • Increase in productivity – reinforcing the desired level of work will inspire repetitive behaviour in the recipient. This ultimately leads to an increase in productivity. The employee likes to be told they are doing great, and will continue to want to be told this.
  • Satisfaction – an employee, if appreciated, will spend less time complaining, and more time working, trying to gain the same appreciation you have shown before. This increases satisfaction in the staff, as well as contributing to increased productivity.
  • Lower employee turnover, along with the ability to keep your best employees.
  • This can impact on your customers, who will feel more valued, and will be loyal to your company.
  • Fosters a general decrease in employees sick days and general absenteeism – it is regarded as a good thing to go into work and give it your all, as the employee knows this will be rewarded with genuine praise.


It doesn’t take much time, as a manager, to actually give out the praise, just a couple of minutes to let the staff know they are doing great, and you are proud of them and their efforts.


Benefits Of A Great Business Environment

Successful companies who have engineered a great working environment for their employees benefit from a dedicated workforce who is in line with the overall business strategy of the company. They tend to have a reduced turnover of staff, and can hold onto their best employees with more ease compared to an environment which the employee perceives to be competitive and stressful. Creating a positive and relaxed atmosphere encourages employees to want to be involved; they can actually look forward to coming into work. This promotes productivity. This enthusiastic workforce can then be felt by everyone who comes into contact with them, from customers to suppliers. An environment such as this will always strive to recognize employees’ efforts and contributions, giving rise to a repetitive cycle of hard work from the employees with the intention of contributing the best they can to this positive environment, knowing they will be appreciated.

Creating a positive and relaxed atmosphere encourages employees to want to be involved.[/tweet_box]

There are some things to consider, as a manager or team leader, when looking to make beneficial changes to your staffs’ working environment. As with any business decision, a return on investment (ROI) must be considered. Any company which arranges team bonding sessions, such as a group outdoor activity, must consider two things:

    The cost of the activity, which is funded by money otherwise put into the business.

  1.    The amount of time the activity takes. As most activities are done during work time, this is the time usually spent by the employees working for the business.

One way for a business to know if the team bonding sessions are working – and are not a waste of this valuable time and money – is to expect to see a reduction in the amount of time it takes this group to do a project in work. If no reduction in time is seen, it may be best to consider another option. A couple of further options are:

  • Having the correct office hierarchy – due to taking on additional staff, or not having a clear hierarchy in the workplace from the start, can cause poor morale. It may even lead to some employees not able to respect those in a higher position than themselves. This leads to dissatisfaction and a worse attitude. If this is the case, it may be worth while spending the time and money to restructure the office hierarchy so everyone is clear about who does what, and why. Again, this time and money must be offset against any improvements you wish to see.
  • Increasing wages – your employees may believe that they deserve a raise, and may have personal life goals they wish to achieve; these can be achieved quicker by having additional income. Almost all employees are grateful for any raise, and this fosters loyalty to the company, as well as working hard to execute and maintain their job.

Enthusiastic workforce can then be felt by everyone who comes into contact with them, from customers to suppliers.[/tweet_box]

The businesses who tend to be more productive than their competitors will invariably have a better working environment, from the employees’ point of view. They feel more relaxed and confident, and in this atmosphere, can suggest new and creative ideas for the business.