8 Reasons Why Employee Recognition Is Very Important for Company Culture

Reasons Why Employee Recognition Is Important

Well, when growing a business, an employer can be caught up in many tasks and challenges at hand and forget to recognize the work the employees are doing for them.

The truth is that employee recognition should not have a calendar, whereas, it should be an all year long process.

Recognition and praise are necessary for an outstanding company work culture because when employees and their work are valued, their loyalty and productivity rise, they feel more motivated to improve their work.

So, here are the top 8 reasons for the company to manage the work culture by giving employee recognition for their work efforts.

1. Improves Engagement

The companies often have issues about poor employee engagement and look for different ways to overcome this problem. So, to increase employee engagement and make employees invested in the company, a well-thought-out recognition award or appreciation program is a great solution.

Honor and reward make the employee feel more valued and satisfied with their jobs. It will help in a better engagement as well as boost employee morale.

It should be an initiative by the company executives like managers and HR professionals to value the top performers and increase their engagement for the better productivity of the company.

2. Incites Greater Trust to Company

Trust is the most crucial factor for creating a comfortable and productive workplace. When the company shows its employees that they notice and appreciate their efforts and take time to demonstrate how much of a measurable impact they are having on business, those employees feel good about what they do. This incites a great trust towards the company and encourages them to give their 100% efforts.

According to the survey from the Globoforce, 92% of the employees receiving recognition at work are happier and 86% of people feel prouder by the appreciation award, and they said that they trust their boss to accomplish all the task.

3. Drastically Improves Job Satisfaction

Job satisfaction and employee happiness are terms that complement each other very well. Companies should recognize that recognizing an employee’s contribution to the organization makes them feel valued and a part of the process.

Hence, the organization who gives recognition to the employee has an excellent retention rate. Correspondingly, it helps in reducing cost as recruiting and training a new employee takes around three to six months.

4. Increases Employee Happiness

Recognition of the employee is the open acknowledgement and expression for an employee’s contribution towards their organization. To maintain a happy work culture, it is one of the most valuable areas that the company should focus on.

When an employee is happy, their productivity increases, they do more great work to get rewarded again. Productive employees are directly proportional to successful jobs, which means great earning for the employer. So, it is a win-win situation for the employee as well as for an organization. If managers make the employee feel valued, they become happy and do not think about quitting their jobs.

5. Create A Collaborative Work Environment

Creating a collaborative work environment is a big challenge for every organization. Recognizing employees for their contribution can encourage them to collaborate well with others and foster the teamwork in the workplace.

Employee recognition frequently contributes to the employees’ pride, not only to themselves but to their coworkers too. It helps in creating a sense of team spirit and employees are always motivated to perform at the highest level and more excited to work together to achieve company-wide goals.

6. Increase the Bottom Line

Employee recognition is not a task or responsibility for the organization; it’s an investment. Recognition helps in creating a positive environment, nourishes the talent and retain the valuable employees that directly generate good PR as a top benefit for the organization.

The awarded employees create a better work culture and improve employee productivity and performance that leads to an increase in the bottom line. So, don’t wait for another day for recognizing and appreciating the company’s talent.

7. Improves Customer Service

Customers choose the company that provides them with great service experience in every aspect. However, the employees need to be in a good state of mind to offer efficient services to customers. So, you can say that “Satisfied employees mean satisfied customers.”

It’s much easier to treat people well when we are treated well and recognized for our work.

Excellent leadership and satisfactory employee recognition will impact customer services in all the areas and provide a productive space for new customers.

8. Better Company Culture

For any organization, the employee is the backbone. Company’s success, reputation, profitability, and culture is dependent on employees. Employees work for the company, devote their valuable time for a company, so it becomes an essential duty for the company to keep their employees happy.

Recognition is the psychological need of human being and can be done by giving them a pat on the back, credit for the valuable task, encouraging words, make them happy and support them to put extra efforts in terms of quality. The positive effects created in small things make employees part of the company family who strives for the progress of the company.


You can encourage employee engagement and give away recognition awards among your employees. Employee reward program can be the foundation for the continuous employee development, managing the robust staff engagement and retention strategy for the future.

The primary objective is to keep your employees satisfies and make them feel at home even when in the office.

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