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Employee recognition is a simple yet powerful way to show workers they matter. And when they feel valued, everyone benefits—employees feel seen and appreciated, and employers get maximum engagement and productivity. One survey found that a whopping 79% of employees leave jobs because they feel undervalued. Other research suggests that doubling recognition of good work could lead to a 9% increase in productivity and nearly $92 million in additional output for companies with 10,000 employees.
Recognizing employees is a skill cultivated throughout the entire organization and deeply embedded in its culture, rather than a separate employee recognition program owned by a single program or department.
“Recognizing employees is a skill cultivated throughout the entire organization and deeply embedded in its culture, rather than a separate employee recognition program owned by a single program or department.”
Keren WassermanOrganizational Development Program Manager
When done well, employee recognition can make the difference between a stagnant work culture and a thriving, dynamic one.
What is employee recognition?
Employee recognition acknowledges and reinforces behaviors that reflect an organization’s values and goals. It involves celebrating achievements, whether big or small, and showing gratitude for employees’ contributions. Genuinely recognizing employees goes beyond mere words; it tangibly demonstrates how workers’ efforts are valued and integral to shaping overall workplace culture.
Employee recognition is something everyone should participate in regularly. Incentives and employee recognition programs are helpful systems to support this, but they shouldn’t exist just to “check the box” on work recognition; they need to be part of a culture of employee appreciation and acknowledgment that’s ingrained within the organization.
Employee recognition vs. employee appreciation
While the terms “employee recognition” and “employee appreciation” are often used interchangeably, they carry distinct meanings. Employee recognition acknowledges specific achievements or contributions such as completing a project or exceeding performance targets. Employee appreciation recognizes employees’ inherent value and unique qualities, like dedication, a positive attitude, or collaborative spirit, regardless of specific achievements. Striking a balance between employee recognition and employee appreciation cultivates a workplace culture where employees feel valued for their contributions and celebrated for who they are.
Employee recognition example: “Great job completing the project ahead of schedule. Your dedication and attention to detail really made a difference in getting this exceptional result.”
Employee appreciation example: “Thank you for your positive energy and enthusiasm during our team meetings. Your optimism and collaborative spirit make a big impact on our team dynamic, and I appreciate having you on our team.”
Why does employee recognition matter?
In a competitive job market, retaining top talent is crucial for organizational success. Effective workplace recognition programs signal to workers that their contributions are valued. This in turn builds loyalty and commitment. When employees feel recognized and appreciated, they’re more likely to be engaged—and engaged team members are naturally invested in their work, fueling productivity and innovation. When employees are acknowledged for their efforts, they’re motivated to perform and contribute to positive morale. Job satisfaction increases, leading to feelings of fulfillment and a stronger sense of purpose.
Types of employee recognition
Work recognition can be public or private, from a leader acknowledging achievements in company gatherings to a manager expressing gratitude during a one-on-one meeting. A balance of these approaches is ideal. Recognizing employees may include:
- Acknowledging growth and contributions: Trusting employees with greater responsibility and autonomy, and providing opportunities for promotion and professional development
- Formal recognition: Times when a company officially celebrates achievements like “employee of the month,” award ceremonies or events, achievement certificates, or other milestones
- Informal recognition: Gestures that unexpectedly uplift spirits, such as verbal praise from a manager, thank-you notes, or applause during a meeting
- Social or peer-to-peer recognition: “Pats on the back” by teammates like peer-to-peer awards, social media recognition, virtual high-fives, kudos channels on company communication platforms, or team shout-outs during meetings
- Monetary recognition: Incentives for meeting or exceeding expectations through performance bonuses, gift cards, or profit-sharing
7 employee recognition examples
Creating a culture of employee recognition starts with a strategic approach that prioritizes effort, progress, and meaningful acknowledgment of contributions. Here are some ways you can cultivate this kind of culture in your workplace:
#1 Align employee recognition with values and strategy
Employee recognition programs should be linked to your organization’s core values and overarching business objectives. It’s important that employee rewards reflect and reinforce the company’s desired culture and strategic direction and reinforce the behaviors you’d like to continue.
Example: If customer-centricity is a core company value, you might implement a “customer champion” employee recognition program. Employees who consistently go above and beyond to delight customers—whether through exceptional service, problem-solving, or building strong relationships—could be acknowledged through spotlighting success in meetings fThis reinforces desired behaviors like proactively taking risks, coaching peers, or bringing challenges to the company’s attention. Employers should be careful about anchoring on extrinsic rewards, especially for acts that already feel good. Research shows that extrinsic rewards like money can sometimes actually decrease motivation over time.
#2 Recognize effort and progress
Fostering a workplace culture that celebrates both final outcomes and efforts of any size inspires employees to contribute their best. This includes recognizing diverse aspects of performance, such as efforts, behaviors, and progress.
Example: You could acknowledge a team member’s dedication to a challenging project, even if the final outcome wasn’t as expected, by highlighting their commitment and contributions during team meetings.
#3 Collaborate with experts
Lyra Health’s 2024 State of Workforce Mental Health report found 90% of benefits and HR leaders want their mental health benefits to include additional employer-sponsored support that addresses the underlying ways the work environment itself can negatively impact well-being.
Example: Partnering with work design and well-being experts such as Lyra’s Workforce Transformation team can help your company gather feedback, analyze data, and suggest adjustments to ensure that employee recognition efforts align with your organization’s goals while having a positive impact on employee mental health.
#4 Focus on authentic and meaningful recognition
Words or actions that aren’t authentic can feel insincere and fail to resonate with workers. Emphasize authenticity and depth in work recognition. Recognizing employees should bring together what the organization aims for and what individuals contribute.
Example: Instead of blanket praise that can feel generic and insincere, acknowledge specific contributions and how they impact the team and organization. For instance, Instead of just saying “Nice work,” you could be specific: “Your idea to streamline this process saved us several hours each week. Thank you for making our workflow more efficient.”
#5 Promote staff recognition at all levels
Make sure employee recognition is equitable and consistent by acknowledging contributions of employees from all levels, not just those in high-profile roles. Offer equal opportunities for work recognition, whether through formal employee recognition programs or informal gestures, ensuring that each team member has a chance to be celebrated.
Example: Recognize frontline workers who ensure smooth operations on the ground through initiatives like Employee of the Month or peer-to-peer recognition platforms, highlighting their dedication and hard work in maintaining operational efficiency. Refrain from praising everyone at once, since that can also come across as inauthentic. Point out a couple people in a team meeting without going around the room and praising everyone for their work, which could feel forced.
#6 Recognize peers
Encourage employees at every level to integrate recognition into everyday interactions and performance conversations.Model how to provide praise and recognition during a town hall meeting and send communications explaining how people can use peer recognition platforms. By fostering a culture where employee recognition is valued and actively practiced, people will feel empowered to celebrate each other’s achievements.
Example: Encourage managers to check in with team members about how they prefer to be recognized and what words of affirmation make them feel most energized at work.
#7 Integrate employee recognition into performance management
Make employee recognition a part of annual performance reviews and ongoing feedback . Use staff recognition to reinforce desired behaviors and strengthen employees’ connection to the organization’s culture.
Examples: Try integrating employee recognition into regular team meetings, project debriefs, and one-on-one check-ins, using specific shout-outs to highlight individual contributions and reinforce alignment with the organization’s core values and objectives.
Empower your employees
When employees feel valued as a person as well as for their work contributions, they’re more positive and engaged, and more likely to stay at your company. Investing in employee recognition can transform workplace culture, leading to higher engagement and morale and better overall performance.
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By
Keren Wasserman
Organizational Development Program Manager
26 of April 2024 - 7 min read
Mental health at work
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