Employees choose to work for an organization after considering its policies. Organizations with good infrastructure, quality amenities, lively work culture, and add-on benefits earn a good reputation in the market and attract more applicants. Most importantly, they give employees the due credit where it’s deserved and treat everyone fairly. This article highlights four reasons why employee recognition is necessary. It also lists a few things organizations can do to express their appreciation.

What is employee recognition?
Let’s start by understanding what employee recognition means. In simple words, employee recognition is an act through which employers acknowledge their employees’ accomplishments and contributions. It could be monetary or non-monetary. Some organizations reward employees with gift cards, bonuses, or other forms of monetary benefit. Others send letters of appreciation, grant extra leave, or offer flexible working hours, which are non-monitory rewards. In some instances, organizations provide both monetary and non-monitory benefits.

Why is employee recognition necessary?
Employers must recognize employee efforts and appreciate them for what they do. Here are four reasons why:

Unlocks potential
Well-deserved recognition motivates the employee, and even others witnessing the act, to do better. The sense of achievement pushes the individual to give their best at every project assigned, unlocking their full potential. Motivated employees work with great dedication, making all the difference in the workplace.

Improves engagement
How does employee recognition improve engagement? Well, it gives employees a greater sense of belonging in their company, which makes their relationship with the firm and their peers more cordial. This leaves no room for miscommunication, and everyone works as a family. Fully engaged employees also have a significant impact at work, boosting an organization’s production or service quality.

Boosts productivity
Recognition programs motivate employees and turn them into their most productive selves. That means they work harder and more efficiently to meet their goals. It’s a simple theory: what gets recognized gets repeated. If employees see the recognition firsthand, they’re bound to work hard in the future. So, for continuous improvement and efficiency, employees must be rewarded regularly.

Increases retention rate
The best way to retain employees is to create a positive atmosphere and offer an excellent work-life balance. A positive environment with cordial peers and superiors matters more than financial benefits for some. When an employee feels content in their current organization, the chances of looking for a job change reduce significantly. Employee retention ratios tell the true story of the organization’s work culture and management policies.

What are the ways to recognize employees?
The following simple practices can help keep employees motivated and improve the efficiency of the organization:

Employee gifts
Big organizations often shower their employees with gifts and goodies from time to time. Company-branded t-shirts, desk plants, and goodies for Christmas and other festivals are common ways of expressing appreciation. Organizations also offer bonuses, salary hikes, and monetary rewards to keep employees motivated to perform better. It’s one of the best ways to retain talent. These gestures can be rewarding for organizations in the long run.

Social recognition
Some firms organize social events like award ceremonies and get-togethers to recognize their employees. It could be done monthly, quarterly, or once in six months, depending on the type of projects and structure of deliveries. When employees are appreciated in front of a social group at work, it motivates them and helps them work better. Social events also bring people together from different departments, promoting unity.

Email recognition
If gathering employees from different departments at the same place and time isn’t possible, businesses send appreciation emails when project goals are achieved or when employees outperform at the task assigned. The email is marked to their superiors, peers, and subordinates. Such a form of employee recognition is also suitable for smaller organizations or those that don’t have a big budget for monetary gifts.

Employee recognition software
Several reward and recognition platforms help organizations build a distinctive work culture. Some software allows employees to send “stars” to colleagues on work channels, while others facilitate peer-to-peer recognition across the organization. These are often integrated into other company tools for seamless usage.

Other rewards programs
Besides the above, organizations offer other rewards programs like heath benefits, personal development programs, education sponsorship, and sponsored team outings to express their appreciation. People tend to talk about such gestures in social groups, and the company’s reputation improves through word of mouth.

These days, employee recognition has become a necessary feature in the policies of most organizations. After all, it significantly motivates employees and earns the organization goodwill in the market.