Unlocking the ROI of Employee Recognition: Building a Thriving Work Environment


We all know that employee recognition is important. But not everyone understands why it’s important or how to do it right. Recognizing employees for their good work is a great way to boost engagement, improve retention rates, and create happier and more productive people in the workplace.

In this article, we’ll take a look at some of the ways you can start building an environment for meaningful recognition in your organization and what makes employee recognition so valuable—and then we’ll walk through some examples of how organizations have used these tactics to boost morale among their employees.

The ROI of Employee Recognition

ROI of Employee Recognition is a powerful tool to increase employee engagement and retention. It can help to create happier, more productive employees who are more likely to stay with their companies for the long-term. A study by the Center for Work-Based Learning at Penn State University found that “employees who receive recognition are 14 percent more engaged than those who do not.”

The benefits of recognition don’t stop there: it can also improve workplace culture by increasing collaboration and communication between managers and employees. This can lead to better decision making processes at work, which ultimately leads to increased productivity throughout the organization as a whole!

Why Employee Recognition Matters

Employee recognition is a powerful motivator and an important part of employee engagement. It can help foster a positive workplace culture, which in turn leads to increased productivity, loyalty and retention.

In fact, according to data from the Society for Human Resource Management (SHRM), companies that recognize their employees see higher levels of engagement than those without such programs in place.

Employee recognition programs are also linked with lower turnover rates: A study by WISHYU showed that organizations with effective recognition programs had 9% lower voluntary turnover than those without them.

How to Recognize Employees the Right Way

In order to unlock the ROI of employee recognition, you must first recognize the right things. You want to show appreciation for your employees’ hard work and commitment to the company. The best way to do this is through meaningful recognition that demonstrates how they’ve gone above and beyond expectations.

This type of recognition should be frequent rather than sporadic so that it becomes part of your culture at work–not just something you do every once in awhile when you remember or feel like it’s needed. It should also be public so everyone knows what an individual has done, which helps other employees understand how they can improve their own performance by emulating those examples set by their peers (or superiors).

Timeliness is another important factor when it comes to recognizing employees: don’t wait until someone leaves before thanking him/her; instead, make sure all good deeds are recognized as soon as possible after they occur!

Specificity is key too; if someone does something great but doesn’t know about it or isn’t given credit where credit is due because no one told him/her about his achievements… then what was accomplished?

Personalization makes all difference too – don’t just give out generic awards like “Employee Of Month” or “Employee Of Year”; instead personalize them based on specific criteria such as number hours worked per week without missing any days off due illness etc., number projects completed successfully within given timeframe etc..

Employee recognition is not a one-time event.

Employee recognition is an ongoing process. It’s not something you do once, then forget about until next time. Rather, it’s something that should be done on a regular basis and for all employees–even those who have been with your company for years.

That doesn’t mean you need to recognize everyone every day or even every week! However, if there are specific achievements or milestones in an employee’s career that are worth recognizing (such as reaching a new level of certification), then make sure those get acknowledged too!

Recognize the achievements of your employees.

Recognizing the achievements of your employees is an important part of building a thriving work environment. There are many different types of achievements you can recognize, including:

  • Personal – Recognizing an employee for achieving a personal goal or milestone, like graduating from school or getting married.
  • Company-wide – Recognizing an employee for helping the company reach its goals (for example, meeting revenue targets).
  • Customer-focused – Recognizing an employee for providing excellent customer service or improving client satisfaction ratings. This could include giving them awards or sending them thank-you notes from customers who were impressed by their work!

You can also use rewards programs like Employee Engagement Surveys to get feedback on how well recognition programs are working within your organization; this will give you valuable insight into what kinds of recognition is most effective at motivating employees and inspiring them to perform better in their roles at work.”

Create an environment for meaningful recognition for your employees.

As you’re creating a recognition program, there are some crucial elements to keep in mind. First and foremost, the recognition being given must be meaningful; otherwise it won’t actually motivate anyone to do better work or feel appreciated by their employer.

Secondly, the timing of this recognition should be timely–this means that if an employee is doing something great at work today but doesn’t receive any acknowledgement until next week or even next month (or ever), then they may lose interest in continuing their good work once they realize nobody cares about it right now anyway.

Thirdly, specific examples of what was done well should be given instead of just saying “good job!” over and over again without any specifics about why exactly those words apply specifically here (and not somewhere else).

Use recognition to improve the workplace culture.

Recognition is a powerful tool for building a thriving workplace culture, but it’s not enough to simply give out awards and praise. To unlock the full ROI of recognition, you need to ensure that your company’s culture supports employee-driven recognition.

In order to do this, start by making sure that your organization has clear goals and expectations for employees–and then hold people accountable for achieving them. This will help ensure that everyone understands what needs to happen in order for them to succeed in their roles at work–and how they can get there through hard work and dedication instead of luck or favoritism (or worse yet: nepotism).

Recognize the right things, and do it often!

  • Recognize the right things, and do it often!
  • Make recognition public: Don’t keep your recognition efforts under wraps. It’s important to share your employee appreciation with the rest of your company so that everyone knows what’s happening in their organization and can learn from each other.
  • Be sincere: If you don’t mean it, don’t say it! Your employees will know if you’re faking or insincere when giving praise–and even worse, they may start believing that all their efforts are worthless because no one appreciates them as an individual or cares about what they do on a daily basis at work (or even outside work). This will lead to high turnover rates among employees who feel disrespected by management; so make sure that when recognizing someone for doing something great, use words like “thank you” instead of phrases like “good job” because these two phrases have very different meanings behind them!
  • Keep recognition positive: Try not giving out negative feedback unless absolutely necessary–for example when there has been an incident involving safety issues where someone could’ve gotten hurt due to an employee mistake.”

Recognizing and rewarding the value that employees bring to their company helps to boost engagement, improve retention, and create happier and more productive employees.

Employee recognition is a powerful motivator that can help to boost engagement, improve retention, and create happier and more productive employees. Recognition can also be used to improve workplace culture by encouraging employees to feel valued for what they do.

In order for employee recognition programs to have a positive impact on your company’s bottom line, it’s important that you continue the practice over time–not just once or twice a year during employee appreciation days or other special events.

And while some companies may choose to use gift cards or other tangible rewards as part of their employee recognition programs (which are always appreciated), we find that most people prefer non-monetary rewards such as public praise from supervisors or managers; opportunities for advancement within the company; additional paid time off; flexible work schedules; extra responsibilities related directly back into core job functions (such as leading projects)


Employee recognition is a powerful tool for building a thriving work environment, and it’s important to recognize the achievements of your employees. By creating an environment where employees feel valued and appreciated, you can improve engagement, retention rates, productivity and overall job satisfaction.

Are you an Entrepreneur or Startup?
Do you have a Success Story to Share?
SugerMint would like to share your success story.
We cover entrepreneur Stories, Startup News, Women entrepreneur stories, and Startup stories

Read more business articles related to Sales, Marketing,  Advertising, Finance, Entrepreneurship, Management, Education, and Industry at SugerMint.