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The impact of recognition on employee performance
Mandar Bhagwat | April 4th, 2018, 11:56 am

Effects of well planned employee recognition programs

The practice of recognition has been around for a long time and yet in the modern business age, many companies do not utilize it as much and as often as they should. The impact of recognition on employee performance is quite significant. In this competitive era, where many individuals are afraid of cutbacks and pay reductions, a simple practice such as recognition of efforts can go a long way in boosting their morale and productivity.

What does research say about the impact of recognition on employee performance ?

According to recent studies, every business that has integrated a culture of employee recognition in their workplace, has seen tremendous increase in employee engagement levels. Something as simple as a ‘thank you’ has a profound impact on employees. It makes them feel valued and are happy that their efforts are being given due recognition.

While it is a great step to initiate this practice in the workplace, there are certain ways to go about the whole process. Instead of simply asking everyone to adopt the practice of recognition in their daily routine, introduce a program which can assist employees understand the finer nuances of the process of recognition. Leverage technology to simplify the process and easier adoption.

A well planned employee recognition program will be able to:

● Clearly define a process on how to go about recognizing others efforts
● Provide the right platform where individuals can be appreciated by their peers, managers and other stakeholders
● Establish a clear set of guidelines about the do’s and don’ts of recognition

Once you have this program in place, employee recognition becomes a breeze. Here are some of the effects of a well planned employee recognition program:


Employees who are appreciated for their efforts on a consistent basis and systematically, are more engaged in their work. They understand if they are able to repeat that performance, they will again be recognized in front of their peers. Due to this, their productivity is increased to a great extent.

This is in accordance with basic behavioral psychology. Like a child, we too repeat our actions to receive the same accolades. It helps the company to have employees who want to repeatedly demonstrate such behavior which makes it easy for them to link it with their KPIs in some instances.

Employee retention:

Once you have a well planned and executed recognition program in place, the process of recognition can be carried out with minimal to no subjectivity. There are fewer chances of managers appreciating and promoting only their favorites in front of the team. It helps to reduce biased practices and gives a fair chance to anyone who truly deserves it.

Thus, employees will find that, irrespective of their relationship with their reporting managers or HRs, they still have a fighting chance of showcasing their expertise and at the same time be appreciated for it.

Lack of recognition and biased evaluations are some of the biggest contributors to lower employee retention in most organizations. Since both of these problems are avoided, companies can observe significantly higher levels of employee retention. That is, fewer employees will want to let go of a company that truly acknowledges their contributions in its success.

Team development:

Recognition programs allow individuals to recognize efforts of their peers as and when the latter succeed in overcoming a challenge or scale new heights. Earlier, only supervisors or managers or the HR team had the authority to appreciate such display of expertise. But with employees giving each other the due appreciation, they are able to foster a better relationship. They willingly collaborate to help each other achieve individual goals or face certain obstacles.

These teams have proven to be more successful and happy as compared to the other teams who do not help each other.

Job satisfaction:

When you recognize anyone’s efforts, you are sending out the message that their job and skills are valuable to the company’s growth. This in itself, is one of the biggest motivators: that you are important for the organization. Happier the employees are, higher will be their performance levels and have better attitudes towards their jobs. They also tend to have lower stress levels and be more healthy.

There are many companies out there who have introduced recognition programs that were not well thought through and focused on only one or two factors such as completion of tenures. Avoid such mistakes and opt for one that can help you achieve the above mentioned effects. Your employee engagement scores will definitely help you identify if you have hit the right spot. You might also like to read  Power of Habits in Building a Culture of Recognition

I hope this blog post has given you insights about the impact of recognition on employee performance. So, start implementing an employee recognition program that will positively effect on employees performance and motivate them to stay longer in your organization.

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Pozitive” a Product Division of SpadeWorx is next step in taking forward our mission - “Employee Engagement To Drive Productivity & Innovation”. We have been privileged to work with lot of customers over the last decade and have learnt a lot when it comes to the increasing importance of Employee Engagement as organizations are getting on the digital transformation journey.

Increasing Employee Engagement requires a cultural transformation at many organizations and we believe reimagining recognition is a good start. For this purpose, SpadeWorx launched “Bravo – Workplace Recognition Reimagined

With our research, surveys ,participation in expos and conferences a very clear message has emerged which is voiced by thought leaders in HR space that Culture is the most important catalyst in a company for vibrant and positive work place which can bring increased productivity and efficiency.

Bravo is aimed at promoting desired cultural traits which is so very essential for strategy execution.