Recognition of employees in the workplace has become a real trend. Everyone knows that giving employees recognition is beneficial. But one can find only bits of comprehensive information concerning its actual benefits for the company. Doing everything correctly requires special knowledge. Stay tuned to get insight on employee recognition benefits and ways you can use this approach, for example, during onboarding new employees.

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What Is Employee Recognition?

According to the employee recognition definition, it is a process, action, or happening when company management acknowledges their employees for their exceptional performance. The main goal of any recognition of performance is to prompt staff for specific activities, behaviors, and practices that raise their productivity and benefit the company. As a result, a well-established employee recognition practice creates a win-win situation when a company gets happy and productive workers.

Why Employee Rewards And Recognition Are Important

Employee rewards and recognition are substantial, but why make the surrounding fuss? Can't I vocally acknowledge and add a financial benefit to their paycheck? Self-esteem is a potent motivation factor—the effect doubles when working with peers. The best way to boost one's professional self-esteem is by acknowledging and avoiding complications and inequality.

A monetary bonus is not the sole way of showing gratitude and acknowledgment in your arsenal. Your company or organization needs an authentic culture of acknowledgment and appreciation. It can also become a part of the learning culture, boosting learning and helping. For example, it works excellently in customer service training for employees.

The good news is those shouldn't be expensive or fancy and glamorous. Under the right atmosphere in a company or organization, it can be a genuine compliment, a pat on the back, or a friendly email. Here are 3 main reasons to recognize employees and establish an employee acknowledgment culture in your business.

  • Highlight achievements

A simple thank may carry more meaning and show greater appreciation than expensive gifts. Workers need to know that hard work and everything they achieve as a team working for your company is noticed. Achievements bring a joyous rush of emotions and energy. Your task is to support that energy and amplify it to encourage them to reach new heights.

  • Motivation

As it goes from the previous aspect, recognition encourages your team to perform well and helps the staff develop strong emotional ties that will ensure comfort. From this perspective, if the person feels comfortable, they can show their best being productive.

  • Promoting values

A well-established acknowledgment culture in a company helps a great deal to promote certain behaviors an owner or manager considers to be beneficial. It also helps a great deal to establish specific values or behaviors in a team. People acknowledged for particular actions, manners, and patterns will continue following them. As a result, they will also become great examples for other team members.

4 types of employee recognition to know

Formal recognition

Recognition in the workplace is a planned approach to acknowledge people's exceptional performance. It usually involves official programs, ceremonies, or events where management publicly recognizes and rewards outstanding achievements of individuals or teams.

Informal recognition

Employee recognition definition partly comes from the Informal process, including spontaneous and unplanned acts of appreciation and acknowledgement. It can be as simple as a verbal thank you, a pat on the back, or a handwritten note expressing gratitude for a job well done.

Social or peer-to-peer recognition

Social one involves acknowledgement and appreciation from colleagues and peers. For example, giving recognition at work. In this case, people are encouraged to notice and praise the accomplishments of others. In turn, this develops a healthy atmosphere for the whole team.

Monetary recognition

Monetary stimulation involves providing financial rewards or incentives to people in recognition of their outstanding performance. This can include bonuses, gift cards, or other tangible benefits as an additional appreciation form.

reasons to recognize employees

How Being Recognized At Work Benefits The Company?

Being appreciated is a fundamental human need. Feeling valued and acknowledged for some actions, achievements, and meeting goals creates strong ties with everything that brings these emotions. This is a Win-Win situation for the company and the employee. It must be prompted by all means.

Happy Employees = More Productive Employees

Being happy is a basic human need. Being recognized as a professional is a great way to make them happy. According to this logic, recognizing and acknowledging your staff will make them feel appreciated. Judging by the AcademyOcean's experience, recognition of staff is vital to give them a sense of being esteemed for their achievements, boosting their happiness to new levels.

Little acknowledgments turn into happiness and result in becoming more productive and efficient. The lack of comfort renders this impossible, so ensure that you give positive acknowledgment and it doesn’t negatively affect others. Jealousy and discrimination can easily ruin the positive effect.

Encourages Self-development

Hiring new team members is a part of the whole process. After you accept a new person into your team, your next steps are aimed at training, motivating, and ensuring their comfort. After completing the steps, you get a motivated professional to work and stay in your company. From this perspective, using acknowledgment is a great way to motivate self-development. When a person feels acknowledged, they know their actions carry meaning. It serves as a decisive motivating factor that encourages self-development.

Increases Worker Retention

Employee retention is a challenging task as it takes a company or organization to take multiple steps to ensure comfort and the possibility to grow in other essential aspects for their employees. Employee acknowledgment and recognition are excellent instruments to help your company achieve high employee retention.

The most exciting aspect is that it will not require a significant financial investment. For example, you can show gratitude by giving a simple gift card from the store they once mentioned. Appreciation works better than economic benefits. Meeting their needs is the key to success and offering a personal experience.

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What are the benefits of employee recognition?

1. Increases happiness

It builds a sense of value and appreciation, increasing the team's happiness. Feeling respected and valued for their work enhances job satisfaction and overall well-being, leading to a happier and more motivated workforce.

2. Improves employee retention

When people feel recognized for their work and get praised for their achievements, they will be more loyal. In turn, this means that it would be higher for com. It increases loyalty and a sense of belonging, reducing turnover rates and improving retention.

3. Cultivates a culture of self-improvement

New employee recognition for their achievements encourages self-improvement and professional development. When people know their efforts are noticed and valued, they are motivated to continuously improve their skills and performance.

giving recognition to employees

Examples of worker recognition

Employee recognition and engagement directly affect their performance. So, it is essential to know what approaches and examples work best:

Recognizing excellent performance

Employee rewards benefits for exceptional performance on specific projects or tasks motivate them to continue excelling in their roles. It can be done through formal acknowledgement in team meetings or company-wide announcements.

Recognizing good attitudes

Workplace recognition of people for their attitudes, teamwork, and willingness to help others creates a culture of appreciation and positivity. Informal recognition, even a simple thank-you note or an in-person expression of gratitude, can go a long way in boosting morale.

Recognizing goal accomplishment

Admitting and praising achieving both individual and team goals reinforces a culture of accountability and goal-oriented behavior. Publicly celebrating goal accomplishment can inspire others to strive for excellence. Personal recognition of work in the workplace is a powerful tool to boost morale, raise engagement, and foster a positive work environment

Workplace Recognition Best Practices

Most companies in different industries tried applying and using employee recognition programs. The success of those programs varies between companies. Even the biggest wales in their industries struggle as their workers feel underappreciated. It happens if the company's recognition practices don't involve a personal aspect.

Companies tend to praise employees with expensive gifts, believing value lies in money. The price of the gift and its meaning doesn’t correlate. A handpicked personal praise impacts stronger than an expensive but impersonal one. A small item can mean more supplemented by personal value, and its price won’t be the decisive factor measuring the positive effect of such acknowledgment.

Arrange special events

Personal acknowledgments are less effective than public ones. Arranging public events is a great way to boost a person's self-esteem for their achievements. A special public event shows other team members that their efforts will be valued too.

Celebrating birthdays, anniversaries, and other essential company events is crucial. You can combine those events with your acknowledgment. If a team member gives a reason to be acknowledged, then don’t wait for an anniversary. Send a gratitude email and an announcement that you will celebrate the achievement at a special event positively impacting the performance.


Praising team members for their achievements with bonuses is a good idea. Ensure the equal distribution of rewards if there are several people to be acknowledged. For example, a prize for a team member with monetary bonuses is not equal to sending an email. If your employees succeed as a team, ensure that the whole team is acknowledged equally.

A recognition table/list

The recognition wall is the simplest, most effective way of recognizing an employee for their achievements. For example, you can place it in your office or the company's working platform. Let every employee add stickers with thanks and appreciation words.

It can be a huge motivational tool and encourage a healthy atmosphere in the team and the company, efficiently motivating everyone for more wondrous deeds. Seeing employee commendations addressed to you is always pleasant and motivating.

Wrapping up

Employee recognition looks simple, with numerous ways to implement it in a company, but when taking the first steps, one realizes how deep the rabbit hole goes. Regardless of the industry, establishing a culture of acknowledgment in the company is key to making it successful. This culture must advocate appreciation of team members who show great results. It will become a foundation for your company's employee retention and development strategy.

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