In today’s labor market, where organizations struggle to effectively engage their employees, the role and impact of recognition cannot be overstated. Recognition has a transformative impact on organizational culture, morale, and ultimately, business outcomes.
GP Strategies’ research and client data of over 50,000 respondents across many industries (financial services, professional services, government, retail, insurance, and energy) show significant correlation between employee recognition and engagement. Most eye-opening is its impact on turnover. Employees who do not receive regular recognition for their achievements are three times more likely to leave organizations than those who receive regular support from their immediate supervisors.
We define engagement as the intersection of maximum contribution and maximum satisfaction. Engagement levels are not labels or characteristics that define people. They describe a current situation, a moment in time. It is possible for someone to feel fully engaged one day and slip into disengaged territory a month or even a week later. Factors both within and outside the organization influence where people appear on the model. Challenges on the job, shifts within the organization, market dynamics, and even world events can impact how employees feel about their job, manager, and senior leaders. People leaders need to focus on both the performance (or contribution) side as well as the satisfaction side of this X Model of Employee Engagement. A key driver of engagement is recognition.
Recognition is more than just acknowledging employees for their contributions; it’s about affirming their value, fostering a sense of belonging, and reinforcing desired behaviors. When employees feel appreciated and genuinely valued for their efforts, they are more likely to be engaged, have stronger satisfaction with their work, are clearer on work priorities, and have stronger perceptions of career opportunities within their organization as compared to employees who do not feel recognized.
The Impact of Recognition
We know that engagement, whether positive or negative, is contagious. Disengagement may even be more contagious than positive engagement, so we need to be especially aware of and intentional about how we impact those around us. Our research shows significant positive correlation between engagement and recognition. Employees who receive recognition are more than twice as likely to be engaged than those who don’t receive regular acknowledgement. 87.6% of engaged employees report regularly receiving recognition and rewards for their achievements as compared to only 39.3% of disengaged employees.
Two key drivers of engagement are job satisfaction and having a clear understanding of immediate work priorities. These factors align directly to the satisfaction and contribution sides of the X Model of Employee Engagement. It is difficult to be engaged if you are not satisfied with the work and culture—and it is harder to be productive if you are not clear on the work that needs to be done. Employees who receive regular recognition have higher job satisfaction (86.9% as compared to 53.8%). Employees who receive regular recognition and are clearer on their immediate work priorities than those who do not receive regular recognition (93.2% as compared to 68.1%).
Effectively acknowledging employees not only has an impact on engagement and key engagement drivers, but it also influences employees’ perceptions of career and development opportunities within the organization. Employees who receive recognition report having more career opportunities than those who do not receive regular acknowledgement (70.3% as compared to 33.6%).
As we explored above, lack of recognition also has a significant impact on turnover. Employees who do not receive regular recognition for their achievements are three times more likely to leave organizations than those who receive regular support from their immediate supervisors. 2.4% of employees who receive recognition report wanting to leave their organization. 7.7% of employees who do not receive recognition would leave. While there are many reasons that employees may leave organizations, we see higher rates of engaged employees leaving for personal reasons such as retirement or relocation. Disengaged employees are more likely to leave due to a lack of ideal working conditions, compensation, and development opportunities.
We can see the impact of recognition through many different lenses. Next, we explore how to effectively provide recognition.
Creative Ways to Incorporate Employee Recognition
So, how can managers and organizations provide effective recognition?
- Personalized Approach: Take the time to understand each employee’s unique strengths, contributions, and preferences. Whether it’s a handwritten note, a public acknowledgment during team meetings, or a personalized token of appreciation, it’s important to say thank you for good work. Tailor your recognition efforts to resonate with individual employees.
- Timely Feedback: Recognition should be timely and specific. Don’t wait for quarterly conversations or annual performance reviews to recognize achievements. Instead, provide regular feedback and acknowledgment for small wins and significant milestones. Beyond this, be sure to recognize well-intentioned mistakes. Employees are human and sometimes efforts do not have the desired or intended outcomes. In those moments, we need to be certain to share constructive feedback.
- Peer Recognition: Encourage a culture of respect and appreciation where staff recognition flows not only from managers but also among peers. You may consider establishing platforms or channels where employees can publicly recognize and applaud each other’s efforts. Peer recognition fosters a sense of camaraderie and reinforces a culture of appreciation at all levels of the organization.
- Reward and Incentive Programs: While verbal praise and acknowledgment are essential, tangible rewards and incentives can further reinforce recognition efforts. Consider implementing reward and recognition programs such as employees of the year or month, performance-based bonuses, or personalized gifts to celebrate significant achievements.
- Align Recognition with Values and Goals: Ensure that recognition initiatives align with the organization’s core values and guiding principles. Recognize behaviors and accomplishments that align with these established values and contribute to the organization’s overarching goals or strategy. This recognition reinforces desired behaviors and reinforces the organizational culture.
Recognition Can Revolutionize Your Workforce
Recognition is a powerful tool for fostering engagement and commitment in the workplace. By implementing personalized, thoughtful, and meaningful individual and team recognition initiatives, we can create a culture where employees feel valued, appreciated, and motivated to perform at their best. Best of all, recognition costs virtually nothing to implement, but can have a powerful impact on employee satisfaction and retention, while driving tangible business results. Are you looking for a way to cultivate a more engaged and productive workforce? Recognition may be the answer.
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