Why Employee Recognition Is Vital To Your Business

Importance Of Employee Recognition
Image by Free-Photos from Pixabay

Every business owner wants to ensure that employees are not only productive but also happy when they’re at work. This is because having satisfied employees can end up having a significant amount of benefits for you and your business. However, many people don’t know how they can do so, which results in only a minimal, if any, effort to do so. However, some people may not know how to improve their employee recognition.

Having said that, rewarding your employees with a trophy when they do good work can have a significant amount of benefits for your business. This may be surprising for many people, as they mightn’t see how such a seemingly small gesture can have that much of an effect on a business. However, there are a few notable benefits to rewarding your employees.

Importance Of Employee Recognition

Employee recognition is something that matters regardless of whether you pay attention to it or not. With that, it’s always better to improve this as much as you can. This is because it has an effect on an employees happiness and whether or not they want to stay with your company. Because of that, while recognition focuses on employees, it has an extensive amount of benefits for your business.

(Other ways to help improve your business include adding Lean Six Sigma to your business set-up. Feel free to learn more about getting certified in Lean Six Sigma and how it can help your business.)

Benefits Of Employee Recognition & Awards

Why Employee Recognition Is Vital To Your Business
Image by Werner Heiber from Pixabay

Basis Of Important Decisions

When it comes to your business, there are quite a few important decisions to make. While many of these may focus on the likes of sales and marketing strategies, promoting employees and giving out raises can also be significant. With that in mind, the likes of managers and business owners need something to help inform this decision one way or the other. What many people may not realize is that giving out awards can be a notable thing to partly base these decisions on.

For example, if you’ve been throwing these awards ceremonies for quite a while, then you’ll have a significant amount of employees who’ve gotten awards. Now, let’s say that a managerial position has opened up and it’s come down to two employees whose experience and skill-set is almost identical. While these kinds of situations may not be common, they certainly do happen and it can be vital to figure out who is more deserving of the promotion. While there can be several different ways to help inform this decision, one of the easiest ways is to look back through the award winners.

This will give up a more holistic picture of both employees’ track record in your company. With this, it can help determine which of these employees should be promoted. Furthermore, if an employee is looking for a raise, then these awards can help with that. It should be noted, however, that this should only be taken into account if both employees are identical in almost every other capacity. As such, it should be one of a handful of things you use to base your decision on. This is because, when it comes to important decisions, the more information you have about a particular employee, the better you’ll be able to make your decision.


Productivity is one of the key things that business owners look for in their employees. With that in mind, anything that can help improve and sustain your employees’ productivity should be welcomed. Rewarding your employees can do this as they’ll have a reason to increase their productivity and do a great job.

As much as it works as an incentive, it can also be a way of showing that you appreciate employees. This, too, can be an excellent way to boost productivity as it shows employees that they’re valued. It also shows them that the work they do is important to the business. With that in mind, you should see a significant boost in employee productivity once you’ve added awards to your business.

(VoIP services can also have a significant effect on your employees productivity. As such, it can be worth noting how a VoIP service can help your business.)

Employee Retention

There are a variety of different reasons why an employee may choose to leave a company. Some of the most notable of these are the likes of a lack of financial incentives and more. However, what each of these reasons have in common is that employees aren’t happy in the job they’re leaving. Furthermore, much of this can be traced back to not feeling valued in the workplace. With that in mind, by increasing employee happiness and making them feel like a valuable part of the team, you’ll be able to increase your overall retention rates.

You’ll still have the rare employee who departs, but these should be few and far between. With that, giving out awards for a job well done can be an effective way to keep employees. By giving out these awards, you’re showing them that you and the overall business care about them and their work. Furthermore, you’re showing them that they’re a valuable member of the team. As such, employees will be less likely to leave for another company.

Team Culture

You don’t necessarily have to choose the winners of these awards. Many companies have integrated peer-to-peer recommendations for their awards. This has been shown to have somewhat of a large impact on your team culture. This may be because peer-to-peer recommendations can encourage employees to see the best in each other. It can also make the award that much more special. Furthermore, you may also get a more accurate reflection of who should be rewarded. This is because employees see each other daily and have a better idea as to who’s the most deserving.

By implementing this in your awards you’ll be encouraging better relationships between your employees. Since they’ll be focusing on their colleague’s positive attributes, they’ll gain a better appreciation of them and their the work. With that, it can end up helping create a more positive work atmosphere.

The above are only some of the benefits that you’ll see when you reward your employees. Having said that, it’s worth noting that employee recognition is the primary benefit of this. As such, by recognizing and appreciating hard work among your workforce, you’ll be benefiting your business too. On top of this, the vast majority of trophies and awards that you can purchase are incredibly affordable. On top of this, many can be customized to a certain degree; as such, you’ll be able to create a personalized and affordable award for employees. With that in mind, there are very few, if any, reasons not to reward your employees for doing good work.