Employee Recognition: Why it’s Crucial to Your Business

Having a hard time getting buy-in to implement an employee recognition program? Here are five ways the initiative will add directly to your bottom line.



You know that your employees want to feel appreciated and you want to recognize them for the work they do. But how do you get an executive team on board with funding an employee recognition program?

While some human resources initiatives get a bad rap for being “touchy-feely” or find themselves as the brunt of jokes, here are some facts to support your case of why employee recognition is crucial to your business and its success.

Employee Recognition Creates Happiness

When your employees get recognized for working hard, that appreciation helps them be happier with their jobs. In turn, happier employees are more productive, which benefits your bottom line. This creates a constant loop of hard work, recognition, satisfaction, repeat. For your business and your employees, it’s a win-win situation.

Employee Recognition Leads to Less Turnover

When you recognize employees for their hard work, they stick around longer. When employees stay longer, your company avoids unnecessary turnover costs. Want to spend less time and money on recruiting and training new employees? Get an employee recognition program in place.

Employee Recognition Increases Trust

Cue the touchy-feely: employee recognition helps your employees feel more worthwhile and human about their role. This sense of worth changes their perception from being an expense to a valued asset, and that increases their trust in your company. When your employees trust that you care, they’re more committed to their jobs and the goals of the company.

Employee Recognition Increases Engagement

Are you dealing with poor employee engagement? When your employees don’t feel appreciated, this is difficult to overcome. Create an effective recognition program to reward employees for their hard work and dedication and you’ll see an increase in engagement and morale. Already have an employee recognition program in place? It may be time to revamp your program. Start by ensuring your methods of recognition aren’t limited to an annual one-day event; employee recognition should be ongoing.

Employee Recognition Gives Purpose

During the week, your employees spend more waking hours at their job than they do with their family. Nobody wants to spend this much time simply punching the clock. Give them a sense of purpose by recognizing their contributions. When you’re transparent about company goals and how their individual efforts have helped achieve those goals, employees are better able to understand the big picture and feel important, knowing their contributions matter.

As human beings, we are motivated to work harder when we realize that what we do matters. An effective employee recognition program helps communicate this to employees. For ideas on how to get your employee recognition program started, please contact your certified HR expert.

Not a current Stratus HR client? Book a free consultation today and our team will contact you shortly!

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