Impact of Recognition on Employee Performance

December 12, 2022
Daily digest

According to a leading reporter, around 37% of Americans choose to switch jobs after 2-3 years in a single company. There are multiple reasons for this, but employees decide to change their current company because of not getting recognized for their efforts.

Hence, more and more companies have started adopting ways to recognize their employees through multiple reward programs and even awarding them with an appreciation for their work regularly.

Here are some significant impacts of recognition on employee performance.

Impact of Recognition on Employee Performance

1. Employee Engagement

One of the major impacts of employee recognition is seen in the increase in employee engagement. HR believes that even a few words of appreciation for their work allow employees to be more engaged and active for a more extended period. In addition, it adds to their motivation on a large scale.

2. Better Mental Health

In the current scenario, having good mental health leads to better work productivity in the long run. Also, everyone loves getting appreciated, whether at work or in their personal life. However, spending most of the time in the office and working all day bring stress and mental instability.

Hence, being recognized regularly for your work and achievements uplifts the mental well-being of individuals. Moreover, tangible rewards also add up to the overall zeal to work for the employees.

3. Employee Recommendation

When you like a particular service or product, you often refer it to your friends or family. This is where Employee recognition plays a major role in attracting young talent to the company. When you treat the employees respectfully and reward their time for their efforts, they are more likely to recommend their friends to join the company.

Furthermore, since most of the employees are likely to share their rewards and experience of the work culture, the company is likely to get marketing and recognition worldwide.

4. Higher Productivity

If the employees are rewarded for extra hours and offered timely gifts and recognition, they are, in turn, motivated to put in their best effort. Hence, in turn, this will eventually lead to higher productivity.

5. Employee Retention

Above all, who wouldn’t want to work in an environment that is healthy and respected? One of the major reasons employees continue to work in an organization for a long period, such as 7-8 years, is not only because of the wages but also because of the work environment.

Having poor work culture and longer working hours without being rewarded and recognized only leads to employees switching to something better. This is where companies need to strategize and keep these points in mind for a better work environment.

Find out how Compport can help you manage all your Employee Benefits process, book a demo today!

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