Effects of Recognition on Employee’s Performance

Acknowledgment for an outperformed job is commonly measured as an important administrative tool for inspiring and increasing employee’s morale. When an employee is recognized for his/her performance and his/her work is celebrated openly across the entire organization it does not only boost the morale of that particular employee to keep performing above par in future as well but is also a source of inspiration for the underperformers to improve their performance and earn the admiration.

Each individual employee’s performance in the organization is of equal and severe importance. There are many ways to motivate and recognize the employee for their outperformed task; It can be applied by utilizing extrinsic reward or intrinsic reward. Extrinsic rewards include salary, bonus and fringe benefit while intrinsic rewards are praise, encouragement and empowerment. By applying these techniques of recognition, desired positive behaviours are encouraged and negative behaviours are eliminated among the employees. This yields several benefits to the organization:

Employee engagement
It is the top Human Resource Management challenge that every organization faces with on daily basis.According to the survey, 94 percent of HR leaders say: “employee engagement is an important or very important workforce challenge they currently face.” Despite of this fact only few organizations currently track employee engagement levels, missing an opportunity to address low engagement levels within the organization with targeted, proactive strategies. To counter this problem and increase employee engagement, management must learn to recognize the outperforming employees. Effectively recognizing performance can increase employee engagement by almost 60%. Give your employees what they ask for most often in engagement surveys—improved communication, more direction, better feedback, and recognition.

Reduced Turnover
As said above, employees who are recognized are engaged, and engaged employees equate to higher retention rates. Turnover is a major challenge, when organizations have to face a loss of hundreds of thousands of dollars in employee investment and the millions of lost dollars in business opportunity. Recognition is directly aligned to reduced turnover rates, helping your business to stay on the track to success.

Increased individual productivity
The act of recognizing itself is a reinforcement factor; desired behavior increases the repetition of the desired behavior, and therefore productivity. This is classic behavioral psychology. The reinforced behavior supports the organization’s mission and key performance indicator

Improved Team Culture
If you were in a relationship where you are abused, run down, and ignored – would you stay friends with that person? Same goes for the relationships you have at work. Great relationships are fostered by positive environments. A culture of recognition breeds employee engagement making your workplace an office where employees want to be at work and want to continue to make lasting impacts on their peers.

Better Organizational Impression
Chances are that employees share how they feel about working for the organization with everyone they contact.  This includes their family and friends, and most likely, the clients and partners. Even when they don’t state it outright, the attitude and emotions the employees express are a significant implication of their state of happiness during the work day. Happy and well-recognized employees are a better representation of the organization, which translates into better external business relationships not only in-terms of clients, partners, investors but also the prospective employees applying to the organization.

Increased Performance
By incorporating recognition in your workplace – just a small effort – you can align the stars. Motivated and driven employees produce outstanding results. They are invested in their work and infused with a sense of mission. They know how their work contributes to the company’s values and goals. Take the situation we illustrated above: had you meaningfully thanked that employee for their results, they would be willing to go to that length again because their work was validated.

While there are other well known benefits of employee recognition, these six benefits are no doubt substantial enough to convince the management of any organization to practice the concept of employee recognition. So have you taken the time lately, to recognize your employees?

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