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Employee Recognition is Integral to the HR Strategy

In today’s hyper-competitive business environment, organizations need to develop a highly efficient and motivated workforce to stay ahead. Hence, organizations need to make employee rewards and recognition integral to the HR strategy and culture,

Changing the Role of HR in Employee Rewards


Earlier HR teams were deeply involved in the day-to-day operations of employee rewards and recognition programs.

However, over time, this facet of the HR function has also undergone major changes.

The involvement of HR in deciding rewards and recognition has reduced over time. HR teams often shoulder a range of responsibilities.

So, they tend to leave it to line managers to recognize and appreciate their teams. in whatever way they feel appropriate, without too much direct involvement.

Why should Employee Recognition be an Integral Part of the HR Strategy?

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Currently, HR teams play only a peripheral role in employee rewards and recognition. However, they need to make these policies an integral part of the HR strategy.

Given its importance towards employee engagement, rewards and recognition need to be at the core of every HR strategy. Such an approach helps ensure the success of the HR teams in improving the overall engagement and motivation levels of employees.

So, here are the key benefits of integrating employee rewards and recognition programs into HR strategy:

Employee Recognition is Integral to the HR Strategy

1. Enhances Employee Satisfaction levels

Enable Social Recognition for Innovators 

When rewards and recognition become an integral part of HR policies, employees experience greater job satisfaction

This happens as they receive proper and timely acknowledgment and appreciation for their efforts.

Hence, it helps in enhancing their happiness levels and motivates them to be more productive and efficient.

It also promotes a deeper sense of loyalty and belonging among employees as they feel valued by their organization.

2. Attracts Top Talent for Key Roles


Most top professionals today prefer to work for organizations where their commitment, skills, and efficiency are acknowledged and appreciated.

Hence, organizations with rewards and recognition as an integral part of their HR strategy are likely to attract top professionals.

Organizations having a global workforce can also benefit from such strategies.

3. Improves Employee Retention Rates

Committed Employees

Employee turnover is one of the major HR challenges for organizations today. In many cases, poor rewards and recognition culture is one of the key reasons for high turnover rates.

So, by adopting an HR strategy with effective recognition policies, organizations can overcome this challenge and improve employee retention rates.

Hence, timely appreciation and rewards keep employees motivated, strengthen their bond with the organization, and minimize the chances of seeking other opportunities.

4. Creates an Environment of Self-Improvement

Walking Wikipedia

HR strategies that integrate reward and recognition create a work environment that inspires employees to develop an attitude of self-improvement.

Also, watching their peers get recognized can motivate other employees to improve their performance and get similar recognition.

It helps in developing a culture of healthy competition for employees to achieve individual, team, and organizational growth objectives.

5. Ensures Better Return on Investment

Seek Funding For The Program

Most modern organizations, having a multicultural workforce, invest a considerable amount of time and effort in employee development and engagement.

However, the lack of a proper rewards and recognition policy reduces the impact of these efforts and return on investment.

Hence, integrating reward and recognition with key HR strategies enables organizations to get higher employee performance and efficiency.

Therefore, such strategies boost the morale of the workforce and maximize their contribution to the success of the business.


Integrating employee rewards and recognition with the HR strategy, helps organizations to achieve the objective of developing a talented and dedicated workforce committed to achieving organizational growth objectives.

Sagar Chaudhuri

Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of experience in the corporate world and entrepreneurship. In the past, Sagar has worked with companies such as Genpact, Infosys, and ICICI Bank, in leadership roles. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn

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HiFives is a global employee rewards, recognition and engagement SaaS platform that enables organizations to digitize, automate and transform their employee experience. It is used by 100+ large enterprises, small businesses and startups in manufacturing, retail, technology, financial services and media, across 25+ countries.