August 29, 2021 0 Comment

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. Even high performing employees may lose motivation or seek other opportunities over time they do not receive recognition. Moreover, organizations, where rewards and recognition are not integral to the HR strategy and culture, have lower employer brand value. This makes it more difficult for such organizations to attract, recruit and even retain top talent for greater business success.

Changing 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 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?

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 in ensuring success of the HR teams in improving 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

When rewards and recognition become integral part of HR policies, employees experience greater job satisfaction. This happens as they receive proper and timely acknowledgement 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 reward 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

Employee turnover is one of the major HR challenges for organizations today. In a many cases, poor rewards and recognition culture is 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 keeps employees motivated, strengthens their bond with the organization and minimizes chances of seeking other opportunities.

4. Creates an Environment of Self-Improvement

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 getting recognized can motivate other employees to improve their own 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

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

However, 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 enable organizations 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.

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HiFives ( is an employee rewards, recognition and engagement SaaS platform that enables organizations to digitize, automate and transform their employee experience. The platform enables supervisors and co-workers to nominate, recognize and reward employees using a points-based system. Budget management, jury-based evaluation and multi-level approval workflows are built into the platform. HiFives has social features such as a wall of fame and gamification features such as leaderboards, e-certificates and digital badges. It also has a global redemption system with country-specific e-gift card options. HiFives integrates with all leading HRMS systems, Office 365, Google Workspace, MS Teams, Slack and other popular tools used at the workplace. HiFives is used by many large enterprises, small businesses and startups across 25+ countries in the world, in many industries including manufacturing, retail, technology, financial services and media.