October 31, 2020 0 Comment

How Important is Recognition for Employee Engagement?

How important is Recognition for Employee Engagement? To answer this question, let’s pose another question! What is employee engagement in the first place?

Very broadly, employee engagement is the art and science of making employees feel good. about everything. About themselves, about the organization, about working in the organization and about working with each other. This ‘feel-good factor’ can be through tangible and intangible means.

What are the ways to drive employee engagement through rewards?

According to a report by the Society of Human Resource Managers, companies with good employee recognition programs and career development guidance saw a 63% increase in employee productivity. The report also suggested that such companies experienced a 58% return on their profit margins, a 52% increase in customer retention, and a 51% increase in employee retention.

In today’s day and age, social recognition plays an important role in what makes us feel good. People are thirsting for likes and comments on social media like Facebook, Instagram, etc. In a similar way, employees value social recognition of their achievements at the workplace. For confidentiality and privacy, these recognition platforms might be accessible only within the organization.

Another report by SHRM terms peer-to-peer recognition to be way more effective than managerial recognition, with 41% of the companies that implement this mode of recognition experiencing a positive increase in customer satisfaction.

Monetary rewards can play can be an additional factor on top of the social recognition.  Even non-monetary benefits like sponsored conferences, training programs and direct interactions with top brass might work great!  All adds up to the ‘feel-good factor’ of employee engagement.

The most critical aspect of recognition is spontaneity, appreciation as something good happens. A pat on the back or round of applause at a team meeting; all make a difference, if on time. Obviously, the perceived value of the award needs to be calibrated with the level of the achievement.

A recent Harvard Business Review has also stated that an effective recognition strategy helps create 30% more productive employees besides enhancing their creativity three times. It also helps in creating 37% more successful salespeople than the less engaged ones.



All said and done, recognition plays an integral part in employee engagement no matter how it is executed.

At the end of the day, employees feeling happy is what matters most whether is a pat on the back, a trophy, a shopping voucher or a trip to the Bahamas!

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HiFives (https://www.hifives.in) 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.