October 31, 2019 0 Comment

Significance of Effective Employee Recognition Programs

Organizations today cannot ignore the significance of effective employee recognition programs. In fact, various studies have shown that employee appreciation plays a key role in enhancing the overall productivity and efficiency of an organization. It can provide the organization with the winning edge and ensure its consistent success in this ultra-competitive business environment of today. This has necessitated most organizations to establish a well-thought-through and effective employee recognition programs as an integral part of their HR practices.

Why is Employee Recognition so important?

Recognizing the efforts and contributions of their employees helps organizations to develop a self-motivated and dedicated workforce. When the good work and desirable behaviors of employees are recognized, they gain a sense of being valued by their employers. This boosts their happiness and satisfaction and inspires them to continue giving their best performance.

A properly-implemented employee rewards and recognition program can impact multiple aspects of a workforce, including its engagement, morale, turnover, productivity, and purpose.  Such employees tend to be highly connected and committed to the organization and show a willingness to go above and beyond their assigned roles and responsibilities.

What are the Key Benefits of Effective Employee Recognition Programs?

To get a better understanding of the importance of rewarding and recognizing employees, it is important to learn about the key benefits that can be gained from such programs. The most important of these benefits are as follows:
What are the Key Benefits of Effective Employee Recognition Programs?
1. Enhances Employee Happiness and Satisfaction

When employees are appreciated for their work, they feel a sense of pride and happiness. This helps in assuring them that they are executing their responsibilities in the right manner and are efficiently performing the tasks assigned to them.

This improves their overall job satisfaction besides enhancing their sense of belonging and commitment towards the organization. Recognition programs thus go a long way in enhancing employee motivation, by making them feel more secure with their current employers and work environment.

2. Improves Employee Retention

Long term retention of employees is something that most businesses today are struggling with. Implementing a good recognition program can prove extremely beneficial in this context. When the employees feel valued and appreciated for their contribution towards business growth, they are less likely to seek employment options outside.

Moreover, a higher employee retention rate helps in enhancing the employer brand value of the organization. This can, in turn, make it easier for the organization to attract top talent in the future.

3. Builds a Culture of Self-improvement

Organizations implementing an effective recognition program are able to create a culture of self-improvement in a relatively effortless manner. This is because rewarding and recognizing the efforts of a single employee can deeply impact the entire workforce and motivate them to improve their performance.

This helps to gradually improve overall employee productivity and build a work culture where every member feels motivated to consistently improve their performance. Such employees tend to show a greater willingness to learn new skills and enhance their competency levels in sync with the changing business needs.

4. Acts as Effective Morale Booster

The organizational culture acts as the glue that keeps the organization together and ensures its smooth functioning. Hence, it is essential to to boost the morale of the employees to build an organizational culture that inspires greater productivity and innovation.

Appropriate rewards and recognition can help the employees to feel like they are valuable assets for the organization and enhances their trust and confidence in their employer. They would willingly take up more tasks and responsibilities that they might find challenging ordinarily and even beyond their competency levels, which in turn helps in enhancing business growth.

5. Provides Employees with a Sense of Purpose

Rewarding and recognizing the employees can provide them with a sense of purpose and help them gain a better understanding of how their work impacts overall business growth. This awareness that they are working towards the fulfilment of shared business objectives makes employees more supportive of each other and collaborative.

They learn to respect and implement corporate values in their everyday working until it gradually becomes a habit. Most importantly, it helps in eliminating any doubts and uncertainties that employees might have about their roles and responsibilities within the organization.


Building a work culture based on an effective employee recognition program can deeply impact the various levers of business growth and productivity.

It contributes towards cultivating a positive work environment, continuous employee development, employee engagement, and stronger retention.

These factors play an important role in defining the growth trajectory of an organization besides helping it to forge ahead of its competitors.

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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.