The Importance of Employee
Recognition: Statistics and
Research
Think about the last time you put your heart and soul into a project or presentation
molded it into something you were proud of, and absolutely nailed the execution. That
feeling of accomplishment is uplifting, but it’s multiplied exponentially when others take
notice.
The simple act of acknowledging achievement is a major boost for employee morale
and performance. And that’s why employee recognition is so critical.
When employees are rewarded for their contributions, they feel ownership and pride
and are willing to work just as hard on their next project. Recognition connects them to
the organization, elevates performance, and increases the likelihood they’ll stay.
This article lays out how to give the kind of recognition that will truly make a difference
in employee engagement, performance, and retention.
What is employee recognition?
Employee recognition is the open acknowledgment and praise of employee behavior or
achievement. It’s used by organizations to express appreciation, motivate employees,
and reinforce desired behavior.
If you regularly give out authentic, deserved recognition to employees, you’ll be that
much closer to unlocking their full potential. Authentic recognition serves three key
purposes:
1. Showcase Goal Achievement
A simple “thank you” is often all it takes to show appreciation to employees. People
want to know that their hard work and achievements aren't going unnoticed. When a
person achieves a goal—personal or work-related—they feel a rush of achievement,
and that good feeling is only amplified when others recognize and acknowledge the
achievement as well.
2. Motivate Effort
Recognition can be tied to more than just performance. Celebrate strong effort when
employees go above and beyond. This helps them develop emotional connections to
the workplace that fuel future performance.
3. Reinforce Values
Behaviors and actions that are recognized more frequently show employees what’s
valued by managers, leaders, and the organization as a whole. When employees
receive recognition for adopting a behavior aligned with company values, they’re likely
to continue that behavior and set a positive example for others.
What is the importance of
employee recognition?
When employees feel valued, they’re more engaged, motivated, and likely to go the
extra mile for their company. Organizations with formal recognition programs have 31%
less voluntary turnover than organizations that don't have any program at all. And
they're 12x more likely to have strong business outcomes. If leaders want to
drive employee, team, and business success, they need to prioritize employee
recognition.
The connection between employee recognition
and engagement
Aspects such as performance, goals, recognition, development, and manager
effectiveness are all inextricably linked to employee engagement. And recognition is
one of the top drivers of employee engagement.
In fact, our research found that when employees believe they will be recognized, they
are 2.7x more likely to be highly engaged.
Other items related to recognition that drive employee
engagement, include:
The senior leaders of this organization value people as their most important resource.
If I contribute to the organization’s success, I know I will be recognized.
I understand how my job helps the organization achieve success.
Benefits of employee recognition
Employee appreciation is a fundamental human need. When employees feel appreciated
and recognized for their individual contributions, they will be more connected to their
work, their team, and your organization as a whole.
Here are a few other benefits of employee recognition:
Increased productivity and engagement
Decreased employee turnover
Greater employee satisfaction and enjoyment of work
Improved team culture
Higher loyalty and satisfaction scores from customers
Increased retention of quality employees
Decreased stress and absenteeism
Types of employee recognition
The “how” of recognition is very important. Every employee embraces recognition
differently. Some get a boost from public praise, while introverted workers prefer a
subtle or private gesture. After identifying the employee’s personality type, openly
encourage them through the types of recognition that mean the most to them.
Peer vs. superior
Receiving positive feedback from a manager or higher up is a
validation of good work. Impressing a superior increases job
security and the likelihood of a promotion or pay bump. But
sometimes it feels just as good to be recognized by a coworker,
even from someone lower on the org chart. Regardless of where
it comes from, recognition feels good.
Attributed vs. anonymous
Most recognition is given by a known party. There’s
typically no reason to separate recognition from the giver.
But sometimes an anonymous shout-out or thank you card on
an employee’s desk can have just as much power. It removes
the thought that the giver is doling out recognition to seem
like a team player rather than authentically expressing
appreciation.
Social vs. private
As mentioned above, no two employees prefer recognition the
same way. Some crave the spotlight; others avoid it like the
plague and would prefer subtle praise. Recognition should be
tailored to the preferences of each individual’s personality.
Behavior vs. achievement
Recognition is often linked to metrics, such as hitting a sales
goal or staying with an organization for 20 years. But praise
can also be lauded for working extra hours, going above and
beyond to aid a coworker, or for successfully organizing an
awesome company party.
8 employee recognition statistics
Employees want to feel valued at work. They want recognition for their contributions to
team and organizational success.
While extremely important, recognition isn't only about making employees more
engaged and feeling good about their job. It can be a differentiator for organizations in
their employee value proposition and can affect an employee’s intent to stay at an
organization.
Here, we look at 8 statistics that demonstrate the importance of employee recognition
on employee, team, and business success.
1. The #1 reason most people leave their jobs
is a lack of recognition.
Source: Gallup
Don’t miss an opportunity to recognize your employees. Celebrate employee
accomplishments and progress throughout the employee cycle to demonstrate your
investment in their career growth and success. Regular, frequent recognition shows you
want to help keep them motivated to hit future milestones.
Pro Tip: Authentically recognize employees in real-time.
2. Organizations with recognition programs
had 31% lower voluntary turnover than those
without.
Source: Bersin by Deloitte
If your organization doesn't have a formal recognition program, there are a few ways to
start. Use your one-on-one meetings or employee surveys to find out if your employees
feel valued and how you can improve your strategy. If you do, make sure employees
know it exists and how they can take part.
Pro Tip: Continuously communicate to keep the program
alive.
3. Organizations with recognition programs in
place experience 28.6% lower frustration
levels than those without.
Source: SHRM Globoforce Employee Recognition Survey
Recognition shouldn't only be about success and goal achievement. Having a strategic
recognition program in place can help you easily celebrate the micro-moments along
the way—such as quality work, taking on new tasks, or going above and beyond for
their team.
Pro Tip: Recognize the employee behaviors you want to
encourage.
4. 52.5% of employees want more recognition
from their immediate manager.
Source: Recognition in the Workplace, Quantum Workplace and BambooHR
Recognition should be public and available to all employees—especially managers.
Employees want to know what they are doing well, how they can improve, and what
support they have available to them. Public recognition gives managers visibility into
how often their employees are giving and receiving recognition to impact their
engagement individually.
Pro Tip: Make recognition public and easy to give.
5. Organizations with sophisticated
recognition programs are 12x more likely to
have strong business outcomes.
Source: Bersin by Deloitte
Recognition should be incorporated within one-on-ones, feedback, and talent reviews.
Including recognition in frequent performance conversations helps solidify the
importance of employee recognition in your culture and organization. When employees
understand how their contributions impact the business (and are recognized for it) they'll
be more likely to contribute again.
Pro Tip: Give recognition in the context of a larger goal
or business outcome.
6. 4 in 10 respondents (41%) want more
recognition from their immediate coworkers.
Source: Recognition in the Workplace, Quantum Workplace and BambooHR
Recognition from immediate managers is key—but so is recognition from peers and
coworkers. Give your team members plenty of opportunities to encourage each other
and show appreciation. Peers often have more insight into employee effort and morale
than senior leaders.
Pro Tip: Treat employees as valued team members, not
as numbers.
7. Recognition for work is one of the top
drivers of candidate attraction.
Source: Willis Towers Watson
If your company is hiring, recognition might just be the key to attracting top talent. If you
don't have a recognition program, make sure you're at least getting creative about
showing appreciation. Generic and inauthentic recognition strategies can have a
negative effect on the employee experience.
Pro Tip: Match effort and results, or else recognition
loses meaning.
8. When companies spend 1% or more of
payroll on recognition, 85% notice a positive
impact on engagement.
Source: SHRM Globoforce Employee Recognition Survey
Awards, compensation, and incentives are good appreciation ideas, but make sure they
aren't your only outlet for recognizing employees. Consider an investment in user-
friendly employee recognition software to make every aspect of your employee recognition
more efficient, more accessible, and more personable.
Pro Tip: Choose the right employee recognition platform.
Employee recognition examples
Recognition and appreciation are essential in a healthy work environment. But finding
the right words to recognize employees may seem unnatural or uncomfortable without
the right experience. While you should tweak your messages to resonate with each
employee, we’ve compiled a list of recognition ideas to guide your efforts.
Recognizing excellent performance
1. “Thank you for always going above and beyond in your work. You are a great asset to
this team!”
2. “Your ability to drive consistent business outcomes is inspiring. Thank you for everything
you contribute to this company!”
3. “I want to take a moment to acknowledge you for all of your hard work. You’re growing
and continuing to set a higher standard everyday.”
Recognizing good attitudes
1. “Your constant positivity makes the work environment better everyday. I’m always
excited when I get to work alongside you!”
2. “Thank you for helping out with this project. You’re a huge asset to this team and it
doesn’t go unnoticed!”
3. “Thank you for living out our company values day-in and day-out. You set a good
example for everyone on our team.”
Recognizing goal accomplishment
1. “Your ability to persevere and meet this goal is inspiring! Despite any roadblocks you
face, you always pull through and drive amazing outcomes.”
2. “Great job exceeding your goals the past quarter! Your talent and drive is key to our
business.”
3. “Your adaptability and ability to take on any challenge is impressive. You completely
exceeded my expectations with this project!”
Creating a successful employee
recognition program
A successful employee recognition program can look different based on your
employees’ needs. Regardless, there are some things you should do—and shouldn’t do—
when recognizing employees. Here are some best practices to keep in mind to shape
an effective retention program.
1. Be detailed and specific
Recognition resonates better when it’s tied to a particular accomplishment. When you’re
detailed and specific, employees understand exactly what they did well and are likely to
continue those behaviors in the future.
2. Be prompt
Recognition should happen at an appropriate time—not months after the fact. If you
recognize an employee for a contribution made months ago, they may believe you’re
simply going through the motions. Your words will be more meaningful when they come
right after an achievement.
3. Tie to company values
When employees demonstrate behavior that aligns with your company values, don’t let
it go unnoticed. When you recognize these behaviors, employees are likely to continue
them and inspire others to do the same. This actively fosters your ideal company
culture.
4. Elevate across the organization
When you spread recognition across the company, employees often feel a greater
sense of pride knowing that others are aware of their achievements. Plus, employees
company-wide can see how each individual and team contribution fits into the big
picture.
5. Recognize both big and small things
While it’s great to recognize the big accomplishments, employees need to feel
appreciated for smaller contributions too. Daily thank-yous go a long way and reduce
the risk of employee burnout.
Leveraging a successful employee
recognition platform
It’s important that recognition is practiced across the organization. Recognition should
be a part of your overarching company culture. But getting started with an employee
recognition program—and getting everyone on board—can be difficult without the right
tools. Here’s what you should look for in employee recognition software to maximize your
program’s success.
