Impact of Employee Service Recognition on an Organization

Posted by octanner on September 28th, 2018

Employee recognition means the acknowledgment of individual or team behavior toward the achievement of business goals. It should be a common practice for every organization. Appreciating employees doesn’t have to take more than five minutes, but the result has a lasting effect. While recognizing a group of employees, every individual should also be individually recognized for their own contribution which leads to team building and also informs the group that together they are valuable to the company.

How employee recognition leads to employee retention

The manager keeps an eye on every employee and their performance. Employees are judged by their performance and behavior. The one who performs the best creates a distinctive image and is always recognized. When we appreciate the employee for their service and hard work, that means they are being recognized by the company. It also creates an optimistic view of the company and becomes easier to retain your best employees. Therefore, employee recognition awards leads to employee retention because it gives a feeling of being valued which is important in an organization.

How does employee service recognition impact business growth

The business develops and grows because of employees. The employee’s efforts should always be appreciated and the company that appreciates its employees will likely have more talented employees that will be happy to stay at the company. There are many different ways that recognition creates an impact on employees. Some of these ways are:

Optimistic Attitude- Happy people tend to be more creative and productive because they are relaxed and stress-free which makes them a more efficient employee of the company. With a positive attitude, it becomes easier to focus on work and discover new ideas to improve the business and differentiate themselves from other employees. With employee recognition, they feel more excited to be a part of the company and thus, put in more effort for the success of the organization.

Team Building- Interaction leads to team building. Employees from different background all have to work under one roof. All employees possess different qualities and with interaction, it gets easy to know each other, spend quality time together, and learn new things from their peers. When an employee is recognized for their efforts and achievements, the other employees congratulate them as well and learn from them which will lead to business growth.

Productivity- Productivity is directly linked with employee efficiency and their efficiency depends on mood. If the employees are happy and satisfied with the company and its environment, workplace culture, and co-workers it will likely result in more productivity. But if not, the workers may feel unmotivated which can result in lower job performance. Therefore, all employees should be appreciated and recognized for their efforts to create an increase in motivation and productivity. 

Employees are the most important resource of the organization and appreciation is another major responsibility. Employee service recognition is basically to educate the employees, that company is highly delighted to work with them in an organization.