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Employees want a healthy workplace where they feel their work is valued, contributes to the organization, and is appreciated. Organizations need to understand what workers want from peers, leaders, and the organization itself to maintain their morale and motivation to continuously increase engagement, performance, and retention. A recognition-rich work culture is essential to this dynamic since it adds tremendous value.

Numerous studies demonstrate a correlation between workplace gratitude (e.g., culture, peers, leaders) and employee satisfaction levels. (1) One study found that 79% of people will quit their jobs due to a lack of appreciation by leadership. (2) A 2023 report by Achievers Workforce Institute discovered that 79% of employees would stay in a job where they were valued, even for less pay. (25)

In 2017, IBM studied employee experiences noting that employees with more positive experiences had higher levels of recognition. It found that these employees were willing to go the extra mile, which is a competitive advantage. (3)

According to a 2022 joint study, employee recognition is essential because content employees are:

  • More engaged – They are 4 times more likely to be actively engaged in their work.
  • More productive – They are 73% less likely to feel burned out when recognized for their work.
  • More satisfied – They are 44% more likely to express they are thriving in their life overall.
  • More connected –They will be five times more connected to their workplace and its culture.
  • Less likely to quit – They will be 5x more likely to stay due to seeing career potential in the organization.

Employee recognition is crucial because it increases productivity, builds positive relationships, and boosts morale. Praising workers for their accomplishments reinforces quality performance—benefitting the staff and the organization.

There are a multitude of ways to recognize workers for their efforts. Knowing the company’s culture and the employees will help you to know which type of recognition program is best. Recognition programs affect a variety of areas within the organization.

RECOGNITION AND ORGANIZATION CORE VALUES

According to Gallup, only 19% of managers and leaders state that recognition is a priority in their organization, and over half of employees feel that recognition isn’t aligned with the stated organizational goals. (4) This inability to prioritize praise and align goals with recognition strategy is tragic and leads to even more disheartening outcomes.

Additionally, only 28% of executives in key leadership positions understand the organization’s culture. That leaves 72% of the executives in critical positions who do not understand the importance of having core values or know the organization’s mission, goals, and objectives. They aren’t in touch with the company’s culture, core values, beliefs, or people.

To be clear, leadership makes a dramatic difference in the culture quality. In fact, the gap between a fantastic versus a terrible organizational culture is based on the leaders, the teams they build, and the culture they cultivate. Eighty-two percent of people feel that workplace culture is a competitive advantage, as culture drives behavior, engagement, and productivity.

Quality leadership that develops the right culture, including recognition of employees’ efforts, leads to a 33% revenue increase per employee. (5) Furthermore, employees who feel appreciated and valued are over two times more likely to feel innovative thinking is embraced. (6)

A quality workplace culture leads to a 33% revenue increase per employee.

 

RECOGNITION AND EMPLOYEE ENGAGEMENT

Employee recognition has a significant impact on employee motivation and engagement. Yet there’s a clear disconnect in what employees need versus what organizations (and their leaders) often offer.

Exactly what do employees have to say about recognition? Employees state that lack of recognition is one of the top reasons they aren’t motivated. (7) In fact, 70% of employees agree that morale and motivation would improve if leadership was more appreciative of their work. (8)

Organizations also seem to be aware of the connection between appreciation, praise, and employee motivation. Seventy-two percent of organizations agree that recognition positively impacts employee engagement (9), and nearly 60% of employees want leaders to give praise if leadership wants to strengthen employee engagement. (10) Additionally, over 70% of highly engaged organizations recognize employees versus only 40% of less engaged organizations that fail to validate employees’ work. (11)

The proof that recognition impacts employee engagement is widely known. 85% of organizations that invest 1% of payroll on recognition initiatives see a positive impact on employee engagement. Furthermore, a study found that highly motivated workers outperform low-engaged workers by 202%. (12)

Highly motivated workers outperform low-engaged workers by 202%.

 

RECOGNITION AND EMPLOYEE PERFORMANCE

A professionally designed recognition program can result in an 11% increase in an average employee’s performance. (13) If it results in an 11% increase in performance for an average employee, imagine what recognition can do for top performers and high achievers!

Employee engagement, performance, and productivity are 14% higher with recognition programs than those that don’t. (14)

Fifty-six percent of organizations report achieving positive ROI from investing in employee recognition programs. (15)

Employee engagement, performance, and productivity are 14% higher with recognition programs.

 

APPROPRIATE LEVEL OF RECOGNITION

According to Gallup, only 23% of employees indicate that they receive the correct level of recognition for their work, and 70% of employees would work harder if their efforts were better appreciated. (16)

Recognition from leadership

Gallup/WorkHuman discovered that 67% of leaders and 61% of managers gave recognition a few times a week, while only 40% of employees report receiving recognition only a few times a year.

To further understand the impact of unappreciated employees when managers and leaders do not appreciate them:

  • Employees who feel unappreciated are five times more likely to be actively disengaged.
  • Seventy-four percent of employees quit quietly and plan to leave the organization within 12 months.
  • Twenty-seven percent of employees are struggling.

Over 50% of employees want more recognition from immediate supervisors. (17) And 85% of employees want management to provide positive feedback whenever a job has been well done. (18) Receiving recognition from a boss builds trust. In fact, based on a current Gallup study, 90% of employees who received appreciation, recognition, or a thank you from a supervisor within the last 30 days had higher levels of trust in that boss. (19)

Recognition from peers

Forty percent of employees want more recognition from coworkers and peers. (20) Gallup has found that when peers fail to recognize peers frequently (e.g., only a few times a year):

  • Employees not recognized by their peers are three times more likely to be actively disengaged.
  • Thirty-nine percent of employees quit quietly and plan to leave the organization within 12 months.
  • Twenty-four percent of employees are struggling.

Strategic peer recognition programs are 50% more likely to have high staff engagement. (21) Ninety percent of employees regularly recognized by their peers are more satisfied. (22)

RECOGNITION AND EMPLOYEE RETENTION

Finding new hires with labor shortages is difficult enough, but the costs associated with recruiting, onboarding, and time-to-optimum productivity levels are even harder. It’s more important than ever to keep great employees engaged and passionate about the work they do, the company they work for, and the stakeholders around them. Praise, appreciation, and recognition are absolute musts to keep employees at all levels happy, engaged, and loyal.

What is the impact of not receiving enough recognition? A study found that not getting appropriate recognition will lead 44% of employees to change employers. In fact, 55% of employees plan to leave their current employer within the next year due to a lack of recognition.

On the other hand, 63% of employees who feel recognized won’t look for a new job elsewhere. Sixty-nine percent state that an incentive program that recognizes challenging work would encourage them to stay longer. (23)

An HR survey found that content employees are loyal to their current employer. Over 90% of respondents agreed that recognition positively impacts employee retention. (24)

Take Aways:

  1. Leaders are the critical driver of recognition.
  2. Leaders model the behavior of the organization and the teams they build, and the environment they curate.
  3. Leaders need to understand that it’s not just the financial investment of recognition programs but also the time investment into the people that impact outcomes. People connect to people. They expect experiences and want meaningful moments, memories, and opportunities to shine.

A well-built recognition program that receives leadership buy-in, and that has the entire organization’s commitment, will see improved outcomes. Their employees will be more engaged, productive, satisfied, and connected and less likely to quietly quit. A recognition program will lead to more significant competitive advantages, innovation, and revenue growth. Employees will be thriving at work and actively involved in promoting the company. They will be better workers and feel better as human beings. It’s amazing what a “thank you for what you do” can accomplish.

Are you seeking ideas to reward your employees to boost motivation among them? If so, contact Gavel International to learn more.

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SOURCES:

  1. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.431.7367&rep=rep1&type=pdf
  2. https://hiredna.com/heres-why-79-of-talented-salespeople-quit/
  3. https://www.ibm.com/downloads/cas/JDMXPMBM#:~:text=More%20dramatically%20perhaps%2C%20employees%20with,percent)%20(Figure%203)
  4. https://www2.deloitte.com/us/en/insights/focus/human-capital-trends.html
  5. https://teamstage.io/company-culture-statistics/
  6. https://www.greatplacetowork.com/resources/blog/creating-a-culture-of-recognition
  7. https://www.rewardgateway.com/blog/21-key-employee-recognition-statistics
  8. https://blog.bonus.ly/recognition-statistics
  9. http://talentsnapshot.com/wp-content/uploads/downloads/2017/04/Impact_of_Employee_Engagement_on_Performance.pdf
  10. http://www.berksandbeyond.com/2014/07/08/allentown-staffing-agencies-employee-recognition/#sthash.RCT4h0K2.dpuf
  11. https://blog.bonus.ly/the-state-of-employee-engagement-2019
  12. https://teamstage.io/company-culture-statistics/
  13. https://www.gartner.com/en/documents/3982467/4-recognition-and-rewards-program-levers-for-driving-per
  14. https://www2.deloitte.com/ie/en/pages/deloitte-private/articles/recognition-programmes.html
  15. https://www.quantumworkplace.com/winning-approach-to-employee-success
  16. https://www.proofhub.com/articles/employee-recognition
  17. https://www.quantumworkplace.com/recognition-in-the-workplace-secrets-stats
  18. https://www.rewardgateway.com/press-releases/news/the-social-recognition-disconnect
  19. https://www.quantumworkplace.com/employee-recognition
  20. https://www.quantumworkplace.com/recognition-in-the-workplace-secrets-stats
  21. https://peoplepulse.com/resources/useful-articles/complete-guide-employee-recognition/
  22. https://www.peoplemattersglobal.com/article/employee-engagement/how-peer-to-peer-recognition-boosts-employee-engagement-16093
  23. https://www.achievers.com/press/achievers-survey-finds-without-recognition-expect-employee-attrition-2018/
  24. https://www.achievers.com/press/achievers-survey-finds-without-recognition-expect-employee-attrition-2018/
  25. https://www.businessinsider.com/boss-manager-positive-feedback-employee-appreciation-work-quit-job-2023-3

This article was last updated on February 29, 2024

Eloisa Mendez
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