Don’t you feel happy when someone says “THANK YOU”? Two simple words but it speaks a lot, right? It makes you feel that you are being appreciated and valued for the work or the help given to the concerned person. This is what it seems to be recognized.

In an organization too, employees who are the assets of the company expect such kind of recognition.

What is Employee Recognition?

It is reward given by the management to the employee for achieving targets and delivering quality work. This is done to make the employees believe that their work is being noticed and appreciated. It also gives them the needed push to perform better.

According to Forbes, today there is a $46 billion market for employee recognition (gold watches, pins, thank-you awards, plaques etc.), and our research shows that companies spend between 1-2% of payroll on such stuff. This is really a ‘huge’ market.


1.       Employees like to be acknowledged for their work. They should be appreciated and thanked so that they feel valued and motivated.

2.       Employee recognition is a fundamental human need. According to author Dave Ramsey, "The feeling and reality of acceptance gives people the best opportunity to become their best. People yearn for approval".

3.       You thank your investors for their support and co-operation, then why not your employees? You want your investors to be with you through thick and thin, for the same reasons you need to thank your employees.

4.       Employee recognition is very important to have a smooth relationship. It enforces communication between top and bottom level employees, which is very important for any relationships.

5.       When an employee is praised and rewarded for his good works, he feels motivated to do more. Motivation is much effective and powerful tool that touches a person’s heart and makes them to do their work voluntarily.

6.       Employee recognition leads to productivity. I.e. Performance = Recognition = Motivation = Quality work = Productivity.

7.       Employee feels satisfied when he gets to know that the management is satisfied with their work. When an employee is satisfied he becomes loyal to the organization.

8.      Due to globalization, high competition and changing needs of people; it is very difficult to retain the best talent. If the organization tries to build a connection with his employees, many will stay loyal to the organization and never think of leaving even though a better opportunity awaits them.

9.       Absenteeism and stress can be avoided through employee recognition.

10.   Employee turnover can lead to increase in cost. On the other hand there is no cost involved in retaining an employee. Employee recognition helps to reduce such cost and increase profits through better productivity.

It is not that employees will only be the beneficiary. The organization will be benefiting more than anyone else. There is a saying that “You can catch more files with honey than vinegar” which means politeness and care can work a lot more than mere demands.

Many organizations believe and say that employees are their best asset and therefore, they put in a lot of effort to retain better performing employees. But it is difficult to find new and creative ways to recognize employees which are effective and long lasting.

Here are 10 best practices to recognize employee. 

  1. Pass on the info: Appreciation is all time, the best motivator that works well for the managers. Pat your employees back in front of the team and tell them that you are pleased with the performance and you are looking for more good performances to come. 
  2. Have an "Employee of the month" slot: Set a particular date to recognize employees' and announce the Employee of the month and highlight it. Post their name on their desk, notice boards and digital scrolls to gather other employees' attention.
  3. Have creative give away’s: Announce vouchers or goodies for every outstanding performance. For example: Give away gift/dinner/shopping vouchers for employees who crack a cross sale.
  4. Added benefits: A great way to recognize employees' is by providing them a little extra something. Little extra something could be small bonus and attractive incentives which would make employees feel that their hard work is paying off.
  5. Foster open communication: Communicate the state of the company in an open meeting every quarter and allow your employees to ask questions.
  6. Encourage employee driven committees: Let your employees form and lead committees that are outside their usual job responsibilities. For example: Encourage them to form a runners/walkers group, a trek group and coordinate a committee interested in social services.
  7. Educational opportunities: Introduce different educational and training programs that could enhance your employees’ knowledge and efficiency. Bring in the concept of sponsorship for better performing employees to pursue higher degrees if interested.
  8. Organize an event to identify and reward: Host an event especially to highlight and reward the outcomes of employees' hard work. This could be an annual affair with lunch, some games and lots of rewards.
  9. Let the world know: Make use of the social media to high spot the employees' achievements. Post a simple message with the employees' name and a nice picture allowing the other employees to congratulate.
  10. Higher position: Give them an opportunity to work towards the higher level and award them with the advanced designation when they render deserving performance.

So, why waste time? Spread the smile and make your employees happy! You can even start with a simple “Thank You”.