Secret and Not so Secret Psychology of Employee Recognition


In the 2020s, the power of employee recognition is of paramount importance. With many employees still working from home even years after the pandemic or, at the very least, embracing a hybrid model of part-time at home and part-time at the office, it’s never been easier for a hardworking employee to feel undervalued and even ignored for their contributions to a company or organization.

This is where employee recognition awards come in. What are they all about? The professionals at EDCO, designers and manufacturers of employee awards, base their business model on the importance of employee recognition. Awards are said to be more than a simple gift. They are designed to be far more meaningful than a card or a trinket. Employee recognition awards are all about making your company’s people feel valued, appreciated, and respected.

That said, what are some of the secret and not-so-secret psychological benefits of employee recognition? According to a recent report by Informatics, there is no overstating the importance of employee recognition in the modern workplace, even if that workplace is remote. From enhancing productivity to creating a positive and inspiring work environment, employee recognition is said to be a strong force that can drive employee engagement to new heights.

Here’s why employee recognition matters.

Human’s Crave Recognition

It’s no secret that humans crave recognition and appreciation for their efforts in the workplace. The fundamental need is said to be built into your DNA. Many psychologists agree that recognition, especially when it comes in the form of an award, triggers endorphins in the brain that contribute to the sensation of well-being and fulfillment.

In short, openly acknowledging an employee’s efforts and talents will satisfy this craving and, at the same time, create a conducive environment for overall job satisfaction and motivation.

Impact of Employee Motivation and Morale

Employee recognition is much more than just acknowledgment. It’s something that has a profound impact on employee motivation and morale. In other words, employees are far more likely to feel connected to their work responsibilities and feel like a valued member of a team when they are recognized by company peers and superiors. The emotional connection that’s created almost always translates into a motivation boost whereby employees find themselves working at peak levels.

Improving Performance and Productivity

Says Informatics, one important tangible benefit to a healthy employee recognition system is its direct relationship with performance and productivity. If employees feel as though their efforts are being properly recognized and appreciated, they will be more inclined to deliver extra effort to their jobs. It’s this kind of enhanced commitment that contributes to improved team and individual job performance.

Creating a Positive Working Environment

Employee recognition can act as a catalyst in creating a positive work environment. Employees who have been recognized for their efforts are far more likely to enter collaborative team efforts. They will also display a more positive attitude towards their workmates and colleagues. This is the kind of creative atmosphere that can boost teamwork and create a workplace culture that attracts and keeps the best talent available, be they newly graduated from university or seasoned workplace veteran.

Going Beyond General Approaches to Employee Recognition

While employee recognition is viewed as a positive thing for the workplace, the strategies employed tend to vary from company to company and organization to organization. Some of these approaches often fail to deliver their desired impact for one reason or another. Maybe the employee recognition is too generalized and even generic.

However, when you apply a personalized employee recognition approach that is tailored to individual achievements and preferences, more positive results can be attained. By personalizing employee recognition, you come across as sincere and authentic. A personalized method resonates across the entire workplace and is felt by all employees.

Utilizing Technology in Today’s Employee Recognition Efforts

It’s also no secret that we are currently living in a highly digitized age. Therefore, it only makes sense that employee recognition methods have evolved along with it. Leveraging employee recognition resources via a company or organization website creates the effect of streamlining the acknowledgment process, thereby making it more accessible and efficient.

On top of this, digital technology that corresponds to modern working trends can provide a quick and easy way to keep track of company employee recognition efforts. A simpler way of saying this is no one gets left behind when it comes to being recognized for their achievements.

Employee recognition is of vital importance when it comes to maintaining a healthy workplace environment. Whether that recognition comes in the form of a personalized trophy or plaque or a prominent mention on the company website, recognition creates a workplace atmosphere where employees make the extra effort to get ahead. That translates into company profits.