Prioritize recognition: there are no downsides | Great Workplaces

Listen to this article

We’re all motivated by different things at work. For some, it’s all about the money, while others are just naturally competitive or some feel called to heal. But if there’s one thing that inspires us all to go the extra mile, it’s recognition. Whether a virtual pat on the back or a tangible reward, being recognized for your efforts is a universal incentive.

Beyond motivation — and in my opinion, more important — recognition lifts our spirits, takes the edge off the stresses of daily life and improves our overall well-being. And these positive outcomes influence how hard we work, how connected we feel to our colleagues and how long we stay at our jobs. Because each team member shows up with their well-being every day — in the quality and level of their efforts and interactions with their colleagues.

The 2022 Gallup/workhuman report “Transforming Workplaces Through Recognition” shows that only 25% of employees said they’d received recognition in the past week, but when that increased to 60%, employers saw a 28% boost in quality of work. Further, people who receive regular recognition are:

• Five times as likely to feel connected to their culture
• Four times as likely to be engaged in their work
• 56% less likely to be looking for another job — a reduction that could save a 10,000-person company up to $16.1 million a year in turnover costs

Create a culture of recognition

Recognition is showing we care by celebrating our teams and team members for who they are and what they do. It includes thanking, expressing gratitude and rewarding people for their contributions, giving credit for ideas, acknowledging accomplishments, and honoring milestones like work anniversaries, promotions, birthdays and weddings.

A culture of recognition is an environment where showing appreciation is embedded into daily life. So in contrast to just a structured top-down rewards program, people all over the company routinely give and receive props and make a big deal over each other’s achievements. In this kind of workplace, people tend to feel more engaged, valued, “seen” and connected to each other, which is especially important in remote and hybrid workplaces.

It’s also good for hiring and retention. The Gallup report mentioned above shows that 68% of people who work in “cultures of recognition” are likely to recommend their company to others vs. only 28% in the other organizations. They were also 30% more likely to say they hope to still work there in five years. On the flip side, employees who say they don’t feel recognized at work are twice as likely to be looking for a new job.

Make it personal and specific

To be meaningful, recognition should be personalized and specific. Even if it’s a routine “employee of the month” honor, it shouldn’t come across as rote. At DS+CO, we designate a Jaz Janie award winner every month and each award’s presentation is unique and customized for the recipient. We share the nominator’s submission — which highlights the winner’s specific actions, characteristics and achievements — out loud during agency meetings, in emails and on social media so it’s clear to everyone why the winner deserves the award.

A simple “thank you” is universally appreciated for the day-to-day and even more powerful when it’s in writing. And while everyone likes money, it’s not the only option. If you know a team member loves live music or gardening, give them concert tickets or a gift card to a nursery. You could also throw a party, consider a promotion or add glowing remarks to their performance review. Or maybe they’d really like to gain leadership or presentation skills or have access to a career coach.

Along the same lines, rather than give a general annual bonus, why not connect rewards to specific behaviors that demonstrate your core values or achievements that move the needle? Recognition feels more sincere when it’s spontaneous and shows how the person’s efforts made an impact.

At DS+CO, our Jaz Janie winners get a VIP parking spot, trophy, contribution to their favorite charity and shout-out on social media, among other things. Throughout the year, our managers hand out coffee shop and restaurant gift cards as spontaneous “spot” rewards. And turns out, a recent Deloitte study shows the majority of employees prize new growth opportunities over financial bonuses, which is great for the bottom line and also for the longer-term motivation and sense of purpose that comes with greater responsibility.

Consider the giver and the receiver

Personalization also includes whether to give the recognition publicly or privately. Public kudos can help strengthen a culture of recognition, while private commendation can feel more sincere and meaningful. When someone is honored publicly for specific behaviors, there’s an inspirational ripple effect that reinforces and magnifies your core values. But if a team member likes to keep a low profile, don’t broadcast their achievements widely. Instead, maybe share with leadership and their direct supervisor and team members, forward a complimentary email or use an online recognition platform.

At DS+CO, our team members award each other “Impressions” on an internal app to express appreciation and thanks for specific actions or efforts. These honors go in their employee records, get forwarded to their supervisor, are read aloud by our CEO or president at our weekly all agency meetings, and are included in the post-meeting summary email.

While peer recognition is important, most people place a higher value on recognition from leaders and managers. The Gallup study shows people are five times more likely to be disengaged and 74% more likely to leave within a year if their leaders don’t show recognition, compared to only three times and 39% if their peers don’t. So don’t delegate recognition. When training your managers and leaders, prioritize skills and education around how to show appreciation and why it’s so important, emphasizing that recognition should be:

• Frequent and consistent: One study showed people who got small rewards and thanks throughout the year were eight times more engaged than those who only received a financial bonus at the end of year
• Customized to the recipient’s preferences, achievements and efforts
• Inclusive and equitable across the organization
• Focused on the person over the results

Celebrate the journey

In addition to celebrating big accomplishments and successful outcomes, express appreciation for consistent effort, knowledge, expertise, progress made on long-term projects, living your core values, personal milestones like new babies, and really anything that makes people feel cared about, visible and valued for their ongoing, day-to-day contributions.

Everyone wants to feel appreciated and cared about, after all, and when you show recognition, you show you care. When you invest in rewards, you prove your commitment to your people and your core values. Recognition isn’t something extra you do if you have time. It’s a critical yet simple way to inspire connection and engagement — and nurture performance and retention. Besides, it’s the right thing to do.

Lauren Dixon is board chair of DS + Co., a marketing communications firm, which has  been honored as a Best Place to Work.