07 Effects of Employee Recognition on Workforce Management 1

If you have read the quote mentioned above, I guess you might have already figured out what we are going to talk about in this blog- the importance of employee recognition. And yes, it has A LOT to do with workforce management. 

Believe it or not, but employees tend to work longer for the companies in which they get more recognition, even if they are not very happy with their salary. 

Don’t believe me? Let me change your mind. 

Of course, employees work for their salaries- that’s the only way they are earning their bread and butter. We all know that joyful feeling when our salary gets credited into our bank accounts. But does that feeling stay with us throughout the month? Of course, it doesn’t! 

An employee’s month usually starts with a warm welcome of the salary, but usually ends with a lot of work stress and anxiety. The hardship deserves more than just a handsome salary as a pat on the back. 

We are all humans, and we love being praised and appreciated for our efforts. There’s absolutely nothing wrong with it. Present-day corporate culture involves employee recognition as one of their mandatory strategies for a reason. 

Actually, there’s more than just one reason why workforce management is more than just paying employees on time and managing the work environment. Here are 07 of the most prominent reasons why should we never skip employee recognition: 


1. Improves Company Culture 

Employees are like the building blocks of an organization, and the only thing that glues them together is their company’s work culture. Combine the mission, vision, and goals of your workplace, and you would know what your company culture is- for real. 

07 Effects of Employee Recognition on Workforce Management 2

Now, raise your hands if you can confidently say that you absolutely LOVE the work ethics of your organization. I know a majority of you can’t do it, but a few of you definitely can. One thing that assists any corporate organization in uplifting the morale of their staff is praise and appreciation. 

When people applaud for your hard work, you tend to set your bars higher for the next time. You always try to work harder in order to meet their expectations. As a result, you end up working harder despite the long working hours and work pressure just for the sake of work satisfaction. 

Basically, employee recognition is like a drug- the more you get it, the more you want it. 


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2. Promotes Employee Engagement 

When was the last time you thought of quitting your job? Did you consider missing your colleagues? Of course, you did. Why? It is because they are more than just your colleagues now- they are your friends. 


Here’s a thing- employees need communication to function adequately in their daily schedule. As a matter of fact, workplace transparency is only possible when the staff’s engagement is high. Higher engagement, in turn, is only possible when employees are happy with their jobs. 

As you might already notice, the HR departments of all the organizations focus more on employee engagement programs- from birthday celebrations to festivals, appreciation programs, and whatnot. 

So, basically, every HR’s goal is to make the employees feel valued- valued individually. 


3. Increases Employee Retention 

It doesn’t matter how well you pay your staff- they are prone to get tempted by any job offer that offers them a more creative and enthusiastic work environment. 

The only thing that holds them back is their loyalty towards your organization. I mean, if it’s not true, then half of us would be ready to draft our resignations right now. 

The bottom line is- you have to make your staff understand their worth and reward them according to their caliber and performance. Remind the fellas that they are an inevitable part of your organization. It will ensure that they don’t turn over their jobs. 

Every person tries to perform better than their best. Your appreciation is only going to make them feel they are worth it. 


4. Overall Productivity Enhancement 

We all live in a world where all the corporations are in a rat race to achieve maximum productivity with minimum investment. 

But here’s a thing- you can be a pitch penny when it comes to capital investment, but you must never think of holding back when it comes to putting efforts into human resources. Your employees are more than revenue-generating machines, and they need more than their monthly salary as a fuel. 

The employees who feel more appreciated and valued in their office seldom hesitate to take that extra mile in completing their projects. Such employees do more than just their jobs. They actually focus on the growth of your company. 

Covering an extra shift, completing an urgent project on time, working at odd hours to compensate for a leave- nothing would be a big deal if the employees love to work for you. 

All your strategies of workforce management would go in vain if you cannot keep the staff’s productivity high. 


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5. Maintains Workplace Relationships 

Operating a workplace is not something that a person does alone. It’s more of a grouped responsibility managed by every person working there. 

In a nutshell, HRs can never maintain harmony among the teams if folks are not willing to contribute on their own. Contribution occurs when the staff stays satisfied with their environment. It is only going to happen when every employee is treated well by their colleagues. 


Being a manager or a team leader, if you recognize and praise the efforts made by your juniors, you can foster healthy relationships with them. They can trust and confide in you more. As a result, the employees would never feel left out. 

A strong bond of trust and confidence is fundamental to a healthy work environment. Apart from bringing the existing employees closer, it also reflects your brand image to the people, in general. 

Thus, you increase the chances of hiring some very creative minds in your organization- which brings me to the next point. 


6. Employee Advocacy 

Employee advocacy is the practice of reaching out to the public through the employees working in a company. 

We all know why this step is so essential. How else would you know if you want to work with a company or not? Any strong organization with a commendable work environment encourages its staff to become their voice. And it becomes more manageable when the staff already loves the work culture. 


Also, nowadays, employees share their workplace achievements on social media. It is a great way to elevate your brand value by exposing your work culture to the crowd. This way, you get to attract the best people in your organization. 

The employees that get more appreciation recommend their workplace to their peers more often. Employee recognition, thus, never goes in vain. 


7. Positive Balance Sheet 

It is, by far, the MOST IMPORTANT factor listed in this article. 

According to a source, employee recognition programs lead to an increase in profit margins by a whopping 58%. No kidding, it actually does so. 


The growth chart of any workplace depends largely on how actively their employees participate in every assigned activity. If they perform their tasks whole-heartedly, they are going to look for perfection. And it’s only going to happen when they feel more productive and valuable for their teams. 

Employee recognition steers the wheel of workforce management and employee satisfaction parallelly- ultimately leading to an increase in productivity. 

All the employees need to be physically as well as mentally motivated for their everyday office work. The profit margins are going to soar higher pretty quickly. 


Also Read, 

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How To Motivate Your Team Even Though They Are Working Remotely


Here You Go! 

Hey, there! Did you read them all? I’m glad you did. I guess, by now, you might be able to understand why I am stressing on employee recognition as an unavoidable step in workforce management. What to do now? Well, try implementing more strategies that favor employee appreciation and observe the transformation of your workplace in no time! 

Do you have a doubt or query? Want to add something here? Did I miss mentioning a point? Do let me know your thoughts in the comments below. I’d love to hear from you!