Employee Recognition and Productivity

Dear Levy,

My company is starting to see a lot of employee turnover. Some of our most talented employees are beginning to check out and be unproductive. We recently eliminated the use of recognition as a motivator. Is the lack of employee recognition attributing to the lack of employee production? Does it also correlate to the amount of employee turnover we’ve seen lately?

-- Performance Boost Needed

 Dear Boost Needed,

Employee production is a concern for a lot of companies, and it is affected by several different factors, as is employee retention. Recognition can be a significant factor in the productivity and retention of an employee.

Have you ever felt ignored? You put in the effort to be part of something, or you’ve accomplished a goal, but don’t feel included or celebrated for your hard work? Now, imagine how that feels. You probably start to think, “Why bother? It’s not like anyone cares.”

Without recognition for their efforts, your employees are starting to feel ignored. For many, their work defines who they are, and they genuinely care about the job they are doing. It can be demoralizing and disheartening to feel ignored when we put so much of ourselves into the work we are doing. Lack of recognition in a workplace can be detrimental to workplace morale and have a massive impact on the company’s bottom line.

Your employees want to be recognized. In fact, a recent Gallup poll revealed that the average employee prefers employee recognition over any other type of motivator, including financial incentives. Workers who feel underappreciated are more likely to quit their job. According to Gallup, two-thirds of employees who hadn’t received any recognition in the past seven days are twice as likely to leave the company as those who receive recognition.

Employee recognition has the power to strengthen workplace cultures. It can also improve employee relationships. When employees feel appreciated, dopamine is released, and they become fueled by positive feelings. Job satisfaction rises, and employees become more engaged in the company’s culture.

Companies with an effective recognition program have 31% less turnover than companies with no recognition program. If that doesn’t prove to you that employee recognition directly attributes to the productivity and retention of your employees, I don’t know what will!

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Employers should be utilizing the power of employee recognition to strengthen their company’s bottom line. Through recognition, supervisors and managers can build meaningful relationships with employees and increase the sense of belonging and purpose. Employee recognition helps workers to feel like they are part of something good and that their work is appreciated. Being recognized can inspire an employee to be more productive and immerse themselves in the company’s culture in a positive way that improves productivity and reduces turnover.


Best Wishes,

Recognition Rachel

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