5 Unexpected Benefits of Employee Recognition



It’s a foregone conclusion that happy employees are vital to the long term success of any organization. 

We’re not talking about having “Ice Cream Friday” every week or installing a hammock in each cubicle for nap time. But, having an employee recognition program in place to effectively recognize and reward employees for their performance and effort is a necessary investment. It also provides a quantifiable benefit for the company.

Here at E Group, we help build these custom employee rewards programs that have the power to increase your employee engagement and bring lasting results.

There’s plenty of studies out there that confirm the obvious: employees enjoy their jobs more, are less likely to leave the company, and more likely to work harder when they feel their efforts are appreciated and recognized. Overall, it is vital to the succeess of any organization to recognize and reward employees for their contributions.

Below are a few other surprising benefits of employee recognition and custom employee rewards programs that you might not have realized. For more employee recognition ideas, check out this blog by SnackNation

5 Noteworthy Benefits of Employee Recognition


1. It creates a better impression of your organization for those outside of it.

Chances are, your employees share how they feel about working for your organization with everyone they contact.  This includes their family and friends, and very likey, your clients and partners.

Even when they don't state it outright, the attitude and emotions your employees express are a significant implaction of their state of happiness during the work day. Happy and well-recognized employees are a better representation of your organization, which translates into better external business relationships.  

With clients who deploy custom employee rewards programs, we've found that Net Promoter Scores rise significantly. In fact, in the 2014 Trends in Global Engagement StudyAon Hewitt reported that Net Promoter scores rise as much as 35% for companies with highly engaged employees.

 Employee Recognition eBook



2. It aids in recruitment and gives potential employees something to be excited about.

When scoping out new people, there’s a lot of selling that takes place. Candidates sell themselves to you, but at the same time, you need to be selling your organization to them.

Custom recognition programs can be promoted as benefits of employment, and they show candidates that your employees are important to you.

Many of our Fortune 1000 clients have found that highlighting their recognition platforms and philosophy in their recruitment packages is a key differentiator among companies competing for talent. 


3. It encourages “extra effort” among your employees.

Your employees are called upon to go the extra mile every day. When they pack up to head home at 5:00 and an important client calls, they sit back down and help take care of their needs.

This is the stuff that makes a difference, yet too often it goes unnoticed. Instead, a recognition program would be capable of highlighting the everyday undertakings that might otherwise be overlooked and ultimately resented.

By incorporating a method to recognize and reward employees for going the extra mile, one of our clients found that within 18 months, their ratio of engaged employees to actively disengaged employees improved by 40%. That's a dramatic improvement for any organization.


4. It provides data to aid in personnel development and staffing decisions.

An employee’s record of recognition is a valuable resource when reviewing performance or looking to internally fill available positions. Many custom employee rewards programs provide a space for managers to recognize their team members, team members to recognize one another, and vice versa. It's a great way to keep track of an employee's contributions to the company.

Though it shouldn't be the only resource used to make decisions, looking back at an employee recognition program can help highlight qualities or abilities that might otherwise be missed during consideration.


5. It builds teamwork and employee cohesiveness.

In our experience, the best employee recognition programs we've developed with clients are those that allow individual employees, at any level, to recognize their colleagues. When people who work together are given the power to recognize and reward employees, the bonds of teamwork are strengthened and increased productivity is often the result.

It also encourages each employee to do their best, since it's not only their supervisors who have an impact on their recognition, but also their friends and team members.


There are certainly other well known reasons to practice employee recognition, but these five unexpected benefits can help build your business brand and culture beyond your expectations.

To learn even more ways to benefit your organization with recognition, be sure to read our article: 5 Critical Components for your Employee Engagement Program


If you are interested in custom employee rewards programs or designing your own, we're here to help. Please feel free to contact our employee recognition experts to learn more. 

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About The Author

Steve Korker

Steve Korker is a Business Development Manager for the Association market with clients serving more than 5 MIL members annually. Steve is a recognized subject matter expert on membership marketing to Academic and Student organizations.

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