What is Employee Recognition?

Employee recognition is the practice of acknowledging and celebrating employees’ efforts, achievements, and contributions to an organisation. This is more than a simple thank you; it’s a structured approach to foster appreciation and motivate employees by formally recognising their work, whether verbally or electronically by peers, managers and leaders.

The thing is, we know that when employees feel valued, they’re more engaged, productive, and loyal, contributing to a positive and thriving workplace culture. This is the goal of any organisation and one that can be easily achieved by nudging the behaviour of employees, and managers and bringing gratitude into the working environment.

Employee recognition: The Holy Grail for HR

Employee recognition is an essential tool in HR and Reward Managers’ engagement armoury. It directly impacts employee satisfaction, morale, and retention and research shows time and again that recognition can significantly improve mental wellbeing, as it fulfils a basic psychological need for appreciation and validation. A 2022 study found that nearly three in four UK workers feel they should be better recognised for their efforts. The same study also found that women are 34% more likely to suffer with mental health issues due to insufficient recognition, and Millennials are the demographic worst affected by poor workplace recognition.

To give a bit more depth to the argument for boosting workplace recognition, HR can look towards Maslow’s Hierarchy of Needs, where acknowledgment plays a crucial role in boosting self-esteem and overall engagement. Knowing that you are been seen, thanked and acknowledged is a fundamental human need, and one that employers can easily provide. 

According to studies, workplaces with strong recognition practices report higher productivity and lower turnover rates, making it a cornerstone of employee retention strategies for organisations that put their people at the heart of their business. In fact, a 2024 Ranstadt report found that workers are 91% more likely to be successful at home and work if they get recognised by their employers and peers.

And with remote working being far more commonplace, recognition becomes even more important. Regular recognition can strengthen a remote workforce’s sense of unity and collaboration and help nurture a feeling of belonging. 

HR teams are instrumental in building this culture of recognition. Creating formal frameworks that enable frequent, authentic appreciation across all levels of the organisation will see a rise in employee engagement, and by using programmes that allow for peer-to-peer recognition, manager-led recognition, and team celebrations, they can foster a sense of belonging and collaboration. These in turn will help nurture a supportive environment, where employees feel seen not only by their supervisors but by their colleagues as well.

How can My Staff Shop help?

Now we know the process of recognition can help engagement, boost wellbeing and create a great culture in an organisation, the next step is implementing a system that works for your business and your people. A tool like Fanmail, which is our recognition feature, is designed to make appreciation a part of the company culture.  

Everyone likes to be thanked and with Fanmail, managers, colleagues, or entire teams can express gratitude and acknowledge individual or team achievements quickly and easily. Been a great team member? Helped out on a project? Worked extra hard to complete a task? Fanmail allows everyone to join in celebrating these moments, creating a more inclusive and supportive workplace environment. Not only does this encourage regular, meaningful recognition that reinforces positive employee behaviour, boosts morale, and strengthens team cohesion, but it helps create a culture of gratitude. 

As companies strive to keep employees engaged, recognised, and motivated, integrating employee recognition into daily operations is non-negotiable. A robust recognition programme like Fanmail not only builds employee loyalty but also elevates the overall brand, making the company an attractive workplace for current and future employees. 

Interested in bringing a powerful recognition tool to your workplace? Click the contact button and someone will be in touch to show you how we can help build a culture of appreciation that drives performance and satisfaction for your business.