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Beyond motivation: 5 Often Marginalized Benefits of Recognition Programs

March 23, 2023, 5-min. read

Employee recognition programs are an essential way to show employees that their contributions matter. However, research has shown that recognition can provide numerous additional benefits beyond just boosting morale and motivation.

Here are some, often-forgotten, ways in which employee recognition programs can help leaders build an engaged & productive workforce:

1. Improved employee well-being and mental health

By offering employees a sense of purpose and accomplishment, recognition programs have been proven to reduce the risk of burnout and stress. Employees who feel that their work is noticed and appreciated are more likely to feel satisfied with their job and thus, less likely to experience emotional exhaustion. Additionally, they may feel more confident and fulfilled in their work.

Employee recognition & appreciation by LutherOne

2. Increased creativity

Recognition programs encouraging innovation and creativity help employees feel more engaged and willing to take risks. By recognizing and rewarding creative ideas, employees are more likely to feel invested in their work and find new ways to approach problems. This can lead to more creative problem-solving and more innovative solutions.

3. Enhanced sense of loyalty

Companies that use OKRs have been shown to have better financial performance compared to those that do not. For example, a study by Stanford University found that companies that implemented OKRs saw a median growth rate of 20-30% per year, compared to just 6-8% for those that did not. This is likely because OKRs help companies to stay focused on their most important objectives and to make data-driven decisions that can lead to growth and profitability. In addition, by regularly tracking progress toward financial goals, companies can identify areas for improvement and take action to address them.

4. Improved employee development

By encouraging employees to develop new skills and take on new challenges, recognition programs can help with employee development. When employees are recognized for their achievements, they are more likely to be motivated to continue learning and growing in their roles. This can lead to more skilled and capable employees, benefitting the company in the long run.

5. Increased employee engagement

Recognition programs can provide employees with a sense of purpose and recognition for their efforts, which can help them feel more engaged in their work. When employees are engaged and invested in their work, they are more likely to be productive and take pride in their work. This can lead to higher quality work and more satisfied customers.


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Employee recognition programs can provide a wide range of benefits to both employees and employers. Companies that implement recognition programs are more likely to have satisfied and engaged employees who are committed to their work and the success of the company. By recognizing and valuing employee contributions, companies can foster a positive work culture, boost productivity, and improve customer satisfaction.

Ready to step-up your employee engagement game too? Reach out today for a free demo.

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