Guest Contributor

Why Employee recognition is important for workforce management? [2020]

By | Ritik Singh

“Good job. Well done.”

“Keep it up.”

How does it feel to receive such texts from your boss or manager? Imagine you have been recognised and rewarded for your continuous efforts towards work. Would not it be motivating?

This blog will discuss about the basics and importance of employee recognition in employee management and HR.

Employee recognition and motivation is the future of employee management. Not sure about the 22nd century practices, but employee re9]cognition is going to be a very useful asset to manage workforce and enhance business performance.

What exactly Employee recognition is?

A basic employee recognition program is about acknowledging an employee’s selfless performance and dedication towards their work.

The employee recognition can be done in many ways. Some of them include bonus, increment of salary, organising Employee Appreciation Day, etc. Any method that could make your workforce happy and successfully motivates them for continuous hard work will work.

The main objective of employee appreciation and performance appraisal is to cultivate a happening work culture and performance at business.

What are some popular ways to appreciate your workforce?

Rewards and recognition will differ with respect to organisation. There are a range of employee appreciation methods and companies practice them depending upon requirements.

Few employee recognition ways include:

  • Spot bonus
  • Appreciation day
  • Verbal appreciation
  • Written appreciation via mail
  • Website shoutout (putting up a dedicated banner on website)
  • LinkedIn social sharing of employee name
  • Free lunch
  • Increment
  • Gifts/ coupons

Importance of Employee recognition in workforce management in 2020 and beyond-

A well planned employee recognition strategy could bring wonders to your base. Business performance would see a spike if appreciation done correct and is effective.

Listed below are the benefits of employee recognition:

  • Employee retention
  • Work culture
  • Workforce morale
  • Engaged workforce

Employee retention

Indirect expenses of employee turnover include decreased productivity and employee engagement. Employee turnover is one such unwanted cost, which could easily be curbed.

Therefore, employee recognition helps you retain your employees and prevent you from such miscellaneous HR costs. Studies suggest that more than 60% of new hired leave at the earliest due to ineffective or no recognition. Right employee recognition solves your workforce retention concern.

Work culture

Work culture and employee management strategies are closely tied to productivity of a business. Recognising and respecting employee’s efforts contribute to work culture and internal business branding.

A healthy in-house culture can easily help you motivate your employees and lessen the excess hiring costs.

Workforce morale

Employee morale is the crux of your business functioning. It is the crucial part of any organization and should be a top concern on HR function. Low morale affects almost every aspect of employee relation and management.

What could be more effective than performance appraisal at building employee morale?

Engaged workforce

When an employee is rewarded for their focus and work, he/ she gets a sense of purpose and responsibility towards enterprise management and development.

Sense of purpose to stick with the company is one of the major wins of employee recognition program. Group recognition may foster a sense of community and therefore engaged workforce is the output.

Employee recognition tools

Degree based performance appraisal management helps in maintaining transparency at firm with effective and easy employee recognition. Automated feedbacking system makes performance appraisal management software a great pick.

The tool allows selected group of people to provide feedback to an employee based on their performance and behaviour at work. This ensures true appraisal and promotes improvements at base.

The automated appraisal software also eliminates the time consumption at manual feedback collection. It makes the entire appraisal process a matter of seconds.


Neither every HR manager, nor every organisation respects the importance of employee recognition. So, not everyone wins. Till now, you must be clear with the benefits of an engaged and motivated workforce.

Adopt a dedicated employee recognitionstrategy or tool for an improved insights of business performance. Take your business a step ahead and stand ahead of the curve with a strong and future ready workforce.

Good luck! Thanks for reading.

Author bio:

Ritik Singh writes about HR (Human Resource) software, cloud, and enterprise technology. A dynamic content writer who writes for Pocket HRMS, a leading provider of cloud-based HR software with inbuilt AI-powered HR Chatbot (smHRty) to small and mid-sized businesses across India.

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