Credit Card Processing Blog

The Culture of Growth Leaders – Employee Recognition

August 22, 2016 1:00 PM / by Reliance Star

There is a growing shift in the business world towards a greater focus on employee recognition. This is markedly different from the previous prevalence of simply assuming that employees are doing their jobs well and only passing out recognition for going above and beyond. However, this recent trend has shown that offering employee recognition, even for performing basic job duties at a competent level, can go a long way towards boosting employee morale, motivation, and productivity, all of which are aspects that can help a business emerge from the crowd as a growth leader and driver of innovation in the workplace.

Why Is Employee Recognition Beneficial?

Recognition, even on a small scale, can go a long way towards boosting an employee’s willingness to work, and to work hard. This is because receiving praise triggers the release of dopamine in the brain, a neurotransmitter linked to pleasure and motivation. When an employee receives praise for a job well done, that employee becomes more motivated to continue to work hard in order to receive that praise again and again.

It has long been recognized in the business world that employees who are happier in their jobs tend to produce better work than their dissatisfied counterparts. Many employees even report that verbal recognition holds more value to them than financial rewards.

Where Does Employee Recognition Come From?

Within the workplace, employee recognition comes from two main sources: managers and colleagues. Members of management are in a unique position to be able to dole out recognition to a large number of employees, as they supervise the work of all of their subordinates. The higher up the manager is in the overall corporate structure, the greater value that recognition holds for the employees.

For example, receiving praise from the company’s vice president for work on a special project boosts the employee’s motivation more than recognition from a direct supervisor with regards to the employee’s regular job duties. However, recognition from peers also holds significant value for employees, though this type of recognition does not come as frequently.

How Can You Create a Culture of Recognition in Your Business?

Instilling a culture of employee recognition begins with those in leadership positions in the company. As they pass down recognition to their subordinates, they should encourage those being recognized to then pass along recognition to their colleagues and to those they supervise. As recognition moves from the top down, more and more team members will be recognized, giving a morale boost to the organization as a whole.

To encourage and maintain this process, set up a system for recognizing employees on a regular basis, like through an employee of the week program. It does not have to be anything formal. Simply encourage your employees to be aware of and to recognize their colleagues’ accomplishments. Try to establish this system in each department and at each level of responsibility within the company so that the maximum number of employees have a chance to be recognized.

How Can Employee Recognition Help Your Business Grow?

As your employees begin to feel that they are being suitably recognized for their hard work, they will have the motivation necessary to work harder to achieve even more. It also contributes to job satisfaction and a feeling of security. When employees feel secure in their positions, they feel more comfortable taking risks and going out on a limb for new ideas, which can help to drive innovation and creative solutions to problems. This innovation can help push your business to the next level in your industry and help you stay ahead of your competitors as your business continues to grow and evolve into the future.