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Employee recognition is one of the most important aspects of managing employees, but it often goes overlooked. Some employees even report that they’d prefer authentic appreciation of their extra efforts over financial bonuses and gifts. When employees quit or resign, they’re usually leaving their manager, not the company. Effective management is about building relationships with employees and creating a work environment that celebrates success.

Here are four reasons why employee recognition is so important, followed by five steps for effective employee recognition.

Increases Morale

When employees feel like their work is noticed and truly appreciated, they take pride in their work. They’re satisfied with their job and are more likely to be engaged in pursuing their next set of goals. Even during times of economic insecurity or company transition, if employees know they are valued, they will feel reassured. This sense of satisfaction and loyalty will become contagious among your staff.

Boosts Self-Esteem

People who are appreciated feel more positive about themselves and about their ability to contribute. Employees with solid self-esteem are usually the best, most productive employees.

Rewards Key Behaviors

If you want your staff to do more of “X”, then thank and encourage the individuals who are actually doing it. Those people will continue to do it and those around them will see concretely what you’re looking for.

Increases Engagement and Productivity

When you are specific in your appreciation and recognition, employees can set goals for themselves and have something to aspire to. Ideally, you want to inspire your employees to stay motivated and engaged in their goals so they continue working hard and producing for you.

A little gratitude goes a long way when it comes to morale, loyalty, and employee self-esteem. Here are five steps to do it effectively.

  1. Keep it fair, consistent, frequent.

If you are insincere or if the recognition seems inconsistent and sporadic, you’ll only breed jealousy, complaining, and dissatisfaction among your staff.

  1. Thank the person by name.

It’s up to you whether to do this publicly in a staff meeting or more casually in a private setting. Consider that you’re more likely to inspire other employees if you do it publicly. Many employees also report that peer praise is extremely motivating.

  1. Be specific.

Identify exactly what behavior or action they took that contributed to the given outcome. If they met a certain quota, mention those numbers. This encourages employees to set goals for themselves.

  1. Explain how you feel.

Again, effective management is about authentic relationships. Briefly and sincerely mention the sense of pride and respect you feel about this achievement and this person’s effort.

  1. Point out added value.

Acknowledge exactly how this person’s effort powered the company to a larger business goal or increased the value of the department. Make your employees feel proud to know that their extra effort directly contributed to the organization’s accomplishment. Remember that employees with higher self-esteem are usually the best employees!


For more information on how to reward your employees, contact us at PrideStaff St. Pete/Clearwater, today!

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