5 Reasons Why Employee Recognition Programs Boost Morale

Employee recognition programs are becoming increasingly important as a means of boosting job satisfaction and productivity. The five reasons listed below will outline how these programs benefit both employees and companies alike.

  1. Motivation:

Acknowledgment for a job well done is a critical part of maintaining motivation. Recognition motivated by profit has been shown to significantly outperform traditional motivators such as pay or bonuses. Recipients of these rewards are more self-sufficient, engaged, satisfied with their jobs, and talented in their work; they also tend to be more loyal to the company than those without such benefits.

  1. Productivity:

Recognition programs for employees also have a positive influence on productivity. Check this out https://rewardz.sg/employee-engagement.html. Studies have proven that these programs reduce turnover, absenteeism, and insurance claims by as much as 50%. In addition, they also show an increase in production of up to 25% in some workplaces.

  1. Profit:

In the same way, employee recognition programs can improve individual job satisfaction, and they are also a very effective way of increasing company morale as a whole. This results in an increased rate of sales and the overall profit margin for the organization.

  1. Costs:

The costs associated with running this kind of program are minimal when compared to its overall benefits. Employee awards are gifts given at no charge to participants; therefore, additional costs such as reward selection and delivery are negligible.

  1. Image:

Recognition programs are also an aid in boosting company image. Employee recognition awards, such as plaques and medals, give a sense of pride to employees, which then translates into their work product. This sense of pride builds a reputation for the company and can serve as a gateway to further sales.


These programs have been proven to increase productivity and company morale, which in turn translate into higher profits. For this reason, employee recognition awards are now an essential part of any work environment.

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