Recognition at the workplace motivates employees and boosts their productivity. Employees are more likely to take initiatives and deliver on KPI’s if their efforts are valued and their contributions are appreciated.

Studies have revealed that 64% of the employees resign as they feel unappreciated and disengaged while 69% of employees would work harder if they felt their efforts were better appreciated. Why is this happening?


Though Recognition is accepted as an important and powerful mechanism to drive engagement, unfortunately it’s still not implemented widely. Organizations still struggle to adopt modern recognition practices as part of their “Total Rewards Strategy”. 

Find out the effective ways you can motivate your employees 

Here are some common Employee Recognition MYTHS prevalent but the FACTS defies them!


REALITY: Tangible rewards with a direct financial value are certainly important for employees; however, they are not memorable for them. Intangible rewards like well-deserved recognition from peers or bosses, result in a memorable moment for the employee and hence is more significant than a cash reward.

FACT: According to a study by McKinsey titled “Getting beyond Money”, praise and commendation from managers was rated the top motivator for performance, beating out other financial incentives, by a majority of workers which is 67%.


REALITY: To acknowledge an employee’s efforts or a job done well and appreciating him in routine work takes time and energy, but it may not be more than few seconds or few minutes. For instance, even a small compliment given by a manager to his reportee while passing by is much valued.

FACT: “Psychometrics which published “A Study of Employee Engagement in the Canadian Workplace”, states that when employees were asked about what leaders could do more of to improve engagement at the workplace, 58% of respondents replied “Give recognition.”

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REALITY: Recognition is a very powerful tool to drive business performance.

FACT: According to a Towers Watson study, a 15% increase in employee engagement through tools like recognition leads to a 2% increase in profit margin.


REALITY: Studies have shown that one-fourth of the employees prefer to be acknowledged and appreciated by their C-level management. While this is important, recognition coming from peers can be a potent engagement source. Appreciation received from co-workers brings about the positive change in an employee’s attitude which is reflected in his behaviors and customer addressing.

FACT: The Globoforce Spring 2014 Workforce Mood Tracker survey shows that 73% employees prefer recognition coming from senior managers and peers both, whereas only 27% employees are happy with inputs coming from managers alone.


REALITY: It is absolutely to organization’s discretion if they want to link monetary benefits or rewards to Recognition or not. The magnitude of the investment made in comparison to the actual tangible and intangible benefits achieved is insignificant.

FACT: The SHRM Employee Recognition Survey, 2012 reveals that when companies spend 1% or more of payroll on recognition, 85% see a positive impact on engagement.

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