I can live for two weeks on a good compliment.
–Mark Twain


Who doesn’t like being praised for their efforts and achievements! An honest compliment after meeting a stressful deadline can provide a pick-me-up to the employees. Different studies show that employee rewards and recognition can increase 14%-35% increase in sales.

What do We Mean by Employee Recognition

Employee recognition is a system for acknowledging and rewarding the efforts, achievements, and contributions of employees in a workplace. It is a way of showing appreciation and gratitude for the hard work and dedication of employees. It can come in various forms such as bonuses, awards, promotions, public recognition, or merely verbal praise.

Why Should We Care About Employee Recognition

There are multiple benefits for having a system for recognition and reword (R&R) in a company. Here are a few insights about the benefits of rewards and recognition:

Better performance

Recognizing employees for their achievements can improve their morale, self-esteem, and motivation. So they get inspired to continue performing at a high level and improve their overall performance. According to HBR,  40% of American employees said they would put energy into their work if they were recognized more often.

This shows even having best talents in a company does not guarantee success. Overlooking proper acknowledgement of employees’ efforts and accomplishments makes them frustrated and discouraged. For people to be their best, they need to be seen.

Enhanced company culture

Company culture is the shared values, beliefs, behaviors, and practices that characterize an organization. Developing and maintaining a positive company culture should be a priority for all organizations. A strong company culture foster employee engagement, creativity, and commitment.

A recognition program can help create a positive work environment, reinforce company values, and promote a supportive culture. It improves relationships between employees and their managers, promoting better collaboration and teamwork.

Improved retention

As recognition programs foster a sense of loyalty and commitment to the organization, they reduce the likelihood of employees seeking employment elsewhere. Recognition can create a sense of belonging and connection to the organization, making employees feel more invested in their work. When employees feel valued and appreciated, they are more likely to be satisfied with their jobs and less likely to leave the company.


Generally, the goal of employee recognition is to boost employee morale, improve job satisfaction, and increase employee engagement, ultimately leading to better performance and productivity. It helps to foster a positive work environment.

How to Acknowledge Employee Contributions

So far, so good. Benefits of employee recognition is pretty much obvious. But is it also straightforward to implement? Not always! …  With all good intentions, a compliments may seem manipulative, biased, or insulting. The key is to make sure the recognition is meaningful, tailored to the individual employee and their specific achievements, and fair.

Make it Meaningful

Recognize the specific actions and achievements that the employee has made, rather than just generic praise. It is always important that employees realize the reason for which they are praised. Moreover, employee recognition should be timely,  as soon as possible after they have made an accomplishment. And finally, it is important to share the recognition publicly, either within the company or with a wider audience, to reinforce the message and inspire others.

Tailor it to Individuals and Achievements

By tailoring recognition to each individual and their achievements, you can celebrate the diversity of your workforce. This will help to increase employee engagement, motivation, and overall satisfaction.

To achieve this, there are several steps that you can follow:

  1. Get to know your employees: Take the time to understand each employee’s strengths, preferences, and what drives them.
  2. Track achievements: Keep a record of each employee’s contributions and milestones, so that you can easily recognize them when the time is right.
  3. Personalize recognition: Use the information you have gathered about each employee to personalize the recognition in a way that will resonate with them. For example, consider their preferred communication style or type of reward.
  4. Use different recognition methods: Offer a range of recognition options, such as verbal praise, written recognition, bonuses, or awards, to suit different individuals and achievements.
  5. Celebrate diversity: Recognize the unique qualities and contributions of each employee, regardless of their role, background, or personality.

Be Fair

A Gallup report shows only 26% of employees strongly agree that they receive similar amounts of recognition as other team members with similar performance levels.

It is critical for a company to have a transparent system for their recognition and reward process. Making it transparent can help employees better realize what is expected of them and can assure them that there is no discrimination between employees.

And at the end, to make make sure the system is working correctly, don’t miss following up. You should follow up with the employee to see how the recognition has impacted their work and to gather feedback on how to improve future recognition efforts.

Pandos – A Tool for Reward and Recognition

The Pandos Reward & Recognition dashboard is customized to your business and industry and can be made for any milestone. Built with a gamification framework, organizations can choose business related badges, create personal messages to accompany rewards, and have the option to share appreciation individually – or with the team.

It is well documented that appreciation keeps employees engaged. Engaged employees lead to a more productive workforce, improved staff dedication and loyalty. These solutions can help employees recognize one another for good work on a project, demonstrating company values, or for a life event like a birthday or an anniversary.

A key difference in the Pandos Recognition & Reward Dashboard from others, is the dynamic gamification functionality that allows for:  Peer-to-Peer Recognition, Manager-to-Peer Recognition,  Social Recognition, Rewards Points & Catalog, Performance Management and Tracking.