In a recent Employee Benefits report, 62% of employees say they never or hardly ever receive recognition. 29% say they haven’t received recognition for good work in over a year!
Reinforcing this fact was a poll on Spinnaker’s LinkedIn page which found that 61% of respondents never or hardly ever feel recognised for their work.
Employee recognition is essential for fostering a positive work environment and driving business success. When employees feel appreciated, they become more engaged in their roles, which leads to higher productivity and improved job satisfaction. It goes beyond simply completing tasks, it fuels a desire to take ownership, contribute to the success of the team and continuously strive for more. It serves itself as a powerful motivator, whether this be through verbal praise, awards or formal incentives. Recognition also has the ability to create a feedback loop where employees feel more valued and driven to maintain high standards of performance. Regular recognition strengthens employee commitment, making them more likely to stay with the company, and reducing turnover and the costs associated with hiring and training new staff.
Recognition also plays a key role in creating a positive and thriving workplace culture. When employees’ contributions are acknowledged, it fosters a sense of belonging and respect. This leads to better teamwork, communication, and collaboration. This in turn can encourage them to invest more time into their work, share ideas more openly and ultimately lead to more innovative solutions and collective success. It is about creating a mutually appreciative environment where these actions can be integrated into daily interactions. Helping to develop stronger working relationships, better cross-department collaboration and a more cohesive team dynamic.
Additionally, a recognition-rich culture can attract top talent, as people are drawn to organisations where their efforts will be valued. As we see the market getting increasingly more competitive as weeks go on, people are increasingly seeking out organisations where they know they will be valued. A company that emphasises recognition will stand out more as it will be a place where they can thrive both personally and professionally. Attracting these top-talent candidates strengthens the company’s workforce and drives its competitive edge. By investing in recognition, companies can build a culture where employees are motivated, satisfied, and committed, leading to sustained success and a competitive edge in today’s dynamic business environment.
Employee recognition also strengthens relationships between employees and managers. When managers take the time to recognise their team’s efforts, it shows they are attentive and appreciative of their efforts. This in turn boosts morale and builds that foundation between the two, focused on trust and fosters open communication. As trust grows, employees become more comfortable sharing their thoughts, feedback and concerns, knowing their input is valued. It can help remove the barriers of hierarchy within a company and foster collaboration. This supportive dynamic encourages employees to be more innovative and creative, as they feel confident their ideas will be acknowledged.
Some statistics on employee recognition:
- Around 80% of employees say that recognition improves their engagement.
- Companies with a highly engaged workforce are 21% more profitable
- Employees are almost 3 times more likely to be highly engaged if they believe they will be recognised for their contribution
- Around 70% of employees say an increase in recognition would make them loyal to their employer
- Around 60% of employees say they would prefer regular praise and thanks over a 10% pay increase with no recognition
- 53% of employees say they would stay longer at a company is they felt appreciated
- 40% of demotivated employees put it down to a lack of recognition
At the 2024 Maritime People & Culture Conference, Spinnaker launched an Award for the ‘Best HR Initiative’. One of the runners-up was Teekay with their 50 years, 50 stories entry. Their entry celebrates fascinating, interesting, and light-hearted stories from employees within Teekay to celebrate their 50th anniversary and you can see their video here.
And if you were wondering, what do Spinnaker do for employee recognition? Well, we run a weekly round-up where we can celebrate and congratulate the weekly achievements of everyone in the business. We also run an end-of-year communications meeting where we celebrate an ‘Employee of the Year’ award, as well as championing everyone’s achievements throughout the year. We also run a ‘Social Media Cup to recognise the employee with the best use of social media and using it to the best of their ability.
In conclusion, employee recognition is a powerful driver of both individual and organisational success. By acknowledging employees’ efforts, companies can boost engagement, productivity, and job satisfaction while fostering a positive workplace culture built on mutual respect and collaboration. Regular recognition strengthens relationships between employees and managers, encouraging open communication, trust, and innovation. Moreover, it helps attract and retain top talent, giving organisations a competitive edge in a fast-evolving market. Investing in employee recognition is key to building a motivated, committed, and high-performing workforce, leading to long-term business success. Therefore, incorporating regular and meaningful recognition practices into the workplace is not just a nice-to-have but a business imperative.
Blog written by Helen McCaughran, Business Development & Marketing Manager and Bethanie-Taylor Grenfell, Marketing Executive
