3 Ways to Create a Culture of Recognition in Your Workplace (and Why it Leads to Organizational Success)

According to a report published in early 2024 by the business consulting firm Robert Half, a staggering 42% of workers in Canada had already started or were planning on looking for a new job this year. It’s astonishing to think that nearly half of all employees in this country are actively seeking to leave their current workplace, but it makes sense when you compare this with statistics like those found in the 2024 Ontario Public Service (OPS) Employee Experience Survey, which found that only 54.2% of respondents are satisfied with their career progress.

Retaining talent is one of the most significant challenges that organizations face, but it doesn’t need to be. New research from a May 2024 study conducted by Gallup found that well-recognized employees were 45% less likely to have turned over after a two-year period than those who reported that they did not feel appreciated by their employer. It makes sense that satisfied employees are less inclined to leave their current job than dissatisfied ones, but they also are more productive. Plus, it can cost a workplace thousands of dollars to replace an employee, not to mention the loss of institutional knowledge and damage to team morale that’s incurred.

The Power of Recognition

Recognition is one of the easiest and most powerful ways to show your employees that their work matters – and it has a cascading effect for not just the individual, but also on their team and the organization as a whole. Valued employees work hard, because they know that the pride they take in their work is shared and upheld by their institution. They also tend to be more engaged, and experience greater feelings of wellbeing and inclusion.

But more recent data from Gallup shows that only 34% of employers utilize recognition programs – and among those companies, only 13% of the employees polled rated their program as “excellent”. The 2024 OPS survey also revealed that only half of employees polled – 50.7% – responded favourably to the question, “I receive meaningful recognition for work well done.” We’ve also noticed this subjectively, too, here at Applaud – People in Public Service (APPS); in the last year, there’s been a noticeable uptick in calls from public service partners who are looking for advice on what can be done to meaningfully recognize their employees.

Creating a Climate of Appreciation in the Workplace

Not all recognition is equal – it needs to be authentic, heartfelt, and honest. Even if you’re throwing your team the best pizza party in the world, it’s unlikely to hit home as a truly genuine, individualized act of recognition.

A culture of recognition is about more than just rewarding employees; you must weave it into the fabric of your workplace culture. That is sometimes difficult to do in large institutions. We are finding that focusing within departments or units, to start with smaller groups, and then you can replicate what seems to be working across the institution.

Here are three principles to prioritize when utilizing recognition as a means of increasing employee satisfaction and optimizing success in your workplace:

1. Make it frequent. Employees need more than a once-a-year milestone recognition – though we do recommend sending around anonymous employee satisfaction surveys on at least an annual basis to ensure that there’s ample opportunity for your team to tell you for themselves how they feel. At Applaud, our team members strive for somewhere between weekly and daily shout-outs for recognition,and they can be delivered during in person or virtual check-ins:

“I just wanted to give a big thank you for getting the report completed. It’s the best one yet!!!“

2. Make it personal. Knowing whether each person on your team prefers public or private recognition and taking note of how they prefer to receive positive feedback can go a long way in making sure it feels unique and genuine. Some of our partners have done this by using individualized notecards to send an impromptu note recognizing something that an employee did well.

3. Make it equitable. Every year, we develop a new team charter that is created by us, for us – that way we can be 100% confident that our team values are shared, and reflect our latest thinking. Conducting regular performance reviews based on this charter and laying out clear and concise key performance indicators make it easy to see each team member’s valued contributions, and make it easier to deliver meaningful, satisfying recognition to each and every one of them!

Fostering a culture of recognition is not just about boosting morale; it’s a strategic and continuous investment in your organization’s future. When you acknowledge and reward your employees, it creates an environment where people feel appreciated…and one where they not only stick around longer, but also perform better on the job. The cycle is evident: recognition inspires engagement, engagement bolsters retention, retention leads to success.