The Power of Positive Employee Recognition in Small Business

When you facilitate employee recognition to say thank you, you help create a positive and productive company culture. Employees greatly appreciate genuine, sincere, specific recognition from managers, senior managers, and even coworkers. This recognition makes employees feel great and appreciated which in turn leads to better results for your company.

When employees feel appreciated, they feel more self-worth which leads to a happier and more productive employee.

What is employee recognition? Well, firstly, it ISN’T rewards/incentives. Employee recognition is not rewards because you really don’t need to spend money to recognize employees. Instead, it is all about the acknowledgement of a job well done. That’s it. All you need to do is show employees the respect they deserve – show them that you notice and appreciate all the hard work they are doing on a regular basis.

Employee recognition is a powerful engagement tool

Why is employee recognition important?

You want to lower turnover and increase retention? Start with employee recognition.

A study found that companies who invested in employee support and satisfaction had happier employees. So when Google implemented that employee incentive, they saw employee satisfaction rise 37% because financial rewards just aren’t enough to make employees productive. Employee recognition is so much more than money and promotions.

Focusing on turnover, the cost alone is around 30% of an employee’s annual salary whereas some say it could be double their annual salary. Consider the time and energy that you go through during hiring and on-boarding, now think how much goes into replacing the employee:

  • Recruiting costs (advertising, interviewing, screening, etc.)
  • On-boarding costs
  • Productivity loss (at least three months pass before an employee shows value)
  • Training costs

However, in addition to the financial costs, there are emotional costs as well. Morale and productivity can take a hit whenever someone leaves the company. By offering employee recognition on a regular basis, you are increasing the likelihood that your employees will want to stay at your company.

How Full Is Your Bucket shows that employees who receive regular recognition, experience:

  • Better productivity levels
  • More engagement
  • More loyalty to the company
  • Better customer satisfaction.

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How often should I praise employees?

Gallup reports you should be praising an employee once a week, at least. “Variation in response to this question is responsible for a 10% to 20% difference in revenue and productivity. Employees who report that they’re not adequately recognized at work are three times more likely to say they’ll quit in the next year.”

It may appear that weekly recognition is time-consuming, however it has to take a regular role in the company culture. In today’s social culture, everyone expects an instantaneous response so try to recognize when an individual or team does something great every three to four weeks at a minimum. However, verbal recognition should be more often, every two or three weeks and this can just be a minute long conversation about their exceptional work or dedication.


Use Connecteam, an all-in-one mobile app, to boost recognition and engagement:


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When using Connecteam’s all-in-one communication tool  employee recognition isn’t a big deal, doesn’t take time and seamlessly is a part of your company culture. So sign up for free and start engaging your employees with employee recognition in a click.

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1. Do it frequently.

Don’t just rely on an “employee of the month” program or recognizing someone at the quarterly meeting. Employee recognition needs to happen in real-time. Whenever you see someone going above and beyond, make sure they know it. Send a company wide message, include social functions like comments and likes so all employees can engage.

2. Get regular feedback.

Collect feedback from employees to see if any initiatives you might have implemented are working. You can use surveys to see if they notice any improvements since any changes were implemented. Create your own or choose from a template to send surveys on a regular basis – after a meeting, on a weekly basis, after a company outing, during on-boarding, etc. Or create a suggestion box that employees can access at any time.

employee training software actionable insights

3. Give employees more say.

Give your employees the ability to recommend or choose the employee of the month. Recognition of an employee’s success will help boost their connection to the company and will encourage them to achieve that same success.

Don’t stop there, allow employees to choose the new design for the office, from the color of the walls to the furniture and more. Ask them their thoughts on a new product you’re developing and how you should market it to potential customers. When employees are more involved in what is happening with the company, they are more engaged and more loyal in the long run.

4. Shine the spotlight on employees.

Through group chat, you can share birthday wishes, work anniversary milestones, personal celebrations like marriage or a new baby, team outings and so on. Take the time to celebrate your employee’s personal achievements, whether in or out of the office. Employees will appreciate the attention and will be motivated to work harder. Now that’s a win-win.

5. Communicate!

Most projects fail because there is a lack of communication. Whenever something new is happening with the company, make sure you tell the employees first, they shouldn’t hear about it secondhand.

This will help build trust and boost employee engagement when you are transparent with employees on all company matters. Go ahead and share the KPI goals and where each stands, share company policies, talk about successes at another branch or if you’re moving location, anything and everything should be shared!

communication is key in small business to boost employee recognition

Employee recognition is a basic must-have in any business. Your employees expect this and the younger generation want it instantly. When using an all-in-one communication tool, like Connecteam, employee recognition isn’t a big deal, doesn’t take time and seamlessly is a part of your company culture. So sign up for free and start engaging your employees with employee recognition in a click.

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Lower turnover and boost retention, along with engagement and morale with employee recognition. Connecteam makes it a breeze to send out recognition company-wide.

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