How to Build a Culture of Recognition

What Makes a Great Workplace?

In a rapidly evolving business world, there’s no exact recipe for what makes a workplace great.  Amidst a global pandemic, the Great Resignation, a looming recession and continuously evolving technology – building a robust workplace culture is more important now than ever.  

When people are asked, “what makes your workplace great”, the typical responses you’ll get are: high pay, good health benefits, vacation time, and other office perks like gym access, ping pong tables, and free snacks.

Today's employees expect most of those items as the bare minimum in terms of workplace perks and benefits. Offering free snacks and staff parties is no longer a competitive driver to making your organization a great workplace.  Companies that are ahead of the culture curve know to look for deeper answers to this question, like: “feeling valued,” “a sense of community,” “employee wellbeing," and “opportunities to grow”.

We know recognition is a leading driver in retention, productivity and innovation, but understanding the impact of recognition culture on the overall employee experience is the shift organizations need to make to gain a competitive advantage in recruiting and retaining top talent.  

What is a Culture of Recognition?

In a culture of recognition, employees know their company values them and their contributions to the success of their organization. A culture of recognition builds trust and security, and employees are more motivated to continue doing great work. Recognition consistently emerges in studies on improving workplace culture and has proven to be a primary driver in engaging and motivating employees to do their best.

Employee recognition also reminds employees they are integral to building and living the company’s core values. With effective recognition, employees understand their accomplishments within the context of something greater. So, even when the company is going through changes, employees feel secure and content with the value they bring.

Employee recognition can look different across industries, but knowing how to use it strategically can have a huge impact on your business. Learn more in The Impact of Recognition Across Industries culture guide.

Employee Engagement and Wellbeing

“Globally, employee engagement and wellbeing remain very low, and it’s holding back enormous growth potential” (Gallup Report, 2022).

Employers need to move away from the traditional thinking that engagement happens at work and wellbeing happens at home. Engaged employees are highly involved and are moving the organization forward because their needs are being met, they have a sense of belonging, and they know their wellbeing matters. Disengaged employees are psychologically unattached to their work, or worse, are resentful and reactive because their needs are not being met.  

Gallup’s 2022 State of the Global Workplace Report asks: Are your employees thriving, struggling or suffering? Companies with engaged workers (thriving) have 23% higher profit compared to companies with unhappy workers (struggling or suffering). When employees are engaged and thriving, they experience significantly lower stress, and this plays a massive role in their responsibilities at work and outside of work.

There is a significant correlation between employee recognition and employee engagement – recognition boosts employee engagement and contributes to mental wellbeing. In fact, the absence of recognition can lead to the deterioration of an employee’s psychological health and, ultimately, their performance. Employee wellbeing is not just health benefits and time off; it’s providing a promise and a commitment to your employees that you take their wellbeing seriously.  

Building Your Culture of Recognition

Let’s go back to the question: “what makes a great workplace?”. Implementing an employee recognition platform isn’t the whole solution – making recognition an extension of your core values, your talent strategy, and a regular habit within your organization is the key. So, how do you build a culture of recognition?

1. Start at the top: Workplace culture needs to be modeled by all levels of leadership and needs full support to establish a true recognition culture.  

2. Make the connection: Align recognition with your company’s strategies and core values. Employee recognition is most effective when it’s tied back to the behaviours that your organization values.

3. Make giving recognition easy: Employee recognition platforms, like Kudos, that are accessible to all employees via web browser, a mobile app or kiosk make it easy for employees to give and receive recognition.  

4. Don’t just focus on rewards: While rewards still hold value, recognition should always be the center of your program, with points and rewards, secondary.

5. Be consistent: Keep your recognition program top-of-mind and encourage your leadership teams to embrace it. Giving recognition should become a habit within your organization (even recognizing the small things!).

You can learn more on how to build a culture of recognition and drive your organization's performance in our Recognition Done Right Culture Guide.

Your employees are your greatest asset – you need to foster an environment where they can thrive versus just seeing them as "workers." Employees want to be part of a workplace that unlocks their full potential by being invested in them as a whole person, recognizing them for their achievements, and valuing them as part of a positive workplace culture. When you make meaningful recognition part of your company’s culture, you are unlocking an advantage and leading the way for what can truly make a workplace great.  

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Originally published August 2022. Last updated July 2023.