How to create a culture of recognition and appreciation

One of the lowest-scoring questions in employee surveys is often, “I feel recognised for my contribution.” Yet creating a culture of recognition is fundamental to keeping employees motivated, engaged, and productive. This guide provides practical strategies to foster an environment where employees feel genuinely valued.

The importance of recognition

Recognition is more than just rewarding high performance; it involves acknowledging employees for their contributions, efforts, and behaviours, whether big or small. Research indicates that regular recognition boosts morale, fosters belonging, and builds a positive organisational culture. Employees who feel appreciated tend to be more engaged, productive, and loyal. In fact, employees who feel adequately recognised are 44% more likely to thrive in their role and twice as likely to stay with their employer.

However, many companies underestimate how crucial recognition is. According to a Gallup Report, more than 65% of employees feel undervalued, which is a missed opportunity for boosting morale and retaining talent. Regular, thoughtful recognition leads to higher employee engagement and can significantly reduce turnover rates.

Surely it’s all about money?

Actually no. Yes, the increases in the cost of living over the last couple of years is having an impact. We are seeing increasing dissatisfaction with pay in our engagement surveys. However, when we explore the data to identify the specific things that are driving engagement, pure pay is still not a big driver of engagement.

While financial incentives and pay increases matter, they aren’t the only way to show appreciation. According to O.C. Tanner, effective recognition doesn’t have to be about money. Engagement surveys reveal that employees crave something more meaningful: personalised recognition for their work and effort. Whether it’s a simple thank you, a public shoutout, or a personalised gift, non-monetary recognition can often have a bigger impact on employee motivation.

Example recognition strategies

Employee of the Month:

Recognising standout employees for their contributions each month. It may seem traditional, but it works well in high-turnover environments where employees want to feel noticed for their daily efforts.

Customer Feedback Recognition:

Using customer reviews or feedback to recognise staff members who have gone above and beyond. Publicly sharing this feedback with the team can motivate others to provide excellent service.

Peer-to-Peer Recognition:

Tools like Kudos or Bonusly empower employees to recognise one another’s efforts in real-time, which is especially impactful in team-based or collaborative work environments.

Project Milestone Celebrations:

Recognising teams or individuals when significant project milestones are reached helps to maintain momentum and motivation during long-term projects. In industries such as technology, where projects can span months, this type of recognition ensures that employees feel valued throughout the project lifecycle.

Safety Awards:

Recognising employees who adhere to safety protocols or help prevent incidents. This approach is essential in industries where health and safety are paramount.

Team-based Recognition:

In industries where teamwork is essential, recognising entire teams for their productivity or performance fosters a spirit of collaboration and shared responsibility.

In each of these examples, the key is to recognise employees in a manner that resonates with them and fits the organisational culture.

How can managers create a culture of recognition?

Managers play a crucial role in shaping a culture of recognition and many of the following tips are grounded in the psychology of feedback and the psychology of behaviour change.

Here are some tips for managers to ensure that recognition is meaningful and impactful:

Be specific and timely:

General praise like “good job” is less effective than specific recognition. For example, “Your presentation to the client was well-researched and contributed to securing the deal” shows employees exactly what behaviours are valued. Moreover, recognition should be timely—acknowledge achievements as soon as possible to maximise impact.

Personalise recognition:

Different employees value recognition in different ways. Some may appreciate public recognition, while others may prefer a private thank-you. Managers should take the time to understand what motivates each team member and tailor recognition accordingly.

Encourage peer recognition:

Creating systems that allow employees to recognise each other fosters a supportive and appreciative workplace culture. Peer recognition can highlight contributions that managers might not always be aware of, making it an excellent complement to top-down recognition efforts.

Link recognition to organisational values:

Ensure that recognition is aligned with your company’s core values and goals. For example, if collaboration is a key value, make sure that recognition emphasises team efforts, cooperation, and mutual support. This helps reinforce desired behaviours across the organisation.

Create formal and informal recognition opportunities:

Formal recognition programs like annual awards or performance-based bonuses are important, but informal recognition—like a quick email or thank-you note—can be equally valuable. Managers should strike a balance between the two to ensure recognition happens regularly and meaningfully.

Just say ‘thanks’

The simplest, but most effective tip is to thank people for their efforts. Be authentic, it’s not about constantly high-fiving everybody so do it as often as you can and without fuss.

Crafting a recognition program: best practices

To build a successful recognition program, organisations need to approach it with a strategy. The following steps can help create a culture of appreciation:

Involve Employees in the Design:

Ask for feedback and input from employees on how they would like to be recognised.

Ensure Consistency:

Recognition should happen regularly and be part of daily work culture, not just an annual event.

Celebrate All Wins, Big and Small:

Both significant achievements and small wins deserve recognition. This keeps morale high throughout the year.

Measure the Impact:

Use engagement surveys and metrics to evaluate the effectiveness of your recognition program. Are employees more satisfied? Is turnover decreasing?

In conclusion

Building a culture of recognition and appreciation requires intentionality and consistency. Recognising employees for their contributions, no matter how small, fosters a positive work environment where employees feel valued and motivated. By implementing tailored recognition programs, managers can strengthen engagement, improve morale, and drive long-term success within their teams. When employees feel appreciated, they are more likely to be productive, innovative, and committed to the organisation’s goals, making recognition an essential part of any successful business strategy.