Introduction
Imagine feeling like your hard work goes unnoticed, your ideas unheard. It’s a disheartening feeling many of us have experienced. A recent Deloitte study revealed that 13% of Gen Z and 15% of Millennials left their previous jobs due to a lack of fulfillment or meaningfulness. Unfortunately, this sentiment isn’t exclusive to younger generations. It’s a common experience that can lead to decreased motivation, reduced productivity, and a desire to seek opportunities elsewhere.
While many organizations invest heavily in employee benefits and compensation, a simple yet powerful tool to boost employee engagement and retention is through effective recognition. By implementing strategic recognition programs, companies can foster a positive work culture where employees feel valued, motivated, and inspired.
We often view recognition as a tool to improve employee satisfaction and engagement, but another benefit is that the person giving recognition also experiences significant rewards. Our findings over the past few years show that employees, regardless of level, who formally recognize others often feel a greater sense of meaning in their work.
The Power of Recognition
Employee recognition is the process of acknowledging and rewarding employees for their contributions, efforts, or innovations. It’s a powerful tool beyond simple appreciation; it’s about creating a positive work culture where employees feel valued, motivated, and engaged.
Recent research shows that giving recognition fosters deeper connections for the giver. The American Psychological Association has found that individuals who frequently express appreciation report higher job satisfaction and personal fulfillment. Acknowledging others reinforces the giver’s role in creating a positive, collaborative work environment.
The data we have gathered suggests that giving recognition enhances job meaningfulness. Meaningful work is an essential variable for employers as it has been shown to “generate positive and significant contributions to the happiness at work of the respondents and reduces turnover intention.”
How Recognition Programs Impact Employee Engagement
We examined the engagement levels of those who gave formal recognition compared to those who didn’t. What stood out was a strong correlation between giving recognition and a sense of job meaningfulness.
Those who regularly participated in the recognition program were far more likely to agree with the survey statement, “My job makes me feel like I am part of something meaningful.”
Our employee survey data over the past three years shows that 95.7% of employees who gave recognition agreed with the statement about job meaningfulness. Of the population that did not give formal recognition, only 81% agreed that their job made them feel part of something meaningful.
This gap widened in our most recent survey, conducted in June 2024. Every employee who gave recognition felt like they were a part of something meaningful, compared to 79% of those who didn’t provide formal recognition.
We also spoke with a similar-sized company that reported an 88% favorable response rate to the meaningfulness question. While they had a formal recognition system, they did not track who gave or didn’t give recognition, so a direct comparison was difficult. Some companies that participated in the same survey and showed lower engagement results reported no formal recognition system.
Calvetti Ferguson’s Commitment to Recognition
Our firm launched the Calvetti Ferguson GROWTH #Shoutout Program to foster a better culture of appreciation. This program allows any employee to recognize another using our performance management system. In each #Shoutout, the recognition giver explains how the employee exemplifies our GROWTH core values: great, respectful, open, willing, trustworthy, and honest. Each month, during a company-wide meeting, we publicly recognize those who received shoutouts and randomly reward five with gift cards.
Three key themes emerged from our recognition program: it strengthens our shared mission and values, fosters stronger connections, and promotes a positive work environment.
- Recognizing a colleague’s efforts reinforces our organization’s core values and goals. It reminds us of our role in the bigger picture, deepening our connection to the company’s mission. As one of our campus recruiters shared, “People may not realize how appreciated they are, so it brings me joy to acknowledge their efforts. Giving a shoutout reminds me of how I can make others feel valued.”
- Giving recognition is a social act that strengthens relationships. A senior manager in our tax department said, “I love telling others about the wonderful things someone did. When they thank me, I am happy to know I made them smile. Our jobs are tough, so if I can make someone feel appreciated, that’s why I do it.” Stronger relationships foster collaboration and a deeper connection to our work.
- A manager in the tax department said, “If I see someone struggling, I try to give them a shoutout. It often boosts their mood and motivation.” By giving recognition, we contribute to a positive work culture, enhancing our sense of fulfillment. Seeing the impact of our efforts reinforces our belief in our role, boosting our job satisfaction.
Conclusion
While recognition benefits the recipient, it’s just as transformative for the giver if not more so. As our internal research has shown both quantitively and qualitatively, appreciating those around you contributes to a positive work culture, strengthens your sense of purpose, and enhances your fulfillment at work. In a world where meaningfulness is critical to job satisfaction and retention, regularly giving recognition is one of the most impactful—and rewarding—habits you can develop.
If you are a job seeker, find companies prioritizing employee recognition, like Calvetti Ferguson. Look for organizations that celebrate achievements, value contributions, and foster a culture of gratitude. If you’re already part of such an organization, use this article as inspiration to help build a successful recognition program.
By investing in recognition, you’re not just boosting employee engagement; you’re building stronger relationships, fostering a positive work environment, and, ultimately, driving business success. Let’s make recognition a core part of our work culture and reap the rewards together.
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