By: Lady JB Owen

Recognition is one of the simplest and most powerful ways to build a positive organizational culture. However, many leaders overlook or apply it generically. Whether in a small team or a large corporation, recognizing employees can drive engagement, loyalty, and a sense of belonging. When done well, recognition can transform your workplace, fostering a culture of appreciation and success.

The Impact of Recognition on Engagement and Retention

A study by O.C. Tanner revealed that companies that prioritize recognition are three times more likely to have highly engaged employees. Recognition is not merely a feel-good gesture—it is a critical factor in shaping the culture of an organization. Highly engaged employees are not only more productive; they are also more likely to stay with the company longer, thereby reducing turnover and the associated costs of recruitment and training.

Recognition impacts more than just motivation—it touches on human needs for belonging and appreciation. In a competitive talent landscape, fostering a culture where employees feel recognized for their contributions is essential for retention. When recognition is infused into everyday practices, it creates a more engaged and committed workforce, which ultimately drives better business results.

Don’t Wait for Formal Awards—Recognize the Everyday Moments

Chellie Phillips, a leader in organizational culture, emphasizes that recognition should go beyond formal awards or annual performance reviews. Instead of waiting for yearly milestones or promotions, leaders should seize everyday moments to acknowledge employees’ efforts. Phillips suggests that managers focus on recognizing the small yet significant, actions that often go unnoticed.

For instance, rather than solely praising results, managers should praise effort. “The journey is just as important as the destination,” Phillips explains. When employees are recognized for their efforts, they are more likely to remain motivated, even when the results are not immediately evident. This kind of recognition creates a supportive work environment where individuals are empowered to take risks, innovate, and grow.

It’s essential to call out behaviors that reflect organizational values. For example, if an employee goes above and beyond in helping a colleague or demonstrates exceptional customer service, recognize and celebrate that behavior. Doing so not only encourages the individual but also sets a standard for the entire team, reinforcing the behaviors you want to see repeated throughout the organization.

Recognition That Celebrates Uniqueness—Not Just Performance

Accurate recognition celebrates employees as whole individuals, not just for what they do but for who they are. The V.A.L.U.E. Culture framework, which stands for Vision, Adaptability, Leadership, Uniqueness, and Engagement, reminds us that people want to be seen as more than just performers. According to Phillips, the “Uniqueness” pillar is critical for building a thriving workplace culture. “Employees are more engaged when they feel recognized for their unique traits, perspectives, and contributions,” she says.

This means going beyond generic “employee of the month” awards or blanket praise. Instead, focus on personalized recognition that highlights what makes each individual special. For example, take a moment to celebrate someone’s unique skills or talents that may not be immediately apparent in their job description, such as their creativity, problem-solving ability, or leadership potential.

By making recognition specific and personal, leaders show that they understand and appreciate the individual’s unique contributions. This fosters a deep sense of loyalty and belonging, encouraging employees to continue giving their best. As Harvard Business Review notes, personalized recognition can be especially impactful for remote or hybrid teams, where in-person interactions are limited. Read more on personalized recognition strategies.

The Role of Leaders in Fostering a Recognition Culture

Leaders play a pivotal role in shaping how recognition is practiced within an organization. It starts with modeling the behavior. Leaders should not only recognize their teams but also set the tone by acknowledging their peers and the efforts of those in other departments. Recognition should be a core part of leadership practice, not just something reserved for special occasions.

According to a report from Gallup, employees whose managers actively recognize their strengths are more likely to be engaged and stay with their current employer. Leaders should take the time to engage in one-on-one conversations, providing both positive reinforcement and constructive feedback to their team members. These interactions should not just focus on what employees have done well but also encourage them to continue growing and developing within the organization.

Recognition can be made more impactful by integrating it with other cultural initiatives. For example, leaders can align recognition efforts with the organization’s core values and mission. When employees see how their contributions tie into the larger goals of the company, it creates a deeper connection to the work they do.

One powerful way to do this is through regular employee feedback. Anonymous surveys or open forums can help leaders identify who may be under-recognized or overlooked. By incorporating employee input into the recognition process, companies can ensure that everyone has an opportunity to be recognized for their unique contributions. 

Making Recognition a Habit

Recognition should not be a once-in-a-while occurrence; it should be a part of the daily culture. Phillips suggests integrating recognition into routine meetings, emails, or even quick check-ins. Leaders can establish simple systems for tracking and acknowledging contributions, making recognition a regular habit rather than an occasional event.

Creating a culture of recognition requires more than just good intentions. It requires intentionality, consistency, and leadership commitment. When recognition is frequent, specific, and personalized, it strengthens relationships, boosts morale, and builds a team that is motivated to work towards common goals.

Celebrating the uniqueness of employees through recognition is one of the most effective ways to build a culture of engagement, belonging, and success. When leaders take the time to appreciate employees for who they are and for the specific contributions they make, they create an environment where people feel valued and motivated to bring their best selves to work every day. By embedding recognition into the fabric of organizational culture, companies can create stronger teams and improve both individual and organizational performance.

About Chellie Phillips

Chellie Phillips is a workplace culture expert, nationally recognized speaker, and international best-selling author of Culture Secrets. She helps leaders create thriving, people-first organizations using her proven V.A.L.U.E. Culture Formula. Learn more at www.chelliephillips.com

Disclaimer: Results mentioned in this article and on any linked websites may vary and are not guaranteed. The information provided is for educational purposes only and should not be considered professional advice.