How Employee Recognition Leads to Business Growth


December 20, 2022

Dilara Cossette

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5 min

Discover five reasons why recognition can help you see business success and growth beyond what you ever imagined possible!

CHRO presents the business growth she attributes to the Kudos rewards and recognition platform.

Table of Contents

Your employees are the backbone of your company and your most valuable asset. They are the ones who carry out the day-to-day tasks that keep things running smoothly. The evidence is clear – studies from leading analytics and advisory group Gallup have shown that happy and engaged employees lead to increased productivity and profitability. In other words, a happy employee equals a productive employee so, it truly is in everyone’s best interest to create an environment where employees feel appreciated. One way to do this is through regular, meaningful recognition.  

Employee recognition is not only good for a company’s morale, but it's also good for business growth. Unfortunately, when it comes to growing a successful business, employee recognition is often overlooked as a critical contributing factor.

Still not convinced? Here are five more reasons why recognition can help you see business success and growth beyond what you ever imagined possible:

1. Employee recognition boosts morale and makes employees more productive

One surefire way to make your employees happy is by recognizing their accomplishments. Something as simple as a handwritten thank you note can boost morale and make your team more productive. When you take the time to recognize your peers, they feel valued and appreciated. And when they feel valued and appreciated, they know their contributions matter, and they’re more likely to be engaged in their work and invested in the company’s success. Hint: don’t just recognize the big accomplishments, but also the everyday efforts that keep your operation running smoothly!

2. Employee recognition increases drive and motivation

A positive working environment where employees feel appreciated is a key success factor for any enterprise. You can help create a more positive working environment by acknowledging your employees’ efforts and accomplishments.  

Recognizing employees for their hard work can help create a more positive work environment that feels more fair and fulfilling.  To do so, recognition must be personalized and meaningful. A good rule of thumb is to be specific, be transparent, and recognize the effort, not the outcome.  

3. Employee recognition helps attract and retain top talent

By recognizing employees for their good work, you not only show that you value their contributions, but also demonstrate to other potential recruits that your company is a great place to work. Having a culture employees are openly proud of is critical to building a strong employer brand. Additionally, happy employees tend to be more loyal to their employer, which can reduce turnover rates. Outside employers can easily match salaries, but the culture is different to replicate.

4. Employee recognition leads to better customer service and satisfaction

When it comes to employee recognition, employers often only consider raises or bonuses. However, these financial rewards are not always the most meaningful way to show appreciation. Instead, employers should focus on making employee recognition more personal. This can be done by simply taking the time to notice when someone goes above and beyond or by providing specific feedback on a job well done. By recognizing the behaviors you want to see, employees know what’s expected of them and that their hard work is truly appreciated, something especially important for customer-facing employees. The right recognition can lead to employees providing an experience that clients appreciate and remember, and happy clients = better bottom line.  

5. A formal employee recognition program makes it easy

A formal employee recognition program makes reaping the benefits above possible – and easy! While ad-hoc recognition holds value, an effective employee recognition program can help your company achieve its culture and engagement goals much faster and at scale. By showing employees that their efforts are appreciated, they are more likely to feel motivated and engaged in their work. This can lead to increased productivity and improved morale throughout the company.


Showing your employees that you value their hard work is essential to keeping them motivated and invested in your company's success. Employee recognition doesn’t have to be costly or time-consuming – even a simple “thank you” can go a long way toward making someone feel valued.

If you'd like to learn how to choose the right employee recognition solution for your company’s culture, goals, and budget, feel free to book a 1:1 consultation call with one of our employee engagement strategists.  

Muni Boga: One of Canada’s Most Admired CEOs

Muni Boga: One of Canada’s Most Admired CEOs

“From day one, we have emphasized that Kudos is a safe and open environment for both our leadership and team. This encourages innovation and client-centric thinking – both key drivers in our success. Not to mention, it‘s the right thing to do.”

Muni Boga
CEO, Kudos

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About Kudos

Kudos is an employee engagement, culture, and analytics platform, that harnesses the power of peer-to-peer recognition, values reinforcement, and open communication to help organizations boost employee engagement, reduce turnover, improve culture, and drive productivity and performance. Kudos uses unique proprietary methodologies to deliver essential people analytics on culture, performance, equity, and inclusion, providing organizations with deep insights and a clear understanding of their workforce.

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