The Psychology of Recognition: Understanding Motivation and Engagement

Every organization has its own unique culture, systems, and processes. Understanding what makes employees tick and how to properly motivate them takes a deep understanding of people and psychology. When leaders better understand what drives their people, they can create strategies that help employees reach their full potential and thrive in the workplace.

Research shows there are several factors that influence employee motivation and engagement, and recognition is one of them. Recognition is a powerful tool that involves acknowledging employees for their hard work and dedication, reinforcing behaviors and activities that support organizational goals and objectives. It is a fundamental element of a successful engagement strategy.

This article focuses on the psychology of employee recognition. We’ll discuss why recognition is a behavioural science-backed strategy for motivating and engaging employees, and offer practical advice on how leaders can recognize employees in a meaningful way.

The Effect of Recognition on Employee Motivation and Engagement

Recognition is a key driver of employee motivation and engagement. When employees are recognized for their hard work and achievements, they’re more likely to be motivated to work harder and stay at the organization.

Research from the O.C. Tanner Institute’s 2022 Global Culture Report found that when employees are adequately recognized, they’re:

• 2.6 times more likely to say they will continue to work for their company for the next two years
• 2.9 times more likely to feel highly valued by their organization
• 2.7 times more likely to say they will recommend their company to a family or friend

The same report found that many employees (66%) prefer to be recognized publicly for their achievements rather than privately, because public recognition allows them to bask in the spotlight and celebrate with their peers. On the other hand, leaders who hesitate to recognize employees publicly may be missing a key opportunity to build engagement and cultivate feelings of being valued among their teams.

Recognition also has a positive impact on employee motivation and engagement through the psychological concept of self-determination. When employees feel intrinsically motivated, they’re more likely to feel satisfied, perform well, and thrive in their roles. Recognition supports intrinsic motivation by reinforcing behaviours driven by internal motivations, such as enjoying the sense of accomplishment that comes from doing a good job. When leaders recognize employees for these behaviors, it increases motivation and engagement further.

The Best Ways to Recognize Employees

Recognition is a personal thing, and what works for one employee may not work for another. Leaders should aim to recognize employees in ways that are meaningful to each individual, in order to reinforce the behavior and motivate them to continue striving towards their goals.

Here are some tips for recognizing employees effectively:

1. Create a culture of recognition

A culture of recognition is one in which peers and leaders frequently express appreciation and acknowledge employees for their contributions. When employees feel recognized at work, they’re more likely to feel satisfied and engaged in their jobs. To foster a culture of recognition, start with leadership. Encourage leaders at all levels to frequently recognize employees, and demonstrate the behavior yourself. Ensure recognition is a part of daily activities and conversations so that recognizing others feels natural and heartfelt, rather than forced or incentivized.

2. Offer meaningful, specific praise

Recognition should not be an empty gesture. To have the greatest impact on employees, praise should be specific, meaningful, and about more than just the employee themselves. Focusing on the person rather than their actions gives a hollow feeling, like it’s about their personality rather than their actual achievements.

Effective recognition should communicate clearly why the person is being recognized and how their actions or behaviors are contributing to the company’s success. When recognizing employees, communicate specific examples of exemplary behavior, and explain how these actions helped support the organization, their team, or other individuals.

3. Recognize both individual and team achievements

Recognize individuals and teams for their contributions to the organization. While some organizations do a better job of recognizing teams, there’s still room for improvement when it comes to acknowledging the efforts of individuals.

Recognizing the contributions of an entire team or department can foster a sense of unity and camaraderie, while also reinforcing the idea that the organization’s success is a team effort. Be mindful of recognizing individuals within teams, however, to ensure no one is left feeling overlooked.

4. Provide meaningful rewards

Many organizations leverage rewards as part of their recognition strategies. Rewards can help reinforce and incentivize desired behaviors, but it’s important to be selective and thoughtful about what these rewards are and how they’re distributed.

Avoid rewarding employees with generic, low-value gifts like a coffee mug or a simple certificate. When selecting rewards, consider what would be meaningful and of value to the individual employee. This could be something tangible, like a bonus or a gift card, or something experiential, like an extra day of vacation or an opportunity to attend a conference or workshop. Leaders should also consider investing in rewards that benefit the entire team, like a team lunch or company celebration.

5. Create opportunities for growth and development

Recognition is not just about looking back on past achievements. It should also be used to motivate and prepare employees for future opportunities. Leaders can recognize employees by offering support and guidance to help them grow and develop new skills, and prepare them for opportunities to take on new responsibilities within the organization.

6. Make recognition a two-way street

Recognition shouldn’t just come from leadership alone. Encourage colleagues to recognize and praise one another for their efforts and successes. Peer recognition can be just as powerful, if not more so, than recognition from leaders, because teammates often have a closer perspective on what it takes to succeed in a given role.

Creating a culture where peers regularly recognize each other’s contributions increases the frequency of recognition and helps employees feel valued by their colleagues.

7. Personalize recognition for employees

Recognition should be personalized to each employee’s needs and preferences. Leaders should communicate with their employees to better understand how they like to be recognized. Colleagues may prefer public recognition to celebrate their achievements with their peers, while others may be more embarrassed or uncomfortable with public attention and would prefer a private conversation.

Some people thrive on competition and may prefer recognition that compares them to others, while others may prefer neutral comparison and being recognized on their own merits. Understanding employee preferences helps leaders tailor recognition to each individual, ensuring it’s meaningful and effective.

Conclusion

Recognition is a powerful driver of employee motivation and engagement. When employees are recognized and praised for their hard work and achievements, they’re more likely to be motivated to continue performing at a high level and to feel satisfied and engaged in their work.

Effective recognition stems from a deep understanding of what motivates and engages employees on an individual level. By personalizing recognition to each employee and leveraging the tips outlined in this article, leaders can drive higher levels of motivation and engagement within their organizations.